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MEMBERSHIP
CATEGORIES + ACCOUNTS
Categories of Membership
The Coal Industry Superannuation Fund provides a number of membership categories. There are two types of superannuation accounts offered by the Fund:
- A Defined Benefit account
- An accumulation account;
The Fund also offers other accounts, those being an Allocated Pension account, a Retained Benefit account and Spouse accounts.
Defined Benefit Account
A Defined Benefit Membership provides benefits which are based on a formula which takes into account a Benchmark amount and time employed.
Personal contributions – you are required to pay 3% of the benchmark amount into the Fund. This contribution is automatically deducted from your pay each pay period.
Employer contributions – your employer contributes the balance of the cost of providing the defined benefits. The employer contribution can vary between 7% and 10% of the benchmark amount depending on the financial state of the Fund. Presently, your employer contributes 8.5% of the benchmark amount for each defined benefit member.
The membership multiple is currently calculated as:
- 13% for each year of defined benefit membership up to 30 June 1988; plus
- 12% for each year of defined benefit membership after 30 June 1988 up to the date of retirement;
benchmark amount
The defined benefit entitlement is linked to movements in the benchmark amount, rather than investment returns.
Accumulation Account
This account operates like a superannuation savings account. Into this account will go:
- any additional voluntary contributions or lump sum payments you choose to make;
- any monies transferred from other superannuation funds, or amounts transferred from another membership category of the Fund;
- employer contributions – pay at least the minimum superannuation guarantee contribution required by law;
- investment earnings on these monies (which may be positive or negative) based on the interest rate declared by the Coal Industry Superannuation Board.
There will be deductions from this account for:
Retained Account
A Retained account is available to members who have left employment. With a retained account, your funds stay invested in a tax-effective environment, while allowing you to easily withdraw all or part of your money whenever it suits you.
You don’t have to find a new fund to manage your super just because you retire. By choosing the Retained Benefit, you stay with the Coal Industry Superannuation Fund, the same people that managed your super while you were working. With the Fund, you will continue to enjoy the peace of mind that comes with knowing your super is secure. You will also save the inconvenience of finding a new fund to manage your investment.
Stay with the Fund you trust!
Retirement is a time of change, and everyone’s circumstances are different. The Retained Benefit is flexible enough to meet your needs, whether you are looking to grow your super for a few more years, manage your money until pension age, or you simply need a holding account while you work out your options.
A retained benefit allows you to withdraw all or part of your funds at any time (preservation restrictions apply).
Spouse account (see also)
The Fund provides the facility for your spouse to open a superannuation account in the Fund. If your spouse is a low income earner, you may be able to receive a tax rebate for making contributions on behalf of your spouse.
You can make after-tax voluntary contributions into your spouse’s account, and these will be credited with earnings at the Fund’s interest rate. Once your spouse becomes a member of the Fund, your spouse can also make personal contributions into their superannuation account.
A minimum initial deposit may apply in order to establish your spouse’s account (you should contact the Administration Manager for details).
The same low fees apply to spouse membership as apply to other Accumulation members (download Product Disclosure Statement Part B).
No insurance cover is available for spouse members.
Once you cease to be a member of the Fund, your spouse will also be required to withdraw or transfer their money out of the Fund.
Note: A spouse is defined by law as a person of the opposite sex who is in either a married or de facto relationship with the taxpayer. Federal law does not recognise same sex relationships as marriages or de facto marriages.
The Coal Industry Superannuation Fund is in the process of introducing spouse accounts. You will be advised when they have formally been approved.
Account Based Pension
Members who retire or who have retained their money in the Fund may be able to take their money as an Account Based Pension. Account Based Pensions are very popular among retirees, and may be a very flexible and tax effective way of drawing on your superannuation in retirement.
The advantages of investing in an Account Based Pension are:
- you determine the starting balance of your Account Based Pension;
- you can vary your pension payments twice yearly. At 1st July and at one other time at your discretion;
- you can withdraw lump sum amounts at any time ;
- there are no special establishment or entry fees for commencing an Account Based Pension.
Download the Supplementary Guide for Pension Members for further information on Account Based Pensions.
