To aid the cashflow of superannuation funds in the recent economic downturn, changes were made to the minimum pension levels. Pensioners in receipt of account based pensions and transition to retirement income streams were only required to draw half of their minimum pension for the years ended 30 June 2009 and 2010.
On 1 July 2010, the full pension levels were due to re-commence. However, the Government announced that the 50% minimum pension reduction will continue for the 2010-11 financial year.
As in the past two financial years, the list of eligible pensions includes:
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account based pensions,
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transition to retirement income streams,
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allocated pensions,
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transition to retirement allocated pensions, and
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market linked pensions.
The extension of the relief is designed to allow retirees to recoup the losses on their pension portfolios as equity markets recover over time.
