Compulsory member contributions while stood down
For all members in Division 1, and members in Division 2 who have a minimum guaranteed benefit from an Australian Airlines plan
We’re pleased to share more details on how stand down affects your compulsory member contributions as a member of Division 1 or Division 2 with a minimum guaranteed benefit from a former Australian Airlines plan.
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 continue to grow when you’re stood down. It also means that your obligation to make your compulsory member contributions continues while you’re stood down.
As the design of your defined benefit includes a minimum guaranteed benefit in some cases, your compulsory member contributions and the investment earnings they receive are important in determining whether the minimum guaranteed benefit will increase your total benefit. Since your compulsory member contributions aren’t coming out of your pay during this time, you have two choices to help you satisfy your obligation to pay compulsory member contributions.
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 continue to grow if you choose this option, but we will add some extra steps to the way we calculate your benefit to make sure the net effect of your minimum guaranteed benefit is the same as if you had made your compulsory member contributions. Part of this process involves creating an offset account to track your unpaid contributions. Investment earnings will be applied to the offset account from 1 December 2021.
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 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.
How each option works
Option 1: How requesting to suspend your compulsory contributions will impact your benefits
Option 2: What you need to do if you have confirmed 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’ll 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 above 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 three ways:
Frequently Asked Questions
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