Need help understanding your statement?

Super often seems to have a language of its own, and this is especially true for the Scheme. So, we’ve put together a glossary of terms to make it easier to read your statement and understand your benefits.

There are two different versions, one for Contributory members (those still working for a participating employer) and one for Deferred members (no longer working for a participating employer). So be sure to use the one that’s right for you.

We also have a dedicated service line for our Retirement Scheme members. So, if you have questions, please feel free to call 1300 167 519. We’re here to help.

Note: This document contains factual information only and is intended to help you understand your Retirement Scheme account, which is governed by the Active Super Trust Deed and detailed in the Retirement Scheme PDS. Please refer to the PDS for more information.

CONTRIBUTORY MEMBERS

(Those still working for a participating employer)

This is the earliest date on which you become entitled to a Retirement benefit from the Scheme in place of some of the other benefits you may receive in the future, such as Resignation and Retrenchment.

For the majority of members, the Early Retirement Date is their 58th birthday.

For contributing members who have not yet reached their Early Retirement Date, the estimated Retirement benefit shown on their statement is projected to their Early Retirement Date using assumptions based on their current salary and future Accrued Benefit Points.

It’s important to note that becoming entitled to a Retirement benefit in the Scheme does not necessarily mean that it can be paid to you immediately, as Commonwealth Government preservation rules may require you to leave your benefit in the Scheme until a later date (please refer to the Preservation section).

For the calculation of some Scheme benefits, including a Retirement benefit, Final Average Salary is used.

Final Average Salary is the average of three salaries, being:

The salary you were earning on the date you ceased employment (Scheme exit date)
The salary on 31 December prior to your Scheme exit date; and
The salary on 31 December prior to (2) above.

For members who have reached their Early Retirement Date, the estimated Retirement benefit shown on your statement has assumed 30 June as your Scheme exit date.

The Salary Ratio is a mechanism used in the Retirement Scheme to cater for members working part-time. For periods of part-time employment, the Salary Ratio will reflect their part-time hours worked versus full-time hours worked. For example, a member working only three days per week would have a Salary Ratio of 60%. A member who is working full time will have a Salary Ratio of 100%.

While a member is working part time, the Salary Ratio will reduce the rate at which that member’s benefit points accumulate. It’s important to note that the Salary Ratio is used only to reduce the accumulation of benefit points during periods of part-time work and is never used to reduce the salary we use to calculate total benefits.

Your Contributor Financed Benefit account (also referred to as Personal Account (PA) on your statement) is an accumulation-style account which will receive and invest your defined contributions (of between 1% and 9% per year). Generally, you will need to make a defined contribution of 1% of salary for each Benefit Point.

Your Contributor Financed Benefit account is unable to accept other types of contributions or rollovers from other funds.

This is one of the employer-funded parts of your benefit.

It is a defined benefit, calculated when you exit the Scheme using a formula which takes into account your salary, your Accrued Benefit Points, the length of time you’ve been contributing and the reason you ceased employment with your Scheme employer.

The estimated Employer Financed Benefit shown on your annual statements is estimated by assuming that you ceased employment on 30 June of the statement year.

Your Basic Benefit is made up of two parts:

Defined Basic Benefit, which is another employer funded benefit which is calculated using a formula. It was introduced in April 1988 and will generally provide a benefit of 3% of salary for every year or part-year you have worked since that date.
Other Contributions Account, which is an accumulation-style account which is able to accept and invest any employer, employee and Government contributions which your Contributor Financed Benefit account is unable to receive. This also includes any balances from other funds that you have rolled over to your Retirement Scheme account.

Concessional contributions are contributions paid by your employer, or by you via a salary sacrifice arrangement. They are usually taxed in the Fund at a rate of 15%.

Non-concessional contributions are personal contributions which are paid from after-tax salary or contributions paid on your behalf by your spouse. Usually, these contributions are not taxed when we receive them.

Your statement shows three types of Benefit Points and their totals:

Contributed Benefit Points
Your Contributed Benefit Points is the cumulative total of all the benefit points you’ve contributed for while you’ve been a member of the Scheme (i.e. between 1 and 9 Benefit Points per year).

Maximum Benefit Points
Although you’re able to accumulate up to 9 Contributed Benefit Points per year, the rules of the Scheme restrict the number of benefit points we can use to calculate your Employer Financed Benefit to a maximum of 6 for every year you’ve been a contributor.

The Maximum Benefit Points total is simply a way of keeping track of this rule.

For full-time employees, the total Maximum Benefit Points will increase by 6 points each year.

Accrued Benefit Points
Your Accrued Benefit Points is the total we use to calculate your Employer Financed Benefit entitlement.

Your Accrued Benefit Points will always be the lesser of your Contributed Benefit Points and your Maximum Benefit Points.

In 1999, the Commonwealth Government introduced legislation which further restricted the payment of superannuation benefits to super fund members, including at retirement. The rules provided all super fund members with a Preservation Age, which is the earliest age at which, under normal circumstances, a super fund member can access their benefit.

The Preservation Age, as it applies to all super fund members, is shown below:

Date of birth	Preservation age
Before 1 July 1960	55
1 July 1960 – 30 June 1961	56
1 July 1961 – 30 June 1962	57
1 July 1962 – 30 June 1963	58
1 July 1963 – 30 June 1964	59
After 30 June 1964	60

The preservation rules mean that some members of the Scheme may be unable to access their benefit even though they have reached their Early Retirement Age under the Scheme rules.

For members whose statement shows estimates of the Deferred lump sum benefit and Withdrawal lump sum benefit (as outlined below), the Early Retirement Date is the earliest date on which, under normal circumstances, a member becomes entitled to the Deferred lump sum benefit.

Your personal account was the account into which your defined contributions (between 1% and 9% per year) were received and invested.

This is one of the employer-funded parts of your benefit. It is a defined benefit which was calculated using a formula which took into account your salary, the amount you contributed, the length of time you contributed for and the reason you ceased employment with your Scheme employer.

This is another employer funded benefit which was calculated using a formula. It was introduced in April 1988 and is intended to provide a benefit of 3% of salary for every year or part-year you worked since it was introduced.

The Other Contributions account was introduced to accept contributions and rollovers that can’t be accepted into your Personal account.

This amount is your full deferred benefit entitlement, plus investment earnings to date. The starting value of this benefit was calculated at the date your benefit was deferred, which is shown on the front page of your statement.

Under the Scheme rules, members would normally become entitled to this benefit when they reach their Early Retirement Date. However, the Commonwealth Government’s preservation rules may require the benefit to remain preserved until a date further into the future (please refer to the Preservation section).

Under the Scheme rules, this amount is the benefit entitlement available to withdraw now. However, there are a couple of important things to note:

The Commonwealth Government preservation rules may override the Scheme rules and you may have to wait longer than required by the Scheme rules to access your benefit.
If you withdraw any part of your Personal account or Employer account prior to your Early Retirement Date, then the maximum total benefit you will receive is your Withdrawal lump sum benefit.

Date of birth	Preservation age
Before 1 July 1960	55
1 July 1960 – 30 June 1961	56
1 July 1961 – 30 June 1962	57
1 July 1962 – 30 June 1963	58
1 July 1963 – 30 June 1964	59
After 30 June 1964	60

The preservation rules mean that some members of the Scheme may have to wait longer than required by the Scheme rules to access their benefit.

Need help understanding your statement?

CONTRIBUTORY MEMBERS

DEFERRED MEMBERS