FAQ: WHAT DOES PRESERVATION MEAN?

This is the legislated requirement that certain superannuation benefits be maintained either in a superannuation fund, rollover fund or retirement savings account generally until permanent retirement after you reach your nominated preservation age (age 55 to 60, depending on your date of birth), or on earlier death or total and permanent disability. However, there are limited circumstances that may enable you to access a portion of your preserved benefit prior to your retirement.

 

Preserved amounts (benefits over $200) are only accessible in cash if you satisfy one of the conditions permitted under superannuation law shown below:

 

• You have permanently retired from work on or after your
  preservation age
• You are aged 60 or more and you resign or retire from
  your current employer

• You are aged 65 or more

• The Trustee is satisfied that you are permanently
  incapacitated or suffer a terminal medical condition*
• You have compassionate grounds for applying*
• You suffer severe financial hardship*
• You die.

From 1 April 2009, if you are or have ever been a temporary resident (and you are not an Australian or New Zealand citizen, or permanent resident), you can only access your super upon departing Australia if your temporary visa has ceased to be in effect, or if you suffer a terminal medical condition*, temporary or permanent incapacity or death.

 

*  As specified by superannuation law and permitted by the Trust Deed.

 

 

Your preservation age

The age at which your preserved amount can be paid to you if you have retired from the workforce is dependent on when you were born.

 

 

* If your preservation age is under 60 you must have permanently retired in order to satisfy a condition of release.

 

The law requires that preserved or restricted non-preserved amounts stay invested in an approved superannuation arrangement unless a condition of release has been satisfied. This could include maintaining your Local Super Marketlink account, transferring to another employer’s fund, a personal super fund, a rollover fund or a retirement savings account in circumstances where you cease employment with an employer.

 

Contact Local Super directly for further information.

 

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