The Department of Labour and Pensions has issued a new guidance note establishing updated withdrawal limits for Retirement Savings Arrangement (RSA) accounts.
Under the new guidance which will take effect on 1 August, the maximum annual withdrawal amount for retirees has been increased to at least $15,400.
Members who received disbursements between 1 January and 31 July will be eligible for a $400 supplemental payment, where applicable, to reflect this change.
In a press release on 31 July, department director Bennard Ebanks said the annual disbursement has been increased in line with the consumer price index (CPI).
“We will continue to monitor the CPI to guide subsequent increases,” he added.
The updated guidance outlines the maximum annual withdrawal amounts based on a member’s age, ensuring clarity for pension administrators and beneficiaries.
In cases where the calculated amount exceeds $15,400, members may withdraw up to the full calculated maximum.
For members aged 89 or older, the policy allows for the option of withdrawing the full RSA balance as a lump sum at the beginning of any calendar year, provided 60 days’ written notice is given.
Members also retain the option to terminate their RSA and transfer the remaining balance to an approved annuity at any time.
All applications received from 1 January and all approved RSAs are entitled to the new maximum figure, $15,400, at their next disbursement.
The guidance can be read in full here.
