Glossary

There may be a few words or phrases that you’re not familiar with, so our Glossary can help you understand some of the terms we use.

Accumulation account

This is an account in a super fund which operates on an accumulation basis, where contributions earn investment returns (which can be positive or negative).

Choice of fund

Under super legislation, most employees have the right to choose which fund their super contributions are paid into – this is known as ‘Choice of fund’. Additionally, most employers are required to nominate a 'default fund' for their SG contributions (in the event that their employees do not choose a super fund).

Concessional contributions

Concessional contributions are paid before tax into your super account, and include your employer’s contributions and any salary sacrifice contributions you may make. They’re called ‘concessional’ contributions because there are tax concessions associated with them - they’re taxed at 15% when going into your super account, as opposed to your usual marginal tax rate. Additional tax may apply if the Fund does not hold your TFN or you exceed your concessional contribution cap.

Concessional contributions cap

Concessional contributions cap is the amount of concessional contributions that can be made into your super account(s) without incurring additional tax, and depends on your age. Your employer’s SG contributions and your salary sacrifice contributions count towards this cap.

Conditions of release

These are circumstances under which a member can access their preserved and unrestricted non-preserved super benefits.

Death benefit

Refers to the benefit payable by a super fund to the beneficiaries or estate of a member following a member’s death.

Death benefit nomination

Refers to the process where a member nominates who they wish to receive their superannuation benefits in the event of their death.

Defensive assets

Defensive assets (also referred to as income assets) include fixed interest and cash deposits as well as some alternative assets. Defensive assets often provide an income stream with the repayment of capital on maturity. They are generally regarded as lower-risk investments as they are more likely to provide lower and more stable returns over time.

Defined benefit

Refers to a super benefit (or portion of a benefit) which is determined by reference to a formula and factors. It may take into account factors such as the reason for leaving the Fund, the member’s age, salary and length of contributory service. The value of a defined benefit is not generally linked to investment earnings and a defined benefit member is generally not exposed to any investment risk in relation to their defined benefit.

Dependant

For superannuation purposes, this means a spouse (including an opposite- or same-sex de facto partner), a child (including children over 18), a financial dependant and a person with whom a member shares an interdependency relationship. A person must generally be a dependant (or the legal personal representative) at the date of a member’s death to be a beneficiary of the member’s death benefit.

Diversification

Diversification is when money is spread across a number of different investments to help balance out lower returns in any one investment. By diversifying your investment portfolio, if one investment falls in value, others that are performing well may make up for the loss (or at least reduce it). Maritime Super maintains a diverse range of investments across a broad range of asset classes, investment managers and countries to reduce your exposure to risk.

Employer sub-funds

These are membership categories in Maritime Super which have been set up for members who are employed by: ASP Ship Management, Australian Maritime Officers Union (AMOU), Inco Ships Pty Limited, SVITZER Australia Pty Limited, Teekay Shipping (Australia) Pty Limited and Trident LNG Shipping Services Pty Ltd. Only the principal employer for these categories (and their associates) may contribute to these categories.

Growth assets

Growth assets include shares, property and private equity, as well as some alternative assets. They primarily provide capital growth with a lower income stream and are generally regarded as higher-risk investments because they have the possibility of higher returns over time but with more volatility.

Income stream

An income stream is a series of regular payments over a period of time (and includes a pension or annuity).

Investment choice

Refers to the ability to select one or more investment options for the investment of your super or pension. Investment choice is not available in respect of the defined benefit portion of a benefit. Maritime Super offers investment choice via a range of investment options, including diversified and sector options and a fixed-term investment option. Each investment option has a different investment objective and risk profile.

Investment earnings rate

The rate of investment returns (net of fees and taxes) for a specified period for an investment option – this may be positive or negative.

Investment options

Refers to the combination of asset classes and assets that a member can choose from in a super fund (where investment choice is offered). Maritime Super offers investment choice via a range of investment options, including diversified and sector options and a fixed-term investment option. Each investment option has a different investment objective and risk profile.

Non-binding death benefit nomination

A non-binding nomination identifies your preferred beneficiaries of your death benefit; however, your nomination is not binding and will be used as a guide only when distributing your death benefit. In other words, the Trustee will decide who receives your death benefit, taking into consideration your nominated dependants as well as your personal circumstances at the time of your death.

Non-concessional contributions

Contributions made from your after-tax income are known as ‘non-concessional contributions’ – they’re not taxed when directed into your super account because you’ve already paid tax on them. Some examples of non-concessional contributions include any one-off payments you make from your after-tax salary, as well as contributions made by your spouse, parents and children.

Non-concessional contributions cap

Non-concessional contributions cap is the amount of non-concessional contributions that can be made into your super account(s) without incurring tax.

Preservation

Refers to the Federal Government’s requirement that preserved and restricted non-preserved superannuation benefits generally remain in the superannuation system until permanent retirement from the workforce on or after reaching preservation age.

Preservation age

This is the minimum age at which you can access your preserved benefits on retirement from the workforce - it’s determined by the Government and is based on when you were born. Click here to find out your preservation age.

Preserved benefit

Preserved benefits are the benefits that must generally remain (or be ‘preserved’) within the super system until you reach your preservation age and retire.

Rollover

Refers to the transfer of benefits within the superannuation system, for example, from one superannuation fund to another superannuation fund.

Salary sacrifice contributions

Salary sacrifice contributions are a type of concessional contribution, and can be a very tax effective way of boosting your super. By salary sacrificing to super, you are directing some of your pre-tax salary into your super account and generally pay tax at only 15% (instead of your marginal tax rate).

Superannuation guarantee (SG)

Refers to the minimum amount of superannuation that an employer must provide for each employee as required by SG legislation.

Trust deed

Refers to the legal and binding document that sets out the rules governing the Fund.

Trustee

Is a separate company called Maritime Super Pty Limited (ABN 43 058 013 773, AFSL No. 348197, RSE Licence No. L0000932) which has overall responsibility for the management and operation of the Fund.

Unrestricted non-preserved benefit

Unrestricted non-preserved benefits have no payment restrictions under super law. These are generally benefits where you have already met a condition of release but have decided to keep them within the super system. You can generally access unrestricted non-preserved benefits at any time.

Volatility

This refers to the short-term fluctuations in share prices, exchange rates and interest rates that can affect an investment.