Social security categories of retirement income streams
|Asset test exempt||This category includes income streams payable for the lifetime of one or more persons or for a fixed term based around life expectancy.
Lifetime income streams in this category must meet all the requirements listed below:
Lifetime annuities and pensions may have a guaranteed minimum payment term
Defined benefit pensions - special rules currently place must of these income streams in this category, regardless of the date of commencement.
Life expectancy pensions must meet the first eight points above, but rather than being paid over a lifetime they are required to be paid for a specified term. The term must have equalled the person's life expectancy (rounded up) if less than 15 years, or if life expectancy exceeded 15 years, between 15 years and life expectancy.
Term allocated pensions must meet the requirements set out in section 16.14.
Asset test exempt pensions or annuities purchased prior to 20 September 2004 receive 100% asset test exemption.Assets test exempt pensions or annuities purchased on or after 20 September 2004 and prior to 20 September 2007 receive 50% assets test exemption.
|Asset tested (long-term)||Income streams that are not assets test exempt income streams, which have:
|Asset tested (short-term)||All income streams which are not classified as assets test exempt or asset tested (long-term). These income streams generally have fixed terms of five years or less.
||Short-term annuities and pensions, with or without an RCV, with a fixed term of five years or less.|
Last modified: Friday, January 12, 2018