AvSuper Defined Benefit

As a defined benefit member, you build up a multiple which is applied to your Final Average Salary (FAS) as a superannuation benefit. The rate the benefit multiple builds up each year depends on the rate at which you choose to contribute. More information about your defined benefit membership can be found in the AvSuper guide for Defined Benefit Corporate Members.

Calculating your defined benefit

The amount of super in your defined benefit is calculated by multiplying the Final Average Salary (FAS) by the multiple built up during the period of Corporate (non CSS) Membership. Examples of calculations are shown below.

Your Final Average Salary (FAS) is based on the last three annual superannuation salaries provided to us by your employer on your birthday each year. Please speak to your employer if you think we have the wrong super salary for you.

You accrue a benefit multiple for every day of service. The calculation uses the multiple accrued at the time you cease Defined Benefit membership (whether through retirement, resignation, retrenchment or transferring to an accumulation account).

Members withdrawing their money after reaching their preservation age can choose to take their money as a lump sum, transfer it into an accumulation super account or use it to start an income stream. Prior to preservation age, members can only access non-preserved amounts and must roll the preserved savings into a super account.

Note that while Air Traffic Controllers and Flight Services Officers have a retirement age of 50, they are subject to the same preservation rules as other members.

Special conditions and adjustments may apply for periods of leave – read our how leave affects your benefit fact sheet or contact us for more information.

Part-time work

Your benefit is calculated on a pro-rata basis for any period that you were a part-time employee.

Your equivalent full-time salary is always used in benefit calculations. However, your multiple growth will be based on your reduced working arrangement hours; for example, if you work 75% of full time, your multiple will grow at 75% of the usual rate.

Benefit multiple

If your average annual contribution rate over the total period of your defined benefit membership is 5% or less, your benefit multiple will build up as shown in Table 1 below.

If your average contribution rate over the total period of defined benefit membership is more than 5%, the benefit multiple builds up as shown in Table 2 below.

Table 1

Average contribution rate 
 of 5% or less

Contribution rate as % of annual salary
Benefit multiple build up to apply to each year or part year of contributory membership (as % of FAS)
0% 10%
1% 12%
2% 14%
3% 16%
4% 18%
5% 20%
6% 22%
7% 24%
8% 26%
9% 28%
10% 30%

Table 2

Average contribution rate 
 greater than 5%

Contribution rate as % of annual salary
Benefit multiple build up to apply to each year or part year of contributory membership (as % of FAS)
0% 10%
1% 12%
2% 14%
3% 16%
4% 18%
5% 20%
6% 21.2%
7% 22.4%
8% 23.6%
9% 24.8%
10% 26.0%

The following calculations are simple examples. In some cases the calculation will vary and will use a formula set out in the AvSuper Trust Deed.

Please contact us for assistance in applying these formulas to your situation – we can explain the formula or make an appointment for personalised advice.

Retirement age 58

FAS of $50,000

Member paid: 2% for 5 years
6% for 4 years
5% for 25 years

(2 x 5) + (6 x 4) + (5 x 25)
= Average contribution rate of 4.7%
______________
34 years
Benefit Multiple
5 years x 2% = 0.70 (5 x 14%)
4 years x 6% = 0.88 (4 x 22%)
25 years x 5% = 5.00 (25 x 20%)
Benefit multiple TOTAL = 6.58
Benefit = benefit multiple x FAS
= 6.58 x $50,000
= $329,000

 

Retirement age 60

FAS of $50,000

Member paid: 4% for 15 years
10% for 15 years

(4 x 15) + (10 x 15)
= Average contribution rate of 7%
______________
 30 years
Benefit Multiple
30 years x 7%
= 6.72 (30×22.4%)
Benefit = benefit multiple x FAS
= 6.720 x $50,000
= $336,000

 

AvSuper Bulletin

Member Advice Solution

Performance - Data and reports

Monthly Investment Update

Live Chat Support Software

Phone 1800 805 088 (Free call)
Email:
avsinfo@avsuper.com.au