Who can join?

Your employment means that you are eligible to join the Defined Benefit Division (DBD).

You’ll initially join UniSuper as a DBD member, you can transfer to Accumulation 2 at any point within the first 12 months of membership.

Your super components

Defined benefit component

Your 14% employer contributions along with your standard member contributions go into your defined benefit component. They are automatically pooled with the contributions of other DBD members into a diversified portfolio of investments that are specifically selected and monitored by UniSuper.

This investment pool is used to pay members’ defined benefits when they leave UniSuper or retire. The defined benefit component generally makes up the bulk of your benefit. Although its funds are invested, market performance typically does not affect the value of your final benefit.

This is because your final benefit is calculated using a formula based on your age, benefit salary, period of service, average service fraction, years of membership and average contribution factor. Fees, costs and taxes have been allowed for in the formula. So effectively, the value of your benefit is ‘defined’ by this formula.

It is possible, however, that if prolonged poor investment performance results in assets in the defined benefit pool being insufficient to meet defined benefit liabilities, your defined benefit could be reduced on a basis determined by the Trustee. Please see the DBD Update section for more information.

Accumulation component

The accumulation component of your DBD membership works quite differently from the defined benefit component. The 3% additional employer contribution (if applicable), any voluntary member contributions, and any rollovers you make or government co-contributions you receive are allocated to the accumulation component. Fees, costs and taxes are also deducted from your accumulation component where applicable, as are any optional insurance premiums.

You get to decide how this component is invested by choosing from UniSuper’s range of investment options.

Therefore, the value of your final benefit from the accumulation component is determined not by a formula (as in the case of your defined benefit component), but instead by the performance of the investment options you have chosen (which could be positive or negative).

This means that the value of your accumulation component can rise or fall depending on how investment markets have performed over the period you have been invested.

Contributions

An overview of the different types of contributions:

Employer contributions

Employer contributions up to 17% of your salary are made to your account - 14% finances your defined benefit component and the remaining 3% additional employer contribution (if applicable) is made into your accumulation component.

Standard member contributions

In addition to employer contributions, as a DBD member you can make standard member contributions at the rate of 7% of your after-tax salary.

This amount can be reduced under UniSuper’s contribution flexibility arrangements, however there may be implications for your membership and super benefit.

For more information see the following fact sheets:

• Contribution flexibility for members receiving 17% employer contributions
  
• Contribution flexibility for members receiving 14% employer contributions

For detailed information on the different types of contributions and what it means for your membership please refer to the Super for Defined Benefit Division and Accumulation 2 members product disclosure statement.

Investment choice (accumulation component only)

You can choose how your accumulation component is invested and UniSuper provides a range of investment options you can choose from.

You can also change your investment choice. However, if you do so you may incur an investment switching fee.

When deciding how to invest your super, it’s important to choose investments that you feel comfortable with and which are best suited to your investment needs.

For important information on how the investment options work download and read the Investing for the future booklet.

Inbuilt benefits and optional insurance cover

Inbuilt benefits

Death and Disablement benefits are an inbuilt feature of Defined Benefit Division membership. You cannot opt out of these benefits.

Benefits are payable for temporary incapacity, disablement, terminal medical condition and death.

They are provided by (self-insured) by the Fund, not by an external insurance provider.

Optional insurance cover

Subject to eligibility, optional insurance cover is also available.

For more information on inbuilt benefits and optional insurance cover please refer to the Super for Defined Benefit Division and Accumulation 2 members product disclosure statement.

Fees and costs

Members benefit from the savings we achieve as one of the largest super funds in the country – savings we pass onto you through competitive fees.

The fees and cost applicable to your accumulation account are set out in the Fees and costs section of the website.

More information

Download a copy of the Super for Defined Benefit Division and Accumulation 2 members product disclosure statement (PDS).