Your super will enter a new phase on your 65th birthday.

Rest assured, you’re not alone – this is the way Division 3 was designed, which means everyone in your division enters this phase after they turn 65.

Watch this short video to learn more about your new phase of super:

What's changing on your 65th birthday

Your maximum defined benefit will be calculated and combined with your accumulation accounts

Because you are in a defined benefit division, your super is calculated according to a formula, which is a defined benefit amount plus your accumulation accounts.

 

You can choose how all of your super is invested

You might already be familiar with our range of investment options through your existing accumulation accounts.

From your 65th birthday, all your super will be moved into a single accumulation account. This means you will have more control over how all your super is invested.

It’s important to make sure your money is invested to match your needs and lifestyle goals. We have created a range of investment options for you to choose from based on how much risk you are willing to take.

If you have already chosen investment options for your existing accumulation accounts, your total super as of your 65th birthday will be invested in the same investment options, in the same proportion that applied to your existing accumulation accounts.

If you don’t choose your preferred option/s for your account balance as of your 65th birthday and any future contributions, they will be invested in the default investment option. Currently for your division, it’s the Growth option.

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. This means more take home pay for you.

Your insurance cover will end  

Your standard death and disability insurance as part of Division 3 was always designed to cover you up until your 65th birthday.

If you have any voluntary insurance cover in Qantas Super, this will also end.

What's staying the same

You’re still in Division 3

You will remain a member of Division 3 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 3, 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 of 9.5% of your salary, the current minimum rate set by the Federal Government.

 

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.

The Superannuation Guarantee minimum benefit still applies

The safety net built into your defined benefit – the Superannuation Guarantee minimum benefit – will continue from your 65th birthday.

What does it mean and what can you do?

After a lifetime of hard work, your super will no longer be a formula but a total balance you will have more control over.

It will be invested, and continue to accrue through contributions and investment returns.

We know it’s sometimes easier to have someone explain what’s changing.

If you would like to learn more, you can book a meeting with a Super Adviser to better understand your new phase of super.

Book in a 30 minute meeting with a Super Adviser to get a one on one look at your super.

Meet Sally...and Biscuit

Sally is a flight attendant and has been in Division 3 since 1990. She turns 65 in February 2019, which means she enters a new phase of super. This is what happens with her super.

Since she’s in a defined benefit division, her super is made up of a defined benefit component and her accumulation accounts. On her 65th birthday, her defined benefit will be calculated according to a formula and turned into a dollar figure. This will be combined with her accumulation accounts.

When Sally enters her new phase of super on her 65th birthday, her defined benefit is calculated to be $150,000. This, plus her accumulation accounts of $240,000, gives Sally a total of $390,000 in super.

What changes for Sally

Sally has reached her maximum defined benefit amount.

Her total super of $390,000 is transferred into a new account in Division 3, and she can now decide how all of her super is invested. Sally’s compulsory member contributions will stop, but she can choose to keep putting away this money into her super too.

Her employer will put at least 9.5% of her salary into her super.

Her insurance cover ceases.

What stays the same for Sally

Sally stays in Division 3.

Her employer still makes contributions to her super and pays for her administration fees.

The safety net built into Sally’s defined benefit – the Superannuation Guarantee minimum benefit – will continue from her 65th birthday.

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Frequently Asked Questions

  • How is my defined benefit being calculated?

    The defined benefit component of your benefit is determined according to a formula, which is based on your salary and years of service with the Qantas Group. The amount of this component of your benefit is not dependent on the level of contributions or investment returns.

    You can learn more about how your defined benefit is calculated by viewing a recent statement online.

  • How much will my fees be?

    Administration fees

    Zero. Your employer pays your administration fees.

    Investment fees

    Your investment fees are deducted from investment returns when they are applied to your account. Here are the estimated per annum fees for each investment option:

    • Glidepath:
      • Take-off: 1.10%
      • Altitude: 1.02%
      • Cruising: 0.96%
      • Destination: 0.88%
    • Aggressive: 1.10%
    • Growth: 1.02%
    • Balanced: 0.88%
    • Conservative: 0.77%
    • Cash: 0.09%

    You are not charged for switching investment options and there is no buy-sell spread.

    Other fees

    • Family law information request: $150, deducted at the time your request is made

    For more details on the fees and costs that apply to you view the relevant information booklets.

  • What is the Superannuation Guarantee minimum benefit?

    The Superannuation Guarantee minimum benefit is the minimum amount you must receive under super law. You can view this amount on your annual statement online.

  • What are my investment options?

    We take a safety-first approach to investment, designed to protect and grow your money. This approach delivers strong performance over the long term, so you can be confident you’re building the foundations for the life after work you’ve always wanted.  

    We then create investment options for you to choose based on your personal risk profile, or the level of risk you’re prepared to take. Whether you are ready to take more risk for greater potential rewards, or are happy to take a more conservative approach, you can select one or a combination of options that suit you. 

    All our investment options, except the Aggressive option, easily beat their long-term target in 2017/18. What’s more, SuperRatings listed our Growth option as one of their 15 top-performing funds for the year. 

    Past performance is not an indicator of future performance. 

  • How are my employer contributions changing?

    Your employer was previously making the mandatory contributions required to calculate your defined benefit. Going forward, your employer will contribute at the Superannuation Guarantee rate of 9.5% of your salary, the current minimum rate set by the Federal Government.

  • What will happen to my online account?

    The process of moving your super to its new phase takes up to four weeks to complete. Your access to your online account will change during this time.

    What’s changing 

    On your 65th birthday: Your existing account balance will appear blank when viewing online. You will still be able to log in to make an investment switch and update personal details

    Two weeks after your birthday: You will lose online access completely and will no longer be able to log in around two weeks after your birthday

    Four weeks after your birthday: You will receive information about your new account in Division 3 and instructions on how to log on around four weeks after your birthday. Your statements won’t be transferred to your new account, so you may want to download them now. However, you can call our helpline to request a copy anytime.

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.