Hostplus allocates tax reserves to Retirement Bonus
Major industry superannuation fund, Hostplus has announced what it is describing as a “Retirement Bonus” available to members transitioning to the pension phase and remaining with the fund.
The fund announced that members who meet an eligibility criteria will “receive an additional top-up to their account when they transfer from a Hostplus accumulation or Transition to Retirement account to a Hostplus Pension account”.
Announcing the move, Hostplus chief executive, David Elia said the Retirement Bonus would support members at a pivotal stage in their retirement while also increasing equity across the fund.
“The Retirement Bonus provides eligible members with a valuable boost to their retirement savings at a key transition point, helping them make the most of their super as they move into the pension phase,” Elia said.
“We believe offering a bonus payment is a fairer way to allocate tax reserves that will no longer be required as members enter the tax-free pension phase.
“We are delighted to be able to offer this feature to our members from today,” Elia said.
The announcement said Retirement Bonus payments are calculated based on a member’s individual account balance and investment allocation over the 12 months prior to transfer.
To be eligible, members must have held a Hostplus Accumulation or TTR Account for at least 12 months, maintained their balance in eligible investment options during that time, and transferred all or part of their balance to a new Hostplus Pension Account.
They act like they are the first pension fund to ever hand a tax credit refund to a member. More spin from ISF.
A fairer way would be to allocate the money to members regardless of whether they stay with them or not.
So previously these Industry Funds actually charged members Tax (stole $$) that they should NOT have paid when going into Pension?
It is not a Retirement Bonus, what a load of BS advertising.
It is simply a return of Tax that was provisioned but not needed to be paid in Pension phase.
Did the Union and Bikie Bosses pocket these funds before the so called Retirement Bonus ?
I am delighted that I have SMSF and I get everything that I am entitled to
So for those who want to exit the fund, they get punished by denying them their own money?
Is this how this can be read?
If so, this is appalling.
It’s not a bonus. The tax reserves are funds that should have been allocated to members already. Its members money that they are using to con them to stay. I’m pretty sure that using incentives like this was deemed as unethical by ASIC, but it seems it’s Ok for their mates in the Industry funds to con their members with their own tax reserve money.
It’s an absolute scam!!
It’s an exit fee by stealth.