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Term Pension

A Term pension (a non account based pension) provides you with an income for a fixed period of time. A Term pension can only be commenced using superannuation money that is unrestricted non-preserved, ie super that is available as cash.

To start a Term pension a minimum investment amount is required which depends on your age and selected term. There are no entry or establishment fees, however payment fees apply to the ongoing payments. Contact Local Super directly for further details.

Investment choice does not apply and it is not possible to roll over other super money or make personal contributions to the Term pension once it has commenced. There is no residual capital value after the expiration of the term of the pension.

The term for the pension must be a fixed period that is no greater than the difference between your age at the commencement date and age 100. For example if you are age 65, your term could be from 1 to 35 years.

The pension payments are indexed on an annual basis at 1 July by the lesser of 5% or the annual increase in the Adelaide CPI (subject to a minimum of zero).

In the event of death before the pension has been in operation for the chosen period and where a reversionary beneficiary has not been selected, the payments due to the end of the period, subject to Local Super’s Rules and relevant laws, will be paid as a lump sum to your estate or a surviving spouse.

The Term pension can only be cancelled within 14 days from the end of the 5th day after which the pension was acquired. The request to cancel the Term pension must be made in writing to Local Super within this 14 day period. After this time, commutations are only permitted if you are instructed to split a benefit under Family Law or if you are required to pay superannuation surcharge assessments.