Important notice: On 12 November 2008 the Queensland Treasurer announced the Government would introduce legislation to close the QSuper Defined Benefit option to anyone who wasn't a member of the Defined Benefit account at that date.
The legislation has now been passed by Parliament and is effective from 12 November 2008. Find out more.
Did you know...
A Defined Benefit account gives you a package of benefits.
Rebecca Sheppard
QSuper member since 1996
A Defined Benefit account gives you a package of benefits and uses a formula of a multiple times your salary to calculate your retirement benefit.
Key features
- Fixed calculation of benefits
Your benefit is your salary times a multiple that grows each year of contributing membership (see below for multiple).
- Income protection insurance
Receive a pension of 75% of your previous 1 July salary.
- Death and total and permanent disability benefit
You never know what's around the corner, so it's important to know you and your dependents become able to cope if you are disabled or die.
How does my retirement benefit grow?
The more you pay, the faster your multiple grows, as shown in the table below.
| You pay^ |
Your employer pays |
Multiple growth each year |
| 2% |
9.75% |
0.135 |
| 3% |
10.75% |
0.160 |
| 4% |
11.75% |
0.185 |
| 5% |
12.75% |
0.210 |
| 6%* |
13.75% |
0.235 |
| 7%* |
14.75% |
0.260 |
| 8%* |
15.75% |
0.285 |
How is my retirement benefit calculated?
Your benefit is your salary times a multiple that grows with each year of contributing membership.
Example
Andy has had a QSuper Defined Benefit account for the past ten years. He has always paid member contributions at a rate of 5% of his salary and his final average salary is $44,500. Andy's benefit is calculated as follows:
| |
Years of contribution |
10 |
| x |
Andy's benefit accrual rate (multiple) |
0.21 |
| x |
Final average salary |
$44,500 |
| = |
|
$93,450 |