Human Resources
Human Resources
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UniSuper Defined Benefit Division & Accumulation 2(formally DPB & ICP)The Australian National University provides generous superannuation cover as part of its remuneration to staff. On commencement with the University staff members will become a member of UniSuper, the provider of superannuation products and services for Australia's higher education and research sector. Superannuation contributions are provided to you based on your type of appointment. Contributions are made fortnightly and paid directly to UniSuper. New members joining UniSuper should complete the application form contained in the 'Welcome' Product Disclosure Statement for Defined Benefit Division and Accumulation Super (2) members. UniSuper offers two main styles of super. These are provided through the Defined Benefit Division or Accumulation Super. The key difference between these two types of super is the way benefits are calculated. In the Defined Benefit Division the bulk of a superannuation benefit is calculated (or defined) using a formula which incorporates age, salary, years of membership, average service fraction and an average contribution factor. Accumulation Super operates like an investment account were contributions are invested in the members chosen investment strategy/s and the super balance accumulates over time with investment returns (which may be positive or negative in any given period). A final benefit is dependent upon the performance of these investments. The default super initially enrolled into when joining UniSuper is the Defined Benefit Division. Staff members have 12 months to decide whether to stay in the Defined Benefit Division or transfer to Accumulation Super. UniSuper will make contact with new members to determine their preference prior to the expiry of the first 12 month membership period. For Standard Appointments and Fixed-Term Appointments of 12 months or more:
For Fixed-Term Appointments less than 12 months and Casual Appointments:
Should a UniSuper member wish to contribute more salary to superannuation it is possible by directing contributions to the accumulation component of their super. Extra contributions cannot be directed to the Defined Benefit Division component. Extra contributions can be paid from pre-tax salary within the pre-taxing salary limit. Members can also forward lump sum payments by individual cheque, direct to UniSuper, for depositing into their Accumulation Super. This is known as a member lump sum post tax contribution payment. UniSuper members are provided with Death, Disablement and Income Protection insurance. The option to purchase extra units of cover is available. UniSuper 'Accumulation members only' may have the option to take up additional Death & Disablement Cover or optional Income Protection Insurance. For more information refer to UniSuper's Insurance web page. UniSuper's fees and charges are among the lowest in the marketplace, and much lower than those of many large retail funds. For more information refer to Fees and Charges. Contribution Flexibility (For Standard Appointments and Fixed-Term Appointments of 12 months or more) UniSuper have introduced flexible member contributions. This will mean that staff members will be able to choose the level of their own contribution (currently 7% post-tax). As the ANU currently pays 17% employer contributions (i.e. 14% plus 3% award contribution) employees may choose to reduce their compulsory contributions from 7% to either 4.45%, 4%, 3%, 2%, 1% or 0%. Members with 8.25% pre-tax as their compulsory contribution may choose to reduce their contributions to either 5.25%, 4.70%, 3.55%, 2.35%, 1.20% or 0%. Reducing member contributions is a significant decision that may affect the amount of money a person will have to live on in retirement. It could also impact on insurance cover. Before entering into this arrangment you should seek your own independant financial advice. Once a person has chosen to reduce their contributions they will be unable to increase them. However, additional contributions may be made via additional voluntary contributions. Contributions cannot be re-instated to a defined benefit component. Changing your member contribution is an important decision. That's why UniSuper has developed the Contribution Flexibility Guide to help you to:
The Guide has been developed as an interactive "e-learning" module. The Guide allows members to inform themselves at their own pace and without needing to obtain detailed information from either their employer or UniSuper in person. To access contribution flexibility arrangements staff members need to read and complete the UniSuper Contribution Flexibility Fact Sheet and Application form for members receiving 17% employer contributions. This can be found on the UniSuper website in the Contribution Flexibility Guide in 'Where can I learn more' , and forward it to Remuneration & Benefits Branch, Human Resources Division, Chancelry 10A, for processing. UniSuper Pre-Tax (Salary Sacrifice) Contributions UniSuper members have the option of choosing to make their contributions as a pre tax, or salary sacrifice contribution. By choosing this option the gross salary of the staff member is reduced by 8.25 % (7% employee contribution plus 15% government contributions tax). In choosing this option, the staff member potentially receives a larger amount of net take home pay, due to the reduction in tax as a result of the reduction in gross salary. To commence pre-tax contributions an acceptance form must be completed and signed. There are various issues to consider with pre-tax contributions. Staff members are advised to seek independent financial advice if not sure that this option would be suitable to their situations. Pre-tax contributions can be commenced on joining UniSuper or at a later time commenced or stopped as required. Pre-tax contributions do not count towards the Government Co-Contribution. For further information regarding salary sacrificing refer to Policies - Salary Sacrificing. UniSuper Additional Payments Additional lump sum payments may be directed to UniSuper to your Accumulation Super. You should forward the payment directly to UniSuper advising your membership number and to which Accumulation Super account you wish to deposit the lump sum amount (i.e. Accumulation 1 or 2). You can do this by BPay or by forwarding a cheque. Seminars and Member Information UniSuper hold regular staff information seminars on campus and these are notified via all staff email. UniSuper constantly develop comprehensive education programs and provide an informative member web site registration area which including calculators for members to estimate potential benefits. For more information about these matters please email the Remuneration & Benefits Branch Office. When leaving the University, we will notify UniSuper and UniSuper will forward to you an information kit to enable you to elect a preferred option for your superannuation benefit. If moving to another participating employer you may transfer your record and maintain contributions. UniSuper Contact details UniSuper Toll free help line: 1800 331 685 UniSuper's web site: http://www.unisuper.com.au |