How Leave Affects Your Defined Benefits
Here is a brief summary of how your super normally operates:
Defined benefit members accrue a multiple of their Final Average Salary (FAS) for each day of membership.
For CSS defined benefit members, the annual growth of the multiple is 0.03 and for full defined benefit members it is between 0.1 and 0.3 depending on your contribution rate and your previous contribution history. The tables below provide detailed information on the relevant multiple.
Periods of part-time service affect the growth of the multiple, e.g. if you work 50% of standard full-time hours, the multiple growth (and any member contributions to the defined benefit division) will be halved while you work part-time.
The Final Average Salary is the average of the super salaries on your last three birthdays prior to ending employment with Airservices Australia or CASA. This salary is always the full-time equivalent salary, even if you work part-time.
Under the Fund rules, a Final Average Salary cannot reduce. Therefore if you have a reduction in your salary for any reason, your benefits will continue to be based on your earlier higher salary and increased by AWOTE for future years.
1. Paid leave
As a defined benefit member, your benefit accrual of is not affected in any way by leave on full or reduced pay.
Contributions to your defined benefit account will continue to be deducted at your chosen rate. If you want to vary the defined benefit contribution, please give your payroll area a completed Change of Contributions form.
2. Unpaid leave
You will also continue to accrue benefits in the normal way for the first 84 days on leave without pay.
General leave without pay – Unless you are on sick leave without pay (see below), no benefits will accrue after 84 days.
As your defined benefit accrual is calculated using your contribution rate, contributions must be paid for the 84 day period if your rate is greater than 0%. Arrangements can be made for these contributions to be deducted from your pay in advance. Alternatively, you can pay by cheque or direct deposit during your absence, or request to pay these contributions on return to work. If the contributions remain outstanding when you leave Airservices or CASA employment, they will be deducted from the benefit payable as described in AvSuper’s Trust Deed.
If you do not want to pay any defined benefit contributions for the 84 day period, simply reduce your rate to 0%. This change will only be effective from the first day of the pay period after the request is signed, and contributions will be payable up to that point. Remember that this will affect your overall benefit accrual and any death and total and permanent disablement cover you may have.
Sick leave without pay – if you are on unpaid leave due to illness, you will continue to accrue full benefits beyond 84 days.
If you want to continue contributing to your defined benefit, you can pay in advance, by cheque or direct deposit during the absence, or request to pay these contributions on return to duty. If the contributions remain outstanding when you leave Airservices or CASA employment, they will be deducted from the benefit payable as described in AvSuper’s Trust Deed.
If you do not want to make contributions during your sick leave, simply reduce your rate to 0%. This change will only be effective from the first day of the pay period after your request is signed, and contributions will be payable up to that point. Remember that this will affect your overall benefit accrual and any death and total and permanent disablement cover you may have.
3. Insurance cover
Any AvSuper Corporate death and total and permanent disablement cover will continue for up to 24 months while you are absent on leave without pay (including for parental leave). If cover is required beyond this point, you must get advance approval from our insurer.
Therefore, it is important to advise AvSuper when applying for extended leave without pay, or when unplanned absences extend beyond 24 months.
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 rate is 5% or less |
|
Table 2 – average rate is greater than 5% |
||
|
Contribution rate as % of annual salary |
Benefit multiple build up to apply to each year or part year of contributory membership (% of FAS) |
|
Contribution rate as % of annual salary |
Benefit multiple build up to apply to each year or part year of contributory membership (% of FAS) |
|
0% |
10% |
|
0% |
10% |
|
1% |
12% |
|
1% |
12% |
|
2% |
14% |
|
2% |
14% |
|
3% |
16% |
|
3% |
16% |
|
4% |
18% |
|
4% |
18% |
|
5% |
20% |
|
5% |
20% |
|
6% |
22% |
|
6% |
21.2% |
|
7% |
24% |
|
7% |
22.4% |
|
8% |
26% |
|
8% |
23.6% |
|
9% |
28% |
|
9% |
24.8 |
|
10% |
30% |
|
10% |
26% |
Email: avsinfo@avsuper.com.au | Local call: 1300 128 751 | Phone: 02 6109 6888 | www.avsuper.com.au
This information is of a general nature only and does not take into account your personal objectives, situation or needs. Before making a decision about AvSuper, you should consider your own requirements and the relevant Product Disclosure Statement (PDS) and Target Market Determination (TMD). For a copy call us or visit the AvSuper website, www.avsuper.com.au. AvSuper Pty Ltd (ABN 46 050 431 797, AFSL 239078) is the Trustee of the AvSuper Fund (ABN 84 421 446 069). FS3000.5 02.2021
