Defined benefit pension
What is a defined benefit fund?
A defined benefit plan is an older style of superannuation scheme that was common in public sector and local government workplaces until the 1990s. A defined benefit pension guarantees the amount you will receive in retirement. Defined benefit funds are mostly closed to new members.
What can I do with a defined benefit fund?
Defined benefit schemes bring with them some unique advantages. This includes a guaranteed income based on set calculations (for example, a member's final average salary and independent of investment performance), with all investment risk resting with the employer or fund.
How do I join a defined benefit super fund?
These days, if you’re looking for a fund which offers a defined benefit product they are few and far between. If you do find one that’s still open, it’s likely that the income guaranteed will be much less than it was when the fund first started.