The Government has reduced the minimum annual payment required for account based pensions and annuities, allocated pensions and annuities and market linked pensions and annuities by 50% for the 2019-20 and 2020-21 financial years.
Superannuation and annuity providers calculate the annual payment required for the financial year at 1 July. This calculated minimum payment should be reduced by 50% for the 2020 and 2021 financial years.
If you have already taken your minimum pension payment for the 2020 financial year (per COVID-19 and this reduction), you can only contribute the “excess” back into super via normal contribution rules.
If you have not yet taken your minimum pension for the 2020 financial year, you can apply the 50% temporary reduction now.
Please contact Adam Roth if you have any queries on this.
Adam Roth – SMSF Manager