Which product is right for you?
The Defined Benefit Division (DBD) product is our default product for eligible higher education employees receiving 14% or 17% employer contributions. While your employer may have signed you up for the DBD, you have the choice of staying or transferring your super to the Accumulation 2 product. Learn more about the DBD and Accumulation 2.
We recommend you take the time to consider your options before making your choice. There’s no hurry; you have 2 years from when you join the DBD to decide.
What to consider when choosing
In the DBD, your super balance is linked to your age, salary, and length of membership (among other things). So generally, it may suit you if you’re planning to work in the sector for a long time and expect your salary to grow over your career.
If don't plan to work in the sector for long or don’t expect much salary growth from promotion or reclassification to higher roles, the Accumulation 2 product might be the better option.
Remember, these are generalisations about the suitability of the DBD and Accumulation 2 and may not apply to your individual circumstances.
As your defined benefit component is calculated with a formula, it’s generally insulated from fluctuations in financial markets. Investment performance will change how much is in the DBD asset pool, but generally, there is a very low chance you won’t receive the amount your DBD formula produces when you retire.
Accumulation 2 lets you choose how to invest your super, so you can pick options that target higher rates of return but carry higher levels of risk. You can also choose lower-risk options or sustainable options to build your own portfolio.
The DBD comes with inbuilt benefits that cover you if you can’t work due to illness or injury, if you have a terminal illness or pass away. They’re included in your membership at no extra charge but you can't cancel or change your cover.
The insurance offered with Accumulation 2 gives more flexibility, but you’ll pay premiums (deducted from your super). You can get more or less cover, or none at all.
The DBD and Accumulation 2 at a glance
| Feature | DBD | Accumulation 2 |
|---|---|---|
| Up to 17% employer contributions |  |
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| Up to 7% default member contributions | |
You’ll make the same contributions you did in the DBD when you switch. |
| Change your default member contribution amount | Decrease only | Increase or decrease |
| Make extra contributions or split contributions with your partner | Into or from your accumulation component only | |
| Transfer super from other funds | Into your accumulation component only | |
| Choose your investments | Accumulation component only | |
| Investment performance determines your super balance | Accumulation component only | |
| Inbuilt benefit cover for temporary incapacity, disablement, terminal illness or death (if eligible) |
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Your inbuilt benefits are converted to external insurance cover when you transfer to the Accumulation 2 product. See more about insurance. |
| Death and TPD insurance cover (if eligible) | |
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Explore the DBD and Accumulation 2 in more detail
How to choose
You have 2 years from when you join the DBD to decide if you want to transfer to the Accumulation 2 product. Remember, you can only make this choice once. If you do transfer, you can’t go back the DBD.
If you’re unsure what’s best for you, we recommend contacting us or seeking financial advice before making your decision.
Happy with the Defined Benefit Division?
