Pension Transfer Bonus
If you choose to transfer your superannuation balance into a Super Stream account-based pension (ABP) upon retirement, you could be eligible to receive the Pension Transfer Bonus.
This bonus is a tax rebate and will appear as an extra credit when you open your pension account. As long as you have been a member with Intrust Super for 12 months before opening your pension account, you should be eligible to receive the bonus.
The bonus could give you tens of thousands of extra dollars upon retirement.
How to receive the bonus
All you need to do is have an account in one of the following products for 12 months or more:
The bonus is calculated automatically, so there is no need to apply for it. If you are eligible, the bonus will appear as an additional credit as soon as you open a Super Stream ABP.
How does the bonus work?
Intrust Super has to put aside money to pay capital gains tax when assets in your investments are sold for a profit. If you transfer your savings into a Super Stream ABP, your money will then be in a tax-free investment environment.
When this happens, Intrust Super doesn’t need to pay capital gains tax on your investment earnings. So the money that was set aside to cover your tax can instead be paid straight into your retirement account in the form of the Pension Transfer Bonus.
The bonus amount will be calculated based on the level of tax set aside for future tax liabilities. This amount will be different for each option. Some options will not have a future tax liability and will therefore not be eligible for a bonus.
How is the bonus calculated? How much will I receive?
Rates are reviewed and calculated regularly and the amount you receive is based on:
- Intrust Super’s tax position
- your balance
- your chosen investment option/s and associated tax on capital gains (CGT)
- the amount of time you’ve been invested in the investment options
The Cash investment option is not eligible for the bonus.
The bonus will be different for each investment option. For example, the bonus will not be available on an investment option that is in a loss position. If you’re invested in more than one investment option and only one is in a loss position, you could still be eligible for the other investment option/s that are in a gain position.
When bonus rates are supplied members can access the bonus quote through MemberAccess to estimate how much bonus they may be entitled to.
Can the bonus be reversed or clawed back?
Once you’ve moved to a Superstream ABP, investment switches will not affect the bonus, but withdrawals may.
Intrust Super has a clawback policy in place, where the Trustee reserves the right to clawback the bonus amount. If you withdraw 50% (or more) of your account balance within the first 12 months of joining the Superstream APB, Intrust Super reserves the right to clawback the entire Pension Transfer Bonus amount.
The 50% withdrawal threshold could be made up of income payments or additional withdrawals or both.
Similarly, if you move your ABP product account back to a super account or to another superannuation fund within the first 12 months, Intrust Super reserves the right to clawback the entire bonus.
In the event that you are required to pay a death claim, or you are amalgamating funds to transfer to an ABP the Trustee will not clawback the bonus.
If you have any further questions about the bonus, please contact our Pension team on 1800 000 324. We’re at your service.