We’re pleased to share more details on how stand down affects your compulsory member contributions as a member of Division 2.
Your Credited Service, a key component to calculating your defined benefit, will continue to accrue while you’re stood down. This means your defined benefit will also continue to grow during periods in which you’re stood down. It also means that your obligation to make your compulsory member contributions continues while you’re stood down.
As a member of Division 2, your compulsory member contributions go into a separate accumulation account called your Member Account. These form part of your total benefit, and their contribution to your total benefit is calculated based on the amount you contribute and the relevant net investment earnings on those contributions.
During periods of stand down, these contributions can’t be deducted from your pay and credited to your Member Account. Therefore, if you don’t pay the contributions, the net result is that your final total benefit will be less than if you had made them.
As you are a Division 2 member without a minimum benefit guarantee from a former Australian Airlines plan, the defined benefit component of your benefit will not be impacted by the unpaid contributions.
You have two choices to help you satisfy your obligation:
Option 1: Request to stop making compulsory member contributions and have your benefit automatically adjusted
You can request to suspend your obligation to pay compulsory member contributions while you’re stood down. Your defined benefit will continue to grow if you choose this option, however the accumulation component of your benefit will be adjusted automatically. This is because your Member Account will not receive the contributions you have requested not to pay, or the net earnings you would have otherwise earned on those contributions.
Option 2: Confirm you will continue to make compulsory member contributions
If you choose this option, we’ll send you a statement detailing your unpaid compulsory member contributions and the due date by which you must pay them each quarter. Please note that if you choose this option, you are agreeing that if you don’t pay by the due date, you will be treated in accordance with Option 1; that is, you request to suspend your obligation to pay all outstanding and future compulsory member contributions while you’re stood down. That means we’ll stop sending you quarterly statements about your unpaid contributions.
How to make your choice
Please read the information below about how each option works before making your choice at the bottom of this page.
Whichever option you choose, you can pay some or all of your unpaid compulsory member contributions at any time via BPAY. You can learn more about this in the ‘How each option works’ section.
How each option works
Frequently Asked Questions
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