How does it work?
Your employer makes contributions to the fund, while you contribute a percentage of your salary to the fund. Member contributions are compulsory and, for most members, this will be at the rate of 5% of your superannuation salary (or 5.88%, if you salary sacrifice your compulsory contribution). These contributions are added together into the DB pool and provides benefits to all members of that fund.
Your portion of the DB pool is a calculated benefit generally related to your membership period and your superannuation salary. Your DB account generally grows as it is partly based on your salary multiplied by your membership period.
Calculated using a formula
Your defined benefit is equal to the greater of (A), (B) or (C)
- (A) 2.5 x Member Account (this is capped at age 55) + Accumulation account;
- (B) Final Average Salary1 (FAS) x Members' Benefit Multiple2 (MBM) x Member Reserve Factor3 (MR) + Accumulation account or
- (C) MINIMUM REQUISITE BENEFIT (MRB – the minimum benefit payable based on Superannuation Guarantee legislation) + Accumulation
Login into the Member Portal for a benefit quote, which you can find under the account summary tab.
Not impacted by market movements
With a DB account, your employer makes super contributions determined by Energy Super’s Actuary. This contribution rate aims to ensure your benefits are always fully funded. So your retirement savings aren't subject to market fluctuations.
Check out the latest performance of the DB investment pool.
DB members can make voluntary personal contributions before or after tax. Your voluntary member contributions will be paid into a separate Accumulation account attached to your DB account. Visit our Making Contributions page more information about contribution rules and limits.
If you make any personal contributions or transfer other super to Energy Super these are invested in an Accumulation account, where you can choose from 11 different investment options, from defensive to aggressive.
Unless you have selected otherwise, voluntary contributions and rollovers into your accumulation account will be invested in the MySuper option. Please note: that only voluntary contributions made through your employer can be invested in the Smoothed Return and Capital Guarantee options.
Where to get further information
Contact us today on 1300 436 374 or check out:
- Energy Super Defined Benefit Handbook
- Defined Benefit (DB) members working less fact sheet
1Your final Average Salary is the average of your salary advised to the Fund by your employer over either a one or two year period up to 30 June.
2This multiple is calculated by multiplying your membership period (in years) by 19.5%. The multiple is capped once you reach age 70 or 65 if you are employed by NRG Gladstone.
3This factor is calculated using a 2% discount per year from age 55 (when the factor = 1) to age 40(when the factor =0.7). Some members may have a different arrangement.
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More information on the insurance cover, eligibility and the benefit calculations please refer to the DB Handbook.
If your Income Protection, Death & TPD cover is not enough for your circumstances, i.e. you need additional insurance cover, you can apply for more cover. You have to pay for this insurance and it is subject to the insurers’s underwriting (medical assessment) conditions.
For more information about additional insurance cover available to members, download the Energy Super Insurance Guide
Thinking about retirement – Find out how to turn your DB account into an Income Stream
We recommended that you speak with a financial adviser to consider the implications of leaving the Defined Benefit pool.
If you're still working and have reached your preservation age, you can start a TTR income stream account with the accumulation portion of your account or alternatively depending on your circumstances and subject to agreement with your employer, you can transfer your Defined Benefit to your accumulation portion and start an TTR Income account.
You can transfer your Defined Benefit to an Energy Super Income account once have reached your preservation age and you stop working for your employer. As your money stays invested, your savings can continue to grow. You can also benefit from tax-free investment returns and no tax on payments or withdrawals after you turn 60.