Which style of super is right for you?
If you’re an Accumulation 1 member, you could be eligible to join the Defined Benefit Division (DBD).
The DBD is only open to eligible people who work in higher education and receive 14% or 17% employer contributions. We'll let you know if you may be eligible. If you’re interested in making the switch, you’ll need to check your eligibility. We recommend you speak with a superannuation consultant who can talk you through the features of the DBD, including the in-built benefits and insurance. Make a booking. Eligibility requirements are outlined in the DBD/Accumulation 2 PDS.
We recommend you take the time to consider your options before making your choice. There’s no hurry; you have two years from when you become eligible to join the DBD, to make the decision. If you join the DBD and decide it’s not right for you, you can switch back to an accumulation account within your first two years as a DBD member.
What to consider when choosing an accumulation account versus the DBD
Accumulation account vs DBD - at a glance
Feature | Accumulation account | DBD account |
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OPERATION | An accumulation account, as its name suggests, generally grows or ‘accumulates’ over time. The value of your super depends on the money that you and your employers put in (known as super contributions), and the investment return generated based on the investment option(s) you choose minus any relevant fees, costs, taxes, and any insurance premiums. The value of your retirement benefit is based on investment returns added to your account, and investment losses coming out - you bear the investment risk and market risk of your super balance being lower when investments, financial markets or both drop. At UniSuper our accumulation account products include Accumulation 1 and Accumulation 2. |
A DBD account is made up of two components – the defined benefit component and an accumulation component.
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INSURANCE AND INBUILT BENEFITS | You may receive insurance cover automatically. You can cancel, decrease or apply to increase your cover to suit your needs. |
You can think of inbuilt benefits as like insurance, however they are different. Generally, you’ll receive inbuilt benefits for temporary incapacity and disablement, and if you’re under age 60 you also receive inbuilt benefits for terminal medical condition and death. You can’t change, cancel or opt out of inbuilt benefits. You may also receive insurance cover automatically. You can cancel, decrease or apply to increase your insurance cover to suit your needs. |
ADMIN FEES & COSTS | Fees cover the costs of managing your account and investments. Some are deducted directly from your account balance and some from your investment returns. | The costs of administering DBD members are allowed for in the DBD formula and deducted from the defined benefit pool of assets. No charge is deducted directly from your account. |
INVESTMENT CHOICE | You can build an investment strategy that's right for you. We have a range of investment options, including sustainable and environmental branded investment options. We offer pre-mixed investments chosen by our experts, or you can build and manage your own portfolio with sector options. | The defined benefit component is backed by an asset pool invested across a range of asset classes including shares, property, infrastructure, bonds and cash. If you have a DBD account, most of your contributions are invested in this asset pool. You can choose your own investments for the accumulation component of your DBD account. |
ADDING MONEY TO YOUR ACCOUNT | You can add to your super with extra contributions from your take-home pay or savings. This applies to accumulation or DBD accounts. Different rules apply depending on the type of account you have. Check your PDS for details. |
Explore the DBD and Accumulation accounts in more detail
How to choose
You have two years from when you start in an eligible role at your employer to join the DBD. If you haven’t transferred to the DBD in that two years, you’ll only get another opportunity to join the DBD if you change jobs and get another eligible role.
If you’re unsure what’s best for you, we recommend you contact us or seek financial advice before making your decision.