At the end of each financial year, all contributions and earnings after tax and expenses will be transferred to each individual member balance based on the proportion of their share in the fund. All contributions and earnings will be allocated to one of the following 3 types of member benefits. This is to categorize the benefits so to determine how much can be cashed out by each member:

1) Preserved benefits (PB)

From 1 July 1999, all contributions and earnings are preserved, except if it was rolled over from other funds which will retain their preservation status. Preserved benefits can only be accessed (i.e. cashed out) once the condition of release is satisfied. Preserved benefits include:

  • All superannuation contributions by employer or member themselves (both concessional/non-conessional);
  • All investment earnings;
  • CGT retirement exemption;
  • Spouse contributions;
  • Government co-contributions;
  • Investment earnings on transition to retirement pension;

2) Restricted non-preserved benefits (RNPB)

RNPB is mainly the benefits that are contributed prior 1 July 1999 as an undeducted contribution (i.e. member did not claim tax deduction on the contribution). RNPB remains in the fund until the condition of release is satisfied, and no earnings should be allocated to this balance. RNPB include:

  • Personal undeducted contributions made before 1 July 1999

3) Unrestricted non-preserved benefits (UNPB)

Members benefits (PB and RNPB) will become UNPB once the condition of release is satisfied. Earnings on UNPB balance will also be allocated to UNPB. There is no cashing restriction for UNPB balance, member can cash out 100% benefits if one wish.