Home Compulsory member contributions while stood down (Division 3)

We’re pleased to share more details on how stand down affects your compulsory member contributions as a member of Division 3.

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 these contributions aren’t coming out of your pay during this time, you have two choices to help you satisfy this obligation.

Your options

Option 1: Request to stop making compulsory member contributions and have your benefit adjusted

You can request to suspend your obligation to pay compulsory member contributions while you’re stood down and have your benefit adjusted to reflect this suspension. Your defined benefit will still continue to grow if you choose this option, but the total value of your total benefit will be adjusted by an offset account that we will create to track your unpaid contributions. Interest will be applied to the offset account from 1 July 2021.

or

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. If you choose this option, you’re agreeing that if you don’t pay by the due date, you will be treated in accordance with Option 1; that is, you have requested to suspend your obligation to pay all outstanding and future compulsory member contributions while you’re stood down.

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

Option 1: How requesting to suspend your compulsory contributions will impact your benefits

If you’re a member of Division 3 and request to suspend making compulsory member contributions while you’re stood down, we will need to make an adjustment to your benefit and the way its calculated. This is because your compulsory member contributions help to fund your defined benefit.

We’ll make this adjustment by creating an account called an offset account that will track unpaid compulsory contributions. This offset allows us to ensure that these missed contributions are taken into account when it’s time to calculate the total value of your benefit.

Some important things you should know about offset accounts (where there are outstanding unpaid contributions or interest):

  • the balance of the account is negative and is included when calculating your total benefit
  • the balance includes the amount of any contributions that have not been paid
  • when interest is applied, the balance will increase in line with positive investment earnings applied on this account (and decrease in line with negative investment earnings applied on this account)

Initially, the offset account won’t have any interest applied. This means your defined benefit will only be reduced by the amount of the compulsory member contributions that have not been paid. For example:

Defined benefit = $100,000
Unpaid compulsory member contributions = $1,000
Total benefit = $99,000

Interest will start to apply on the offset account from 1 July 2021. The interest rate will be the same as the investment earnings that apply to Qantas Super’s defined benefit assets.

You can reduce the balance of your offset account by making contributions via BPAY (see opposite). Qantas has advised that you may also be able to make salary sacrifice contributions when you return to work, and they will provide more information in due course.

Option 2: What you need to do if you confirm you will keep paying your compulsory member contributions

If you confirm to us that you will keep paying your compulsory member contributions, it’s important that you pay them by the due date specified on your quarterly statement.

As part of confirming that you will keep making those contributions, you are agreeing that if you do not make them in the time stipulated, you’re agreeing to be treated in accordance with Option 1. That is, you’ve requested to suspend your obligation to pay all outstanding and future compulsory member contributions while you’re stood down. In that case, we will create an offset account and the matters set out on the left, under the section “Option 1: How requesting to suspend your compulsory contributions will impact your benefits” will apply to your offset account.

You can pay your compulsory member contributions in two ways.

Make BPAY contributions

You can make contributions to your account via BPAY. We’ve created a new BPAY biller code specifically for your compulsory member contributions to make sure they’re classified correctly. You must use these new details going forward, and you can find them by logging in.

If you don’t use this new BPAY biller code when paying your contributions, they will be classified as ‘voluntary’ instead of compulsory member contributions when they reach your super account, and they will not be counted towards your compulsory member contributions.

If you previously made contributions via BPAY, these were classified as voluntary contributions when you made them and went into an accumulation account. If you would like them directed towards your compulsory member contributions instead, you must opt in to have these contributions re-classified by 31 March 2021. If you choose to opt-in, all contributions we have received between 1 April 2020 and 31 March 2021 will be used to reduce any unpaid contributions that accrue or directed towards reducing the offset account created to track your unpaid contributions.

If you choose to opt-in, we will make this adjustment in April 2021. When we re-classify the BPAY contributions to be compulsory member contributions you will see a reduction in your benefit. This is because previously your BPAY contributions were treated as voluntary contributions, which are added to your benefit, whereas your compulsory member contributions go towards funding your defined benefit.

Opt in

Remember, going forward, you need to pay your compulsory member contributions by using the new BPAY biller code, otherwise the payment will not count towards your compulsory contributions.

Note that contributions made through BPAY are treated as post-tax contributions, and will count towards your non-concessional contributions cap. You are unable to claim a tax deduction for compulsory member contributions or contributions towards your compulsory contribution offset account made via BPAY.

Salary sacrifice when you return to work

Once you return to work, Qantas has advised that you may be able to choose to gradually pay the outstanding compulsory member contributions through salary sacrifice arrangements. More information on how to do this will be available from Qantas in due course.

Frequently Asked Questions

  • What if I already made contributions via BPAY before receiving my statement from Qantas Super?

    If you have been making contributions via BPAY, these contributions were classified as voluntary contributions and added to your accumulation account. If you would like these contributions to be re-classified as compulsory member contributions, you must opt-in to do this online by 31 March 2021.

    If you choose to opt-in, all voluntary contributions we have received via BPAY between 1 April 2020 and 31 March 2021 will be used to reduce any unpaid contributions that accrue or directed towards reducing the offset account created to track your unpaid contributions. We will process these re-classifications in April 2021. When we re-classify the BPAY contributions to be compulsory member contributions you will see a reduction in your benefit. This is because previously your BPAY contributions were treated as voluntary contributions, which are added to your benefit, whereas your compulsory member contributions go towards funding your defined benefit.

    Opt in

    If you contributed more than you needed to, we will continue to track that against any future compulsory member contributions that arise and put them towards those. If you have paid less than you needed to, then we will provide you with a statement that lets you know how much more you need to contribute.

  • What happens when I’m working and stood down intermittently?

    Qantas will automatically deduct your regular compulsory member contributions from your pay for any periods during which you’re working or taking paid leave. Currently, there will not be any extra deducted to account for your unpaid compulsory member contributions from your periods of stand down.

  • If I stop making contributions now, can I start making contributions at a later time, even if I’m still stood down?

    Yes, you can. Even if you request to have your compulsory member contributions suspended, we will send you a statement each quarter detailing the contributions for the prior quarter. You can also choose to pay down your offset account in part or in full at any time via BPAY.

  • If I stop making contributions, can I make extra compulsory member contributions when I’m working again?

    Yes, you can. If you have requested to have your compulsory member contributions suspended, you can make extra payments later via BPAY or you may be able to set up a salary sacrifice arrangement with Qantas.

    If you make payments via BPAY, please make sure you use the new BPay biller code we’ve created to help you pay these types of contributions and ensure they’re classified correctly when they reach your account.

    More information on the salary sacrifice arrangement will be available from Qantas in due course.

  • Is interest being applied to my unpaid compulsory member contributions?

    No interest is currently being charged in relation to your compulsory member contributions or any offset account created to track those compulsory member contributions. However, interest will begin to apply to offset accounts from 1 July 2021. The interest rate will be the same as the investment earnings that apply to Qantas Super’s defined benefit assets.

  • What happens to my benefit if I have unpaid compulsory member contributions and take redundancy?

    For Division 3 members, we will deduct the unpaid compulsory member contributions from your redundancy benefit when it is paid to you, or after it’s transferred into the Gateway Division.  If an offset account has been set up, we may also need to take into account any contributions that Qantas Payroll need to report to us if they have not yet been added to your offset account at the time you leave the Qantas Group.

  • If I confirm I’ll keep paying my compulsory member contributions, how long will I have to pay them?

    For any statement we issue on or before 31 May 2021, you need to pay those contributions so that they are received by Qantas Super by 30 June 2021. For statements issued after that date, we’ll generally give you at least four weeks from the date we issue your quarterly statement to pay your compulsory member contributions. If you haven’t paid them in full by then, 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. Please ensure you make any payment with enough time to ensure it reaches your account by the due date.

  • What happens if I confirm I’ll keep paying my compulsory member contributions but miss a payment due date?

    If you haven’t paid your contributions in full by the due date, you have agreed that 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. In that case, we will create an offset account to track all your outstanding and future compulsory member contributions. From 1 July 2021, this account will have interest applied to it at the same rate as the investment earnings that apply to Qantas Super’s defined benefit assets.

Make a choice regarding your compulsory member contributions

Complete the following form to let us know what you would like to do regarding your compulsory member contributions while you’re stood down.
  • This field is for validation purposes and should be left unchanged.

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