Indexed pensions

Your pension options

You can receive regular income in retirement with our indexed pensions.

If you need help choosing a UniSuper pension, talk to UniSuper Advice on
1800 UADVICE
(1800 823 842)
.

Understanding indexed pensions

An indexed pension provides you with a regular monthly income indexed to increases to the CPI for the rest of your life without the need to manage your own investments.

Generally, you can’t make lump-sum withdrawals from an indexed pension and you can commute it in very limited circumstances.

As a UniSuper member, you can choose from our:

  • Commercial Rate Indexed Pension, and
  • Defined Benefit Indexed Pension (only available to members who joined before 1 July 1998 and have remained a member continuously since that date).

Commercial Rate Indexed Pension features at a glance

Minimum initial investment $25,000
Contribute additional amounts No
Lump-sum withdrawals No
Payment frequency Monthly
Investment choice Not applicable
Switching frequency Not applicable
Establishment fee $0
Administration fee $301 p.a.(for both Joint Life and Single Life Indexed Pensions, the administration fee is allowed for in the calculation of the annual pension amount)

You can choose from two UniSuper Commercial Rate Indexed Pensions:

  • Joint Life Commercial Rate Indexed Pension, and
  • Single Life Commercial Rate Indexed Pension. 

The main difference is what happens to your pension when you die. If you have a Joint Life Commercial Rate Indexed Pension, your spouse will receive a reversionary pension for as long as they live. A Single Life Commercial Rate Indexed Pension has the same features as the Joint Life option but doesn’t provide a reversionary pension. 

Features:

  • indexed to CPI on 1 July each year
  • a guarantee period
  • monthly pension payments, and
  • income for the rest of your life.

Guarantee period

The guarantee period is the lesser of 10 years or your life expectancy at the date of commencement.

  • Single Life
    If you die within the guarantee period, the residual amount will be paid to your estate as a lump sum. If you die after the guarantee period has elapsed, no residual benefit is payable.
  • Joint Life
    When you die, your nominated spouse will receive 100% of your pension for the remainder of their life. If your nominated spouse is receiving the reversionary pension (after your death) and dies within the guarantee period, the residual amount will be paid to your spouse’s estate as a lump-sum benefit. 

For more information about the Commercial Rate Indexed Pension, the guarantee period and any risks associated with the product, read Your guide to pensions - Commercial Rate Indexed Pension PDS.

Defined Benefit Indexed Pension features at a glance

Minimum initial investment No minimum
Contribute additional amounts No
Lump-sum withdrawals No
Payment frequency Monthly
Investment choice Not applicable
Switching frequency Not applicable
Establishment fee $0
Administration fee

$301 p.a. (deducted from the defined benefit pool of assets. No charge is deducted directly from your Defined Benefit Indexed Pension)

A Defined Benefit Indexed Pension is only available to members who joined the Defined Benefit Division before 1 July 1998 and have remained a continuous Defined Benefit Division member since that date.

To open a Defined Benefit Indexed Pension, you can use all or part of your defined benefit component. If you use only part of your defined benefit component, we’ll convert the remaining amount into an accumulation benefit (together with any accumulation component you may have) and transfer it to an Accumulation 1 account.

Find out more in:

Features:

  • indexed to CPI on 1 July each year (UniSuper could decide to stop adjusting Defined Benefit Indexed Pensions in line with CPI for a period of time or they could be adjusted by less than CPI),
  • based on a formula set out in the Trust Deed,
  • monthly pension payments,
  • 100% exemption from the Centrelink and Department of Veterans’ Affairs assets tests, and
  • income for the rest of your life.

For information about the risks involved in starting a Defined Benefit Indexed Pension, read ‘Risks of Defined Benefit Indexed Pensions’ in the Your guide to pensions – Defined Benefit Indexed Pension PDS. For information about Clause 34, which is invoked in the event of a funding shortfall, please visit our DBD update page.

Dependent and Disabled Child Pensions

If you have a dependent child at the time of your death, they may be entitled to receive a Dependent Child Pension from the Fund. The amount of this pension will depend on the number of dependent children you have at the time of your death and whether your spouse survives you. For more information read Your guide to pensions - Defined Benefit Indexed Pension PDS.

If you have a disabled child at the time of your death, that child may be entitled to receive a Disabled Child Pension from the Fund. This pension would generally be calculated as 20% of the pension you were receiving at the time of your death. For more information read Your guide to pensions - Defined Benefit Indexed Pension PDS.

Remember the general transfer balance cap also applies to dependent and disabled child pensions

A lifetime balance cap now applies to the total amount of super that an individual can hold in the retirement phase tax free. This cap is called the general transfer balance cap.

Get advice

Talk to UniSuper Advice on 1800 UADVICE (1800 823 842) to find out how they can help you.