Achieve an adequate level of retirement savings - without individual memebers being exposed to the volatility of investment market.

The DBD’s central investment objective is to maximise the probability of generating sufficient returns to meet its future benefit payments.

Insurance

When you join the DBD, you automatically receive ‘inbuilt benefits’, which can provide you with a financial benefit if you’re temporarily or permanently unable to work, terminally ill, or if you die. They’re calculated based on formulas too, and they’re automatically part of your DBD membership (you can’t opt out of them).

Features of inbuilt benefits:

• Unlike insurance cover provided by our Insurer, there’s no charge deducted directly from your account so you won’t have to worry about the cost changing over time.
• They’re determined by a formula and use some of the same formula components used to calculate your defined benefit component.
• As they’re part of your DBD membership, you’re unable to change or opt out of them.
• They usually only apply while you’re with your employer and eligible to contribute to the DBD. However, you may be able to claim an inbuilt benefit after you’re no longer eligible to contribute to the DBD, provided the relevant event (e.g. disablement) occurred while you were eligible to contribute to the DBD.

The DBD’s central investment objective is to maximise the probability of generating sufficient returns to meet its future benefit payments. 

Styles of super

There are two styles of superannuation in Australia: defined benefit and defined contribution.

Defined benefit balances are calculated using a formula, usually incorporating your age, salary and length of membership (amongst other things).

Defined contribution (also called Accumulation) is more common and the balance reflects the money added to and taken from your account, as well as the returns on the investment options you select (which can be positive or negative).

DBD members generally have both of these styles of super. The defined benefit component is defined benefit, whereas the accumulation component is defined contribution. If you choose the Accumulation 2 product over the DBD, all your super will be defined contribution.

DBD - UniSuper’s default option

UniSuper has been providing defined benefit super to employees in the higher education and research sector since 1983.

Defined benefit funds are designed to achieve an adequate level of retirement savings—without individual members being exposed to the volatility of investment markets. This is achieved by the pooling of risks—similar to the principle applying to insurance policies. Given that the funds managed within the DBD represent a relatively stable source of capital, our investment managers can source attractive investment opportunities with a long-term time horizon. Together with the smooth returns generated by risk-pooling, each member’s final payout is linked to their salary, enabling them to plan for their retirement with greater certainty. 

Broadly speaking, the DBD may suit members intending to pursue a reasonably long career in higher education and/or members who are expecting some salary growth arising from promotion or reclassification to higher roles during their career. By extension, the DBD may not suit members anticipating only a short period of employment in higher education and/or members who are expecting little or no salary growth arising from promotion or reclassification to higher roles.

Accumulation Super

The main attraction of accumulation super (sometimes called ‘defined contribution’ super) is that it provides much more flexibility for members who want to change their investment preferences. A cost of this flexibility, however, is exposure to the fluctuations of investment markets. Another potential positive of accumulation super over defined benefit super (like our DBD) is the consistent treatment of people of different ages. In other words, regardless of your age or how long you’ve been employed, your return will always be linked to the return of the market. On the other hand, as with all products based on risk-pooling, the final outcome for any individual in the DBD will vary depending on different factors. While DBD members are able to enjoy a smooth return outcome, the absolute return for some members will be higher or lower than for others.

DBD Members have an 'Accumulation Component' too 

As a DBD member, your account has two parts: a defined benefit component and an accumulation component. Your defined benefit component and your accumulation component are added together to work out your account balance.

What happens to your inbuilt benefits?

If you transfer to Accumulation 2, the inbuilt benefits you had as a DBD member will cease. Depending on your circumstances, you may elect to receive external insurance cover to replace your inbuilt benefits (‘transitioned cover’). This insurance cover is provided by our Insurer.

Our investment options

Accumulation 2 members—and DBD members with an accumulation component—can choose their investment options for contributions and rollovers.

Pre-Mixed menu:

a range of diversified investment options, each with its own mix of asset classes and weightings, performance objectives and risk profile.

• Conservative
• Conservative Balanced
• Balanced (MySuper)
• Sustainable Balanced
• Growth
• High Growth
• Sustainable High Growth

Sector menu:

investment options which mainly invest in a particular asset class. Create your own asset mix by choosing how much you want invested in each option. Sector investment options are less diversified and not intended to be used in isolation.

• Cash
• Australian Bond
• Diversified Credit Income
• Listed Property
• Australian Shares
• International Shares
• Global Environmental Opportunities
• Australian Equity Income
• Global Companies in Asia

Default Investment Option

If you don’t choose an investment strategy, or if we receive contributions before you make a choice, we’ll automatically invest your contributions and transfers to your accumulation account in our default investment option—‘Balanced (MySuper)’.