Pension recalculations

Early in July, we recalculate the pension amounts for the new financial year. During this time, which we also refer to as ‘the pension freeze’ or ‘pension escalation’, you won’t be able to make changes to your clients’ pensions, and they won’t be able to withdraw money from their pension account.

If your client is due to receive a pension payment mid-July, please review the newly calculated amount to make sure it meets their expectations. This may help prevent an ad hoc payment request after their first pension payment in the new financial year.

To offer clients more flexibility, you can select a specific payment date for their regular pension payments, regardless of frequency. For more information, visit Managing pension payments.

What happens when pensions get recalculated?

Pensions are calculated based on your client’s age, account balance as of 1 July, payment frequency and any indexation elections.

After the recalculations, you might notice that your client’s regular pension payment amounts have changed.

We encourage you to ensure that your client’s first pension payment in the new financial year aligns with their expectations.

What you need to do

1. Before 1 July

   Review your client’s pension payment details and make any changes for the remainder of the financial year in Adviser Online before 30 June.
   1. Log in to Adviser Online
   2. Hover over Clients  and select Accounts 
   3. Select your client's Wrap account
   4. Select Account details and go down to Pension details
   5. Select Update recurring pension payments
   6. Update the payment frequency, next payment date, payment amount and/or indexation
   7. Once you’ve made at least one update, select Review
   8. Confirm your updates and select Submit.
      • If you’ve opted for ‘Ultimate’ security , you’ll need to authenticate the update to your client’s pension payments before the change is authorised.
   9. Your recurring pension payments update should be visible in Request Centre and will update overnight on the Account details screen.

2. During pension recalculations

   1. No changes can be made to pension accounts online during the pension freeze. Any pension payments or lump sum payment requests we receive during this time will be processed after the pension recalculations have been finalised.
   2. If your client’s pension payment is due during ‘the pension freeze’, it’ll be processed on time, but the amount will be the same as the preceding pension payment.
   3. In some cases, we may not be able to make your client’s pension payments until after the completion of the pension recalculations (for example, pensions receiving one annual payment of the maximum amount).

3. After the recalculations

   1. Pension payments will be adjusted according to your client’s pension indexation option and payment frequency for the new financial year.
   2. Please review your client’s first pension payment in the new financial year.
   3. If your client is getting a pension payment in July, you may only have a few days to review the amount and make changes if needed.
   4. To give your clients more flexibility, you can select a specific payment day for their regular pension payments.