The transfer balance account works in a similar way to a bank account. Amounts you transfer into Retirement Pension accounts are added to your transfer balance account. Certain withdrawals from your pension are debited from your transfer balance account. Your regular pension payments do not have an effect on your transfer balance account balance. The maximum balance of your transfer balance account is $1.6 million in 2017-18.
For members with Term Allocated Pensions, a different formula based calculation applies. Please contact our Financial Planning team for assistance
Special rules apply to Child income account holders. Please refer to the Child Income Account Terms and Conditions document for more information.
Although there is now a limit on the amount of assets you can transfer into a tax-free Pension account, this does not affect the amount of money that you can have in the accumulation phase of a superannuation fund. Any amount of superannuation you hold above the $1.6 million amount can remain in BUSSQ’s MySuper or Premium Choice accounts, or be taken as a lump sum payment.
The cap also includes the value of pensions or annuities you may start to receive for some other reason, for example:
your spouse has died and you are receiving, or start to receive, a pension from their superannuation
your former spouse has been ordered to pay you a portion of their pension income stream as part of a family court settlement.
The cap does not apply to any subsequent growth or losses. This means that:
if you start a pension with $1.6 million and the value of that pension grows to $1.7 million, you will not exceed your cap
if you start a pension with $1.6 million and the value of that pension goes down over time as you use it to live on or you suffer losses, you can’t 'top up' your pension accounts – you will still be able to access other superannuation amounts you may hold in accumulation phase by taking these as a 'lump sum'.