FAQ

 

Frequently Asked Questions

Click on these questions for the full story

• Can I draw pension payments from different investment options?
• I have a Transition to Retirement pension. Are there changes when I turn age 65?
• What is a Reversionary Pensioner?
• Is the whole of my pension counted as income by Centrelink?
• How frequently can I receive pension payments?
• When are pension payments made?
• How often can I change the frequency of my pension payments?
• What is the minimum amount of pension I need to take?
• What is the work test?
• What if I do not need any pension payments?
• What if I want to add more contributions to my NGS Super Pension?
• Once I commence drawing a pension, can I at any time in the future, revert to not drawing a pension and go back to a super account?
• Once I commence drawing a pension, I understand that whatever earnings my pension investments attract will no longer be taxed (within the fund) at 15%. Is this correct?
• What is the difference between receiving a lump sum with my regular pension or as a separate payment?
• How do I give my partner, friend or financial advisor access to my account details?
• How do I change my investment options?
• What is a unit price?
• What fees do I incur on my account?
• How can I get financial advice?
  

 

Can I draw pension payments from different investment options?

Yes, you can choose which investment option(s) your payments are taken from. If there is no longer enough money in your chosen option(s), payments will automatically be deducted proportionally from your remaining investment option(s).

 

I have a Transition to Retirement pension. Are there changes when I turn age 65?

From age 65 your pension is no longer limited to 10% of your account balance in any financial year and you may make separate lump sum withdrawals from your pension account as required.

 

What is a Reversionary Pensioner?

You can choose to have your pension continue to be paid to your spouse or other dependant if you pass away; a reversionary pensioner is the person the pension will continue to be paid to.

 

Is the whole of my pension counted as income by Centrelink?

Centrelink considers a range of factors to determine what portion of pension is counted as income, such as nominated pension amount and life expectancy. Upon the commencement of pension a ‘Centrelink Schedule' is provided, which contains the information Centrelink requires for its income and asset test purposes.

 

How frequently can I receive pension payments?

You can elect to receive pension payments either monthly, quarterly (payments would be made in Jan, Apr, July & Oct each year), six monthly or annually.

 

When are pension payments made?

Pension payments are made on the first business day on or after the 15th of the month.

 

How often can I change the frequency of my pension payments?

You may change the frequency of pension payments at any time by completing a Request to Vary Your Pension Payment form.

 

What is the minimum amount of pension I need to take?

You are required to receive a minimum pension payment (proportioned if pension starts during the year) based on your age as follows:

 

Under age 65	4%
Age 65 – 74	5%
Age 75 – 79	6%
Age 80 – 84	9%
Age 90 – 94	11%
Age 95 & above	14%

 

What is the work test?

The work test means being gainfully employed for at least 40 hours in a period of no more than 30 consecutive days during the same financial year in which the contributions are made.

 

What if I do not need any pension payments?

If you are under age 65 (or over 65 and meet the work test during the financial year), you may choose to contribute any pension payments that you do not require back into a superannuation account.

 

What if I want to add more contributions to my NGS Super Pension?

Once a pension commences no additional funds can be added directly to pension account, this needs to be done via a superannuation account (subject to contribution limits and work test requirements if over 65). The extra funds can either be used to set up a second pension account (this may be required for estate planning purposes). Alternatively, you can roll your pension back to your super account, add the additional money and start a new pension account.

 

Once I commence drawing a pension, can I at any time in the future, revert to not drawing a pension and go back to a super account?

You are not locked into a pension and can transfer your benefit back into a superannuation account at any time.

 

Once I commence drawing a pension, I understand that whatever earnings my pension investments attract will no longer be taxed (within the fund) at 15%. Is this correct?

Yes - earnings on your pension investments are tax-free.

 

What is the difference between receiving a lump sum with my regular pension or as a separate payment?

If you are in receipt of a Centrelink benefit (such as age pension) any lump sum, if added to your regular pension payments, will form part of your income test (where any separate lump sum will not be - unless the lump sum is reinvested in another Centrelink-assessed investment).

 

How do I give my partner, friend or financial adviser access to my account details?

Before we will provide information to another party, we require your written authority, which remains valid for 12 months. However we will provide information to another party at any time on production of a valid Power of Attorney.

 

How do I change my investment options?

By completing a Pension investment switching form you can elect to change your investment options for your current pension account balance. You can also use this form to nominate which investment options you want your future pension payments to be drawn from. You are entitled to one free investment switch each financial year (any additional investment switches will incur a fee, currently $30). There is no charge for any new nomination of investment options for pension drawdown purposes.

 

What is a unit price?

Your contributions, rollovers and transfers are used to acquire investment units, which represent your interest in the underlying investments in your selected investment option.

 

What fees do I incur on my account?

The Fund charges an administration fee of $1.25 per week ($65.00 per annum) and an asset-based fee of 0.10% pa. Investment switching and withdrawal fees, currently $30, only apply in limited circumstances. Full details of fees are shown in the Member Guide Product Disclosure Statement.

 

How can I get financial advice?

You can access financial planning as part of your NGS Super membership. To take advantage of our no-obligation free initial financial planning consultation, call 1300 133 177.