Moving to Retirement

The Water Corporation Superannuation Plan has two flexible and tax effective income stream options. Whether you are over 55 years and still working or moving into retirement, we have options to help manage your money.

You can choose how much income you're paid each year (subject to limits set by the government), and receive payments directly into your nominated bank account on a quarterly or annual basis. If you are looking to draw down on your super gradually or take it as a regular income stream we have the products to support you.

  • An Account-Based Pension Income Stream
  • Transition to Retirement Income Stream

WCSP's income streams have the following advantages:

  • A choice of investment options.
  • Five free withdrawals per year.
  • Low fees and charges.
  • The ability to have tax free investment earnings after age 60.
  • No loss of your capital on premature death.
  • Tax free access to your capital once you are age 60 and have permanently retired.
  • Tax free income once you are over age 60.
  • Favourable treatment under Centrelink/Dept of Veteran Affairs means tests, when compared to other income producing investments.

The Pension Income Stream

For those who have retired

A Pension Income Stream turns your super into a tax-effective regular income, paid quarterly with one additional free withdrawal or annually with four additional free withdrawals. It offers you the security of a regular income and allows you the investment plan to your choice. As your money is working in a tax-effective environment, your investment has the potential to grow.

The Pension Income Stream allows you to choose how much income you wish to receive subject to legislation. You are also able to vary the level of income you wish to receive each year.

This product can be commenced using superannuation and other savings or money you have accumulated.

The Transition to Retirement Income Stream (TTR)

Grow your super as you work

This product caters for those people who want to remain in part-time or full-time employment. Members have the option to receive some income from their superannuation while making larger contributions to their super account, and also the potential to reduce their working hours.

To be eligible you must have already reached retirement age (currently 55 years) and your Transition to Retirement Income Stream account must be opened using funds from your superannuation money.

The TTR Transition product can:

  • Reduce your current and future tax burdens.
  • Help fund salary sacrifice contributions from your current salary.

Whilst you are in the Transition to Retirement income stream, you can't commute an income into a lump sum until you satisfy a condition of release, much like your super account. You must take a minimum of 4% of your balance as income per year with a maximum limit of 10%.

Once you permanently retire or reach 65, the Transition to Retirement account will automatically switch to a Pension Income Stream. This product is often most tax effective when you reach age 60 and payments generally become tax free.

Consider Consolidating your Super from Other Funds

You should consider transferring any other super accounts into the Plan before you start up an income stream. This may provide savings in fees and simplify your arrangements. Water Corporation employees are able to roll over their GESB accounts both from Gold State Super and West State Super to these income stream products. You should always seek advice prior to undertaking such a move.

You should note that once an income stream account is opened, it is not possible to add additional funds to this account. Your existing income stream would need to be restarted or an additional income stream set up.

The minimum amount you require to commence an income stream with the Plan is $50,000.

To consolidate your super before opening a Pension account, log in to MemberAccess and click on the Consolidate Super or complete and return the Rollover Form as part of your application.

Application for Rollover Form - Transfer any superannuation from another fund to your account in the Water Corporation Superannuation Plan

Receiving your Money

Payments from your Income Stream are paid to your nominated bank account.

Taking out Additional Money

In the Pension Income Stream you can withdraw additional money from your account. The minimum withdrawal is $5,000. Remember that the first 5 payments are free and thereafter a $150 fee per payment will be charged.

Ability to choose an Investment Option that suits you

The income streams have available to them four investment options.

  • Cash
  • Conservative
  • Growth
  • Share

Investments can be spread amongst these options and switched during the course of the year. The first four switches per year are free and thereafter a $35 per switch fee applies.

Take Advantage of a Tax-Effective Environment

With retirement income, your funds can continue to grow with investment earnings, while you continue to get the advantages of superannuation tax concessions.

No tax will be payable on the income payments you receive (if aged 60 or over). If you are between 55 and 59 part of your pension income may be tax-free, the remainder may receive a tax offset of up to 15%.

Your investment earnings from Retirement Income streams are tax-free.

Stay with the Plan, the Fund of Choice for Water Corporation

When you retire you do not have to move your superannuation to another fund. You can access your funds by using the Pension Income Stream.

Our fund is professional and the fund that Water Corporation employees have embraced as their preferred fund.

You do not have to go through the inconvenience of swapping funds, and you can continue in a safe and secure fund which has flexibility and good investment performance.

For more detailed information please refer to the Product Disclosure Statement.

Product Disclosure Statement