How does UniSuper defined benefit work?

Your defined benefit component is calculated with a formula based on your contributions, your age, your work arrangements, and your salary over the last 5 years. Your contributions to the defined benefit component are pooled together with other defined benefit members’ contributions and invested together.

What are UniSuper fees?


Type of fee Amount
Administration fees and costs1 $96 or 2% of your account balance (whichever is less) per year (maximum $8 per month).
Investment fees and costs2,4,5 0.40%1 per year
Transaction costs2,3,4 0.06% per year

Is UniSuper a defined benefit fund?

UniSuper has been providing defined benefit super to employees in the higher education and research sector since 1983.

Is UniSuper defined benefit pension taxable?

Most UniSuper pension payments are tax-free for everyone age 60 and over. But there are some cases where tax applies, depending on your age or the type of account you have.

What happens when you leave a defined benefit pension?

Typically, when you leave a job with a defined benefit pension, you have a few options. You can choose to take the money as a lump sum now, or take the promise of regular payments in the future, also known as an annuity. Keep in mind that most annuity payments are fixed and do not keep up with inflation.

How much tax will I pay on my defined benefit pension?

For Retirement Access pensions: All pension payments are tax-free. For Defined Benefit pensions: – No tax is payable on annual pension payments up to the defined benefit income cap4, which is $106,250 for 2021–22. – PAYG withholding5 tax is payable on 50% of any excess amount above the defined benefit income cap.

Should I keep my defined benefit pension?

Stephen Cameron, pensions director at Aegon, warns: ‘Don’t cash in a defined benefit pension if you think you can only just get by in retirement. With a final salary pension you can take a tax-free lump sum worth about a quarter of the overall value but the rest of the money must be taken as a regular taxable income.

Can you cash out a defined benefit pension?

Can I cash in a Defined Benefit Pension Early? If you are aged 55+ and not currently paying into or receiving your defined benefit pension, you can cash in 100% of your pension early as a cash lump sum – up to 25% Tax Free.

How is UniSuper deducted from your final benefit?

It is, however, notional only, in that it is not deducted from your account or benefit when paid. It may be indirectly relevant to your final benefit in that it is deducted from the pool of money used to fund all defined benefits and could therefore be a contributing factor if UniSuper were to be unable to cover defined benefits.

Is the DBD a good investment for UniSuper?

The DBD has been designed such that contributions and investment returns are expected to be sufficient to provide for UniSuper’s defined benefits over the long term.

What is the default amount to contribute to UniSuper?

The default amount is 7% (after tax) of your salary, which goes into your super automatically. You can change the amount you contribute, but different rules apply depending on the type of account you have.

What is the default contribution for defined benefit Super?

You can reduce or cancel your default member contributions at any time, but doing this will affect your super and other benefits. Your default total contribution is 24% of your salary (if you get 17% employer contributions) or 21% (if you get 14% employer contributions). Contribution taxes apply to employer contributions.