Am I entitled to an RBF Life Pension?
To be entitled to an RBF Life Pension you must have reached preservation age and retired from the workforce and:
You cannot take a Life Pension if you joined RBF after 14 May 1999. You cannot receive a Life Pension through a Spouse Account if the account was opened after 14 May 1999.
If you hold more than one public sector position you may take a Life Pension and continue to work. Please contact us if you are unsure of your eligibility for a Life Pension.
What types of Life Pensions are available?
RBF has the following types of Life Pensions:
- Reversionary Life Pension
- Non Reversionary Life Pension
- Reversionary Life Pension with a conversion factor of 12
- Schedule 3 Pension
- Reversionary Life Pension
-
- If you die before your partner, RBF will pay him or her a benefit equivalent to two thirds of your pension.
- A Reversionary Life Pension is generally the most expensive to buy.
- RBF will pay you this pension for life. It is a guaranteed income.
- The pension is indexed twice yearly with inflation.
- It is calculated using factors based on life expectancy for a given age, gender, prevailing and expected economic conditions and the Fund's financial position.
- Who can take a Reversionary Life Pension?
- Any member who is entitled to an RBF Life Pension
- Non Reversionary Life Pension
- When you die RBF will not pay your partner or any dependants a pension.
- A Non Reversionary Life Pension is cheaper to buy than a Reversionary Life Pension.
- RBF will pay you this pension for life. It is a guaranteed income.
- It is calculated using factors based on standard life expectancy for a given age, gender, prevailing and expected economic conditions and the Fund's financial position.
- The pension is indexed twice yearly with inflation.
- Who can take a Non Reversionary Life Pension?
- Any member who is entitled to an RBF Life Pension
- Reversionary Life Pension with a conversion factor of 12
- The pension is generally paid at a higher rate than Reversionary and Non Reversionary Pensions.
- The pension is indexed twice yearly with inflation.
- RBF will pay you this pension for life. It is a guaranteed income.
- Your commencing Life Pension is calculated by dividing your lump sum benefit by 12.
- If you die before your partner, RBF will pay him or her a benefit equivalent to two thirds of your pension.
- Who can take a Reversionary Life Pension with a Conversion factor of 12?
- Contributory Scheme members and certain RBF Investment Account members who joined the Contributory Scheme before 1 July 1994.
- Schedule 3 Pension
- RBF will pay you this pension for life. It is a guaranteed income.
- The pension is indexed twice yearly with inflation.
- Schedule 3 pensions are calculated differently to other RBF pensions.
- If you die before your partner, RBF will pay him or her a benefit equivalent to two thirds of your pension.
- Who can take a Schedule 3 Pension?
- Contributory Scheme members who joined the Contributory Scheme before 1 July 1994.
Will I be able to claim a Centrelink benefit?
One of the factors that determines whether you are entitled to a Centrelink benefit is your income. If you take a Life Pension not all of the pension you receive will be counted as income for Centrelink purposes. The amount that Centrelink does not count as income is based on the tax free component of your pension.
Your Life Pension will be 100% exempt from assessment under the assets test where the Life Pension is funded from the Contributory Scheme.
A Life Pension purchased before 20 September 2007 with funds in the RBF Investment Account will be 50% exempt from the assets test.
A Life Pension purchased from the RBF Investment Account after this date receives no assets test exemption.
For further information please contact Centrelink Financial Information Services by telephoning 132 300.
What tax will I pay on my Life Pension?
How your pension will be taxed depends primarily on the source of funds used to commence the pension. Some schemes are fully taxed and less tax is payable when the benefit is accessed. Other schemes, like the RBF Contributory Scheme are only partly taxed.
Life Pensions commenced using funds from the Contributory Scheme contain taxed and untaxed money.
The component of your benefit funded by your employer is not paid into your scheme until you retire therefore no tax has been paid in this part of your benefit. As such, you will be required to continue to pay income tax on a part of your benefit.
After you reach age 60 you will receive an additional 10% tax offset (or rebate) on the untaxed component. The taxed component of this pension will be tax exempt after you reach age 60.
Life Pensions coming from fully taxed superannuation schemes (eg RBF Investment Account) will become tax exempt when the member reaches the age of 60. Members who retire and access their super before they are 60 will continue to pay some tax until their 60th birthday.
Can I make additional contributions or withdrawals?
When you retire, you can elect to take all or part of your superannuation
as a Life Pension if eligible, a Lump Sum, Allocated Pension or a combination.
Once you have made an election and are receiving a Life Pension you cannot:
- make additional contributions to increase your Life Pension;
- vary the amount of your gross pension; or
- make lump sum withdrawals from your pension.
Can I make contributions to the RBF Investment Account?
You can make contributions to the RBF Investment Account if you*:
- are under age 65 regardless of whether you are in paid employment; or
- are under age 65 and ceased employment at any age due to total and permanent
invalidity; or
- aged 65 but less than 75 and were employed for at least 40 hours in any period of not more than 30
consecutive days in the financial year in which the contribution is to be made.
Up to the age of 75, you can roll over superannuation money into the RBF Investment Account.
*Conditions apply, please contact us.
|
