Industry superannuation
Encyclopedia
Industry superannuation funds in Australia refer to the group of retirement
superannuation
funds managed by industry bodies and unions
.
These funds are almost all public-offer funds, although most had their genesis as closed shop
funds only open to members employed in their particular industry. For example Cbus superannuation
, was initially limited to people employed in the building industry but is now open to all. Other examples are legalsuper
, which is the superannuation fund for the legal profession and CareSuper, the superfund for professionals.
company and bank
super funds, industry funds are not in business to make a profit for shareholders.
Industry funds are non-profit, designed exclusively for the benefit of members and governed by trustees representing employers and employees within the industry.
The trustee structure of "must generally consist of equal numbers of “employer representatives” and “member representatives”.http://www.apra.gov.au/Super/Documents/III-A-2-Trustee-Arrangements-for-Superannuation-Funds-other-than-Public-Offer-Funds.pdf
Launched in 1994 by National Mutual as SMHL (Super Members Home Loans), the early priority was on providing home loans to Australian Workers. The bank was renamed to Members Equity Bank in 1999 and received their banking licence from Australian Prudential Regulation Authority in July 2001.
Industry fund financial planning.
Retirement
Retirement is the point where a person stops employment completely. A person may also semi-retire by reducing work hours.Many people choose to retire when they are eligible for private or public pension benefits, although some are forced to retire when physical conditions don't allow the person to...
superannuation
Superannuation in Australia
Superannuation is a retirement program in Australia. It has a compulsory element whereby employers are required by law to pay an additional amount based on a proportion of an employee's salaries and wages into a complying superannuation fund.An individual's superannuation fund can be accessed...
funds managed by industry bodies and unions
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
.
These funds are almost all public-offer funds, although most had their genesis as closed shop
Closed shop
A closed shop is a form of union security agreement under which the employer agrees to hire union members only, and employees must remain members of the union at all times in order to remain employed....
funds only open to members employed in their particular industry. For example Cbus superannuation
Cbus
Cbus is one of Australia's largest public offer industry superannuation funds. Established in 1984 for the construction, building and allied industries, Cbus has grown rapidly in its 27 years and now provides membership to 630,000 Australians working in a wide variety of occupations and...
, was initially limited to people employed in the building industry but is now open to all. Other examples are legalsuper
Legalsuper
legalsuper is the industry super fund for Australia's legal profession. Although having public-offer status , it is essentially members of Australia's legal community that use legalsuper....
, which is the superannuation fund for the legal profession and CareSuper, the superfund for professionals.
Run to profit members
Unlike many insuranceInsurance
In law and economics, insurance is a form of risk management primarily used to hedge against the risk of a contingent, uncertain loss. Insurance is defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for payment. An insurer is a company selling the...
company and bank
Bank
A bank is a financial institution that serves as a financial intermediary. The term "bank" may refer to one of several related types of entities:...
super funds, industry funds are not in business to make a profit for shareholders.
Industry funds are non-profit, designed exclusively for the benefit of members and governed by trustees representing employers and employees within the industry.
The trustee structure of "must generally consist of equal numbers of “employer representatives” and “member representatives”.http://www.apra.gov.au/Super/Documents/III-A-2-Trustee-Arrangements-for-Superannuation-Funds-other-than-Public-Offer-Funds.pdf
Affiliations
- ME BankME BankMembers Equity Bank Limited, operating as ME Bank is a bank based in Melbourne Australia, focuses on low cost, no frills banking products. Members Equity is owned by Industry Super Holdings.- History and development :...
Launched in 1994 by National Mutual as SMHL (Super Members Home Loans), the early priority was on providing home loans to Australian Workers. The bank was renamed to Members Equity Bank in 1999 and received their banking licence from Australian Prudential Regulation Authority in July 2001.
- IFFP
Industry fund financial planning.