Transition to Retirement members
Income Stream members
Income Stream and Transition To Retirement members
How and when are crediting rates applied?
QIEC Super declares weekly crediting rates for applying investment earnings to each investment option.
Crediting rates are used to calculate (and notionally allocate) investment earnings to member accounts throughout the year, based on the timing of transactions. Crediting rates are notionally allocated to your account daily (using simple interest) and compounded weekly. These crediting rates are calculated by the Fund's custodian based on the actual investment return on the Fund's assets, after the deduction of estimated tax, indirect investment costs and the indirect asset based administration fee.
Investment earnings are applied to your account at the earliest of the following:
- effective 30 June when the final crediting rate for the full financial year is declared;
- when a member aged under 60 elects to retain a Total & Permanent Disablement (TPD) insurance benefit within the Fund;
- the date an investment switch is applied to your account; or
- when you withdraw part or all of your benefit from the Fund.
Crediting rates can also be negative, in line with movements in investments, in which case the investment earnings applied will be negative.
If you have selected a mix of different investment options, then the rates declared for each option are combined for the options and percentages you have chosen and a single interest amount is applied to your account. Please note that separate member accounts are not held for each investment option you may choose.
In processing benefit payments, in addition to the application of all weekly declared crediting rates set throughout the financial year, for the period where a weekly declared crediting rate has not been set, the last known weekly declared crediting rate will be used to process benefit payments.
The Trustee reserves the right to load and utilise interim crediting rates in the event of significant market movements or other events where deemed appropriate to preserve member equity.
Depending on the circumstances surrounding the interim crediting rate, it may be positive or negative. The Trustee also reserves the right to cease processing of all member transactions should an error be identified in any crediting rate (declared or interim) and may not commence processing member transactions until the error is rectified.
For information regarding compensation for unit pricing/crediting rate errors, please refer to the latest QIEC Super Annual Report.
Crediting Rate and Error Guidelines
For further information in relation to weekly crediting rates, including details of how weekly crediting rates apply to investment switches, please refer to the:
- Member investment choice and asset classes Fact Sheet (for accumulation members); or
- QIEC Income Stream PDS (for Income Stream members).