Retirement Bonus

We've introduced a Retirement Bonus for members who've transferred from an NGS Accumulation or Transition to retirement (TTR) account to an NGS Income account.

Here's how it works:

When your super is invested in an NGS Accumulation or NGS TTR account we withhold some of your earnings for capital gains tax (CGT) on unrealised gains. However, when you move this money to an NGS Income account, the CGT is no longer payable by NGS Super (the Fund). So, if you're eligible, your portion of the amount that would have been withheld for CGT purposes is paid to you as a Retirement Bonus.

The Retirement Bonus applies to all NGS investment options except for Cash and Term Deposits, Diversified Bonds and the NGS Self-Managed Direct Investment Option (DIO).

You’re eligible for the Retirement Bonus if you:

• opened a new NGS Income account on or after 1 July 2017
• had an NGS Accumulation or TTR account immediately before transferring an amount from one or more of those accounts to a new NGS Income account, and this new account is
  • your first NGS Income account or
  • an NGS Income account resulting from a reset¹, and you haven’t already received a Retirement Bonus on the amount being transferred.

¹ A reset is the process of closing your NGS Income account by transferring the funds back to your NGS Accumulation account, and then moving the consolidated amount into a new NGS Income account. This process can also include funds from an NGS TTR account.

This depends on a range of factors (including the Retirement Bonus Rate) and is determined on an individual basis.

We calculate the Retirement Bonus Rate for each relevant NGS investment option at least once every 3 months based on the level of deferred tax liabilities held by the Fund. The Retirement Bonus Rate will be 0% where the Fund has no taxable unrealised gains.

If you’re eligible, we’ll pay your Retirement Bonus to your NGS Accumulation account before it’s transferred to an NGS Income account, and the amount will be reflected in your NGS Income account opening balance.

The amount of the Retirement Bonus paid on your NGS Accumulation or TTR account will also be shown on your termination statement once your NGS Accumulation or TTR account has closed. Otherwise, you can view this on your Member Online account if your NGS Accumulation or TTR account remain open.

Your Retirement Bonus will be used to purchase more units in your NGS Income account. The amount of units will depend on the dollar value of your Retirement Bonus and the unit prices applicable on the day the units are purchased.

Your Retirement Bonus will count towards your transfer balance cap.²

² All individuals have their own personal transfer balance cap which is managed by the Australian Taxation Office (ATO). You can view your personal transfer balance cap through your ATO linked account by logging in to my.gov.au