Interim Credited Interest Rates
Latest Interim Credited Interest Rates (Interim CIRs)
Interim CIRs are determined monthly for each investment option.
The Interim CIRs for the current month is shown in the following table as monthly rates (not annual rates):
Investment Strategy |
|||||
|---|---|---|---|---|---|
Cash |
Conservative |
Balanced |
Growth |
Aggressive |
|
| July 2010 | 0.30% |
0.45% |
0.55% |
0.65% |
0.75% |
About Interim CIRs
Interim CIRs represent the long term expected returns for each Member Investment Choice (MIC) option. The interim CIRs are utilised in the current month prior to the declaration of the actual CIR and are used to determine earnings to credit or debit member accounts when a benefit is paid from the Plan or transferred.
The Interim CIR is applied to members' accounts during the month when the CIRs have not been declared.
The Interim CIRs may be positive or negative.
The Interim CIRs will be replaced by the final declared CIR early in the following month, once the CIR has been calculated
For members of Division 9 – Flexible Income Stream and Division 14 – Transition to Retirement, different Interim CIRs are determined to recognise the different tax treatment in investment earnings.
Final Interest Payment
The Final Interest Payment is the interest applied from the date of leaving the Company service to the date of payment from the Plan.
At the date of leaving the service of the Company a member's benefit is calculated. Final Interest Payment is applied from the date of exit to the date of payment.
For members with a leaving service date on or before 31 July 2009, the Final Interest Payment will be calculated using the CIR or Interim CIR for the default option, currently the Growth Option. For members with a leaving service date on or after 1 August 2009, the Final Interest Payment will be calculated based on:
- the MIC Option which applied at the date of leaving service (the default option will apply if the member had not previously elected a MIC Option); or
- the Cash Option where a death benefit is payable.
The respective CIRs and Interim CIRs apply to the calculation of the Final Interest Payment.
