Payment of deferred pensions

All you need to know about your deferred pension entitlements can be found here.

From your minimum retirement age

How much of your deferred pension can you convert to a lump sum?

If you resign and choose Option 1, that is a full refund of your contributions and earnings, you can convert:

• up to 30% of your fortnightly pension to a lump sum (if you resigned prior to 1 April 1991, you can convert up to 50%), or
• 100% of your fortnightly pension to a lump sum.

If you resign and choose Option 2 or 3, you can convert:

• up to 50% of your fortnightly pension to a lump sum, or
• 100% of your fortnightly pension to a lump sum.

The lump sum option that you choose will have an effect on your partner’s reversionary entitlements in the event of your death. (See below).

Effect of your choice of lump sum option on your partner

The lump sum option that you choose will have an effect on your partner’s reversionary entitlements in the event of your death.

If you choose to make a partial conversion of your pension to a lump sum, there are two possible outcomes for the payment of the partner pension if it ever becomes payable to your eligible partner (i.e. if you die before your eligible partner).

Under option A:

If you elect to convert a portion of your pension to a lump sum, your eligible partner will be entitled to two-thirds of your original indexed pension that you would have received if you had not elected a lump sum. The lump sum would be less than under Option B.

Under option B:

You can elect to convert the same percentage of your pension to a higher lump sum, in which case your eligible partner will be entitled to two-thirds of the pension payable at the date of your death.

Example of deferred pension options

Based on a deferred pension of $743 per fortnight @ age 55 and the member elects to convert 30% to a lump sum

	Lump sum	Member pension	Spouse pension
Option A	$67,268	$530 per fortnight	$495 per fortnight*
Option B	$78,867	$530 per fortnight	$353 per fortnight*