The Benefits of ACIRT
ACIRT has been structured and designed to provide the following benefits:
- Your accrued benefit is safe in the event that your Participating Employer becomes insolvent and becomes unable to pay your benefit.
- Unlike other redundancy funds, ACIRT will generally distribute all its taxable income to eligible members.
- Unlike other funds, you are entitled to you benefit even if you make the decision to leave your employer.
- You receive statements regularly through the year, and can access your account online, enabling you to ensure your contribution are being paid into your account.
- Unlike other redundancy funds, members’ money is only spent on paying member benefits, not providing services such as training or welfare services, which don’t benefit all the members.
- Dependents, family members and other claimants of “eligible deceased members” may be entitled to receive a funeral benefit.
The Risks of ACIRT
Even though ACIRT is professionally managed, there are some risks in using ACIRT to hold your redundancy entitlements.
- We are reliant on employers to tell us what your accrued entitlement should be. Although we actively monitor arrears, it is possible that your employer will not pay all your entitlements. For that reason, it is crucial that you review your statement when it arrives or check your accounts regularly.
- Even though we invest the trust fund conservatively, use professional investment managers and employ an external investment adviser, investment losses may mean that that we are not able to pay a distribution or that the value in your Member Account may decline.
- We have no control over how taxation laws may affect the operations of the trust, how it is taxed or how much tax you may pay when you claim your benefit.
- Although we employ Australia’s largest fund administrator, there is a risk that their technology may fail and we are unable to pay your benefit.