Minimum drawdown rules relaxed

The Federal Treasurer Wayne Swan and Senator Nick Sherry, Minister for Superannuation and Corporate Law, have jointly announced relief from minimum account-based pension draw down requirements.

The measure responds to the following concerns:

	Meeting the minimum draw down amount in 2008/09 would mean having to sell investments and potentially realise losses in a depressed market
	The minimum drawdown requirements were based on asset values as at 1 July 2008, when equity values were higher

The temporary relief takes the form of a 50% reduction in the minimum payment amount for the 2008/09 year. It will apply to account-based, allocated and term allocated pensions and annuities.

Published : 19 February 2009