Receiving a pension payment

Upon commencement of your pension, you may select the frequency with which you receive pension payments from the following:

• Monthly
• Quarterly
• Half yearly
• Yearly

 

You must receive at least one pension payment per financial year.  If, however, you begin a pension after 1 June in any financial year, you can defer the beginning of your pension payments until the next financial year.

You can change the frequency at which you receive your pension payments at any time during the life of your pension. 

How your pension payments are calculated

Each financial year, you are able to select the pension amount that you will receive that year.  The amount you receive must be equal to or above a certain prescribed minimum level, based upon your age. 
The prescribed minimum levels for the relevant age bands are as follows:

 

Age	Annual Percentage Payment Amount
Under 65	4
65-74	5
75-79	6
80-84	7
85-89	9
90-94	11
95+	14

Your age is measured on the day on which the pension begins, or 1 July of the relevant financial year (if it is not the first year of your pension). 

If your pension does not commence on 1 July, the pension factor is applied proportionate to the number of remaining days in the financial year, in order to determine the minimum pension amount. 

Above this minimum amount you can select to receive any amount in pension payments that you choose, up to 100% of your account balance (with the exception of a Transition to Retirement Pension, which is limited to 10% per annum).

Note: if you are under age 60, your pension payments may be subject to tax.
 
HIP Administration will calculate and advise you of your minimum pension amounts each year, from which you can elect the amount you would like to receive.  You can change the amount or apply to take out a lump sum payment at any other time.