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A University of Sydney

More about the DBD and Accumulation 2 The information in this document forms part of the Defined Benefit Division and Accumulation 2 Product Disclosure Statement issued on 1 October 2018.

This document was prepared on 1 October 2018.

InsideIntroduction 1

Information about the DBD and Accumulation 2 2

Choosing a style of super 2

Still not sure which type of super will suit you best? 4

Making contributions 5

Choosing your investment strategy 12

Accessing super 13

Nominating beneficiaries 16

Administering super 18

Risks of super 19

Information about the DBD 22

Your super and inbuilt benefits 22

Definitions 28

ABOUT THIS BOOKLETThis booklet has been prepared and issued by UniSuper Limited as Trustee of UniSuper. It should be read in conjunction with the Defined Benefit Division Guide and the Accumulation 2 Guide (which, together, form the Defined Benefit Division and Accumulation 2 Product Disclosure Statement).

The information in this booklet will help you make decisions about your super, but it’s of a general nature and doesn’t take into account your personal financial situation or needs. You should consider whether it’s appropriate for your personal circumstances before relying on it and you should consider getting personal financial advice before making any decisions.

To the extent that this booklet contains any information which is inconsistent with UniSuper’s Trust Deed and Regulations (together, the Trust Deed), the Trust Deed will prevail.

If changes (which aren’t materially adverse) are made to information in this booklet, updated information is available at uniusper.com.au or by calling 1800 331 685. You can request a paper or electronic copy of updated information without charge.

UniSuper Management Pty Ltd, SuperRatings Pty Ltd and Chant West Pty Ltd have consented to their logo and/or statements being included in this booklet, in the form and context in which they have been included. Consent has not been withdrawn as at the date of this booklet.

IN THIS BOOKLETUniSuper, ABN 91 385 943 850, MySuper Authorisation No. 91385943850448, is referred to as ‘UniSuper’ or ‘the Fund’. UniSuper Limited, ABN 54 006 027 121, AFSL No. 492806, is referred to as ‘USL’ or ‘the Trustee’. UniSuper Management Pty Ltd, ABN 91 006 961 799, AFSL No. 235907, is referred to as ‘UniSuper Management’ or ‘USM’. USL has delegated administration of UniSuper to USM, which is wholly owned by USL in its capacity as UniSuper’s Trustee. UniSuper Advice is operated by USM, which is licensed to deal in financial products and provide financial product advice. External insurance cover is provided to UniSuper through group insurance policies the Trustee has taken out with TAL Life Limited, ABN 70 050 109 450, AFSL No. 237848 (referred to as our ‘Insurer’ throughout this document).

© UniSuper Limited 2018.

SuperRatings, a superannuation research company, named UniSuper’s Flexi Pension product ‘Pension of the Year’ at its 2017 awards. The product has also achieved a 10-year Platinum Performance rating. Go to www.superratings.com.au for details of its rating criteria. SuperRatings doesn’t issue, sell, guarantee or underwrite this product.

Chant West awarded UniSuper ‘Pension Fund of the Year’ in both 2017 and 2018. UniSuper was also awarded ‘Best Fund: Advice Services’ in 2017. UniSuper’s accumulation products have received a 5 Apples rating. For information about the methodology used, see www.chantwest.com.au. Chant West has consented to the inclusion in this document of the references to Chant West and the inclusion of its logos in the form and context in which they are included.

1

IntroductionWho should read this booklet?

This booklet provides detailed information about Defined Benefit Division (DBD) and Accumulation 2 membership.

You should read on if you’re: A new to the DBD A considering transferring to Accumulation 2 A transferring into the DBD from an existing

Accumulation 1 account or Personal Account.

Definitions

The ‘Definitions’ section at the end of this document explains the meaning of certain terms which appear throughout this booklet and the PDS.

Definitions relating to external insurance cover through our Insurer can be found in the Insurance in your super booklet, available at unisuper.com.au/pds.

2

SUPER FOR DBD MEMBERS

Accumulation component3% employer contributions(if applicable)+ any voluntary member contributions, rollovers, and investment returns (positive or negative) -- any fees, costs, charges, insurance premiums and taxes

Defined benefit component14% employer contributions+ standard member contributions (if any)

Accumulation component3% employer contributions(if applicable)+ any voluntary member contributions, rollovers, and investment returns (positive or negative) -- any fees, costs, charges, insurance premiums and taxes

Defined benefit component14% employer contributions+ standard member contributions (if any)

Information about the DBD and Accumulation 2Choosing a style of super

Everyone has different needs when it comes to their super. That’s why, as a UniSuper member, we give you the opportunity to choose a style of super that suits you.

If you’re joining the DBD for the first time, you’ve got two years from when you join to decide whether to stay in the DBD or transfer your super to Accumulation 2.

If you don’t do anything within this period, you’ll remain a DBD member.

You can choose either defined benefits—where your final benefit is mostly determined by a formula—or accumulation super, which lets you decide how to invest your super. Both options offer different benefits if you become unable to work, become disabled, or die.

Here’s a quick outline of how super in both DBD and Accumulation 2 membership are typically comprised.

3More about the DBD and Accumulation 2InFORMatIOn aBOUt thE DBD anD aCCUMUlatIOn 2

Accumulation 2 A Ability to select your own mix of investment

options for your whole account by choosing the strategy that works for you.

A You don’t receive inbuilt benefits as they only apply to DBD members—instead, you receive Death, TPD and Income Protection insurance cover through our Insurer (‘transitioned cover’).1

A You can opt out of insurance cover, apply for more or less cover, or mix and match the level and type of cover to suit your personal circumstances.

A Easy to track account changes over time, because your account has contributions and investment returns applied (which can be positive or negative)—similar to a bank account.

What’S BESt FOR YOU?When deciding what’s best for you, there are many factors to consider. We’ve outlined a few of those factors, but we have not considered your personal objectives, financial situation or needs. For that reason, you should consider the appropriateness of the above information for you, having regard to your own circumstances, and read the other relevant sections of this PDS, including the risks. You may want to consider seeking professional financial advice before making your decision, as well as accessing a range of helpful resources at unisuper.com.au/choosingyoursuper.

1 For more information on the kinds of restrictions, exclusions or limitations that may apply—and to see if you’re eligible—read the Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? booklets at unisuper.com.au/pds.

SUPER FOR aCCUMUlatIOn 2 MEMBERS

Accumulation 2 benefitUp to 17% employer contributions+ any standard member contributions, voluntary contributions, rollovers, investment returns (positive or negative)-- any fees, costs, charges, insurance premiums and taxes

Accumulation 2 benefitUp to 17% employer contributions+ any standard member contributions, voluntary contributions, rollovers, investment returns (positive or negative)-- any fees, costs, charges, insurance premiums and taxes

SOME OF thE KEY DIFFEREnCES BEtWEEn thE DBD anD aCCUMUlatIOn 2

DBD A Generally greater protection from investment

market downturns—with the pooling of assets across the membership, the DBD provides benefits that are not directly subject to volatile market movements.

A Salary-linked benefits—these provide an increased ability to more effectively estimate your benefit at retirement.

A Inbuilt benefits (like insurance cover, but you can’t opt out) if you’re permanently or temporarily unable to work, terminally ill or die.

A Generally steady, stable, reliable growth.

4 More about the DBD and Accumulation 2InFORMatIOn aBOUt thE DBD anD aCCUMUlatIOn 2

Remember, it’s the age at which you leave the higher education and research sector that partly determines your lump sum—not the age at which you joined it. Your salary and service also play a very important role.

DO YOU Want COntROl OVER thE WaY YOUR SUPER IS InVEStED?With Accumulation 2, you can choose how all your super is invested from our range of investment options. In the DBD, you only choose how your accumulation component is invested.

InSURanCE COVER OR InBUIlt BEnEFItS?If you choose to transfer to Accumulation 2, your inbuilt benefits will be transitioned to external insurance cover provided through our Insurer (if you’re eligible). A pre-existing condition (PEC) exclusion will generally apply to the transitioned cover. Once you receive this cover, you can apply to tailor it to suit your personal circumstances.2

As a DBD member, you’re provided with inbuilt temporary incapacity, terminal medical condition, disablement and death benefits as part of your membership, subject to eligibility criteria. These benefits are calculated according to a formula set out in our Trust Deed and contain an inbuilt component which is self-insured by UniSuper. It can be helpful to think of these as similar to insurance cover, but you can’t change or opt out of them because they’re built into your overall DBD membership.

Eligible DBD members may also receive and pay for one unit of external default Death and TPD or Death-only cover through our Insurer. DBD members who transfer to Accumulation 2 will retain this default cover in addition to any transitioned cover.

What aBOUt FEES anD COStS?As a DBD member, fees, costs, taxes and charges (including those for inbuilt benefits) are accounted for in the formula used to calculate your defined benefit. Applicable fees, costs and taxes relating to the accumulation component and premiums for insurance cover (if applicable) are deducted from your accumulation component. Read the ‘Fees and other costs’ section in the Defined Benefit Division Guide to find out more.

2 To find out how we determine the level of cover you receive on transferring to Accumulation 2, as well as any restrictions, exclusions or limitations that may apply—and to see if you’re eligible—read the Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? booklets available at unisuper.com/pds.

Still not sure which type of super will suit you best?

Then consider the following questions.

DO YOU lIKE thE IDEa that PaRt OF YOUR BEnEFIt WIll BE DEtERMInED BY a FORMUla?Your super in the DBD (excluding any accumulation component) is based on a formula that takes into account your age, the length of time you’ve been a DBD member, your salary and your level of contribution over time.

Generally greater protection from market downturnsThe ‘defined’ part of your super (defined benefit component) generally isn’t directly affected by market volatility, as investment returns don’t change the formulas used to calculate your benefit. While this can be a great benefit during market downturns, it also means you may not reap the rewards when the investment markets are producing good returns.

Salary-linked benefitsThese may provide you with an increased ability to more effectively estimate your benefit at retirement.

The payment of defined benefits is subject to the risks that the DBD will not have sufficient assets to meet all obligation its members. These risks are explained from page 19. You should bear in mind the possibility that reductions in the level of defined benefits may be made.

What aBOUt aGE-BaSED ‘lUMP SUM FaCtORS’?Lump sum factors are used to calculate your defined benefit and they increase with age.

Lump sum factors are based on your age when we calculate your defined benefit (not the age at which you join the DBD). The table on page 31 shows how the lump sum factor changes as you near retirement age.

DO YOU KnOW WhEn YOU Plan tO REtIRE?DBD members can generally better estimate their benefit at retirement with greater certainty than accumulation members can.


Making contributions

Here we outline extra information about contributions that can be made to your UniSuper account—and some important things you might need to consider.

StanDaRD MEMBER COntRIBUtIOnSDBD and Accumulation 2 members are required to make ‘standard member contributions’. These are over and above the contributions your employer makes. DBD members need to make the default level of standard member contributions to maintain full defined benefit entitlements.

The default level of standard member contributions is 7% after tax—or 8.25% before tax (and with the agreement of your employer)—of your salary.

You can make them on an after-tax (or, with your employer’s agreement, on a before-tax) basis.

Using contribution flexibility to lower your standard member contributionsYou can lower your standard member contribution rate through an arrangement known as ‘contribution flexibility’.

Once you’ve made a decision to lower your standard member contribution rate, you can’t increase it at a later stage.

If you’re a DBD member and lower your standard member contributions, this will have implications on your final benefit and your inbuilt death benefit may be reduced. Read on for more information about the effect of reducing standard member contributions.

Available levels of standard member contributionsOverleaf are the available levels of standard member contributions, from the default level right through to the minimum available.

If you reduce your standard member contributions to the minimum level (0%) while you’re receiving 17% employer contribution and then start receiving 14% employer contributions, you’ll need to make the minimum level of 2.55% standard member contributions.3

As an Accumulation 2 member, fees, costs, taxes and premiums for insurance cover (if applicable) are deducted from your account or from the returns on your investment. Read the ‘Fees and other costs’ section in the Accumulation 2 Guide to find out more.

StOPPInG WORK DURInG YOUR tWO-YEaR ElECtIOn PERIOD?If you stop work with your employer during your two-year decision period and the value of your defined benefit component (together with your accumulation component) is transferred to Accumulation 1—and you subsequently re-join the DBD at a later point in time—you’ll have a further two-year election period from the date you re-join the DBD to make this decision, unless:

A your previous DBD membership was longer than the election period applicable at that time (in the past, members only had 12 months to make a decision), or

A you stopped being employed within the election period applicable at the time you were previously a DBD member, and you elected to defer your defined benefit component.

Once you’ve made your decision, you can’t change your mind—it’ll continue to apply throughout the life of your UniSuper membership. This means that if you don’t elect to transfer to Accumulation 2 within the timeframe allowed, you won’t be able to transfer to Accumulation 2 if you later re-join the DBD through commencing another eligible employment.

The only way you may be able to have another election period is if you completely exit the Fund (i.e. close your account), take your entire account balance when you cease employment and then re-join through another UniSuper participating employer as a new member.

IMPORtantThese questions are just a few of the things you might want to think about when making your decision, but we haven’t considered your objectives, financial situation or needs. For that reason, you should carefully consider this information and how it applies to your personal circumstances.

3 If you choose to lower your standard member contributions, we’ll process your request and the reduction will generally take effect at the start of the next pay period.


If your salary reduces you may, in certain circumstances, be able to continue to make standard member contributions based on your previous full-time salary. In this way, DBD members can ensure that, for benefit calculation purposes, their previous higher salary is used in preference to their lower current salary (provided that salary is within the relevant five-year period used to calculate five-year benefit salary). You can only do this if our Trustee and your employer agree to the arrangement and your employer continues to make contributions based on your salary immediately before the reduction, or you agree to make up the difference between the contributions your employer made before the salary reduction and the contributions made after the salary reduction.

For more details about the options that may be available to you if your salary reduces, see the What happens to my super if my salary is reduced? fact sheet at unisuper.com.au/factsheets.

StanDaRD MEMBER COntRIBUtIOn lEVElS

If you’re receiving 17% employer contributions you can make your standard member contributions at the following levels

If you’re receiving 14% employer contributions you can make your standard member contributions at the following levels

7.00% after tax (8.25% before tax) 7.00% after tax (8.25% before tax)4.45% after tax (5.25% before tax) 6.55% after tax (7.70% before tax)4.00% after tax (4.70% before tax) 5.55% after tax (6.55% before tax)3.00% after tax (3.55% before tax) 4.55% after tax (5.35% before tax)2.00% after tax (2.35% before tax) 3.55% after tax (4.20% before tax)1.00% after tax (1.20% before tax) 2.55% after tax (3.00% before tax)Minimum level : 0.00% (zero) Minimum level: 2.55% after tax (3.00% before tax)To make before-tax standard member contributions, you’ll need a salary sacrifice arrangement with your employer. Standard member contributions from your before-tax salary will be treated as employer contributions and be subject to 15% contributions tax—they’ll also count towards your concessional contributions cap. You can only make standard member contributions from your before-tax or after-tax salary—not a combination of both.

Half contributionsIn certain circumstances, you may qualify for ‘half contributions’. Under this arrangement, you’ll make standard member contributions of 3.5% of your after-tax salary, and your employer will make 7% employer contributions into your defined benefit component and 3% contributions into your accumulation component. As a result, your final benefit will also be reduced. Making half contributions is different from choosing contribution flexibility.

Salary reductionsSalary reductions can happen for a number of reasons—maybe you’ve switched roles or had a change in your work. For DBD members, having a lower salary can reduce your retirement benefit and inbuilt benefits. That’s because your defined benefit component and inbuilt benefits are, in part, based on your five-year benefit salary.


If you exercise contribution flexibility after first joining UniSuper, you’ll receive one unit of default Death and TPD cover and may be eligible to apply for a further two units without providing evidence of your health. For information regarding eligibility criteria for external insurance cover, and to learn about the kind of restrictions, exclusions or limitations which may apply, read the Insurance in your super booklet at unisuper.com.au/pds.

For DBD members, lowering your standard member contributions may mean there are no contributions going into your accumulation component. If at any stage you have insufficient funds in your accumulation component (or accumulation account for Accumulation 2 members) to cover premium payments—or you no longer meet relevant criteria under the group insurance policies—your insurance cover will cease.

More informationRead the Contribution flexibility fact sheet at unisuper.com.au/factsheets for more information and answers to frequently asked questions.

EFFECt On InBUIlt BEnEFItS IF YOU lOWER YOUR StanDaRD MEMBER COntRIBUtIOnS

Type of inbuilt benefit What will happen?Temporary Incapacity Nothing—the calculation of your inbuilt Temporary

Incapacity benefit is not impacted.Disablement Nothing—the calculation of your inbuilt Disablement

benefit is not impacted.Terminal Medical Condition The amount of your inbuilt Terminal Medical

Condition benefit may be reduced.*Death The amount of your inbuilt Death benefit may be

reduced.** Refer to page 25 for the death benefit formula (and note that (A) will not apply if you’ve elected contribution flexibility).

Effects of contribution flexibility on eligibility for insurance coverAs a DBD member, if you’re receiving 17% employer contributions, your eligibility for external insurance cover under UniSuper’s group life policies may be affected if you reduce your standard member contributions, as outlined below:

A If you exercise contribution flexibility when you first join UniSuper (referred to as ‘day one contribution flexibility’), you’ll need to satisfy the following additional criteria in order to be eligible to receive default cover (one unit of Death and TPD cover) and up to three units of Death and TPD cover without having to provide our Insurer with evidence of your health:

– you’ll need to lodge an application form within 60 days of first becoming a DBD member; and

– UniSuper will need to receive a contribution or rollover into your accumulation component within 120 days of you joining the DBD.

Effects of contribution flexibility on inbuilt benefitsIf you’re a DBD member, lowering your standard member contributions can affect your inbuilt benefits. The following table explains how.


StanDaRD MEMBER COntRIBUtIOn lEVElS (EMPlOYER COntRIBUtES 17%)

EFFECt On YOUR DEFInED BEnEFIt

7% after tax (8.25% before tax) Your full defined benefit entitlement is maintained. Your 3% additional employer contribution is made into your accumulation component.

4.45% after tax (5.25% before tax) Your full defined benefit entitlement is maintained. Your 3% additional employer contribution, previously made to your accumulation component, is redirected to your defined benefit component. This may affect your premium payments for external insurance cover, which are paid from your accumulation component.

4% after tax (4.70% before tax) 3% after tax (3.55% before tax) 2% after tax (2.35% before tax) 1% after tax (1.20% before tax) Minimum level: 0%

Your defined benefit entitlement is scaled back to reflect your reduced standard member contributions. Your 3% additional employer contribution, formerly made to your accumulation component, is redirected to your defined benefit component.

If your employer contributes 14% to your superTo maintain your full defined benefit entitlements, you must make the default level of standard member contributions (7% after tax). You can reduce your standard member contributions to 6.55%, 5.55%, 4.55%, 3.55% or 2.55%. However, if you do, your defined benefit will be reduced. In addition, the amount your beneficiaries receive on your death may be lower. More information about the effect of reducing standard member contributions is outlined in the table below.

You will generally not be provided with default Death and TPD insurance cover through your accumulation component. However, if you’re a contributing member you may be able to apply for insurance cover if you meet the relevant eligibility criteria and have sufficient funds in your accumulation component to cover your insurance premiums. Your application will also be subject to you providing evidence of your health, and will need to be approved by our Insurer.

StanDaRD MEMBER COntRIBUtIOn lEVElS (EMPlOYER COntRIBUtES 14%)

EFFECt On YOUR DEFInED BEnEFIt

7% after tax (8.25% before tax) Your full defined benefit entitlement is maintained. 6.55% after tax (7.70% before tax) 5.55% after tax (6.55% before tax) 4.55% after tax (5.35% before tax) 3.55% after tax (4.20% before tax) 2.55% after tax (3.00% before tax) Minimum level: 2.55% after tax

Your defined benefit entitlement is scaled back to reflect your reduced standard member contributions.

If your employer contributes 17% to your superIf you’re a DBD member and your employer contributes 17% to your super, you must make standard member contributions of at least 4.45% (after tax) to maintain your full defined benefit entitlement. Your entitlement to inbuilt benefits won’t be affected, but the amount your beneficiaries receive on your death may be lower. You might also

have to satisfy additional eligibility criteria under UniSuper’s group life policies to receive up to three units of Death and TPD cover without having to go through our Insurer’s ‘underwriting’ (providing evidence of your health) process. More information about the effect of reducing standard member contributions is outlined in the below table.


‘SalaRY SaCRIFICE’ COntRIBUtIOnSMany employers allow you to make super contributions from your salary before income tax is deducted. This is known as ‘salary sacrifice’. Salary sacrifice contributions count towards your concessional contributions cap.4

Salary sacrifice contributions are regarded as employer contributions, meaning a 15% contributions tax applies. If we don’t have your tax file number (TFN), these contributions may be taxed at 47%. To make the equivalent of a 7% after-tax standard member contribution, you’ll need to contribute 8.25% from your before-tax salary.

Salary sacrifice contributions are included in certain income tests for assessing eligibility for a number of government benefits, including tax offsets and the government’s co-contribution.

SPOUSE COntRIBUtIOnSYou may be able to claim an 18% tax offset on spouse contributions of up to $3,000 you make on behalf of your spouse if they don’t work or earn a low income and you meet certain conditions. Both you and your spouse must be Australian residents when the contribution is made.

You won’t be eligible for the tax offset if your spouse has exceeded their non-concessional contributions cap for the relevant year or their total super balance is equal to or greater than the general transfer balance cap (currently $1.6 million for 2018-19).

The maximum tax offset available is $540 per financial year and only applies where your spouse has an assessable income (including reportable fringe benefits and employer contributions) of less than $37,000 per year. Where your spouse’s income is greater, the tax offset will gradually reduce, phasing out completely once your spouse’s income reaches $40,000.

Your spouse can also make eligible spouse contributions to your UniSuper account on your behalf.

Eligible spouse contributions are considered to be non-concessional (after-tax) and count towards the cap of the spouse receiving the contribution.

Visit the ATO website for more information about spouse contributions.

4 For more information, read the How super is taxed booklet at unisuper.com.au/pds.

DOWnSIZER COntRIBUtIOnSIf you’re aged 65 or older and have owned your home for at least 10 years, you may be able to contribute up to $300,000 ($600,000 per couple) into super from the proceeds of selling your home.

Downsizer contributions are different to normal contributions to super in some important ways:

A If you’re 65 or over and eligible to make a downsizer contribution, you don’t need to be working (i.e. you don’t need to meet the ‘work test’).

A Downsizer contributions are made ‘after tax’ (i.e. there are no tax concessions) but they’re not subject to the normal after-tax (non-concessional) contributions caps.

A You can contribute up to $300,000 per person or $600,000 per couple using the net sale proceeds (in addition to any other caps that may apply to you).

A Downsizer contributions aren’t subject to the ‘total super balance’ test (currently $1.6 million) at the time of the contribution, but once the contribution is made it will count toward your total super balance on 30 June at the end of the financial year.

A Downsizer contributions count towards your ‘transfer balance’ cap (currently also $1.6 million) if you transfer it to a retirement pension.

A Other eligibility rules apply, e.g. the type of home that can be downsized, eligible amounts that can be contributed, and timeframes of ownership, etc.

A You can only make downsizing contributions for the sale of one home.

A The ATO may reject your downsizer contribution on eligibility grounds. If your downsizer contribution is deemed ineligible, we may be able to accept the amount as an after-tax (non-concessional) contribution if you meet the work test, and subject to contribution caps. 4

To make a downsizer contribution, you need to complete the relevant form from the ATO and send it to us, along with your contribution payment, generally within 90 days of settlement. For more information about the scheme or for a copy of the relevant form, visit the ATO website.


lOW InCOME SUPERannUatIOn taX OFFSEtThe Low Income Superannuation Tax Offset (LISTO) scheme provides a tax offset of up to $500 per year for individuals with a taxable income up to $37,000 who satisfy the eligibility criteria. Eligible members will receive a government super payment of 15% of their concessional (before-tax) super contributions.

To be eligible for the LISTO: A you must have concessional (before-tax)

contributions (including notional taxed contributions to a defined benefit fund) for the year of income

A your adjusted taxable income must not exceed $37,000

A you must not have held a temporary resident visa during the relevant financial year (except for New Zealand citizens), and

A you must satisfy an income test in which 10% or more of your total income is derived from business or employment.

If you’re eligible, the ATO will assess your entitlement and pay the LISTO directly into your super.

DBD MEMBERS anD nOtIOnal taXED COntRIBUtIOnSNotional Taxed Contributions (NTCs) are the notional amount of contributions (excluding non-concessional (after-tax) contributions) that relate to your defined benefit component. NTCs are counted towards your concessional contributions cap and are added to the other concessional (before-tax) contributions made to your accumulation component in a financial year.

What this meansNTC values are generally lower than the actual amount of contributions that relate to your defined benefit component. This means you may be able to ‘top up’ your before-tax contributions to your accumulation component without exceeding your concessional contributions cap.

It’s important to remember that although your NTC value may generally be lower than the actual contributions that relate to your defined benefit component, your final benefit is not affected in any way. Your benefit is still calculated using the formula set out in the Trust Deed. You can find out more about NTCs and how they affect you by logging into your account at unisuper.com.au. You can also find more details in the following fact sheets at unisuper.com.au/factsheets:

A The concessional contributions cap and NTC rates for DBD members receiving 17% employer contributions

A The concessional contributions cap and NTC rates for DBD members receiving 14% employer contributions.

GOVERnMEnt CO-COntRIBUtIOnSIf your total income is $37,697 per year or less for 2018-19, the Government will contribute $0.50 to your account for every dollar of non-concessional (after-tax) contributions you make into your super, up to a maximum of $500. This is called a co-contribution. If you earn more than $37,697 per annum for 2018-19, you may still benefit from government co-contributions.

However, the amount of government co-contribution gradually reduces as your total income increases, before phasing out completely if you earn $52,697 per year or more. Government co-contributions are tax-free.

The ATO will automatically match information from your tax return with information provided by us. If you’re eligible, the co-contribution will be automatically paid into your super account during the following financial year and will be preserved until you meet a condition of release.

Eligibility requirementsTo be eligible for co-contributions you need to:

A earn an annual total income of less than the $52,697 threshold for the 2018-19 financial year with at least 10% of your total income coming from eligible employment-related activities and/or carrying on a business

A make an eligible personal super contribution during the income year into a complying super fund and not claim a deduction for all of it

A be less than 71 years of age at the end of the financial year in which contributions are made

A be a permanent resident of Australia (limited exceptions apply to New Zealand citizens and other prescribed people holding temporary visas)

A lodge an income tax return for the relevant financial year

A meet the requirements of superannuation law for making voluntary contributions

A have a total super balance of less than the general transfer balance cap on 30 June for the previous financial year, and

A make sure the contribution/s you make to super don’t exceed your non-concessional (after-tax) cap for that year.

We need your TFN before we can accept your government co-contribution or personal contribution. For tax purposes, your ‘total income’ is determined in accordance with applicable laws. Refer to the information about government co-contributions on the ATO website for details.


It’s important for us to have accurate and up-to-date information about you to manage your account efficiently and protect your retirement savings. We use details such as your name, date of birth and also your TFN to:

A match contributions and transfers from other super funds to your account, and

A verify your identity if you’re transferring super out of UniSuper.

You can give us your TFN by logging onto your account online and going to the ‘Personal details’ page.

Age restrictions on contributing to superThe table below outlines the contributions we can and can’t accept for each age group.

Note: if you’re a DBD member and you reach age 75, your defined benefit component will be deferred and any future contributions will be made to your accumulation component.

aGE REStRICtIOnS On COntRIBUtInG tO SUPER

Your age at time of contribution

Personal contribution - made by the member (e.g. personal non-concessional and concessional contributions)

Other contribution - made by someone other than member or employer (e.g. spouse contribution, co-contribution)

Voluntary employer contribution (e.g. salary sacrifice, other employer contributions in excess of SG)

Mandated employer contribution (e.g. SG contribution under industrial award)

Under 65 Yes Yes Yes Yes65 to 69 Work test Work test Work test Yes70 to 74 Work test No Work test Yes75 and over No No No Yes

WhEn WE Can’t aCCEPt COntRIBUtIOnSIn some cases, certain requirements must be met before we’re able to accept your contributions.

If you don’t provide us with your TFNYour TFN is the unique, confidential number which links all your investments, super and tax records to your identity.

While it’s not compulsory to give us your TFN, if you don’t, any contributions or transfers that would attract tax (such as employer contributions or salary sacrifice contributions) may be taxed at the highest marginal tax rate and you may no longer be eligible for DBD membership. We also won’t be able to accept non concessional (after-tax) contributions if we don’t have your TFN.

Meeting the work test requirementsTo meet the work test requirements you must have worked for at least 40 hours in a period of not more than 30 consecutive days in the financial year that the contribution is made. The work test must be met once in each financial year before any non-mandated member contributions can be accepted. It’s up to you to demonstrate to us that you have met the work test each financial year. Prospective employment cannot be taken into account for the purposes of the work test.


SWItChInG InVEStMEnt OPtIOnSIf you already have an accumulation component or account, you can also change the investment options for your existing account balance online. This is referred to as a switch. Switching doesn’t change the way your future contributions or rollovers are invested. If you make a switch, you may incur an investment switching fee. Refer to the ‘Fees and other costs’ section of the Defined Benefit Division Guide and Accumulation 2 Guide for more details.

tRanSFERRInG MEMBERSIf you’ve transferred into the DBD or Accumulation 2 from another membership category in UniSuper and you haven’t advised us of a new future contributions strategy, then any contributions received on or after the transfer date will be invested in line with your future contributions strategy in your former membership category.

FUtURE COntRIBUtIOnS StRatEGYIf you have an accumulation component or account, you can choose the way future contributions are invested. This is known as your future contributions strategy. You can change your future contributions strategy at any time—no fee applies and it won’t affect the way your existing account balance is invested.

If, upon joining UniSuper, you haven’t selected a future contributions strategy, any contributions received will automatically be invested in the Balanced option, our default investment option.

Note that our Balanced investment option is also our MySuper offering for Accumulation 2 members. You can read more about MySuper in the Accumulation 2 Guide and at unisuper.com.au/mysuper.

In some cases, we may be unable to immediately allocate a contribution made on your behalf to your account. If this occurs, investment returns (positive or negative) for the investment option(s) you’ve chosen will be applied from the date on which the contribution was banked.

Any interest accrued while holding that money in a separate account prior to allocating it to your super account is retained in the Fund.

If your application form with your future contributions strategy is received after contributions have been processed, we’ll switch those contributions from the default investment option to the investments you’ve chosen as at the date we receive your application form. If you don’t want to have those contributions switched, you can indicate this on the application form.

tEMPORaRY allOWanCESIf you’re a DBD member and you’re paid a temporary allowance (e.g. for taking on an additional task or higher duties for a limited period of time), it’s important that you’re aware of how this allowance will be treated.

Temporary allowances are treated differently to the other types of remuneration salary used to calculate DBD members’ benefits. Under the Trust Deed, temporary allowances are excluded from members’ five-year benefit salary, but increase their service fraction—whereas permanent allowances will form part of the five-year benefit salary. This ensures members get a fair but not disproportionate benefit from allowances paid over relatively short periods within their membership.

The Trust Deed allows the Trustee to determine whether allowances are temporary in nature, but they’re generally classified as permanent or temporary by your employer when the allowance commences.

Choosing your investment strategy

Accumulation 2 members—and DBD members with an accumulation component—can decide which investment options their contributions and rollovers are invested in.

When deciding how to invest your super, it’s important to choose investments that you feel comfortable with and which are best suited to your investment needs. To do this, you’ll need to understand how the investment options work.

Our How we invest your money booklet at unisuper.com.au/pds provides important information about our Pre-Mixed and Sector investment options—including how they’re invested, the different asset mixes and the different levels of risk associated with them.

See our website for any product, investment or disclosure updates. We recommend you speak with a qualified financial adviser before making a decision.


Additional restrictions may apply under the Trust Deed for DBD members. These are explained in the Defined Benefit Division Guide.

PRESERVED BEnEFItSFrom 1 July 1999, all member and employer contributions made into super and all investment returns are preserved. Generally, you can’t access preserved benefits until you’ve satisfied a condition of release.

What aRE COnDItIOnS OF RElEaSE?Under the preservation rules, you must meet a condition of release before your preserved benefits can be withdrawn from a super fund. The most common conditions of release include:

A permanently retiring from the workforce on or after reaching your preservation age,

A terminating employment after you reach age 60, A reaching age 65, A permanent incapacity, A terminating employment with an employer who

contributed to UniSuper on your behalf and your benefit is less than $200, or

A death.

Refer to the ATO website for further details of when you can access your super benefit.

Your preservation age depends on when you were born.

YOUR DatE OF BIRth PRESERVatIOn aGE

Before 1 July 1960 551 July 1960 – 30 June 1961 561 July 1961 – 30 June 1962 571 July 1962 – 30 June 1963 581 July 1963 – 30 June 1964 591 July 1964 or after 60

ROllOVER StRatEGYYou can also choose the way transfers into your accumulation component or account (‘rollovers’) are invested—this is known as your rollover strategy. You can change your rollover strategy online at any time and no fee applies for changes. If you haven’t selected a rollover strategy, any transfers received from other funds will be invested in the same way as your contributions.

hOW DO I ChanGE MY EXIStInG InVEStMEnt ChOICE?You can switch your existing account balance between investment options or change your future contributions or rollover strategy by logging in to your online account or by completing an Investment choice form, which is available at unisuper.com.au/forms or by calling us. A switching fee may apply—refer to the ‘Fees and other costs’ section of the Defined Benefit Division Guide and Accumulation 2 Guide for more details.

Our How we invest your money booklet at unisuper.com.au/pds explains when your switch will become effective.

accessing super

Super is a long-term investment. Accordingly, the government has placed restrictions on when you can access it.

You’ll only be able to access your super if you have satisfied a condition of release (as outlined opposite), or met certain other requirements as outlined in this section.

Generally, your super must be preserved in the super system until you permanently retire from the workforce on or after reaching your preservation age (see the table opposite to find your preservation age). An exception to this is the ability to take a ‘transition to retirement’ pension (UniSuper’s ‘Flexi Pension’) while you’re still working but after reaching your preservation age (see page 15 for more information).

Exactly when you can access your super depends on its ‘preservation status’ under the government’s preservation rules – ‘preserved’, ‘restricted non-preserved’ or ‘unrestricted non-preserved’.


UnREStRICtED nOn-PRESERVED BEnEFItSUnrestricted non-preserved benefits can generally be accessed at any time, subject to the Trust Deed restrictions, regardless of your age, employment situation or financial position, and are usually made up of benefits that you’ve already become entitled to, but have voluntarily decided to keep within the super system (for example, you’ve reached age 65 but you’re still working).

FIRSt hOME SUPER SaVER SChEME (FhSSS)You can apply to release up to $15,000 of voluntary (concessional or non-concessional) contributions made to your accumulation component per financial year and $30,000 in total under the FHSSS. You’ll also receive an amount of earnings that relate to those contributions. The usual limits on super contributions still apply to these types of contributions.

Any mandated employer contributions (i.e. 14% and 17% employer contributions) or employer superannuation guarantee (SG) contributions won’t count towards the Scheme, so you can’t apply to withdraw them.

Contributions to the defined benefit component—including employer or standard member contributions—can’t be accessed for the FHSSS. However, voluntary member contributions made to the accumulation component of the DBD can generally be accessed for the FHSSS.

To qualify to withdraw your super under the FHSSS, you must be 18 years or over and purchase a residential home or land to build a home on. You must also occupy the property for at least six months in the first year of ownership after it’s practicable to do so.

You can apply to the ATO to release voluntary contributions made under the Scheme, along with any associated earnings. The ATO will determine how much you can withdraw and let us know when a request has been made. We’ll process it in line with their instructions.

You’ll have 12 months from the time you release the savings to sign a contract to purchase a home or construct a home. If you don’t comply with the rules, and don’t receive an extension of time, you must either transfer the funds back into super (less any tax withheld by the ATO) or pay tax equal to 20% of the amount released.

FURthER COnDItIOnS OF RElEaSEProvided you satisfy the eligibility criteria, you may also be able to access part or all of your preserved benefits in the following limited circumstances:

A Specified compassionate grounds: you must apply directly to the Australian Taxation Office (ATO)

A Severe financial hardship grounds: you must apply to the Trustee and you must be receiving eligible Commonwealth Government income support benefits to qualify.

A Terminal medical condition: you must apply to the Trustee.

If you have a terminal medical conditionIf you have a terminal medical condition, you may be eligible to access your super early if you get certification from two medical specialists that you have less than two years to live.

But there could be significant consequences if you access your super early.

The reason for this is that the certification period for UniSuper’s insured benefits—including inbuilt terminal medical condition benefits (DBD members only) and externally insured terminal illness benefits—is 12 months. And if you access your super early, you may lose your inbuilt benefits (DBD members only) and insurance.

IMPORtantBefore you apply for the early release of your super due to a terminal medical condition, we strongly encourage you to read the Terminal medical condition benefit fact sheet at unisuper.com.au/factsheets, call us on 1800 825 246 to discuss your options or speak to a qualified financial adviser.

REStRICtED nOn-PRESERVED BEnEFItSGenerally, restricted non-preserved benefits can be accessed in certain circumstances when you terminate employment with an employer who had contributed to UniSuper on your behalf. Restricted non-preserved benefits can also be accessed if you meet a condition of release, as set out on the previous page.


lIMIt On thE aMOUnt OF SUPER that Can BE taKEn IntO REtIREMEntThere’s a limit (or cap) on how much of your super you can transfer from your ‘accumulation phase’ to tax-free ‘retirement phase’ account(s) to receive your pension income. This limit is known as the ‘transfer balance cap’. If you transfer an amount into the retirement phase during the 2018-19 financial year—by commencing a pension, for example—your personal transfer balance cap will be $1.6 million.

For more information about the transfer balance cap and the impact of exceeding that cap, refer to the ATO website at www.ato.com.au and the relevant retirement product PDS.

SPECIal RUlES FOR MEMBERS WhO taKE a COMMERCIal RatE InDEXED PEnSIOnFifty percent of the income exceeding $100,000 per annum from lifetime pensions (such as Commercial Rate Indexed Pensions) will be:

A included in a member’s assessable income, and A potentially subject to income tax.

For example, if your annual pension income is $120,000, half of the $20,000 excess amount (i.e. $10,000) will be included in your assessable income and we’ll be required to withhold some tax from your pension payment.

We strongly recommend you speak to a qualified financial adviser about your situation if you expect your annual pension to exceed $100,000 per year.

For more information about the transfer balance cap and the impact of exceeding that cap, refer to the ATO website at www.ato.com.au and relevant retirement product PDS.

IF YOU lEaVE YOUR JOBIf you leave your job and you’re no longer eligible for DBD or Accumulation 2 membership, provided you’re eligible for Choice of Fund in your new employment you can nominate UniSuper as your chosen fund for your Superannuation Guarantee contributions. Your new employer can then pay these contributions into an Accumulation 1 account. For information on your benefits if you leave your job, see the ‘Leaving your job’ section on page 22. Read on for more information about Choice of Fund.

The Your super when you leave your job booklet at unisuper.com.au/factsheets contains important information about what happens to your inbuilt benefits when you cease service or leave your job.

When you receive the released amounts, the ATO will withhold tax that will be calculated at either:

A your marginal tax rate less a 30% offset A 17% if the Tax Commissioner is unable to

estimate your expected marginal rate.

Your ATO payment summary will show the amount of tax withheld. You need to include this amount in your tax return for the year you request the release.

For more information, visit the ATO website.

tEMPORaRY RESIDEntSMembers with a temporary resident visa are only able to access their super when they permanently depart Australia, or if they meet the following conditions of release:

A permanent incapacity, A temporary incapacity, or A terminal medical condition.

Benefits are also payable when a member dies.

Tax information for temporary residents can be found in the How super is taxed booklet at unisuper.com.au/pds.

Further information about accessing your benefit under the departing Australia superannuation payment system is in our Departing Australia superannuation payment (DASP) fact sheet at unisuper.com.au/factsheets.

taKInG YOUR SUPER aS a ttR FlEXI PEnSIOn WhIlE YOU’RE WORKInGUnder the government’s transition to retirement (TTR) rules, you may be able to start a TTR Flexi Pension while you’re still working after you’ve reached your preservation age, provided you satisfy the eligibility requirements. You should read the Your guide to pensions – Flexi Pension PDS at unisuper.com.au/pds before deciding to take your benefit as a TTR Flexi Pension.

Please note that if you use any part of your defined benefit component to set up a TTR Flexi Pension while you’re still employed, you’ll cease to be a DBD member and you’ll be transferred to an Accumulation 2 or Accumulation 1 account. Your benefit entitlements will then be based on your account balance. You’ll no longer have inbuilt benefits and will instead receive transitioned external insurance cover for Death, TPD and Income Protection. For more information about how inbuilt benefits are impacted, read the What happens to your inbuilt benefits if you choose Accumulation 2? booklet at unisuper.com.au/pds.


A If you’re an Accumulation 2 member and eligible for Choice of Fund, and you nominate another super fund as your chosen fund, your employer must pay the Superannuation Guarantee contributions into your chosen fund and any employer contributions above the Superannuation Guarantee minimum must be paid into an Accumulation 1 account. Please ask your employer if you’re eligible for Choice of Fund. For more details, refer to the Choice of Fund for Accumulation 2 members fact sheet at unisuper.com.au.

nominating beneficiaries

To provide greater certainty about who’ll receive your benefit if you die, we provide two options for nominating beneficiaries:

A non-binding beneficiary nominations, and A binding death benefit nominations.

The most appropriate nomination will depend on your personal circumstances. As there may be tax and other implications to consider in nominating your beneficiaries, we recommend you seek professional advice before making your nomination. Regardless of which type of nomination you choose, the Trust Deed and super law specify who your death benefit can be paid to.

A death benefit can be paid to one or more of your dependants or your legal personal representative once you pass away.

Your dependants include: A your spouse (including legal or de facto spouse

of same sex or opposite sex), A your children or the children of your spouse

(regardless of age), A any person who was in an interdependency

relationship with you at the date of your death, and A any other persons (irrespective of age) who in

the opinion of the Trustee, are or were in any way financially dependent on you at the date of your death.

Before any benefit can be paid to a person with whom you had an interdependency relationship, the Trustee requires a statutory declaration that sets out the nature of your interdependency relationship. You can make this statutory declaration at the same time that you make your nomination, or it can be made by the person with whom you had an interdependency relationship after your death.

tRanSFERRInG YOUR SUPER tO anOthER FUnDYou may be able to transfer part of your accumulation component/account to another complying super fund at any time, or your entire benefit if you cease to be employed by a UniSuper employer. A UniSuper employer is an employer that has signed a participation agreement with the Trustee. To find out if this applies to your employer, call us on 1800 331 685.

PORtaBIlItY tRanSFERSUnder portability transfer rules, you can transfer all or part of your accumulation component or Accumulation 2 account into another complying super fund. Your employer will continue to make contributions into UniSuper on your behalf. You can request a portability transfer once in each 12-month period. If you’re not transferring the entire amount, you must leave at least $5,000 in your UniSuper account.

Importantly, if you’re a DBD member, you can’t transfer your defined benefit component.

If you transfer your entire accumulation component or account to another super fund, your insurance cover (if applicable) may be cancelled due to you having insufficient funds to cover insurance premiums. You can find out more in the insurance section of the Defined Benefit Division Guide.

You can download a Portability and rollover form from unisuper.com.au/forms.

ChOICE OF FUnD A Under Choice of Fund legislation, certain

employees can choose the super fund into which their Superannuation Guarantee contributions are paid.

A Eligibility for Choice of Fund depends on your conditions of employment. Choice of Fund is generally not available to employees whose conditions of employment are governed by an award or industrial agreement that specifies into which super fund employer contributions are to be paid. This generally includes most employees in the higher education sector.

A If you’re a DBD member, you may not be eligible for Choice of Fund.


A valid binding death benefit nomination (lapsing) remains in effect for three years from the date it was first signed, last amended or confirmed. When a lapsing binding death benefit nomination expires, it’s treated as a non-binding beneficiary nomination. A valid binding death nomination (non-lapsing) won’t expire unless you amend or cancel it.

A binding death benefit nomination won’t be valid until it’s been received and accepted by the Trustee. You can amend your binding death benefit nomination at any time by completing a new Binding death benefit nomination form and providing it to the Trustee. Note that your nomination will default to lapsing if you don’t make a choice on the Binding death benefit nomination form.

What is a valid nomination?There are certain conditions that must be met for your binding death benefit nomination to be valid:

A The nomination must be in favour of one or more of your dependants and/or your legal personal representative.

A Each dependant nominated must be your dependant at the date of your death.

A The allocation of your benefit among the beneficiaries nominated must be clearly set out.

A 100% of your benefit must be allocated (the entire nomination will be invalid if the allocation does not equal exactly 100%).

A The nomination must be signed and dated by you in the presence of two witnesses, both of whom are over the age of 18 years and not nominated to receive benefit, and the nomination must contain a declaration signed and dated by each witness stating that the notice was signed and dated by you in their presence.

If your binding death benefit nomination fails to meet any one of the above conditions, or it is unclear, then it will be invalid. If you’ve made a lapsing binding death benefit nomination and wish to continue to bind the Trustee to pay your benefit to your nominated dependants and/or legal personal representative, then you must reconfirm the nomination before it expires. You can do this by giving the Trustee a written notice, signed and dated by you, to that effect. It’s your responsibility to ensure that the nomination is confirmed before it expires. Alternatively, you may wish to make a non-lapsing binding death benefit nomination.

Your binding death benefit nomination (lapsing) can be amended or cancelled at any time before it expires

Non-binding beneficiary nominationWhen you complete your Defined Benefit Division/Accumulation 2 application form, you can provide the Trustee with a non-binding beneficiary nomination, which allows you to nominate who you’d prefer your benefit be paid to in the event of your death. You can nominate one or more of your dependants and/or legal personal representative. This nomination isn’t binding on the Trustee.

In the event of your death, the Trustee must pay your benefit to your dependants and/or legal personal representative, in proportions determined by the Trustee.

So, while a non-binding nomination helps us identify potential beneficiaries, it doesn’t:

A guarantee your death benefit will be paid to those you nominate, or

A exclude others from receiving your benefit, if the Trustee determines them to be a dependant.

A non-binding beneficiary nomination will remain in place until it’s amended or replaced, or until you make a valid binding death benefit nomination.

To make your non-binding beneficiary nomination, complete the relevant section of your Defined Benefit Division/Accumulation 2 application form. You can update your non-binding beneficiary nomination any time by logging in to your account online or by completing the Change of details form available at unisuper.com.au/forms.

If you’d like to ensure your benefit is paid only to those you nominate, you must complete a valid binding nomination.

Binding death benefit nominationA binding death benefit nomination is a written direction to the Trustee that sets out the dependant(s) and/or legal personal representative that you want to receive your benefit in the event of your death and the proportions payable to each beneficiary. If you have more than one UniSuper account—for example, if you have a super account and a Flexi Pension—you can make a separate binding nomination for each account.

If your nomination is valid and in effect at the date of your death, the Trustee must pay your benefit in accordance with your nomination. You can make a binding death benefit nomination at any time.

UniSuper offers two types of binding death benefit nominations—lapsing and non-lapsing.


administering super

Here we outline some of the more administrative things you need to know about your super.

WhEn WE Can’t FInD YOU

Lost membersGenerally, you become a lost member in the following circumstances:

A If mail is sent to your last known address at least once and is returned to us unclaimed, or if we’ve never had an address for you, or

A You’ve been a member for more than two years and we haven’t received any contributions or rollovers within the last five years.

In these circumstances, we may be required to register your details with the ATO Lost Members’ Register. For more details, visit the ATO website at www.ato.gov.au.

Unclaimed moneyIf amounts payable to you become ‘unclaimed money’ (as defined in super legislation) your account will be transferred to the ATO, where it’ll be held on your behalf until you claim it.

Your account will be categorised as ‘unclaimed money’ if:

1. a) You’ve reached age 65, and b) UniSuper hasn’t received any contributions or

rollovers for at least two years, and c) after a period of five years since we last

contacted you, we’ve been unable to contact you again after making reasonable efforts, or

2. You’re a former temporary resident, at least six months have passed since you departed Australia or your visa has expired or been cancelled and we’ve received notice from the ATO requiring us to transfer your account balance, or

3. You meet the definition of a lost member, your account doesn’t include a defined benefit component and:

A your account balance is less than $6,000, or A UniSuper hasn’t received any contributions

or rollovers for five years, we’ve been unable to contact you, and don’t believe that we’ll be able to pay your super account in the future.

in three years by advising the Trustee. To cancel your binding death benefit nomination you must give the Trustee a written notice, which must meet certain conditions. To amend your binding death benefit nomination, you must complete a new Binding death benefit nomination form and provide it to the Trustee.

A valid binding death benefit nomination will override any non-binding beneficiary nomination that you may have previously made. If a valid binding death benefit nomination expires or becomes invalid for any reason, it will no longer bind the Trustee. However, the Trustee will take it into account when deciding how to pay your death benefit.

You can find out more from the Binding death benefit nomination fact sheet, which is available at unisuper.com.au.

If you don’t make a nominationIf you haven’t made a non-binding beneficiary nomination or a binding death benefit nomination and you die, the Trustee will pay your benefit to one or more of your dependants and/or legal personal representatives in proportions determined by the Trustee.

If you don’t have any dependants or a legal personal representative at the date of your death, the Trustee will pay your benefit to any other person it determines as required by superannuation law.

Keep your nomination up to dateRegardless of the type of nomination you make, it’s important you keep your nomination up to date. This is especially important if your circumstances change—for example, if you get married, change partner, have a child, or if someone you’ve nominated as a beneficiary dies or ceases to be a dependant.

antI-DEtRIMEnt PaYMEntSAnti-detriment payments are sometimes paid to certain beneficiaries of a deceased member in addition to the death benefit. It’s an additional amount that equates to a tax refund on the super contributions paid by a deceased member throughout their life.

The Government has removed the anti-detriment provision from 1 July 2017, which means from this date no new death benefit payments will be eligible for an anti-detriment payment. Payments for claims relating to members’ deaths prior to 1 July 2017 can still be made, but they must be made by 1 July 2019.


hOW tO MaKE a ClaIMPlease notify us of any claim or potential claim as soon as possible. To make a claim, you or your beneficiaries will need to call us on 1800 825 246 or write to us at the address below. You can learn more about our claims process at unisuper.com.au/claims.

Any information required to assess the claim will also need to be provided, some of which will need to be provided at your own cost. If you or your beneficiaries don’t agree with our decision in relation to the claim, you may ask for it to be reviewed by the Trustee.

If you or your beneficiaries disagree with the Trustee’s decision in relation to the claim, you may ask for it to be reviewed. You can do this by contacting us on 1800 825 246 or writing to:

UniSuper Claims Department Level 1, 385 Bourke Street Melbourne VIC 3000

FaMIlY laW anD SUPERSuper entitlements form part of the property of a marriage or de facto (same-sex or opposite sex) relationship under Family Law legislation and, in the event of marriage or relationship breakdown, can be split between the parties by agreement or court order.

For more detailed information, refer to the Super and Family Law fact sheet at unisuper.com.au/factsheets.

Risks of super

The impact of these risks may be short-term or long-term, depending on the conditions and circumstances that have given rise to them.

GEnERal RISKS that MaY aFFECt YOUR SUPER

Legislative riskThis is the risk that legislation governing super (for example, the way super is taxed and how and when you can take your benefit) might change in future. This may result in you paying more tax than you had initially planned, not being able to access your benefit exactly how you had planned or other unanticipated consequences.

If your account is transferred to the ATO, you’ll need to contact the ATO directly to claim your benefit. To check whether you have any unclaimed or lost super, refer to the ATO’s website at www.ato.gov.au.

If you’re a DBD member, your accumulation component won’t be transferred to the ATO in these circumstances.

Merging multiple accountsSuper legislation requires us to check annually whether a member of our fund has multiple super accounts with us. It also requires us to merge multiple super accounts for individuals where we believe it’s in your best interests to do so.

If we identify you as having more than one super account with us, we’ll merge the accounts so that you have only one account balance. In determining your best interests, we’ll consider the total amount of fees and charges you’re paying for these accounts, including any fees and charges you’re paying for insurance.

If we identify that you have multiple super accounts with us and merge them, we’ll contact you to advise you of the details.

If you have a super and a Flexi Pension account with us, you can view them together—simply log in to your account online.

Confirming transactions and changesWe’re required to confirm certain transactions and changes that occur during your membership, including investment switches, insurance elections, withdrawals, contributions, rollovers and changes to beneficiary nominations.

To obtain confirmation of a transaction or change, call us on 1800 331 685, quoting your member number. You can also email [email protected] or write to us at:

UniSuper Level 1, 385 Bourke Street Melbourne VIC 3000.


the longer term, investment returns are expected to be sufficient to provide for UniSuper’s defined benefits, although this is not guaranteed. Over short periods, the funding position may vary with investment volatility.

There’s a risk that the defined benefit pool could be insufficient to meet all obligations to DBD members, meaning your defined benefit may be reduced.

The accumulation component for DBD members is not subject to this defined benefit risk, but is subject to investment risk.

InVEStMEnt RISKS that MaY aFFECt YOUR SUPERAs your accumulation component or account is invested in the investment options of your choice (or if you don’t make a choice, in the Balanced option, which is UniSuper’s default investment option), it is subject to investment risk.

Investment risk is the potential for your super account to rise or fall due to how it is invested. As a result, the amount of your final benefit when it comes time to withdraw it from the Fund may be less than the total contributions made into your account. In other words, your final benefit may be less than you need to achieve your desired lifestyle in retirement.

We offer a wide range of investment options that give you the flexibility to invest your super according to the type of investment and level of investment risk you’re comfortable with.

While each investment option involves some level of risk, some involve higher levels than others. As a general rule, investments that offer higher returns tend to be higher risk, while those that offer lower returns tend to be lower risk.

Risks relating to particular types of investments are set out below. The impact of these risks may be short term or long term, depending on the conditions and circumstances that have given rise to them.

Specific investment (or security) riskThe risk that a specific investment held in an investment option may experience negative returns and lose money, or may fail to perform in line with expectations.

Operational riskThis is the risk that factors beyond the Trustee’s reasonable control may prevent it from administering and managing the Fund, your account, the investment options and the Fund’s investments in the manner in which it usually would. This might include, for example, system or technology failure, people, operational processes, market closures, significant market movements, significant illiquidity, significant redemption or switching activity, actions taken by our external investment managers and other service providers, industrial disputes, terrorist acts, wars, actual or potential epidemics and pandemics, earthquakes, fires and civil disturbances.

The Trustee has measures in place that are intended to manage the consequences of these occurrences. However, the Trustee cannot guarantee that these kinds of occurrences will not interrupt normal operations.

Cyber riskThis is the risk of financial or data loss, business disruption, or damage to the reputation of UniSuper as a result of a threat or failure to protect the information or personal data stored within its information technology systems and networks.

Other general risksThe fees and costs (including inbuilt charges and insurance premiums), associated with your membership may increase in future. We’ll give you 30 days’ written notice in advance of any increases in fees and charges (except in the case of annual indexation) payable to UniSuper (as opposed to third parties). There’s also the possibility that a new fee may be introduced.

There is also the chance that the Trust Deed may be amended or that changes to the Fund (as permitted by law) may affect your rights and entitlements as a member. We’ll keep you informed of such changes, as required by law.

SPECIFIC DBD RISKSDefined benefits are based on a formula that takes into account your age, salary, period of service, average service fraction and average contribution factor.5

Defined benefits are supported by a pool of assets into which you and your employer contribute, and which we invest in a diversified portfolio of investments. We’ve designed the DBD so that in

5 See the ‘definitions’ section on page 28 for more information about these formula components.


Derivatives riskUniSuper and some of its external investment managers use derivatives to gain exposure to certain types of investments, or to hedge risks, as considered appropriate. Importantly, UniSuper does not use derivatives to leverage the Fund’s assets. With derivatives, there is a risk that the value of the derivative will fail to move in line with the value of the underlying asset, or that the obligation under the derivative contract held by another party will not be honoured.

Investment option riskThere is a risk that, during your membership, UniSuper may discontinue the investment option you are invested in and require you to transfer to another option or make substantial changes to your chosen investment option. However, if this were to occur, you would receive advance notification and have an opportunity to switch to any of our other investment options available at that time. Similarly, UniSuper may change the default option that applies to members who do not make a choice.

ManaGInG InVEStMEnt RISKWhile risk is an inevitable part of investing, it is possible to manage investment risk and therefore minimise its impact on your investments. Two strategies for managing such risks are:

A diversification – spreading your money across a number of different investments, rather than just a few or even a single investment, and

A investing according to your timeframe – choosing investments that are best suited to the length of time you intend to hold those investments.

When it comes to deciding how you want your accumulation component or account to be invested, we have a wide range of investment options to choose from. All of these options offer a diversified selection of investments – some within specific asset classes, and some across a range of different asset classes.

We generally encourage you to take a long-term view when it comes to your super. You should consider your individual circumstances when deciding how to manage investment risk.

You may decide to seek professional financial advice to help assess your investment risk, tolerance and approach.

Investment manager riskThe risk that UniSuper or an external investment manager appointed by UniSuper to manage certain investments, may underperform the general market, or may fail to perform in line with expectations, for example due to their investment management style or management decisions.

Market riskThe risk that a specific investment market (for example, the share market or the fixed interest market) may not perform well and may diminish the value of the investments held in those markets. Factors such as interest rates and inflation, as well as government policy and economics, can all influence market risk.

Country riskThe risk that investment options that hold securities from an individual country may not perform well as a result of economic or political pressures specific to that country, and the investment options may lose money as a result.

Currency riskThe risk that the changing value of currency either in Australia or overseas may change the value of an overseas investment. For example, if the investment option contains investments denominated in US dollars and the Australian dollar rises against the US dollar, the value of those US investments may fall when calculated in Australian dollar terms.

UniSuper may from time to time hedge some or all of the Fund’s foreign currency exposures but will not necessarily do so at all times. Different currencies may be hedged to different extents (or possibly not at all).

Credit riskThe risk that an organisation that deals with UniSuper will fail in its obligation and cause an investment option to incur a financial loss.

Inflation riskThe risk that inflation and/or interest rates may fluctuate and affect investment returns and the real value of your investment.

Liquidity riskThe risk that a particular asset cannot be easily converted into cash at a particular time, leading to a delay and resulting loss when the asset is eventually sold.

22

Information about the DBDYour super and inbuilt benefits

We calculate your defined benefit differently depending on when and how you access it. This section outlines how retirement and leaving service benefits work, the different types of inbuilt benefits, and provides examples for each.

REtIRInGIf you’ve reached your preservation age (see page 13), or you cease to be employed—for reasons other than disablement (including temporary incapacity), death or suffering a terminal medical condition—your super balance is calculated using the formula set out on page 23. You can find examples of how the formula is applied if you retire or leave service on page 23.

Your total super balance when you retire or leave your job will also include the balance (if any) of your accumulation component including investment returns (which may be positive or negative) less any fees, costs, charges and taxes.

lEaVInG YOUR JOBIf you leave your job (other than due to death or disablement) you need to decide what to do with your defined benefit component. If you leave and haven’t already re-commenced contributing to the DBD, you can elect to defer your defined benefit component in the DBD, or have the value of your defined benefit (together with your accumulation component) transferred to an Accumulation 1 account. We’ll give you some time to decide, known as your ‘option period’.

Your ‘option period’ is the later of 90 days after leaving your job, or 30 days after we write to you about your options for transferring or deferring your defined benefit.

If you don’t provide us with instructions within your option period—and you haven’t already re-commenced contributing to the DBD—the value of your defined benefit component (together with your accumulation component) will be transferred to Accumulation 1.

When you transfer your defined benefit component to an accumulation account, it’ll be invested in accordance with your future contributions strategy existing for your accumulation component. This future contributions strategy will apply to your accumulation account. Your existing accumulation component will remain invested as per your current investment strategy. If you don’t have an accumulation component, or haven’t elected a future contributions strategy, then your defined benefit component and any future contributions will be invested in the Balanced (MySuper) option—our default investment option.

You may also be entitled to a continued inbuilt benefit if you die, suffer disablement or temporary incapacity or are diagnosed with a terminal medical condition within 90 days of ceasing employment or otherwise cease to be eligible to contribute to the DBD. See page 26 for more information.

23More about the DBD and Accumulation 2InFORMatIOn aBOUt thE DBD

Defined benefit retirement and leaving service formula

The terms in this formula are defined from page 28.

5-YEaR BEnEFIt SalaRY

BEnEFIt SERVICE

lUMP SUM FaCtOR

aVERaGE SERVICE

FRaCtIOn

aVERaGE COntRIBUtIOn

FaCtOR

Example – liz’s leaving service benefit on 1 January 2029

Liz is 40 years old, joined the DBD on 1 January 2018 and has decided on 1 January 2029 to terminate her employment. She has been a UniSuper member for 11 years and is receiving 17% employer contributions, with 14% paid into the defined benefit component and 3% to the accumulation component. Her five-year benefit salary is $50,000 and her accumulation component is $30,000. Liz’s leaving service benefit will be made up of the sum of her defined benefit component and her accumulation component. As Liz is 40, her benefit is preserved so she must retain it in the super system.

SCEnaRIO 1: COntInUOUS FUll-tIME EMPlOYMEnt anD 7% StanDaRD MEMBER COntRIBUtIOnS As Liz worked full time with the same employer, her average service fraction is 100%. Having always made the default level of standard member contributions (7% after-tax), Liz’s average contribution factor is 100%.

Her defined benefit component [$50,000 x 11 x 18.0% x 100% x 100%] = $99,000

Liz’s leaving service benefit Defined benefit component: $99,000 Accumulation component: $30,000 Total leaving service benefit: $129,000

SCEnaRIO 2: PaRt-tIME EMPlOYMEnt, PaREntal lEaVE OR UnPaID lEaVE If Liz worked part time, or took parental and/or unpaid leave for a while, her average service fraction would be less than 100%. For the purpose of this example, let’s assume it’s 75%. Her average contribution factor is still 100% as she’s always made the default level of standard member contributions (7% after-tax).

Her defined benefit component [$50,000 x 11 x 18.0% x 75% x 100%] = $74,250


SCEnaRIO 3: REDUCED StanDaRD MEMBER COntRIBUtIOnS If after 8 years, on 1 January 2026, Liz reduced her 7% after-tax standard member contributions to 3%, her average contribution factor will be less than 100%.

In this case, her average contribution factor = (8 x 100% + 3 x 91.7%) ÷ 11 = 97.74%

Liz is still working full-time, so her average service fraction is 100%.

Her defined benefit component [$50,000 x 11 x 18.0% x 100% x 97.74%] = $96,763


24 More about the DBD and Accumulation 2InFORMatIOn aBOUt thE DBD

pay during your DBD membership will decrease your monthly temporary incapacity or disablement benefit (as your average service fraction will generally be less than 100%).

If you qualify for and receive both a temporary incapacity benefit through your DBD membership and an income protection insurance benefit outside of UniSuper, the income protection benefit outside of UniSuper may be reduced in order to offset your inbuilt benefit. Note: Income Protection cover through our Insurer isn’t available to DBD members.

For more information about how and when this benefit will be paid, refer to the Inbuilt temporary incapacity benefits for DBD members fact sheet at unisuper.com.au/factsheets.

Example – alison’s temporary incapacity benefit

Alison joined the DBD on 1 January 2018. She is working full time and making the default level of standard member contributions (7% after-tax) when she unfortunately has an accident on 1 January 2027 and is deemed eligible for a temporary incapacity benefit.

Her five-year benefit salary is $75,000

Her average service fraction is 100%.

Her monthly benefit is calculated as: ($75,000 x 60% x 100%) ÷ 12 = $3,750

Alison can continue to receive a monthly temporary incapacity benefit for up to two years, provided she continues to satisfy the requirements set out in the Trust Deed.

Permanently unable to workIf you become permanently disabled, you may be able to claim an inbuilt disablement benefit.

To claim, you’ll need to have been absent from work—because of injury or illness—for three months within a period of 12 consecutive months, prior to ceasing employment.

The inbuilt disablement benefit is a regular monthly payment until you’re 65, provided you continue to satisfy the relevant requirements.

InBUIlt BEnEFItSIt’s helpful to think of inbuilt benefits as being like insurance cover, in that they can provide financial protection against injury, illness or death.

Inbuilt benefits are ‘built in’ to your DBD membership (they’re self-insured by UniSuper) and they work differently to the external insurance provided by our Insurer. Inbuilt benefits may be payable if you’re temporarily or permanently unable to work, or in the event of terminal illness or death.

Features of inbuilt benefits: A Unlike insurance cover provided by our Insurer,

there’s no charge deducted directly from your account.

A They’re determined by a formula and use some of the same formula components used to calculate your ‘defined’ super.

A As they’re part of your DBD membership, you’re unable to change or opt out of them.

A They only apply while you’re employed with your employer and eligible to contribute to the DBD.

You may also be entitled to a continued inbuilt benefit if you die, suffer permanent disablement, temporary incapacity or are diagnosed with a terminal medical condition within 90 days of ceasing employment or otherwise cease to be eligible to contribute to the DBD. See page 26 for more information.

Temporarily unable to workIf you become injured or ill and have to take time off work, you may be eligible for an inbuilt temporary incapacity benefit which provides an income until you’re able to work again.

The temporary incapacity benefit is a regular monthly payment for up to two years, regardless of your age.

Temporary incapacity benefit formula (for monthly payment):Five-year benefit salary x average service fraction x 60% ÷ 12

For the purposes of calculating your other DBD entitlements, the period while you’re receiving a temporary incapacity benefit is counted towards your benefit service with a contribution factor of 100% and a service fraction equal to your service fraction immediately before your temporary incapacity. This means your super continues to grow while you’re receiving a temporary incapacity benefit. Periods of part-time work, gaps in employment or leave without


Example – Carl’s disablement benefit

Carl joined the DBD on 1 January 2018. He makes the default level of standard member contributions (7% after-tax) and has had periods of working part-time during his employment. He’s working when he unfortunately has an accident on 1 January 2029 and is deemed eligible for a disablement benefit.

His five-year benefit salary is $150,000

His average service fraction is 80%.

His monthly benefit is calculated as: ($150,000 x 60% x 80%) ÷ 12 = $6,000

Carl will continue to receive a monthly disablement benefit until age 65, provided he continues to satisfy the conditions in the Trust Deed.

DeathIf you die before you turn 60, your inbuilt death benefit provides for an additional amount on top of the value of your defined benefit component.

If you die after you turn 60, your inbuilt death benefit will be equal to the value of your defined benefit component.

Inbuilt death benefit formulaThe greater of the following amounts is paid:

A A) A lump sum amount calculated as: Five-year benefit salary x Benefit Service6 x 21% x Average Service Fraction

A B) A lump sum amount calculated as: – The value of your defined benefit component7,

plus – Five-year benefit salary x Potential service8

x 21% x GF9.

If you’ve exercised contribution flexibility at the time of your death, your benefit will be the benefit calculated under (B) only.

6 Your Benefit Service will also include the period from the date of your death to what would have been your 60th birthday.7 Based on service at the time of your death.8 ‘Potential service’ means the period from the date of death to your 60th birthday.9 ‘GF’ means the greater of your Service Fraction at the date of death and your Average Service Fraction at the date of death.

Inbuilt disablement benefit formula (for monthly payment):Five-year benefit salary x average service fraction x 60% ÷ 12

For the purposes of calculating your other DBD entitlements, the period while you’re receiving a disablement benefit is counted towards your benefit service with a contribution factor of 100%, and a service fraction equal to your average service fraction immediately before your disablement. This means your super continues to grow while you’re receiving a disablement benefit.

Inbuilt disablement benefit formula for lump sum payment (at date of disablement):Five-year benefit salary x average service fraction

If you qualify for an inbuilt disablement benefit before age 65, you can request a lump sum payment. If you request this lump sum payment, your monthly income benefit, benefit at age 65, and any other benefits you receive from the DBD would be reduced (see ‘Partial withdrawals’ on page 27).

If you qualify for an inbuilt disablement benefit after age 65, your entitlement will be your leaving service benefit or retirement benefit.

If you’re assessed as being Disabled and also have external insurance cover for TPD, you may be entitled to a TPD benefit (if you meet the specific requirements of that definition in the policy) as well as your inbuilt Disablement benefit. You may also be able to access your accumulation component if you can show that you’re permanently incapacitated and meet a condition of release. If you want to make a claim under your TPD insurance cover, you’ll need to make a separate application (read the Insurance in your super booklet at unisuper.com.au/pds for information on how to make a claim).

For more information about how and when this benefit will be paid, refer to the Inbuilt disablement benefit for DBD members fact sheet at unisuper.com.au/factsheets.

26 More about the DBD and Accumulation 2InFORMatIOn aBOUt thE DBD

If you also have external insurance cover, then a terminal illness payment may also be payable (you’ll need to make a separate claim through our Insurer).

If you claim an inbuilt terminal medical condition benefit and subsequently decide to continue or recommence working at any time in the future, you won’t be eligible to return to the DBD. All future contributions would then be made into an Accumulation 1 account, and you’d be ineligible to apply for any external insurance cover in the future.

GEnERal InFORMatIOn aBOUt InBUIlt BEnEFItSIf you suffer a terminal medical condition, disablement or temporary incapacity, or die within 90 days of the date you ceased eligibility for the DBD, you or your beneficiaries may be eligible to claim under the Fund’s continued inbuilt benefit provisions.

The benefit for death, disablement or terminal medical condition is a lump sum equivalent to the inbuilt death benefit that you would have received from the DBD if you died immediately prior to the date you ceased contributing service, less the withdrawal benefit you were entitled to at the time. The temporary incapacity benefit is a monthly income calculated as at the date you ceased contributing service, payable for up to two years.

To be eligible to claim a terminal medical condition, disablement or temporary incapacity benefit, you must satisfy the relevant definition in the UniSuper Trust Deed as set out at the end of this section. For more information, read the Terminal medical condition benefit, Disablement benefits for Defined Benefit Division members, and Temporary incapacity benefits for Defined Benefit Division members fact sheets at unisuper.com.au/factsheets.

You generally won’t be eligible to receive a continued inbuilt benefit if:

A you exit UniSuper and cease to be a member within the 90-day period,

A you again become a contributing member of the DBD within the 90-day period and inbuilt benefits resume, or

A you were entitled to receive a terminal medical condition, disablement or temporary incapacity benefit prior to the date you ceased contributing service.

The payment of a benefit under the Fund’s continued inbuilt benefit provisions is subject to UniSuper’s Trust Deed and Regulations.

An additional amount may also be payable if you have insurance cover for death through our Insurer. A separate claim would be required—read the Insurance in your super booklet at unisuper.com.au/pds for information on how to make a claim.

The total benefit payable on your death will include the balance (if any) of your accumulation component plus—if you have external insurance cover—any insurance proceeds that may be payable under the insurance policy.

Example – anne’s inbuilt death benefit

Anne was aged 48 when she died on 1 January 2027. Her five-year benefit salary was $77,500 and she was a UniSuper member for 8 years.

She had not exercised contribution flexibility at the time of death, and her average service fraction and service fraction are both 100%.

Her death benefit is calculated as the greater of the following amounts:

A) $77,500 x 20* x 21% x 100% = $325,500

B) $77,500 x 8 x 19.6% x 100% x 100% = $121,520

+ $77,500 x 12 x 21% x 100% = $195,300

Total death benefit under B) = $316,820

Total death benefit under A) = $325,500

In this example, Anne’s death benefit would be calculated using the formula set out in A. Her benefit would be increased by the amount of any accumulation component or external insurance cover she had.

*Includes 12 years of potential service to age 60.

Terminal medical conditionIf you’re diagnosed with a terminal medical condition before age 60, you may be able to receive your inbuilt death benefit as an inbuilt ‘terminal medical condition benefit’ (see page 25 for a description of how death benefits are calculated).

Your election to receive an inbuilt terminal medical condition benefit will be irreversible and you’ll no longer be entitled to any further inbuilt benefits (you’ll also cease to be a DBD member).


Other lower contribution levelsIf you qualify for half contributions, your service fraction will be reduced by half—meaning your inbuilt benefits will be reduced as well (because your average service fraction will be lower over time).

PaRtIal WIthDRaWalSUnder certain limited circumstances, you may be eligible to access some of the super in your defined benefit component.

If this occurs, the value of your defined benefit component will be reduced to reflect the lump sum paid. A ‘reduction factor’ will be determined and applied to your Benefit Service—the part of the formula which is used to calculate your defined benefit. The reduction factor will continue to apply to all future defined benefit lump sum calculations.

Given that the reduction factor decreases the value of your defined benefit component, the value of your inbuilt death benefit also reduces.

The reduction factor applies if: A you elect to take a lump sum Disablement

benefit, or A the value of your defined benefit component

is adjusted to give effect to: – a Family Law payment split, or – a payment on approved compassionate

or severe financial hardship grounds.

For more information, read the How your defined benefit component is impacted after a partial withdrawal fact sheet at unisuper.com.au/factsheets.

FInD OUt MOREFor more information about inbuilt benefits (including special conditions and limitations), refer to the following fact sheets available at unisuper.com.au/factsheets:

A Temporary incapacity benefits for Defined Benefit Division members,

A Disablement benefits for Defined Benefit Division members, and

A Terminal medical condition benefit.

Restrictions on your inbuilt benefitsInbuilt disablement and temporary incapacity benefits may be reduced if you’re receiving workers’ compensation or similar payments under legislation or an industrial award or agreement, or if you engage in work (whether paid or unpaid). Inbuilt benefits may not be payable or may be reduced if:

A you’ve completed less than three years of contributing service after joining UniSuper or transferring into the DBD from Accumulation 1 or a Personal Account, and

A the Trustee considers that your death, disablement, temporary incapacity or terminal medical condition arose directly or indirectly from a condition which existed at the time you joined, transferred or resumed.

Inbuilt benefits may also not be payable if: A you fail to provide the Trustee with requested

medical or other information, A the information you provide is unsatisfactory,

false or misleading, or A you fail to disclose relevant information to

the Trustee.

To be eligible to receive an inbuilt disablement or temporary incapacity benefit, you need to have been absent from employment through injury or illness for three months, within a period of 12 consecutive months immediately prior to ceasing service (disablement) or immediately prior to lodging a claim (temporary incapacity).

Once eligible for this inbuilt benefit, you’ll need to satisfy the following additional conditions before you can receive your first payment:

A Disablement Benefits – exhausted any sick leave entitlements

A Temporary Incapacity Benefits – exhausted any sick leave and wage

entitlements.

Cost of inbuilt benefitsThe costs associated with providing inbuilt benefits are allowed for in the formula. No deductions are made from your contributions or your final benefit.

Impact of contribution flexibilityIf you reduce your standard member contributions under our contribution flexibility arrangements, you’ll still be entitled to inbuilt benefits but the amount of your inbuilt death benefit may vary (refer to the inbuilt Death benefit example on page 26). To read more about contribution flexibility, go to page 5.

28 More about the DBD and Accumulation 2DEFInItIOnS

DefinitionsaCCUMUlatIOn 1 aCCOUntAn Accumulation 1 account refers to another ‘accumulation-style’ account within UniSuper. Accumulation 1 accounts are typically made up of employer super guarantee contributions, any voluntary member contributions made, investment returns (which can be positive or negative), money rolled over from other super funds and any other contributions such as spouse contributions.

Fees, costs, insurance premiums (if applicable) and taxes are deducted from these accounts.

aCCUMUlatIOn COMPOnEntThe accumulation component of your DBD membership works differently from the defined benefit component. The 3% additional employer contributions (if applicable), any voluntary member contributions, and any rollovers you make or government co-contributions you receive are allocated to the accumulation component. If you have insurance cover any insurance proceeds that may be payable will also be allocated to this component.

Fees, costs and taxes are also deducted from your accumulation component (where these apply), as are any premiums for death and disablement cover. You can decide how this component is invested by choosing from our range of investment options.

Therefore, the value of your final benefit from the accumulation component is determined not by a formula (as in the case of your defined benefit component), but instead by the performance of the investment options you choose (which could be positive or negative). This means the value of your accumulation component can rise or fall depending on how investment markets have performed over the period your accumulation component is invested.

aDJUStED taXaBlE InCOMEAn income test measure used by the ATO to determine your liability to surcharge tax.

aUtOMatIC aCCEPtanCE lIMItmeans for:

A a DBD member, three units of: – (i) death only cover; – (ii) TPD only cover; or – (iii) death and TPD cover, and

A an Accumulation 2 member, $1.2 million for: – (i) death only cover; – (ii) TPD only cover; or – (iii) death and TPD cover

A an Accumulation 2 member, the lesser of 34 units of Income Protection cover per month and the next-highest number of units which equates to 85% of the member’s salary at the date insured cover commenced under the policy.

aVERaGE COntRIBUtIOn FaCtOR (aCF)This is the time-weighted average of your contribution factors. If you always make the standard 7% after-tax (or 8.25% before-tax) member contributions, your ACF is 100%.

Reducing your standard member contributions will generally decrease your ACF. See the definition of ‘Contribution factors’ for more information.

aVERaGE SERVICE FRaCtIOn (aSF)This refers to how much of your DBD membership has been spent in full-time employment. It’s calculated by averaging all of your Service Fractions over your period of Benefit Service with a UniSuper participating employer. For example, if you always worked full-time with your UniSuper employer(s), your ASF is 100%. However, any breaks in employment will reduce your ASF. Typical breaks in employment include the time between ceasing one job and starting another, periods of leave without pay, periods of part-time work and half contributions. Breaks in employment are calculated in days and include weekends.

29More about the DBD and Accumulation 2DEFInItIOnS

COntRIBUtIOn FaCtORSContribution factors are applied on a time-weighted basis in the benefit calculation – see the definition of average contribution factor. If you reduce your standard member contributions, the final benefit you receive will generally also reduce. This reduction to your defined benefit entitlement will be calculated by adjustments to your average contribution factor. See page 5 for more information on contribution flexibility and the impact of reducing your standard member contributions.

IF YOU RECEIVE 17% EMPlOYER COntRIBUtIOnS ...

Standard after-tax member contribution

Contribution factor

0% 74.5%1% 80.2%2% 86.0%3% 91.7%4% 97.4%4.45% 100%7% 100%

IF YOU RECEIVE 14% EMPlOYER COntRIBUtIOnS ...

Standard after-tax member contribution

Contribution factor

2.55% 74.5%3.55% 80.2%4.55% 86.0%5.55% 91.7%6.55% 97.4%7% 100%

DEFaUlt COVERFor information about default cover, refer to the Insurance in your super booklet available at unisuper.com.au/pds.

BEnEFIt SalaRYThe benefit salary is generally the five-year benefit salary. The five-year benefit salary is the average of your annual equivalent full-time salary (not indexed) as a contributing DBD member over your last five years of employment with a UniSuper employer(s), before your benefit is calculated.

If you’ve worked for less than five years, it’s generally averaged over the time you’ve been employed as a contributing DBD member.

BEnEFIt SERVICEYour period of service covers the years and days of your DBD membership. If you’re a contributing member and you die before age 60, your benefit service will also include the period from the date of your death to what would have been your 60th birthday. If you’re a contributing member and you suffer disablement, your benefit service covers the period (years and days) from the date of your disablement up to age 65.

CEaSE COntRIBUtInG SERVICECease contributing service means ceasing employment as a contributing member with a UniSuper participating employer and includes where your employment conditions have changed and you’re no longer eligible to be a contributing member of the DBD or Accumulation 2.

ChIlD/ChIlDREnA child in relation to a UniSuper member or the member’s spouse includes, regardless of age, a child, adopted child, a ward or child within the meaning of the Family Law legislation of you or your spouse.

ChOICE OF FUnDUnder the Choice of Fund legislation, you may be eligible to choose the super fund into which your Superannuation Guarantee contributions are paid. Eligibility for Choice of Fund depends on your conditions of employment. Choice of Fund isn’t generally available to you if your conditions of employment are governed by an award or industrial agreement. DBD members aren’t eligible for Choice of Fund.


IntERDEPEnDEnCY RElatIOnShIPAn interdependency relationship may exist between two people (whether or not related by family) if they live together in a close personal relationship, and one or each of them provides the other with financial support, and one or each of them provides the other with domestic support and personal care.

If two people have a close personal relationship but don’t live together or provide this support or care because either or both of them suffer from a physical, intellectual or psychiatric disability, they may still be deemed to have an interdependency relationship.

InCOME PROtECtIOn DEFInItIOnS OF DISaBIlItY (EXtERnal COVER)

Partially Disabled/Partial Disability/Partial Disablement

Refer to the ‘Definitions’ section of the Insurance in your super booklet available at unisuper.com.au/pds.

Totally Disabled/Total Disability/Total Disablement Refer to the ‘Definitions’ section of the Insurance in your super booklet available at unisuper.com.au/pds.

lEGal PERSOnal REPRESEntatIVE Your legal personal representative is the executor of your Will, or the administrator of your estate if you die without a Will.

If your benefit is paid to your legal personal representative, your death benefit will form part of your estate and will be distributed in accordance with your Will (if you have one), or in accordance with the laws that govern people who die without a Will.

DEFInED BEnEFIt COMPOnEntThe part of your Defined Benefit Division benefit that’s calculated in accordance with a formula that generally takes into account your five-year benefit salary, benefit service, lump sum factor, average service fraction (ASF) and average contribution factor (ACF).

DISaBlEMEnt (InBUIlt BEnEFItS) A state of health which in the opinion of the Trustee renders a member permanently incapable of performing duties or engaging in employment for which they are reasonably qualified by training and experience where:

A the member has been absent from employment through injury or illness for three months within a period of 12 consecutive months immediately before ceasing service, and

A the Trustee is satisfied that the state of health is not due to or induced by any wilful action on the part of the member to obtain a benefit.

EMPlOYER COntRIBUtIOnS Generally, contributions equal to 17% of your salary are made by your employer. Some employers contribute 14%.

In the DBD, 14% of this finances your defined benefit component, and the 3% additional employer contribution (if applicable) is allocated to your accumulation component.

As an Accumulation 2 member, all contributions are allocated to your accumulation account.

IllnESS (EXtERnal COVER)Refer to the ‘Definitions’ section of the Insurance in your super booklet available at unisuper.com.au/pds.

InJURY (EXtERnal COVER) Refer to the ‘Definitions’ section of the Insurance in your super booklet available at unisuper.com.au/pds.

31More about the DBD and Accumulation 2DEFInItIOnS

PRE-DISaBIlItY InCOMERefer to the ‘Definitions’ section of the Insurance in your super booklet available at unisuper.com.au/pds.

PRE-EXIStInG COnDItIOn (PEC) (EXtERnal COVER)Refer to the ‘Definitions’ section of the Insurance in your super booklet available at unisuper.com.au/pds.

POtEntIal SERVICEThe number of years from your date of death until you would have reached age 60.

SERVICE FRaCtIOnRefers to how much of your DBD has been spent in full-time employment.

SPOUSE A a person to whom you’re legally married A a person, whether of the same sex or opposite

sex, with whom you are in a relationship that is registered under a prescribed Australian State or Territory law as a prescribed kind of relationship, and

A a person, whether of the same sex or opposite sex, with whom you are not legally married but who lives with you on a genuine domestic basis as a couple within the meaning in superannuation law.

tEMPORaRY InCaPaCItY (InBUIlt BEnEFItS)A state of health which, in the opinion of the Trustee, renders a member unable to perform their own duties or any other duties for which they’re reasonably qualified by training and experience and available at the member’s employer where:

A the member has been absent from employment through injury or illness for three months within a period of 12 consecutive months immediately before making a claim for the benefit, and

A the Trustee is satisfied that the state of health is not due to or induced by any wilful action on the part of the member to obtain a benefit.

lUMP SUM FaCtORYour lump sum factor is determined by your age, as shown in the following table.

aGE WhEn YOU REtIRE OR lEaVE

lUMP SUM FaCtOR (%)

40 or under 18.041 18.242 18.443 18.644 18.845 19.046 19.247 19.448 19.649 19.850 20.051 20.252 20.453 20.654 20.855 21.056 21.257 21.458 21.659 21.860 22.061 22.262 22.463 22.664 22.865 and over 23.0

Please note that the proportion of days between your last birthday and next birthday is taken into account when determining your lump sum factor.


tERMInal IllnESS OR tERMInallY Ill (EXtERnal COVER)Refer to the ‘Definitions’ section of the Insurance in your super booklet available at unisuper.com.au/pds.

tERMInal MEDICal COnDItIOn (InBUIlt BEnEFItS)A condition in relation to the member where the Trustee is satisfied that the following circumstances exist:

A two registered medical practitioners have certified separately that the person suffers from an illness, or has incurred an injury, where it is likely to result in the death of that person with a period that ends not more than 12 months after the date of the certification,

A at least one of the registered medical practitioners is a specialist practising in the area related to the illness or injury suffered by the person, and

A for each of the certificates, the 12-month period has not ended.

tOtal anD PERManEnt DISaBlEMEnt OR tOtallY anD PERManEntlY DISaBlED (tPD) (EXtERnal COVER)Refer to the ‘Definitions’ section of the Insurance in your super booklet available at unisuper.com.au/pds.

tOtal SUPER BalanCEYour ‘total superannuation balance’ is generally made up of the balance of all of your superannuation and retirement saving accounts. This is reduced by the sum of any personal injury structured settlement amounts contributed to your super.

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UNISIBR0013 1018

CONTACT US 1800 331 685 +61 3 8831 7901

WEBSITE unisuper.com.au

EMAIL [email protected]

FAX 1300 224 037 +61 3 8831 6141

UNISUPER ADVICE 1800 823 842 +61 3 8831 7916

ADDRESS UniSuper Level 1, 385 Bourke Street Melbourne Vic 3000 Australia

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