We understand that super can be complex, so we’ve developed a glossary of the more technical terms.
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A-C
Accumulation account / fund
A type of super account/fund in which the benefit a member receives reflects total contributions plus whatever they have earned from the performance of the fund’s investments, less fees, costs and tax.
Administration reserve account
The Administration Reserve Account is a reserve account into which the Asset fee and excess account-keeping fees applicable to Accumulation accounts are paid. Amounts in the reserve account are maintained for use in any way permitted by the Trust Deed including to make provision for anticipated expenses in following years and to meet any extraordinary Health Super expenses.
Additional cover
The insurance provided to a member by the insurer in addition to any automatic cover they have already been provided upon joining (where eligible). This can include Death, Death and TPD or Income Protection insurance.
Account based pension (formerly allocated pension)
This is a pension arrangement where a person has an account and regularly draws down an amount from the account, subject to a prescribed minimum. The pension continues until the money runs out or the member dies.
After-tax contributions
These contributions are also known as non-concessional contributions.
Asset fee
In the case of Accumulation accounts, the Trustee may charge an asset fee of up to 0.10% p.a., which is deducted from Health Super’s assets before the calculation of returns for each investment option.
Association of Superannuation Funds of Australia (ASFA)
Consisting of over 375 constituent superannuation funds, ASFA is a non-profit, non-party political national organisation established to protect, promote and advance the interests of Australia’s superannuation funds, their trustees and their members.
Australian Prudential Regulatory Authority (APRA)
APRA is the Commonwealth agency responsible for the prudential regulation of banks, life insurance companies, general insurance companies and super funds. Its super responsibilities include administration of the SIS Act and APRA’s licensing regime for super trustees.
Automatic Acceptance Limit (AAL)
The AAL relate to the maximum amount of death and/or disability insurance cover which insurance companies provide without receiving detailed medical evidence from the member, if they’re eligible under an insurance policy. Automatic cover often equals the amount of the AAL for that cover.
Before-tax contributions
These contributions are also known as concessional contributions.
Beneficiary
A person for whose benefit assets are being held. Beneficiaries of a super fund are usually the dependants of the members.
Concessional contributions
Concessional contributions are taxable contributions such as employer contributions (including contributions made under a salary sacrifice arrangement) and personal contributions claimed as a tax deduction by a self-employed person. Limits apply to the amount of concessional contributions that you can make in a year.
D-F
Dependant
A dependant includes a spouse, child or any other person considered dependent on the member as defined under superannuation legislation and Health Super’s trust deed. Under superannuation legislation, a child includes a stepchild, an adopted child or one born within or outside marriage and a spouse includes a legally married or de facto spouse (including of the same sex where permitted under the trust deed). The trust deed applies special rules to the definition of dependant, child or spouse in the case of the Defined Benefit scheme.
Diversification
Refers to spreading your money across many different asset classes, such as shares, property, fixed interest, securities and cash. It enables you to balance risk and return, with rises in one asset type smoothing out falls in another.
Employer Termination Payment (ETP)
An ETP is generally composed of a payment from an employer to an employee when they cease employment. The payment can be a mix of cash and amounts received directly by the employee or transferred into a super fund (in the latter case it is called a Directed Termination Payment). Since 1 July 2007, there are limited circumstances for depositing ETP’s into super funds. Visit the ATO’s website for more information.
Financial Services Guide (FSG)
There is a legal requirement to provide an FSG to a member when they are provided financial services by a holder of an Australian Financial Services Licence (AFSL). This FSG describes details about the service being provided and who is providing it.
G-I
Government Co-Contribution
The Co-Contribution is a government initiative to help members save for their retirement. If you’re eligible and make personal contributions to your super fund, the Government will match your contribution up to certain limits.
Group life insurance
Death and/or TPD and Income Protection insurance provided by insurers to large groups of people who are associated in some way (such as the members of super funds), for whom certain assumptions about an average state of health can be made.
Interim rate
This represents the rate of return payable since returns were last declared, which can be up to three weeks after the end of the previous month. It applies until the investment return for the last month is declared.
Investment managers’ fees
The charge levied by investment managers to invest the assets of a super fund. These are included in 'Other Management Costs' (see below).
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M-O
Management costs
Our management costs are made up of the annual account-keeping fee that is applied directly to your account and “Other management costs”, such as Investment managers’ fees and the asset fee (if any), deducted from Health Super assets before the calculation of returns.
Member guide – see Product Disclosure Statement
Member investment choice
The ability to choose how your super is invested from a range of investment options in your super fund.
Non-commutable account based pension
An Account Based Pension allows you to access your preserved super money as a tax-effective income stream without the need to retire first, subject to restrictions. Also referred to as Transition to Retirement (TTR) pension.
Non-concessional contributions
Non-concessional contributions are non-taxable contributions such as personal (after tax) contributions for which you do not claim an income tax deduction.
Other management costs
Other management costs are a subset of and not additional to Management Costs and are comprised of Investment Managers’ fees and the asset fee (if any) deducted from Health Super’s assets before the calculation of returns. They may also include performance fees. An approximate dollar amount of “Other management costs”, based on Health Super’s fee arrangements, is shown on your annual Statement.
P-R
Pension guide – see Product Disclosure Statement
Preserved benefits
These are your super benefits that cannot be withdrawn as cash until a specified condition has been met. Usually, your benefits are preserved until you reach preservation age and retire.
Product Disclosure Statement (PDS) or Member guide
This is a document that sets out all the information on a financial product, including the features of the product as well as costs, benefits and any risks. We have a separate PDS for our Accumulation accounts (referred to as the Member Guide) and Pension accounts (referred to as the Pension Guide).
Registered employer
An employer who agrees to participate in the Fund and pay employer contributions in accordance with the Fund’s Trust Deed.
Rollover
Transfer of an amount to Health Super or to another super fund or Retirement Savings Account (RSA).
S-U
Salary sacrifice
An arrangement between an employer and an employee which involves the employee giving up a part of their pre-tax salary in exchange for having the employer provide an alternative benefit, such as super contributions.
Socially Responsible Investments (SRI)
A range of investment options that take into account labour standards, environmental, social, and/or ethical considerations.
Spouse
A person’s legally married husband or wife, or a de facto husband or wife (of the opposite sex or, for certain purposes as permitted under the trust deed, the same sex).
Superannuation Industry (Supervision) Act 1993 (SIS Act)
The Act that prescribes prudential standards for superannuation entities.
Superannuation Industry (Supervision) Regulations
The SIS regulations contain the majority of the detailed requirements which superannuation funds must meet in order to comply with the SIS Act.
Transition to Retirement (TTR) Pension
An Account Based Pension which allows you to access your preserved super money as a tax-effective income stream without the need to retire first, subject to restrictions. Also referred to as a Non-commutable Account Based Pension.
