Default member contributions

By default, you contribute 7% (after tax) of your salary into your Defined benefit component but you can contribute less. There is a range of pre-determined rates to choose from.

If you do reduce your default member contributions, you can't increase them again later and your defined benefit will be reduced.  You can still add extra money with salary sacrifice or after-tax contributions, but it can only go into your accumulation component.

If you receive 17% employer contributions and reduce your default member contributions, the 3%  that goes into your accumulation component will go to your defined benefit component instead.

Reducing your contributions will affect your super

• You’ll have less money to retire on because you’re contributing less. Remember, changing your contributions affects the outcome of the formula that determines your defined benefit balance.
• If you reduce your contributions when you first join us, you won’t receive external death and disability insurance automatically. You’ll need to apply for it separately. See the DBD and Accumulation 2 PDS (PDF, 2.5 MB) for more information.
• It may reduce your inbuilt death and terminal medical condition cover. Your other inbuilt benefits won’t change.

Your employer may be able set up a salary sacrifice arrangement so your default member contributions are paid from your before-tax pay.

Doing this could mean you may pay less tax as these contributions are taxed at 15%, which is generally lower than the income tax that applies to after-tax contributions. There are other effects, like contributions caps, to consider.

Speak to your employer about whether they can set this up for you.

Accumulation 2 gives you the flexibility to change your default member contributions at any time. Choose from our pre-determined rates or set your own.

Reducing your contributions will affect your super

• You’ll have less money to retire on because you’re contributing less.
• You may need to meet extra criteria to receive your default external insurance.
• You’ll need to ensure you have enough money in your account to pay any insurance premiums.

You may be able to ask your employer to pay your default contributions from your before-tax pay (also known as a salary sacrifice arrangement).

Doing this could mean you may pay less tax as these contributions are taxed at 15%, which is generally lower than the income tax that applies to after-tax contributions. There are other effects, like contributions caps, to consider.