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K Fund benefit structure

Last updated 28 July 2020

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.

QC21714