Media Release

8 April 2009

Retirees need to contact Centrelink on minimum draw-down

Minister for Human Services, Senator Joe Ludwig, is encouraging Australians on a part-pension to tell Centrelink if they want to take advantage of Government changes to the amount they are required to withdraw from their superannuation.

“This week, Centrelink has sent letters to around 150,000 retirees who can benefit from the Australian Government’s halving of the amount they’re required to withdraw from their superannuation,” Senator Ludwig said.

“The letters remind customers they need to inform Centrelink within 14 days, if they decide to choose to reduce the amount they draw down from their allocated or market linked income streams.”

Under the Government's broader superannuation rules, retirees have to draw down a minimum amount from their funds. This minimum depends on their age.

“The Rudd Government is responding to retirees’ concerns about the security of their Age Pension payments,” Senator Ludwig said.

“The Government’s draw-down change is aimed at helping retirees preserve the asset value of their income streams, so they have more in super when markets improve.”

“Some part-pensioners may be entitled to an increase in their Centrelink payments because of changes to their drawdown level - that's why it's important they let us know if they change the amount they withdraw from super.”

“Customers will need to provide Centrelink with an Income Stream Schedule as proof of the change,” Senator Ludwig said.

“This will help Centrelink reassess pensioners’ entitlements to ensure they are getting the rate of payment they’re entitled to.”

Senator Ludwig said the minimum draw down for the current financial year was based on account balances from 1 July 2008, but reductions in the value of superannuation accounts have occurred since then.

“The change is in effect until 30 June 2009 and provides part-pensioners with much-needed relief from the impact of the global economic recession.”

Pensioners wanting more information about the change, and how it may affect them, should contact Centrelink’s Financial Information Service on 13 2300.

Media Contact

Sarah Cosson — 0423 823 843 or (02) 6277 7200.