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  • K Fund benefit structure

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    Print at K the appropriate code from table 2 below that best describes the benefit structure of the fund.

    Table 2: Fund benefit structure

    Code

    Definition of fund benefit structure

    A

    Your fund is an accumulation fund if your fund provides its members with a benefit that is the total of:

    • specifically defined contributions to the fund plus
    • earnings on those contributions minus
    • any costs borne by the member.

    This fund is considered an accumulation fund even if the fund or any of its accounts is paying a superannuation income stream benefit.

    D

    Your fund is a defined benefit fund if your fund provides its members with a benefit that is calculated from a formula based on a combination of factors, including the years of membership in the fund and the average salary level over a specific time.

    U

    Unfunded defined benefit - similar to defined benefit, but the superannuation members' benefits are unfunded. Only governments are allowed to run unfunded defined benefit funds.

    If a fund's benefit structure is a mixture of accumulation and defined benefit (that is, it is a hybrid fund), select D defined benefit fund.

    Last modified: 29 Jul 2020QC 21714