Allocated Pension

For more details, refer to the Catholic Super Pensions Product Disclosure Statement.

What is an Allocated Pension?

An Allocated Pension is an investment product that provides regular income from a lump sum investment.

Perhaps it is easier to understand if you think of it as your superannuation in reverse. Over your working life, regular contributions have been paid into Catholic Super on your behalf. Throughout retirement, you can receive a regular payment from Catholic Super, called an Allocated Pension. The Pension will continue until the money is exhausted, or if you die, the Pension can continue to be paid to your spouse or as a lump sum to your estate.

What Are The Advantages?

The main advantage is flexibility because:

• you have access to your money
• investment earnings are tax free
• no lump sum tax on rollover
• 15% tax offset is available on most payments
• part of each pension payment may be tax free and the rest may attract a 15% tax offset
• you control the income payments (subject to legislative limits)
• you can control the way your money is invested.

What Are The Risks?

The main risks are:

• there is no guarantee your investment will last for the rest of your life
• you do not know how long your money will last
• laws affecting this product may change
• investment performance is not guaranteed.

What Can You Invest?

You can only invest using existing (and accessible) superannuation monies or by:

• making a contribution to Catholic Super
• by rolling in monies from another fund.

Please note that once your Pension has commenced, you cannot make additional investments into it. If you want to make additional investments, you will have to establish a new Allocated Pension.

Why Should I Choose an Allocated Pension?

• a range of investment options, including 'build your own' options managed by leading Investment Managers
• tax free investment earnings
• no lump sum tax on rollovers
• part of each pension payment may be tax free and the rest may attract a 15% tax offset
• flexibility in how often you get paid
• low fees

How Much Income Can You Receive?

You can choose how much income you receive from your Pension in each financial year from 1 July to 30 June, subject to a minimum amount as specified by the Government.

The minimum is calculated at the date you invest and each 1 July thereafter. It applies for the rest of that financial year and remains the same regardless of changes to the value of your Allocated Pension Account Balance during the year or any partial withdrawals you may make.

You can find out more about how this minimum is calculated in the Catholic Super Pensions Product Disclosure Statement.

You may also try our superannuation and allocated pension calculator.

If you invest in the Allocated Pension between 1 June and 30 June inclusive, there is no minimum amount of income you must receive for that financial year.

We will:

• Monitor your Pension to make sure it complies with the Government limits
• Always pay you at least the minimum amount each financial year
• Let you know if we adjust your pension payments to stay within Government limits

If you need additional funds, you can make a partial lump sum withdrawal at any time.

When Do You Receive Income?

You receive your income payments by electronic funds transfer to your bank, building society or credit union account. Payments are processed in arrears on or prior to the 28th day of each month (twice-monthly payments are processed on or prior to the 14th and 28th day of each month). You have a choice to receive your payments twice-monthly, monthly, quarterly, half-yearly or yearly.

What Investment Option Will My Pension Payment Be Drawn From?

If you select two or more investment options, your pension payment can be drawn in one of the following ways:

• in the same proportion as your investment choice for your Account Balance, or
• you can elect to drawdown your pension payment from one of the investment options you have selected.

How Does Tax Affect My Pension Payments?

We will withhold income tax, if applicable, from the taxable part of each income payment. We may also withhold tax from any withdrawals (commutations) from your Pension.

We strongly recommend that you read the Catholic Super Pensions Product Disclosure Statement and speak to your financial planner or taxation adviser to help you fully understand how taxation affects your Pension.

Flexibility

Allocated Pensions offer members flexibility. For example, you can:

• change the amount of your regular income
• change your investment options
• change the frequency of your regular income (eg. monthly to quarterly)
• request additional lump sum payments.

These requests must comply with our investment and withdrawal limits and with the legislative guidelines.

Investment Options

You can choose the investment style and level of risk you are most comfortable with and that is most suitable for you. Member investment choice allows you to exercise this choice. You have a choice of ten investment portfolios, comprising five Managed Choice options and five Build Your Own options.

More information on the investment options can be found in the Investment section of this website and in the Catholic Super Pensions Product Disclosure Statement.

Withdrawals

You may withdraw (commute) the full value of your Pension at any time, which effectively terminates the Pension.

You can also make partial withdrawals from your account. However, you must withdraw a minimum of $2,000.

Any monies you receive as part of a commutation will be treated as a Superannuation Lump Sum Payment and you may need to declare this amount in your annual income tax return. You can request us to pay this amount directly to you or transfer it to another approved fund.

If you personally receive the lump sum rather than transferring it within the superannuation system, you will not be able to transfer it again and you may have to pay tax on it.

You should talk to your financial planner before making a withdrawal.

Fees and Charges

The initial and ongoing fees and charges can be found at: Fees and charges of the Catholic Super Allocated Pension.

More Information

Full details about Catholic Super's Allocated Pension product can be found in the Pensions Product Disclosure Statement or you can contact the fund.