Time moves on from DBDs

When Towers Perrin designed the UniSuper defined benefit super fund 30 years ago,generous employer superannuation arrangements provided tangible benefits to employees. These included access to benefits at any age, lump-sum tax on only 5 percent of pre-1983 benefits and the tax-free accrual of fund income.

Also employers (incorrectly) assumed that offering lifetime indexed pensions as well as lump-sum pay-outs was affordable because of projected short life expectancies and the low tax rate on lump sums and heavier tax on pensions.

Read the full article: Time moves on from DBDs (The Australian subscription required)

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Daryl Dixon

Executive Chairman

Daryl Dixon is one of Australia’s foremost investment experts and a well known writer and consultant. He has provided trusted advice to thousands of personal clients over more than 25 years and is an acknowledged expert in the areas of tax, superannuation (including public sector superannuation), social security and investments.

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