Your super will enter a new phase on the 1 July following your 60th birthday. Rest assured, you’re not alone – this is the way Division 2 was designed for all former members of the Australian Airlines General Superannuation Plan (AAGSP).
What's changing on 1 July
Your defined benefit component will be calculated and invested
On 1 July you will reach the maximum calculation possible in this phase of your defined benefit. This means the formula calculating your defined benefit will be frozen.
Qantas Super will invest your defined benefit amount, and you will begin earning returns on that amount. These returns could be positive or negative.
You no longer have to make compulsory contributions from your pay
You’ll no longer need to make compulsory member contributions, so these will no longer be deducted from your pay.
Your standard insurance cover will end
Your standard death and disability insurance as part of Division 2 was always designed to cover you up until the 1 July following your 60th birthday, and end at this date.
If you have any voluntary insurance cover in Qantas Super, this will continue until you reach 65 years of age, and insurance premiums for this cover will continue to be deducted from your account balance.
If you don’t currently have voluntary cover in Qantas Super, you can apply for death only or death and TPD cover, and it will continue to cover you until you reach age 65. If you are considering additional insurance, it’s worth noting that the cost of insurance premiums increase with age, so it’s a good idea to consider the level of cover you really need.
If you would like to discuss your insurance options, you can give us a call.
What's staying the same
You’re still in Division 2
You will remain a member of Division 2 in your new phase of super.
Qantas will continue to pay your administration fees and make contributions to your super
As a member of Division 2, Qantas has always paid your administration fees. This will continue, and can be a big saving.
Qantas will also continue to contribute to your super. Qantas will contribute at the Superannuation Guarantee rate, which is the minimum rate set by the Federal Government. Currently, this is 10.5% of your salary. This amount will increase to 11% on 1 July 2023.
If you make voluntary contributions, these will stay the same
Any additional amounts you’re putting into super will continue to be deducted from your pay.
Remember, there are limits to the amount of contributions you can make into super each financial year before you incur extra tax. Monitor the level of concessional (before tax) and non-concessional (after-tax) contributions made to your super.
Your Australian Airlines minimum benefit guarantee will continue to apply
The safety net built into your defined benefit – the Australian Airlines minimum benefit guarantee – will continue from 1 July.
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We're here to help
If you want to learn more or need help with making a decision about your super, you can get simple advice over the phone or face to face. It’s included as a part of your membership so there’s no extra cost.