Types of Super Funds
There are several types of super funds that differ in the way your benefits are
calculated:
-
Accumulation funds are those in which the benefit a person receives is
their account balance - which is usually the total of specifically defined
contributions to the fund, plus earnings minus expenses and tax. This is
sometimes referred to as a defined contributions scheme.
-
A defined benefits fund is superannuation where the formula for
calculating the retirement benefit is specified in terms of years of membership
of the fund and average salary level over the last few years prior to
retirement. Your final benefit is not usually affected by the actual investment
earnings of the fund.
