This type of fund is based not on the contributions, but on the promise of a defined benefit, or pension, to be paid to you after retirement. When you leave the service of your employer before retirement age, you will only receive part of the accrued money in the fund. At retirement you will receive a monthly pension in stead of being paid out the full amount, although you may take up to one third of the value in cash.
a superannuation fund which defines a member's retirement benefit as a multiple of their salary. The multiple is usually based on the member's period of fund membership and is not directly linked to contributions made over the period of membership. PSS and CSS are defined benefit funds.
a superannuation fund which defines the member's retirement benefit as a multiple of their salary. The multiple is usually based on the member's period of service and is not linked to contributions made over the period of employment. The opposite to a defined contribution or accumulation fund.
a superannuation fund that defines the member's retirement benefit as a multiple of their salary. The multiple is usually based on the member's period of service and level of contributions made over the period of time.
A fund where the benefit payable is usually based on salary near retirement and years of membership (e.g. seven times end salary if member for 40 years). However, the benefit payable can be defined in dollar amounts.
A superannuation fund where the member receives a benefit that is defined by the trust deed of the fund.
Generally, a superannuation fund that uses a formula to calculate the retirement benefit based on average salary and years of service or membership in the fund. (to be contrasted with an "Accumulation Fund").
A pension fund in which the benefits to be paid to the member are defined in advance of the member's retirement. The benefit is usually expressed as a proportion of the member's salary on retirement. In these funds it is generally the company or sponsor of the fund (rather than the member) which carries the risk as to the ability of the fund to meet its liabilities. See also Defined Contribution Fund.
A superannuation fund where a member’s benefits are set out in advance of the member's retirement, and in which the sponsor, rather than the member, carries the risk.
A superannuation fund where the benefit relates to the memberâ€(tm)s salary and years of service with their employer. The benefit amount is not subject to the movements of investment markets. (See also Accumulation fund)