You don't need to apply — if you're eligible, it'll be paid automatically into your new retirement pension in MLC MasterKey Pension Fundamentals
There'll be no tax payable on the Pension Bonus credited to your account
Calculated as a percentage of your starting retirement pension balance in MLC MasterKey Pension Fundamentals
The Pension Bonus represents a tax saving that will be passed on to you, if you’re eligible, shortly after you move some or all of your MLC MasterKey Super account1 and/or Plum Super account to MLC MasterKey Pension Fundamentals to start your first retirement pension.
The amount of the Pension Bonus depends on the MLC Super Fund’s tax position at the date the Pension Bonus is processed, and the amount you transfer into your MLC MasterKey Pension Fundamentals account to start your retirement pension.
Ticking the boxes for the Pension Bonus is easy. You may be eligible if:
The Pension Bonus payment is calculated individually and can vary depending on your starting retirement pension balance in MLC MasterKey Pension Fundamentals and the MLC Pension Bonus rate at the time your bonus payment is processed. That being said, there is no cap on the bonus payment you could receive. The latest available Pension Bonus rate can be viewed at our Investment prices & performance page.
Jamie's story below is a good example of how the Pension Bonus can apply, with payments for a range of starting retirement pension balances, subject to meeting the eligibility criteria.
Jamie had
$350,000
in her MLC MasterKey Super Fundamentals account at retirement
She transferred
$325,000
into an MLC MasterKey Pension Fundamentals to start her retirement pension
And received a
$1,625
Pension
Bonus payment
(Example only and assuming a Pension Bonus rate of 0.5% at the time the bonus payment is processed)
MLC MasterKey Pension
Fundamentals retirement
pension starting account
balance
$250,000
$500,000
$750,000
$1,000,000
$1,500,000
Pension
Bonus payment
$1,250
$2,500
$3,750
$5,000
$7,500
(Example only and assuming a Pension Bonus rate of 0.5% at the time the bonus payment is processed)
The Pension Bonus rate is reviewed at least monthly and adjusted as required to reflect the MLC Super Fund’s tax position. To view the latest rate, visit our Investment prices & performance page.
1MLC MasterKey super account includes any account (including a transition to retirement pension in the pre-retirement phase) that you may have within MLC MasterKey Super Fundamentals, MLC MasterKey Business Super or MLC MasterKey Personal Super.
Check out the MLC MasterKey Pension Fundamentals Product Disclosure Statement (PDS) to see if it’s right for you.
MLC MasterKey Pension Fundamentals is the easy-to-manage pension account that gives you a great opportunity to continue growing your wealth while providing you with an income in retirement.
Before you make any changes to your retirement strategy, we recommend that you speak with a financial adviser.
If you transfer some or all of your MLC MasterKey super account1 and/or Plum Super account to MLC MasterKey Pension Fundamentals to start your first retirement pension, you may be eligible for a one-off Pension Bonus.
When a pension is in the retirement phase, investment earnings are tax exempt to the Fund. If you’re eligible, an amount equal to a portion of the estimated tax saved on assets transferred from pre-retirement phase to retirement phase will be paid into your account as a one-off Pension Bonus shortly after you start your first retirement pension in MLC MasterKey Pension Fundamentals.
The rate of Pension Bonus is based on the Fund’s tax position at the date the bonus is processed. This rate is determined by the Trustee or its delegate. If you’re eligible, processing will generally be within one month of you starting your first retirement pension in MLC MasterKey Pension Fundamentals.
1MLC MasterKey super account includes any account (including a transition to retirement pension in the pre-retirement phase) that you may have within MLC MasterKey Super Fundamentals, MLC MasterKey Business Super or MLC MasterKey Personal Super.
Pension Bonus is available to members with an MLC MasterKey super account1 and/or Plum Super account.
An MLC MasterKey super account includes any account (including a transition to retirement (TTR) pension in the pre-retirement phase) that you may have within MLC MasterKey Super Fundamentals, MLC MasterKey Business Super or MLC MasterKey Personal Super.
The Pension Bonus is not available to members of MLC Wrap or MLC Navigator, or other products offered by Insignia Financial Group.
You'll be eligible for the Pension Bonus if:
1 MLC MasterKey super account includes any account (including a transition to retirement pension in the pre-retirement phase) that you may have within MLC MasterKey Super Fundamentals, MLC MasterKey Business Super or MLC MasterKey Personal Super.
If you’re eligible for the Pension Bonus, it’ll be automatically credited to your account, generally within one month of starting your first retirement pension in MLC MasterKey Pension Fundamentals.
If you have an investment allocation in Term Deposits, Investment Protection investment options or suspended investment options, any applicable Pension Bonus will be paid into MLC Cash rather than these options. You can choose to switch part, or all, of the Pension Bonus payment into a different investment option at any time. We do not charge a fee for you to do this. However, buy-sell spreads may apply.
The Pension Bonus is calculated as a percentage of your starting retirement pension balance in MLC MasterKey Pension Fundamentals. The Pension Bonus rate (expected to be in the range 0% to 1.0%) is based on the Fund’s tax position at the date the bonus is processed. This rate is determined by the Trustee or its delegate.
The Pension Bonus rate available for the investment options we offer is generally reviewed on a monthly basis and is adjusted to reflect the Fund’s tax position. The Pension Bonus rate will be the same for all investment options, including MLC Cash.
We reserve the right to claw back the Pension Bonus where you withdraw 50% (or more) of your starting retirement pension balance within the first 12 months, or due to regulatory changes. Withdrawals include income payments, commutations, and rollovers.
Clawbacks will not apply to Death, Terminal Illness or Total and Permanent Disability (TPD) payments.
No, the Pension Bonus won’t count towards your concessional contributions cap.
As the Pension Bonus is an earnings adjustment after your retirement pension in MLC MasterKey Pension Fundamentals starts, it won’t count towards your Transfer Balance Cap.
Your Pension Bonus will only be included in the calculation of your age-based minimum pension payments from the financial year after the Pension Bonus is credited into your retirement pension.
Yes, you can but you must meet the eligibility criteria, i.e., you must be invested in the pre-retirement phase for a continuous period of at least six months before starting your first retirement pension.
Important information and disclaimer
This information is provided on behalf of NULIS Nominees Australia Limited ABN 80 008 515 633 AFSL 236465 (NULIS) as Trustee of MLC Super Fund. NULIS is part of the group of companies comprising Insignia Financial Ltd ABN 49 100 103 722 and its related bodies corporate (Insignia Financial Group).
The information on this web page is general in nature and does not take into account your objectives, financial situation or needs. Because of that, before acting on this information, you should consider its appropriateness, having regard to your objectives, financial situation and needs, plus consider the relevant Product Disclosure Statement (PDS). We recommend you obtain financial advice tailored to your own personal circumstances.
You should obtain a PDS relating to the financial product mentioned in this communication and consider it before making any decision about whether to acquire or continue to hold the product. Target Market Determinations (TMDs) for relevant products are also required to be made available and considered by distributors. A copy of the PDS and TMD are available upon request by phoning 132 652 or by searching for the applicable product on our website at mlc.com.au