Defined benefits

If you work for a local government or energy industry employer who provided superannuation for their employees under a defined benefit arrangement, you may have a defined benefit account. In a defined benefit fund, your retirement benefit is determined by a formula instead of being based on investment returns. These funds are closed to new members.

How benefits are calculated

The two defined benefits are calculated very differently. See the guide that relates to your fund.

Super contributions

Your employer contributes to the fund, while you contribute a percentage of your salary to the fund. These contributions are added to a pool of money to provide benefits to all members of that fund.

Insurance cover

Death and Total and Permanent Disablement (TPD) and Income Protection insurance cover (also referred to as temporary disablement benefit) are automatically built into your Defined Benefit. See the guide that relates to your fund for more information on the level of cover you receive.

Investment choice

Investment choice does not apply to your defined benefit. If you make any personal contributions or transfer other super to Brighter Super these are invested in an Accumulation account, where you can choose how your money is invested.