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Member number:
{member number}
Dear
{member},
No doubt you are aware of the COVID-19 pandemic and
its impact on investments in Australia.
We are
pleased to be able to tell you that the Government has
announced some reduced drawdown options for retirees
with income streams. This means that you can choose to
leave more of your money in your AvSuper income stream
account this and next financial year.
What is the reduced drawdown option?
Usually, you must withdraw a minimum percentage of
your account each financial year. The exact minimum
percentage depends on your age
(refer
to our website if you are unsure what percentage
currently applies to you). For 2019-20 and
2020-21, you can now chose to withdraw half as much.
In fact, if you have already
withdrawn at least half of your minimum drawdown this
year, you
don’t have to withdraw any more in the current financial
year. You cannot, however, re-contribute any excess amounts
into your income stream.
Of course you can continue to draw down on your
pension as usual if you so wish.
How to access the reduced drawdowns
First, assess your drawdown needs and decide what percentage
of your account you wish to drawdown for the remainder
of this financial
year.
Reduce payments for 2019-20...
If you would like to reduce your withdrawals to the
revised minimum, and probably not get any more payments
this financial year, please follow these steps as soon as
possible:
- log into Member Online
- select the 'Income Stream details' heading under
'My account'
- select the 'Edit details' button at the bottom
of the page
- adjust your payments as required (see below)
-
click the save button
- log out of Member Online
To change to the reduced minimum payment and probably
not receive payments before 30 June 2020, select
'Minimum payment limit' as the nomination type in
step 4
To
reduce your withdrawals under the new rule but still get
some income this financial year, replace step 4 with the
following:
- select 'Nominated Fixed Dollar Installment
Amount' as the nomination type
- enter the amount you want to receive each
payment
- adjust the frequency of payments if required
If you have already emailed us a request to change your
drawdown payments, you do not have to do anything - this will be processed for you and
future payments adjusted accordingly.
For 2020-21...
Our system has already noted your revised minimum
payment. If you have currently selected to receive the
minimum payment amount, this will automatically reduce
your 2020-21 payment to the lower rate. You do not have
to do anything to receive the reduced amounts from 1
July 2020.
Your annual minimum details letter will provide the
option for adjusting your drawdown amount for 2020-21,
if you want more than the revised minimum.
If you have any
questions about your drawdown options or your income
stream in general, please contact us by return
email,
ask us to call you or call
1300 128 751 and leave a message. 
Michelle Wade
Chief Executive Officer
PS
Please check our COVID-19 web page regularly as we
will add all changes and updates to that page in the
coming weeks. Note that our office is unattended but we
are working and will respond to all messages as quickly as possible.
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