New bill would enable voluntary pension withdrawals up to $12,000
The House of Assembly has passed legislation, which will allow a person under the age of 65 who participates in a private, defined contribution pension plan or local retirement product, to voluntarily withdraw up to $12,000, the Deputy Premier explained, with the Bill set to head to the Senate tomorrow.
Speaking at last night’s May 11 press briefing, Deputy Premier Walter Roban said, “The House of Assembly passed legislation on Friday 8 May amending the National Pension Scheme (Occupational Pensions) Act 1998 to permit a person under the age of 65 who participates in a private, defined contribution pension plan or local retirement product, to voluntarily withdraw up to $12,000.
“The Senate will meet this Wednesday to debate the legislation and if approved by the Senate, the legislation will be signed by the Governor.
“Following this, the Minister of Finance will then bring the legislation into operation with the publishing of a notice in the Official Gazette. Once the legislation has been brought into operation, a member or former member of a pension plan or local retirement product under the age of 65 will be able to apply to their administrator for a refund of up to $12,000. This will require them to complete an application form along with providing the appropriate supporting documentation.
“If their application is approved, their plan administrator will have up to twenty working days to make the payment to the applicant as requested.
“The Pension Commission will be providing specific guidance to the plan administrators to make the entire process as efficient and as timely as possible.”
“The Senate will meet this Wednesday to debate the legislation and if approved by the Senate, the legislation will be signed by the Governor.
“Following this, the Minister of Finance will then bring the legislation into operation with the publishing of a notice in the Official Gazette. Once the legislation has been brought into operation, a member or former member of a pension plan or local retirement product under the age of 65 will be able to apply to their administrator for a refund of up to $12,000. This will require them to complete an application form along with providing the appropriate supporting documentation.
“If their application is approved, their plan administrator will have up to twenty working days to make the payment to the applicant as requested.
“The Pension Commission will be providing specific guidance to the plan administrators to make the entire process as efficient and as timely as possible.”
