Types of Superannuation Funds
Many types of superannuation funds fall under three categories with the first depending on how much a retiree will retrieve as pension. The second category for the types of superannuation funds depends on who manages the fund and for who. Finally, types of superannuation funds may also based on the manner a retiree may retrieve his superannuation.
Types of Superannuation Funds: Pension Amount
There are two general types of superannuation funds for the first category. One of the types of superannuation funds is known as accumulation funds. In accumulation funds, the amount of the pension that a person may receive depends on how much he has paid during the time that he was working including the amount of money his investments have rendered.
The second of the two general types of superannuation funds is called defined benefit funds. The pension a retiree may receive is based upon the age at which he retires, how long he has been working, and how much his last salary was. Defined benefit funds are also dependent on how long a person has been contributing to a fund.
Types of Superannuation Funds: Trustees and Members
One of the types of superannuation funds under the second category is called an industry superannuation fund. This type is run by and comprised of various employers in a certain industry i.e. medicine, law, education, or businessmen.
The second type is called employer stand-alone fund. This fund is set up by employers so they can provide for their employees' superannuation.
A third of the types of superannuation funds are called master trusts. This fund is managed by banks and other financial institutions and has numerous involved members. Master trust funds may either be wholesale master trusts or retail master trusts.
The government also manages funds for government employees. The government funds for government employees are know as public sector employees funds.
Finally, the fifth type in the second category is known as self managed superannuation fund (SMSF). This fund is run for a group of people counting to a maximum of four or five.
Types of Superannuation Funds: Manner of Retrieval
A retiree may retrieve his superannuation every month but not in one entire sum. This type of fund is called "commutable" allocated pension. "Non-commutable" allocated pension, on the other hand, allows the retiree to retrieve his entire pension.
