MAP News

Reduced minimum pension drawdown regulations released

On 16 March, the Government released regulations to halve the minimum pension drawdown requirement for the 2008/09 financial year.

What does this mean for you?

If you're happy with the amount that is currently being paid to you from your pension account, you don't need to do anything as a result of this announcement.

If, however, you would like to vary your pension payment, the changed regulations mean that you now have greater flexibility. The minimum amount that you are required to withdraw from your pension account during this financial year has been halved. If you were previously drawing the minimum, you're now able to reduce your pension payments further. You may even be able to stop them altogether for the remainder of the financial year.

We recommend that you seek advice from your financial adviser before deciding to change your pension payments.

This is general advice only and has been prepared without taking into account your particular objectives, financial situation and needs. Before making any investment decision based on the information or advice contained, expressly or implicitly, in this communication, you should assess your own circumstances and we recommend that you seek advice from your financial adviser.

In last week's news story, we provided details of the Government's proposal to reduce the minimum drawdown requirement for account-based pensions.

As stated last week, the existing minimum drawdown requirements remain in place until the Government's proposal becomes law. We would like to point out, however, that you can, at any time, change your pension payment amount and/or pension payment frequency. You have always been free to adjust your pension payments during the course of the year as long as you ensure that the minimum drawdown requirement is met by 30 June.

Therefore, you can request that your pension payments be reduced or suspended for the rest of this financial year in anticipation of the reduced pension minimums that the Government has proposed. However, you should be aware that if these reduced minimums are not passed into law in time, we will make an additional pension payment from your account towards the end of June to ensure that you meet your minimum drawdown requirement.

If you would like to request a change to a pension payment amount or frequency, or would like any further information on pension payments, please call adviser services on 1800 333 909.

This is general advice only and has been prepared without taking into account your particular financial situation and needs. Before making an investment decision based on this email, you should consider whether it is appropriate to you, having regard to you objectives, financial situation and needs.

Government announces intention to reduce minimum pension payments

The Government this week released a statement indicating their intention to reduce the minimum drawdown requirement for account-based pensions for the second half of 2008-09. This measure is designed to address concerns that, in order to meet the minimum drawdown requirement, pension clients may be forced to sell assets and realise losses in a depressed market.

The government's intention is to allow members to drawdown as little as half of the minimum annual drawdown amounts currently legislated. If any member has already drawn down at least half of the current minimum, then they can decide not to make any further drawdowns for the year.

It's important to note that this proposal is not yet law. The government is still drafting the amended Superannuation Industry Supervision (SIS) regulations, after which a stipulated period has to elapse before the regulations, once introduced, are accepted.

We're not, therefore, able to make any changes to clients' minimum pension payment amounts as a result of this announcement at this stage. The existing minimums remain in place until such time as amended SIS regulations are passed.

We will provide you with further information as soon as the government releases regulations explaining the details of the operation of the relief.

From 1 January 2009, SMF Funds Management Limited will relinquish its RSE licence and Questor Financial Services Ltd (Questor) ABN 33 078 662 718 AFSL No 240829 RSE Licence No L0001489 will take over as Trustee for the MAP Superannuation Fund.

Throughout this website, where SMF Financial Services is mentioned as the Trustee, it should be noted that Questor will assume this role from 1 January.

Why is this change being made?

The purpose of this change is to reduce the number of RSE licences held within the Australian Wealth Management group. Questor is already Trustee for a number of other products within the group and it therefore made sense for it to take on the role of Trustee for the MAP Superannuation Fund.

There will be no change to the operational structure of the MAP Superannuation Fund.

Further information

If you need any further information regarding this change, please call Customer Service on 1800 009 921.

Provide your tax file number to MAP Super before 1 July 2007

Government changes to superannuation legislation, effective 1 July 2007, mean that if you have not notified us of your Tax File Number (TFN) you

• could pay up to 46.5% tax on concessional contributions (such as employer SG and salary sacrifice);
• will be unable to make non-concessional contributions (after-tax contributions including personal contributions);
• could miss out on a super co-contribution (if eligible); and
• will not be able to split your contributions with your spouse.

How do you know if we have your TFN?
If we have your TFN we would have acknowledged this on your last superannuation Benefit Statement. Please refer to the front page of your statement and the line that reads 'TFN Received?'. If the answer to this question is 'No', then we have either not been advised of your TFN or currently hold an invalid TFN.

How can you provide your TFN to us?
You can provide your TFN in the following ways:

• over the phone by phoning MAP Super Customer Service on freecall 1800 009 921
• download the TFN form by clicking here, complete the form and
  - return via fax to 08 9273 3066; or
  - return via mail to PO Box 133 Nedlands WA 6909

If you provide us with your TFN, be assured it is done securely and will under no circumstances be used for any other purposes than outlined on the TFN form. You are under no obligation to provide your TFN, either now or later, and it is not an offence to not quote your TFN.

Simpler Super Fact Sheets

Superannuation has just become a lot simpler and a lot more attractive.  If you want to save, put money into super - you will never find a better savings vehicle[1].  In the 2006 Federal Budget, the Government announced some of the most radical changes to superannuation seen in decades.  Many of these become effective from 1 July 2007 and will create opportunities for everyone, regardless of your age or stage in life.

Because of the radical nature of the changes, there are transition measures in place, so it is important you find out what these changes are and the opportunities they present.

[1] Peter Costello, Federal Treasurer, May 2006 'Simpler Super' reforms

The Medical and Associated Professions Superannuation Fund has created a range of Fact Sheets listed below which will provide you with more information regarding these changes. Click on the links below to download each article.

How much can I put into super?
How much can I take out of super?
How much can the self employed put into super?
What do the Centrelink changes mean?
What do the changes to Employer Eligible Termination Payments (ETPs) mean?

The MAP 2006 Annual Report and performance figures for the period ending 30 June 2006 are now available. Click here to download

Following the recent changes to the Superannuation licensing regime we are pleased to announce that SMF Funds Management Limited received its Registerable Superannuation Entity (RSE) licence on 23 March 2006. SMF Funds Management Limited's RSE Licence number is L0001403.