Minimum pension standards
Since 1 July 2007 only two types of pension products can be offered by super funds:
Account based income streams – such as Telstra Super RetireAccess®Non-account based income streams – such as life annuities. These products need to meet the following minimum standards:
- Payments must be made at least annually.
- There are minimum annual payment limits. Maximum annual payment limits have been abolished (except for pensions issued under the transition to retirement legislation) see Income Stream Payment Limits for details.
- Pensions are only transferable on the death of the pensioner and new rules apply to the way in which death benefits can be paid.
- Pensions cannot be used as security for borrowing.
- Commutations and lump-sum payments are allowed only where the minimum annual payments have been met on a pro-rata basis.
- Pensions may not be added to, via either contribution or rollover, once the pension has commenced.