DBD Update

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The long-term financial position of the DBD is an absolute priority for us at UniSuper.

This section of the website is designed to help you understand the DBD and Clause 34, as well as keep you updated with the latest news and information. Clause 34 does not apply to UniSuper's Accumulation members, Flexi Pension members or to any accumulation component held by DBD members.

While the DBD and Clause 34 of the Trust Deed can seem complicated, UniSuper always strives to communicate with our members clearly and transparently. We have tried to answer the most common questions members have asked on this topic in these pages.

We would welcome your feedback on the information we have provided here.

Vested Benefits Index (VBI) and Accrued Benefits Index (ABI)

We publish quarterly estimates of the Vested Benefits Index (VBI) and Accrued Benefits Index (ABI). These are the key actuarial measures we use to monitor the financial position of the DBD at any point in time. Read more about these measures and how we monitor the DBD.

The VBI and ABI are based on various assumptions like future investment earnings and future salary growth, which will change from time to time. In addition, you should be aware that the VBI and ABI fluctuate constantly, depending on such factors as the performance of investment markets.

The articles below are ‘point in time’ information and are correct at the date of publication.

2 October 2017 - Latest VBI and ABI

The 1 July 2017 actuarial investigation is well under way and the Actuary has advised that that there will be some changes to the financial and demographic assumptions. These changes are expected to slightly improve the actuarial measures and the Actuary has provided the following estimates as at 1 July 2017 based on the updated assumptions:

  • Vested Benefits Index (VBI) – 114.5%           
  • Accrued Benefits Index (ABI) – 123.9%

These figures are provisional estimates at this time and are subject to final confirmation within the 1 July 2017 Actuarial report, which is due to be presented to the UniSuper Board by December 2017. The provisional estimates mean that upon receiving the Actuarial report, it is very likely no action will be required by the Board and there won’t be any more monitoring period in place.

26 May 2017 - Latest vbi and abi

The following estimates were made as at 31 March 2017:

  • Vested Benefits Index (VBI) – 113.5%           
  • Accrued Benefits Index (ABI) – 123.6%

28 February 2017 - Latest VBI and ABI

The following estimates were made as at 31 December 2016:

  • Vested Benefits Index (VBI) – 111.0%
  • Accrued Benefits Index (ABI) – 120.90%

25 November 2016 - Latest VBI and ABI

The Actuary completed the 1 July 2016 investigation since the last DBD Update on 8 September 2016. As mentioned in the previous update, the Actuary has updated the financial assumptions relating to the expectation of future investment earnings relative to salary growth and price inflation. This is to ensure that the assumptions underpinning the calculation of the ABI and VBI remain reasonable and appropriate.

Although these assumption changes had a negative impact on the actuarial measures, the funding position remained strong at 1 July 2016. The estimates of the actuarial measures we published on 8 September 2016 have now been confirmed within the 1 July 2016 Actuarial Report as:

  • Vested Benefits Index (VBI) – 112.20%
  • Accrued Benefits Index (ABI) – 122.20%

As part of the 1 July 2016 Actuarial Report, the Actuary has also advised that no action is required under Clause 34 in relation to the monitoring period ending 30 June 2016 and that monitoring period has now ceased. One Clause 34 monitoring period, ending after the next Actuarial Report as at 1 July 2017 has been presented to the Board, remains in place.

The following estimates were made as at 30 September 2016:

  • Vested Benefits Index (VBI) – 111.20%
  • Accrued Benefits Index (ABI) – 121.20%

8 September 2016 - Latest VBI and ABI

Despite these assumption changes, however, the DBD is still expected to maintain a strong funding position’, with the Actuary providing the following estimates as at 1 July 2016:

  • Vested Benefits Index (VBI) – 112.20%
  • Accrued Benefits Index (ABI) – 122.20%

Whilst these funding measures show the position at a particular point in time, it should be noted that the VBI and ABI fluctuate constantly, predominantly depending on how investment markets are performing.

These figures are provisional estimates at this time and are subject to final confirmation within the 1 July 2016 Actuarial report, which is due to be presented to the UniSuper Board by December 2016. Further information about the final actuarial investigation results and assumption changes will be published on the website immediately following this.

The provisional estimates mean that it is very likely no action will be required under the monitoring period ending 30 June 2016 and that monitoring period would cease upon the actuarial report being finalised after the final actuarial report has been presented to the Board by December 2016. There would therefore be only one remaining monitoring period in place, ending after the final actuarial report as at 1 July 2017 has been presented to the Board.

30 May 2016 - Latest VBI and ABI

The following estimates were made as at 31 March 2016:

  • Vested Benefits Index (VBI) – 111.0%
  • Accrued Benefits Index (ABI) – 124.4%

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<h3><a name=29 February 2016 – Latest VBI and ABI

The following estimates were made as at 31 December 2015:

  • Vested Benefits Index (VBI) – 112.2%
  • Accrued Benefits Index (ABI) – 126.0%

26 November 2015 – Latest VBI and ABI

On 4 November, we published estimates of the VBI and ABI as at 30 June 2015. These estimates have now been confirmed within the 30 June 2015 Actuarial Report as:

  • Vested Benefits Index (VBI) – 108.80%
  • Accrued Benefits Index (ABI) – 122.60%

As part of the 30 June report, the Actuary has advised that no action is required under the monitoring period ending 30 June 2015 and that monitoring period is now ceased.
Two monitoring periods remain in place, ending 30 June 2016 and 30 June 2017.

The following estimates were made as at 30 September 2015:

  • Vested Benefits Index (VBI) – 107.30%
  • Accrued Benefits Index (ABI) – 120.90%

4 November 2015 - Latest VBI and ABI

The following estimates were made as at 30 June 2015: 

  • Vested Benefits Index (VBI) –    108.80%
  • Accrued Benefits Index (ABI) –  122.60%

It is also important to note that these figures are provisional estimates at this time and are subject to final confirmation within the 30 June 2015 Actuarial report, which is due to be presented to the UniSuper Board by December 2015. 

When the UniSuper Board has received the 30 June 2015 Actuarial report, we will update members by displaying the following on our website: 

  • finalised 30 June 2015 VBI / ABI figures; and 
  • estimated 30 September 2015 VBI / ABI figures.