The $1 billion aviation industry super fund AvSuper has introduced anti-detriment provisions to members' death benefits.
Launched at the start of this year, AvSuper announced anti-detriment provisions will now apply to the death benefits paid to a spouse and children of deceased members of the fund.
According to Michelle Griffiths, chief executive of AvSuper, the changes came into place January this year.
"The provisions allow for the effective reimbursement of contributions tax paid throughout the member's lifetime… paid out as a death benefits to generally the spouse or children of a deceased member," said Griffiths.
AvSuper said anti-detriment provisions aim to restore members' accumulation benefit to what it would have been if contributions tax had not been deducted from each concessional contribution made during your period of membership.
This applies to contributions made by an employer or on a salary sacrifice basis.
The provision is calculated based on an ATO formula, said Griffiths.
"We've decided to do it because it's in the best interest of members and their beneficiaries in the event of a death.
"Sometimes it's only a small amount - but it's a tax entitlement that they're entitled to and we felt that it was appropriate we deal with it in the fund," said Griffiths.
Ruth Liew
Launched at the start of this year, AvSuper announced anti-detriment provisions will now apply to the death benefits paid to a spouse and children of deceased members of the fund.
According to Michelle Griffiths, chief executive of AvSuper, the changes came into place January this year.
"The provisions allow for the effective reimbursement of contributions tax paid throughout the member's lifetime… paid out as a death benefits to generally the spouse or children of a deceased member," said Griffiths.
AvSuper said anti-detriment provisions aim to restore members' accumulation benefit to what it would have been if contributions tax had not been deducted from each concessional contribution made during your period of membership.
This applies to contributions made by an employer or on a salary sacrifice basis.
The provision is calculated based on an ATO formula, said Griffiths.
"We've decided to do it because it's in the best interest of members and their beneficiaries in the event of a death.
"Sometimes it's only a small amount - but it's a tax entitlement that they're entitled to and we felt that it was appropriate we deal with it in the fund," said Griffiths.
Ruth Liew
No comments:
Post a Comment