When can Members claim a benefit

Withdrawing a superannuation benefit

There are laws that restrict when Members can withdraw their superannuation. Generally they can only withdraw superannuation when they:

• leave current employment, their employer had made contributions to the plan and Member's preserved benefit is less than $200, or retire after reaching preservation age (see Preservation Table for preservation age),
• or cease employment and are aged 60, or
• reach age 65, or
• become permanently disabled (see Page 19 of Employer Information PDS), or
• qualify for early release of the benefit on severe financial hardship or compassionate grounds, or
• are a temporary resident and have permanently departed Australia (not available to New Zealand citizens).

Retirement and preservation age

To withdraw superannuation due to retirement, Members must be retired from the workforce and have reached preservation age. The preservation age depends on when Members were born.

Preservation Table

If you were born	Your preservation age is
Before 1 July 1960	55 years
1 July 1960 - 30 June 1967	56 years
1 July 1961 - 30 June 1962	57 years
1 July 1962 - 30 June 1963	58 years
1 July 1963 - 30 June 1964	59 years
1 July 1964 or after	60 years

Severe financial hardship

A member suffering severe financial hardship may be able to apply for an early release of their superannuation. To be eligible Members must satisfy certain conditions, such as being in receipt of a Commonwealth income support payment for a continuous period of at least 26 weeks (or 39 weeks if they've reached their preservation age, plus 39 weeks), and are unable to meet reasonable living expenses. Please contact CONNECT for more information.

Compassionate grounds

Applications for early release of superannuation on compassionate grounds are considered by the Australian Prudential Regulation Authority (APRA). Members may Employer info for website 9 Applications for early release of superannuation on compassionate grounds are considered by the Australian Prudential Regulation Authority (APRA). Members may Applications for early release of superannuation on compassionate grounds are considered by the Australian Prudential Regulation Authority (APRA). Members may qualify if they need to cover expenses they, or their dependants incur for:

• medical expenses
• foreclosure on a mortgage
• modifications to a house or vehicle due to severe disability palliative care or funeral expenses.

 

For more information, please contact APRA on 1300 131 060.

Leaving Australia permanently

If a member is a temporary resident and the holder of an eligible visa, then, after the visa has expired and they've left Australia, they can:

• leave their benefits with CONNECT, or
• transfer it (roll it over) to another regulated Australian superannuation fund,
• or cash the benefits when their temporary resident visa expires (it must be an eligible visa).

Please contact CONNECT for more information.

Transfer of low account balances

Member account balances may be transferred from CONNECT to the AMP Eligible Rollover Fund (AMP ERF) if:

• their account balance is below $1,000, and
• no employer contributions have been received for 6 months;
• and the member is not currently employed with an employer who is registered with CONNECT, and
• they have not nominated a preferred rollover fund within 28 days from the date they receive a letter notifying their account is to be transferred.

If funds are transferred to AMP ERF, any insurance cover under the CONNECT membership ceases.

Lost Members

CONNECT makes every effort to ensure our information reaches Members, but we need you and your employees to help to keep our records up to date, particularly change of address.

If we can't locate Members, they will be deemed a 'lost member' and their details will be reported to the Lost Members Register.

The Lost Members Register can be contacted on 13 10 20.

Member Benefit Protection

When a member's account balance remains below $1,000, CONNECT will not charge an administration fee if this fee exceeds the amount of interest the account balance has earned. The Member Protect Legislation does not apply in respect of insurance premiums or tax on contributions, so these charges will still be deducted.

If the investment returns are lower than the administration fee for a particular financial period, the Legislation allows the Trustee of CONNECT to charge an amount equal to the investment return credited to the member's account, plus $10.

If the interest rate has been negative and has reduced the member's account balance, the Trustee can only charge a maximum of $10.

Family Law

On 28 December 2002, changes to the Family Law legislation came into effect. Family Law legislation allows separating couples to divide their superannuation in one of two ways: by agreement or, where they are unable to agree, by court order.

Superannuation funds are obliged to: provide certain information to a member or spouse upon request, and allow superannuation benefits to be split between the parties.

Where a Family Law payment split is being contemplated, CONNECT is required to provide prescribed information to either the member or their (former) spouse on request. We must also protect the privacy of both parties and not provide an address or disclose to either party the fact that an enquiry has been made on an account.

In the case of splitting superannuation benefits under the Family Law Act, CONNECT has decided to accept non- member spouses as Members of the fund if they choose to join (with certain rules to apply). Please note that a charge applies where a Family Law payment split is made (refer to the Employer Information PDS for information on fees and charges).

Please contact CONNECT if you require more information about this legislation.

• To leave them in CONNECT. In this case their account will be debited with an account-keeping fee of 80 cents per week.
• To transfer the balance in their account to another superannuation scheme.
• To transfer the balance in their account to an approved deposit fund or annuity fund, or preservation fund.

There are times when contributions are not preserved, e.g.

• If the amount in the preserved portion of their account is less than $200.
• If this happens they may elect to receive the full amount from their personal account in cash.
• If they become totally and permanently disabled.
• If they die, when the benefit is paid to their beneficiaries