Blog & Resources
What is a Pension in relation to a Superannuation Fund?
A pension is a superannuation member benefit. Broadly and in most cases it is something that you are eligible to receive upon retirement.
The Australian Taxation Office (ATO) defines a pension as a series of regular payments made as an income stream, this may be provided by a superannuation fund or retirement savings account (RSA).
The Superannuation Industry (Supervision) Regulations 1994 (SISR), Subregulation 1.06(1) defines a pension as follows -
A benefit is taken to be a pension for the purposes of the Act if:
(a) it is provided under rules of a superannuation fund that:
(i) meet the standards of subregulation (9A); and
(ii) do not permit the capital supporting the pension to be added to by way of contribution or rollover after the pension has commenced; and
(b) in the case of rules to which paragraph (9A) (a) applies - the rules also meet the standards of regulation 1.07D; and
(c) in the case of rules to which paragraph (9A) (b) applies - the rules also meet the standards of regulation 1.07B.
Of all the pensions in existence today the most prevalent is the account based pension.