Retirement income covenant

technical resource

The Government recently legislated the Retirement Income Covenant (RIC), which requires trustees to have a Retirement Income Strategy in place to assist its members. 

Why has the covenant been introduced?

In July 2020, the Retirement Income Review found that while the retirement income system was effective, there hasn’t been enough attention given to helping members optimise their retirement income.

In February 2022, the RIC was introduced in the Superannuation Industry (Supervision) Act 1993 (SIS Act), requiring trustees to develop a Strategy for members who are retired, or are approaching retirement, to assist with this issue. 

What does it mean for you?

From the 1 July 2022, a summary of the Strategy, outlining how we plan to meet our RIC obligations will be available on our Additional Disclosures page.

Making the strategy available to super members

The BT trustee will provide members with information on how to view the Strategy, and the resources that underpin that strategy before 1st July. We will let members know via an online message, when they log onto their platform account.

Listen in

Hear from BT technical expert Sarah Conte, in conversation with Jeremy Cooper, Chairman – Retirement Income at Challenger, to discuss what the covenant means for financial advisers.

Support for clients

BT has a range of calculators, tools and education that you may wish to share with your clients when you are discussing  their retirement planning. And our Planning for Retirement Hub may also be a helpful resource.