Superannuation Terms Explained

Contribution rate
the percentage deducted from a members gross pay each week as a contribution to the Fund
Contributions
money paid to the Fund by its members either through deduction from their wages or as a voluntary lump sum
Contributory
members pay contributions
Death benefit
an amount paid in addition to the member’s account balance in the event of a member’s death subject to meeting certain criteria
Deferred benefit
superannuation benefit which the member chooses to leave invested in the Fund after finishing working in the waterfront industry
Defined contribution
contributions are made at a set contribution rate e.g. 7% and the final superannuation benefits paid are the total of those contributions and the income earned on them
Employer account
this is a sub-account of the members account set up for each member to record the contributions or subsidy paid by an employer for that member and the net income or losses earned on those contributions
Employer subsidy
contributions paid by an employer (a withholding tax is deducted from these contributions)
Investment statement
document which contains important information about the Fund and which is issued under the Securities Act 1978
Member Account
an account set up for each member to record their contributions and the net income or losses earned on those contributions
Net distribution
the amount of investment income or loss net of tax and expenses added to members and employers accounts
Participating employer
an employer who participates in (belongs to) the Fund and which pays contributions on behalf of its employees
Pension
a superannuation benefit paid in instalments of a fixed amount per month for life. This cannot be changed or stopped.
Regular Monthly Payments
a lump sum paid each month from a member’s deferred benefit. The member can stop or change the payment at any time.
Superannuation
money saved for retirement
Superannuation benefit
retirement savings which are paid when a member’s employment in the waterfront industry finishes
Trust Deed
the legal document governing the Fund
Vesting
a system where members become entitled to their employers contributions progressively over a period of time
Voluntary lump sum
lump sum contributions made by members