Defined benefit explained

If you have defined benefit-style super, your super benefit will generally be determined by a formula. 

This is different to accumulation-style super, where the contributions made to your account are invested to generate earnings which may be positive or negative.

Defined benefit formulas vary from fund to fund, but they are usually based on a combination of factors like:

  • Your average salary leading up to your retirement
  • How long you have worked for your employer
  • Your age

Super benefits provided through UniSuper’s Defined Benefit Division (DBD) usually include a defined benefit component, and an accumulation component. The value of the defined benefit component is determined by an employment-based formula that isn’t directly affected by the DBD’s investment performance.

Find out more about the DBD, including the benefits of the DBD, its advantages and risks and how your super balance is calculated:

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If you have any questions about defined benefits, please call us on 1800 331 685 or email us.