Retirement Benefits Fund (RBF) – Are the changes good?
If you are, or ever have been, a Tasmanian public sector employee, chances are you have an RBF superannuation account (or even two or three accounts). And if you have been employed by the State for long enough, you may even consider yourself lucky to have access to a Defined Benefit and not have watched your account balance drop over the recent years with the Global Financial Markets.
Recently though the RBF has received some negative press as it transfers the administration of the fund to Mercer.
So what does this mean for the members of RBF and should they be concerned?
Well if you are one of the few (according to RBF CEO about 400 members), then obviously the journey ahead maybe more than frustrating and you may feel like switching providers and seeking advice elsewhere. I understand your frustration, and hope the right action is taken.
My advice, however, to those affected or unsure if RBF is still right for them, is to not jump too hastily. Seek professional advice.
“out of the frying pan and into the fire”
It is possible that there is a better solution out there for you, but be careful to get advice from someone who isn’t influenced by another product provider, paid commssions for transfering your funds, or who has other conflicts of interest.
The RBF has some great options available to their members that may not be available in a new super fund. For example, most members are automatically covered for death and disability insurance on joining and if they switched funds they may no longer have access to insurance cover elswhere, especially if they are no longer as healthy as they once were!
There are lots of issues to consider before switching funds and it is important that you get professional advice to ensure that you have weighed up all the options, costs and benefits before making any major financial decisions with your super.
That’s not to say that the RBF is the best fund for everyone, and indeed there are cases where I have advised clients on different options because of their personal family situation. The important thing is to make an active decision and understand why you should stay or leave. And if the RBF is the best option for you then how do you maximise the benefits on offer for your particular needs and circumstances.
If you are looking for some advice on your RBF super; whether you are in the Tasmanian Accumulation Scheme; RBF Contributory Scheme; State Fire Commission Superannuation Scheme; Tasmanian Ambulance Service Superannuation Scheme, or RBF Investment Account; Florisson Financial can you help you decide on:
- Investment choices – now and in retirement phase
- Insurance options – and if you need to top this up
- Contributions amounts
- How much and to which scheme
- How to contribute tax effectively
- Upgrades of contributions for past periods of service
- Maximise Centrelink entitlements
- Minimise tax
- Increase income in retirement
- Lump sum versus Pension options
- Understanding the difference between pension options
Florisson Financial charges a fee for advice to ensure that we are not influenced by product providers on the advice we give. Contact us now for a complimentary appointment to see if we can help you.