Benefits - Baptist Union Superannuation Scheme

What do I receive when I retire?

If you retire from active service, at or after age 50, you will be entitled to receive a lump sum equal to the amount in your Member’s No.1 Account and your Member’s No.2 Account. This is all your own and your employer’s non locked-in contributions, together with the investment earnings on those contributions.

At age 65 you will be entitled to receive a lump sum equal to the amount in your locked-in Complying Section Fund Balance (if applicable). This is your own and your employer’s locked-in contributions, and the Government contributions, together with the investment earnings on those contributions.

Instead of receiving the full lump sum payment when first eligible, you can choose to:

defer payment of the lump sum;
make partial withdrawals; or
make regular withdrawals that can be paid fortnightly or monthly.

What is paid if I die while in service?

If you die while in active service, then a lump sum will be paid to the person who is administering your estate.

If you are under age 65 and have insurance cover from the Scheme, the death benefit your estate will receive will be the greater of either:

(a) 4 times the basic annual stipend; plus

any voluntary contributions you have made (plus or minus the investment earnings on those contributions); less
any withdrawals made in the five years before your date of death;

Or

(b) the total amount in your Member’s No. 1 and No. 2 Accounts and your Complying Section Fund Balance (if applicable).

If you are not insured, or if you are age 65 or older, then the death benefit payable is option (b) above.

What is paid if I am totally disabled while in service?

If you leave active service due to suffering a Total and Permanent Disablement you will be paid a lump sum equivalent to the death benefit.

Total and Permanent Disablement means that due to an illness or injury you:

are unable to ever again work in any occupation or business for which you are reasonably qualified by education, training or experience; or
have suffered the total loss of both hands or feet or sight in both your eyes, or a mixture of these (e.g. one foot and one hand); or
are unable to perform at least two of the five “activities of daily living” without the assistance of another person. These five activities are bathing/showering, dressing/undressing, eating/drinking, using the toilet, and getting in or out of a bed/chair/wheelchair; or
are suffering a terminal illness (not expected to live more than 12 months).

For more information see the Product Disclosure Statement and Other Material Information.

What is the Frozen Member category?

If you leave active service, then you may remain in the Scheme as a Frozen Member if you advise the Trustee (and they are reasonably satisfied) that you either:

are seeking a return to active service as a minister or missionary; or
intend (or reasonably expect) to return to active service as a minister or missionary
- within two (2) years; or
- if you are taking up an immediate appointment (with an organisation approved by the Trustee) to a position involving Christian mission or ministry work substantially corresponding to the regular work of a minister or missionary.

Unless you are making a lump sum payment into your Complying Section Fund Balance to maximise your Government contribution while you are a Frozen Member you cannot contribute to the Scheme.

What is paid if I die after I retire but I remain a member?

If you die once retired, then a lump sum will be paid to the person who is administering your estate.

The death benefit payable is the total amount in your Member’s No.1 and No.2 Accounts and your Complying Section Fund Balance (if applicable).

What is paid if I die if I am a Class D member (a theological student)?

If you die while you are a Class D member then a lump sum of two (2) times the current Standard Stipend will be paid to the person who is administering your estate.

What are my options if I resign or I'm made redundant?

If you resign from or cease active service before age 50 you have the following options:

apply to become a Frozen Member of the Scheme; or
cease to be a member of the Scheme and receive the leaving service benefit.

The leaving service benefit is:

in almost all circumstances, the amount in your Member's No.1 Account and your Member's No.2 Account together with the investment earnings on those contributions; and
if applicable, the transfer of the amount in your Complying Section Fund Balance to a KiwiSaver scheme.

What withdrawals are permitted while I am still in service?

While you are in active service you can apply for a partial or full withdraw of your Member’s No.1 Account and the Member’s No.2 Account for certain reasons. You must give at least three months’ written notice of such a withdrawal. It requires the approval of the Trustee.

The withdrawal must be used for and applied towards:

alleviation of serious financial hardship; or
a settlement under the Property (Relationship) Act 1976.

You can access your Complying Section Fund Balance before age 65 for the following reasons:

first home purchase; or
significant financial hardship; or
serious illness; or
permanent emigration; or
a life-shortening congenital condition.

The KiwiSaver rules apply to an early withdrawal from your Complying Section Fund Balance.