Understanding your DB options
If you are a defined benefit member, it is possible to top up your super or apply for extra insurance cover through Equip.
Please contact Helpline for more information on 1800 682 626.
Notional Taxable Contributions apply
When it comes to defined benefit contributions, your employer does not contribute specifically for you, but to the overall defined benefit fund. However, for the purposes of assessing whether your super contributions fall within the concessional contributions cap, the Australian Taxation Office (ATO) asks us to calculate what is known as your notional taxed contribution (NTC).
We use a specific formula prescribed by legislation to work out your NTC, which you can think of as representing the equivalent contributions that your employer would have made if you were a member of an accumulation fund, rather than a defined benefit fund.
So if you're thinking about making extra salary sacrifice contributions, you need to remember that the total of your NTC and your additional employer contributions must fall within the concessional contributions cap (otherwise there may be tax consequences).
Rules for additional insurance
If you're thinking about taking out additional death and/or disability insurance cover through Equip, rules apply to the amount of additional cover you are able to obtain. You should talk to one of our member advisors or a financial planner who understands your benefit design about this.