Compulsory Preservation Account

You may have an unfunded Compulsory Preservation Account if you exited from:

the RBF Contributory Scheme; or
the closed RBF Non-Contributory Scheme

before you reached preservation age.

Tasmanian legislation requires that your entitlements must stay in this unfunded account until you reach preservation age. This means you cannot roll over this account balance to another super fund or super account until you reach your preservation age.

If you have a Compulsory Preservation Account you can make contributions to the RBF Investment Account at any time provided you remain eligible to contribute to super.

Balances in the Compulsory Preservation Account are indexed in line with inflation or movements in average wages, whichever is the greater. During the past 12 months RBF applied the following crediting rates to the account:

1 July 2008 to 31 December 2008	4.59% pa for the six-month period
1 January 2009 to 30 June 2009	5.70% pa for the six-month period

The rate is currently set at 5.64% pa until 31 December 2009 at which time it will be reviewed.

No fees or charges are applied to your Compulsory Preservation Account balance.

The investment performance of RBF does not affect benefits held in the Compulsory Preservation Account.

When you reach preservation age, the Tasmanian Government will fund your Compulsory Preservation Account, taxation will be deducted and RBF will transfer the balance into an RBF Investment Account in your name. You will be asked to choose an investment profile from a range of Member Investment Choice options. Your benefit will accrue a return at the rate applicable to the option(s) you choose. This will continue until you retire and RBF pays you a retirement benefit.

Once you reach your preservation age, you may choose to commence Transition to Retirement using funds in your RBF Investment Account.

Further information about the Compulsory Preservation Account is available in the fact sheet or by contacting us.