Glossary
Accumulation Only Members
Members that are part of the Accumulation Section of AvSuper only. These include members with a Deferred Benefit account, Allocated Pension sub-account or an Eligible Spouse Member account.
Actuary
A professional person qualified to make calculations and valuations for superannuation funds, insurance funds or other forms of investment.
Annual Accounts
A yearly summary of the financial position of the Fund.
Auditor’s report
An independent examination of the Fund’s records and operations in order to ensure compliance with accounting and regulatory standards.
Average Weekly Ordinary Time Earnings (AWOTE)
A measure of wage and salary levels, excluding overtime earnings, of employees in Australia, published by the Australian Bureau of Statistics.
Award benefit
The compulsory 3% productivity benefit as prescribed by Industrial Award.
Capital guaranteed
Refers to an investment product which includes some form of guaranteed return of the accumulated wealth.
Complying income stream
Retirement income stream products (that is, pensions or annuities) that meet certain requirements set by the government and may increase your eligibility for the age pension and allow you to reduce your tax.
Conciliation
The process of bringing two disputing parties together to seek an agreed outcome, with the assistance of a neutral third party.
Consumer Price Index (CPI)
The measure of the quarterly changes in the prices of a ‘basket’ of goods and services that account for a high proportion of the spending of metropolitan wage and salary earners.
CSS Member
Commonwealth Superannuation Scheme member.
Custodian
An organisation which safeguards and maintains assets on behalf of the fund.
Default option
The investment option in which a member’s account is invested in the absence of the member making a choice. The default option for AvSuper is the Growth option.
Dependant
A person(s) legally entitled to receive your superannuation and insurance benefits if you die. Your dependants will generally be your spouse (including de facto), children , legal personal representative and any other person with whom the Trustee determines that you had an interdependent relationship as at the time of your death.
Eligible Termination Payment
A lump sum payment made as a consequence of the termination of employment and/or membership of a superannuation fund. Such a payment may not incur lump sum taxation if suitably rolled over.
Employer
The term ‘employer’ used in reference to AvSuper means Airservices Australia or Civil Aviation Safety Authority.
Final Average Salary (FAS)
Your average salary for superannuation purposes as measured by averaging your superannuation salary on your three birthdays prior to leaving the Fund.
Full Member
A member that is neither an Accumulation Only Member nor a CSS Member.
Full Membership
Continuous employment with your employer while a Full Member.
Ordinary Time Earnings (OTE)
The total amount an employee earns during their usual working hours, including items such as bonuses, commissions, loadings and allowances.
Performance objectives
The returns that each investment option aims to achieve.
Preservation age
The age determined by the government when you are able to access your superannuation benefit.
| Date of birth | Preservation age |
|---|---|
| Before 1.7.60 | 55 |
| 1.7.60 to 30.6.61 | 56 |
| 1.7.61 to 30.6.62 | 57 |
| 1.7.62 to 30.6.63 | 58 |
| 1.7.63 to 30.6.64 | 59 |
| 1.7.64 onwards | 70 |
Risk management plan
A document setting out the measures and procedures a Trustee applies to identify, monitor and manage risks that arise in operating a superannuation fund.
Risk/return profile
A concept used to illustrate that higher anticipated returns are accompanied by incremental increases in risk.
Superannuation Guarantee (SG) minimum benefit
A minimum level of employer-financed benefit determined by the Government's Superannuation Guarantee (SG) Legislation.
Superannuation salary
The normal base salary you were receiving on your last birthday which may include certain allowances such as higher duties, shift penalties, etc. Salary for superannuation purposes changes once a year on your birthday.
Switching
The process of changing investment options.
Trust Deed
The legal document governing the operation of the Fund and the benefits provided.
Trustee
The persons or corporate body which has legal responsibility for the running of the fund in accordance with the requirements of the Trust Deed. AvSuper Pty Ltd (ACN 050 431 797, AFSL No.239078 & RSEL No. L0000147) is the Trustee of the AvSuper Fund.
