DLP Announces Disbursement Increase for RSA Accounts

 The Department of Labour & Pensions (DLP) has issued a new guidance note establishing updated withdrawal limits for Retirement Savings Arrangement (RSA) accounts, which will take effect on 1 August 2025.

Director of DLP Bennard Ebanks stated, “"By increasing the annual disbursement for retirees in line with the increased consumer price index, it will assist in coping with the increased costs. We will continue to monitor the CPI to guide subsequent increases."

Under the new guidance, the maximum annual withdrawal amount has been increased to $15,400. Members who received disbursements between 1 January and 31 July 2025, will be eligible for a $400 supplemental payment, where applicable, to reflect this change.

The updated schedule outlines the maximum annual withdrawal amounts based on a member’s age, ensuring clarity and consistency for pension administrators and beneficiaries alike. 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 2025 and all approved RSAs are entitled to the new maximum figure, $15,400, at their next disbursement. If you have queries relating to the new RSA increase, please contact your Pension Plan administrator.