Defined benefit divisions


In superannuation lingo, 'defined benefit' means that part of your payout from the Scheme is related to your salary at or near retirement.

In EISS, the following sections of the Scheme are defined benefit divisions:

  • Lump Sum Scheme (Division 2)
  • Pension Scheme (Division 3)
  • RG Scheme (Division 4)


These are all closed to new members.

Being in a defined benefit division means that some part of your payout is unaffected by investment returns. This gives you a bit more certainty when planning your retirement.

Within these parts of the Scheme, you have access to:

  • variable contributions that allow you flexibility throughout your membership
  • additional voluntary contributions (that accumulate with interest) if you wish to top-up your super
  • income protection insurance (except for Division 4 (RG Scheme))
  • income stream options on retirement
  • the option to rollover balances from other funds and save on fees
  • salary-sacrifice contributions (which may save you tax)
  • government co-contributions (if your salary is below a set limit)


A brief summary of the benefits provided by each of the defined benefit schemes is below. Please consult your member booklet and/or your statement for more information.

Lump Sum Scheme (Division 2)

General Hybrid lump sum benefits
Standard member contributions
  • Variable, allowable rates 1.5%, 3%, 4.5%, 6%, 7.5%, 9%
  • Maximum employer defined benefit received for an average contribution rate of 6% over 35 years membership
  • Average is measured through the use of contribution points
Retirement benefit at age 60 After age 55
Retirement benefit available Member contributions plus interest, plus
4.5 times contribution points/420 times final salary, plus
3.4% times final salary times years after 1992
Variations on the Retirement benefit
  1. Members who transferred from the RG Scheme get the greater of the above benefit plus RG accumulations, with a maximum of 4.9 times salary
  2. Maximum defined benefit reduces the earlier the benefit is taken
  3. Additional grandfathered Occupational accumulations may also be included
Resignation benefit Available prior to age 55. Three options are available:
  1. Cash plus rollover: essentially minimum SG benefit. Member account may be taken in cash, the employer amount must be preserved, either in the Scheme or another fund.
  2. Preserved retirement benefit: preserved in the Scheme, indexed at CPI on the defined portions and interest on the accumulation portions. Subject to maxima.
  3. Rollover benefit: member account, plus twice member account (limited to the member account had the contribution rate averaged 6%), plus 3.4% benefit as for retirement
Member has 3 months to decide. Default option is 2).
Temporary Disability benefit
  • Benefit of two-thirds of salary
  • Payable for 12 months (can be extended by the Board for another 6 months)
  • Benefit can't start until sick leave used up

Pension Scheme (Division 3)

General Defined benefit pensions
Standard member contributions
  • Variable, allowable rates 1.5%, 3%, 4.5%, 6%, 7.5%, 9%, standard
  • Members have a standard contribution rate, which is set when they joined the Scheme
  • Maximum employer defined benefit received for an average contribution rate of their standard rate over 30 years membership
  • Average is measured through the use of contribution points
Retirement benefit available After age 55
Retirement benefit at age 60 Pension of up to 75% (less tax offset) of FAS(1), pro-rated depending on average contribution rate, and period since occupational super was introduced. Pension includes a reversionary spouse pension of two-thirds of the retirement pension.
Variations on the Retirement benefit
  • Variable, allowable rates 1.5%, 3%, 4.5%, 6%, 7.5%, 9%, standard
  • Pensions may be commuted to a lump sum (see below)
Resignation benefit Available prior to age 55. Two options are available:
  1. Cash plus rollover: essentially minimum SG benefit. Member account may be taken in cash, the employer amount must be preserved, either in the Scheme or another fund.
  2. Preserved retirement benefit: preserved in the Scheme, indexed at CPI.
Member has 3 months to decide. Default option is 2.
Temporary Disability benefit
  • Available prior to age 55
  • Benefit of extrapolated retirement pension
  • Payable for 12 months (can be extended by the Board for another 6 months)
  • Benefit can't start until sick leave used up
Total and Permanent Disablement benefit
  • Extrapolated retirement pension.
  • TPD eligibility: see booklet.
  • Benefit may be commuted within 28 days.
Death benefit Benefit varies according to age and number of dependents:
  • Spouse receives two-thirds of potential age 60 pension
  • Eligible children receive a pension.
  • No spouse but with eligible children: Estate receives greater of member account and two times salary. Eligible children receive pensions.
Spouse pension may be commuted. No nominated beneficiaries. Dependents are defined in the Rules (see booklet)
Retrenchment/VSP benefit Lump sum benefit of Member account, plus 2.5 times member account (limited to what member account would have been at the member's standard percentage).

Members also have the option of taking a preserved pension.

RG Scheme (Division 4)

General Hybrid lump sum benefits
Standard member contributions Variable, allowable rates 1.5%, 3%, 4.5%, 6%, 7.5%, 9% Members are not permitted to contribute more than an average contribution rate of 6% and are notified when they reach this average.
Average is measured through the use of contribution points
Retirement benefit available After age 55
Retirement benefit at age 60 Member contributions plus interest, plus 2.3333 times Member account, subject to a maximum of 4.9 times salary, plus
3.4% times final salary times years after 1992
Variations on the Retirement benefit
  1. Maximum defined benefit reduces the earlier the benefit is taken
  2. Additional grandfathered Occupational accumulations may also be included.
Resignation benefit Available prior to age 55. Two options are available:
  1. Cash plus rollover: essentially minimum SG benefit. Member account may be taken in cash, the employer amount must be preserved, either in the Scheme or another fund.
  2. Preserved retirement benefit: preserved in the Scheme, indexed at CPI on the defined portions and interest on the accumulation portions.
Member has 3 months to decide. Default option is 2.
Total and Permanent Disablement benefit Retirement benefit, plus the excess (if any) of two times salary over member account

No temporary disability.
Death benefit
  • As for TPD, though the additional amount payable on TPD is only payable if there are dependents.
Beneficiaries may be nominated, though must be a spouse, child or dependent.


The EISS defined benefit sections are complicated (as are many defined benefit schemes). It is important that you seek professional financial advice before making any major decisions.

Information on your benefits and super in general is available from:

  • your member booklet
  • your annual member statement
  • this website
  • the Scheme by calling 1300 307 844


Your member booklet is available for download from the Forms & publications section. Your latest member statement is available for download by signing in to your account and following the link under 'Member statements' on the 'Your super amount' page.

We are happy to make an appointment to meet with Scheme staff and discuss your benefit and your options on retirement. Scheme staff do not provide advice on your benefits. If your question is a simple one (e.g. should I pay my contributions by salary-sacrifice?), then ring the Scheme on 1300 307 844. For simple queries, we can provide advice over the phone.

 

Electricity Industry Superannuation Board ABN 57 923 283 236 as Trustee of the Electricity Industry Superannuation Scheme.

This website is provided by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 83 068 908 912, Australian Financial Services Licence #411980. The Trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.