Download Cessation of the NTGPASS Pension Product

NTG-P33-V01
Cessation of NTGPASS Pension Product
What is this fact sheet about?
What are my options?
This fact sheet outlines information on the
cessation of the NTGPASS account-based
pension (ABP) product. No new NTGPASS ABPs
are available from 1 April 2014. The intention is to
transfer existing pension members to an
alternative arrangement later in the year at a date
yet to be determined.
You are not required to take any action at this
stage, however you may choose to do any of the
following:


Why is the pension ceasing?
The take up of the NTGPASS pension has been
modest since introduction in March 2008.
Continued support of the pension product would
mean a significant increase in fees to pension
members.
Many superannuation funds and financial
institutions provide pension products, and
because of their size can offer similar, if not
significantly better, services at lower costs. These
services include on-line facilities, which cannot be
provided through NTGPASS.
While it is regrettable, the decision to cease
providing the NTGPASS pension product has
been made in the best interest of members.

transfer your pension account balance to an
alternative superannuation provider of your
choice;
transfer your pension account balance to an
NTGPASS retained account. Please bear in
mind that investment returns on funds held in
a pension account are tax-free, while
investment returns on superannuation
accounts are taxed at up to 15%;
withdraw lump sums and/or the balance of
your NTGPASS pension account (subject to
preservation rules);
Please note if you are aged 65 or older and
have stopped working, Commonwealth
legislation prohibits you from making personal
contributions to superannuation. In order to
transfer your money to another
superannuation fund, it must be rolled over as
superannuation money directly from your
NTGPASS account.
What should I consider?
What’s next?
If you are in receipt of an NTGPASS pension, you
should consider what you want to do with your
pension account balance.
Later in the year the pension product will be
closed. Remaining members with a pension
account balance will be advised of an alternative
arrangement into which their pension balance will
be transferred.
The Commonwealth pension deeming rules will
change from 1 January 2015. Changes will align
the income test treatment of account-based
superannuation income streams with the deemed
income rules applying to other financial assets.
Account-based income streams held by income
support recipients immediately before 1 January
2015 will continue to be assessed under the
previous rules unless recipients choose to change
to a product that is assessed under the new rules.
It is preferable that members’ new pension
arrangements are in place by this date.
The assessment process to determine an
appropriate alternative arrangement is currently
underway.
Pension members will be provided further detail
about the alternative arrangement and an
opportunity to elect a different option in due
course.
You can do nothing and wait for the alternative
arrangements to be finalised, or you can consider
your options and make a choice.
Location: Level 5 Cavenagh House, 38 Cavenagh Street, DARWIN 0800 • Postal: GPO Box 4675 • DARWIN NT 0801
Telephone: 1800 631 630 • Fax: (08) 8901 4222 • Email: [email protected] • Website: www.super.nt.gov.au
Useful Information
Online tools and websites are available for you to
research and compare the features and costs of
different funds. Some websites charge a fee for
use of these tools, while others offer similar
resources for free.
NTG-P33-V01
Is there a difference in the returns from a
pension account compared to a
superannuation account?
You can find information on:
Yes. Investment returns on funds in a
superannuation account are taxed at up to 15%,
while investment returns on a pension account
are tax-free.
https://www.moneysmart.gov.au/superannuationand-retirement
Can I ‘top up’ my pension account with
additional funds?
http://www.superguru.com.au/
No. You cannot add funds to your existing
pension account as this is considered to be
commencing a new pension.
http://www.chantwest.com.au/
http://www.canstar.com.au/superannuation
http://www.supersavvy.com.au/
Can I still switch investment options and make
lump sum withdrawals?
FREQUENTLY ASKED QUESTIONS
Yes you can still make switches and withdrawals,
subject to the rules of the fund.
Does this affect active NTGPASS members?
Keep in contact with us
No. There is no change to NTGPASS benefits.
Who is affected?
NTGPASS members who were looking to take an
NTGPASS ABP will now have to use an
alternative provider. There are many retail and
industry funds offering such products.
Existing NTGPASS ABP members can continue
to maintain their account for the time being but
the intention is to move them to an alternative
arrangement.
Are there any fees in moving to another ABP?
Each fund sets its own fees but in general do not
charge joining or entry fees.
NTGPASS does not charge an exit fee. However,
the annual account-keeping fee is deducted from
your account on 30 June each year or when you
exit the scheme. If you exit the scheme during the
financial year, the fee is calculated on a pro-rata
basis.
Is there any difference in taxation of the
NTGPASS ABP compared to other providers?
No. All ABPs are taxed in the same manner in
accordance with Commonwealth taxation
legislation.
Please remember to keep us informed if you
change your address or other contact details to
ensure that you continue to receive updates.
Further Information
For general information, please contact the
NT Superannuation Office. Details are provided at
the bottom of the page.
Financial Advice
Please be aware that we cannot provide personal
financial advice. If you require assistance, you
can seek the services of a qualified professional.
Disclaimer
The material in this fact sheet is provided for
information purposes only. It does not take into
account your personal circumstances and should
not be relied upon for making financial
commitments.
The Commissioner of Superannuation and the
Northern Territory of Australia accept no
responsibility for any losses arising from any use
or reliance upon the information or conclusions
reached using the information.
Location: Level 5 Cavenagh House, 38 Cavenagh Street, DARWIN 0800 • Postal: GPO Box 4675 • DARWIN NT 0801
Telephone: 1800 631 630 • Fax: (08) 8901 4222 • Email: [email protected] • Website: www.super.nt.gov.au