MyNorth Lifetime frequently asked questions

1. Lifetime Super account (a pre-retirement phase deferred income stream) 

Designed for members in accumulation who want to plan and lock in asset test benefits with no capital restrictions;

2. Deferred Lifetime Income account (a retirement phase deferred income stream) 

Designed for members who have satisfied a condition of release but do not wish to commence income;

3. Lifetime Income account (a retirement phase income stream) 

Designed for members in Pension who commence receiving lifetime income from the account.

Lifetime Super account members must:

• Meet MyNorth requirements
• Be under the age of 64 years and 10 months (account can be held until age 65 years), and not have satisfied a condition of release.

Deferred Lifetime Income account members must:

• Meet MyNorth requirements.
• Satisfy a condition of release
• Enter between age 60 and 89 (can be held until age 99)
• If the Couples feature has been selected, youngest spouse must be 50+ years of age.

Lifetime Income account members must:

• Meet MyNorth requirements
• Satisfy a condition of release
• Enter between age 60 and 89 (unless transitioning from a Deferred Lifetime Income account)
• If the Couples feature has been selected, youngest spouse must be 60+ years of age.

• Taxable accumulation phase
• Full access to roll balance back to any other super fund with no restrictions
• Accepts concessional and non-concessional contributions
• Full investment choice - MyNorth’s Super and Pension extensive menu
• Purchase amount concessions.

• Tax-free growth phase after meeting a condition of release
• Full investment choice - MyNorth’s Super and Pension extensive menu
• Opt-in to the Death and Exit Benefit to receive your starting balance less income paid, subject to legislated maximums and account balance
• Opt-in to the couples option and add a reversionary spouse to the account for peace of mind that your spouse will continue to receive an income for life in the circumstance of your death
• Lump-sum withdrawals up to maximum annual limits
• Accepts concessional and non-concessional contributions
• Annual bonus paid into the account
• Asset test benefits
• Transfer Balance and Total Super Balance equal to starting balance plus contributions less lump-sum withdrawals (investment earnings not included).

• Income for life
• Full investment choice - MyNorth’s Super and Pension extensive menu
• Opt-in to the Death and Exit Benefit to receive your starting balance less income paid, subject to legislated maximums and account balance
• Annual bonus paid into the account
• No minimum income; maximum annual income
• Couple’s Option to pay lifetime income for member and spouse, regardless of who lives the longest
• Asset test benefits.

To ensure the client receive an income for life, a yearly bonus is payable into members’ accounts in a Deferred Lifetime Income account and Lifetime Income account. 

• These bonuses are paid in exchange for any leftover funds remaining in the account after the payment of the Death and Exit Benefit to members or their beneficiaries (if applicable). 
• This bonus is guaranteed by TAL, one of Australia’s largest Life Insurers.

TAL, one of Australia’s largest life insurers is the insurance partner for the Annual Bonus insurance.

The Lifetime accounts are included within existing MyNorth Super and Pension accounts in a single Product Disclosure Statement (PDS) and Target Market Determination (TMD).

Members can hold multiple Lifetime Income accounts, and those accounts can be in separate phases. For example:

• More than one Lifetime Income account, established at separate times and/or for single and couples
• More than one Deferred Income account, established at separate times and/or for single and couples
• A separate Lifetime Super account, Deferred Lifetime Income account, and Lifetime Income account.

Lifetime Super account members:

• Members in Lifetime Super account can move into either a Deferred Lifetime Income account/ Lifetime Income account upon meeting a condition of release, and subject to age requirements
• Members in Lifetime Super account must elect prior to their 65th birthday, to either move into Deferred Lifetime Income account (deferral) or Lifetime Income account (drawdown) at their 65th birthday
• When a member opens a Lifetime Super account, they must remain in that account or a Deferred Lifetime Income account for a minimum of 12 months before commencing income in a Lifetime Income account.

Deferred Lifetime Income account members:

• Members in Deferred Lifetime Income account can only move to Lifetime Income account unless they use the exit option
• Members will need to renew their election to stay in Deferred Lifetime Income account every five years
• When a member opens a Deferred Lifetime Income account, they must remain in that account (or a combination of a previously held Lifetime Super account and Deferred Lifetime Income account) for a minimum of 12 months before commencing income in a Lifetime Income account.

Lifetime Income account members:

• Members in Lifetime Income account can’t move their balance back to a Lifetime Super account or a Deferred Lifetime Income account.

Members and adviser will receive notification 6 months prior to their 65th birthday of the account holder to make their election.

• In the months leading up to the expiration of their 5-year election, advisers and clients will receive communication requiring them to either elect to stay in Deferred Lifetime Income account for a further 5 years or make an election to move into a Lifetime Income account. 
• If an election is not received, the client will automatically be moved into a Lifetime Income account upon the expiration of their previous 5-year election. 

MyNorth Lifetime account members can select from any of the investment options available on MyNorth’s Super and Pension extensive menu.

• Where a member selected the Couples Option when joining a Deferred Lifetime Income account, a reversionary is allowable if the youngest spouse is 50+ and is a “spouse” as defined by the Tax Act.
• Where a member selected the Couples Option when joining a Lifetime Income account, a reversionary is allowable if the youngest spouse is 60+, and is a “spouse” as defined by the Tax Act.

• Yes, a reversionary can be removed from a Lifetime account.
• A replacement reversionary may not be added.
• Couples Option income and annual bonus rates will continue to apply even after a reversionary is removed.