VicSuper Commutable Pension
A commutable pension is an income stream you set up using your superannuation savings that allows you to keep your savings in the tax-effective environment of superannuation. Many people use a commutable pension to help them manage their superannuation savings after they have retired.
At a glance
Type of benefit plan
Who can join?
Anyone who has retired and has access to an unrestricted non-preserved superannuation benefit of at least $10,000.
VicSuper provides a range of benefits and services for a low fee structure. There are no fees charged on entry or exit, to make contributions, to roll over or withdraw funds, or to change investment options. For more information on VicSuper's fee structure and other costs affecting your super see Fee structure.
You can roll over your unrestricted non-preserved super money from VicSuper Fund or other complying superannuation funds to start your commutable pension.
Once your pension starts you cannot make contributions into your account, so you may like to consider combining all your superannuation benefits at the outset, for example using VicSuper Beneficiary Account. If, after you open your account, you have other superannuation funds from which you want to draw a pension, you can open a second VicSuper Commutable Pension (as long as the starting amount is at least $10,000).
Choose twice-monthly, monthly, quarterly, half-yearly or yearly income payments, paid into a financial institution of your choice. Choose to receive payments on either the 15th day and/or the last business day of each month; and choose to receive the minimum pension payment amount prescribed by the Government.
Partial withdrawals or 'commutations'
A minimum of $1,000 per withdrawal (excluding funds invested in the Term Deposit Option).
You select your pension amount each year above the minimum limit, which must be at or above the minimum limit for your age. Use VicSuper's calculator to estimate the income you can receive from a VicSuper Commutable Pension, as well as how long it may last.
Age 60 and over
Tax-free pension payments and lump sum withdrawals.
Under age 60
Lump sum withdrawals: will be taxed based on your tax components.
Pension payments: will have PAYG tax withheld from to the taxable component.
100% assessed under the Assets Test
Assessed against the Income Test, however Centrelink will apply a deductible amount.
Choose one or a mix of options from VicSuper's range of investment options.
If you do not make a choice when you join, your account will be invested in the Growth Option, VicSuper's default option.
Nominate a representative
You can nominate a representative (eg your spouse) to make enquiries or obtain information about your account such as your contact details, payment amounts and your account balance. Your representative cannot change your account details.
|Death benefit nominations|
You can choose what happens to your superannuation benefit by making a death benefit nomination.
How do I join?
To open a VicSuper Commutable Pension:
- Read the VicSuper Pensions Combined FSG and PDS, including the section on privacy.
As the joining process can be quite detailed, we encourage you to visit us. Call VicSuper's Member Centre on 1300 366 216 or use our online request form to make an appointment to see one of our superannuation advisers. Our superannuation advice service is offered without obligation and at no charge.
During this meeting we can:
- tell you about the pension options available to you
- guide you through the joining process and help you complete the relevant forms
- advise you on how to combine all your superannuation benefits before you start a VicSuper Pension
- help you structure your account and choose the right investment strategy to suit your needs.
For more information on VicSuper Commutable Pension please refer to the VicSuper Pensions Combined FSG and PDS. You can download a copy from Publications.
If you would like a copy sent to you, complete our online request form or call our Member Centre on 1300 366 216.