CPI notification delay and Tax Offset reporting change
Confirmation of CPI applied to RBF Life Pensions
RBF Life Pensions are indexed twice yearly in line with increases in the rate of inflation as measured by movements in the Consumer Price Index. The latest indexation was on 1 July 2018. Normally, you would already have received a letter from us detailing your new annual pension amount, instalment amount and any PAYG withholding amounts.
Unfortunately we have been delayed in the production of the confirmation letter. We can confirm that the indexation rate of 1.077% (a pro-rata rate was applied for members who joined in the last 12 months) was applied to pension amounts effective 1 July 2018.
We will have the confirmation letters posted out to you within the next 2 weeks.
Display of Tax Offset in PAYG payment summary
For members who are required to receive a PAYG payment summary from us for the period ending 30 June 2018, please note there is a change to the information displayed on the summary. This change was at the direction of the Australian Taxation Office (ATO).
If you are 60 years of age or less the value of the tax offset that has been applied to your pension (if applicable) will still be displayed on your PAYG summary. There are no changes to how your pension information is displayed.
If you are 60 years of age or older the value of the tax offset (if applicable) is no longer shown on your payment summary. This is in line with new reporting requirements from the ATO in regards to capped defined benefit income streams. Your offset amount will be determined by the ATO once you submit your income tax return. You may note on your payment summary from us that the tax offset is displayed as $0, please be assured that any tax offset you were entitled to has been included in your net pension amount.
We sincerely apologise for the delay in issuing the CPI letter confirmation and any confusion caused by the changes made to the PAYG summary.
If you have any questions, please call the RBF Enquiry Line on 1800 622 631 or email us at RBF.firstname.lastname@example.org. Our offices in Hobart and Launceston are also happy to answer any questions you may have.