Superannuation Accumulation

Accumulation fund

An accumulation style fund is a fund that accumulates member and employer contributions and earnings. Each member has a specific balance in the fund and earnings are generally allocated in proportion to the size of their benefit in the fund.

An accumulation fund can generally accept both employer and member contributions or a combination of both.

Types of contributions

There is a range of different types of contributions that can be made to a superannuation fund, all of which fall into two main categories:

1. mandated employer contributions
2. non-mandated contributions.

Mandated employer contribution

Mandated employer contributions are simply contributions that an employer is required to make by law. This is usually in the form of either superannuation guarantee or award contributions.

A fund can accept mandated employer contributions at any time regardless of a member's age or their employment status.

Non-mandated contributions

Non-mandated contributions are voluntary contributions made by a member of the fund or by someone else and include:

1. personal contributions made by employees
2. personal contributions made by self employed or unsupported people
3. contributions made by employers over and above their SG and award obligations (these could include salary sacrifice)
4. co-contributions
5. spouse contributions
6. CGT Small Business Retirement Rollover