Glossary
- defined benefit fund
defined benefit fund
A super fund where your retirement benefits are calculated by a
predetermined formula. Retirement benefits are usually calculated
using your average salary over the last few years before you retire
and the number of years you worked in the company or public
service. In general, market fluctuations have limited effect on the
value of your benefit, although in periods of prolonged economic
downturn, your defined benefits could be affected. If the fund
performance is poor, the trustee will generally ask an employer to
help pay member benefits as required.
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Last updated: 27 Mar 2012