QSuper Defined Benefit for Queensland teachers: multiples, final salary and leaving

Who has a QSuper Defined Benefit account

QSuper is part of Australian Retirement Trust (ART), which is the trustee. The Defined Benefit account closed to new members on 12 November 2008, so Queensland state school teachers who started before then, and never moved out, may still hold one. If you hold an accumulation account with QSuper you can't switch into the Defined Benefit account. See Queensland teacher super and the overview of every state in teacher defined benefit super schemes.

The account stays open until you leave a defined benefit employer, turn 75, change to casual employment, or choose to transfer your funds to another account. Only Queensland Government employers (or related entities) can keep it open, so moving to a Catholic or independent school closes it.

How your multiple grows

Your multiple grows in proportion to how much you work. QSuper's guide gives three rules that matter for teachers:

• Part-time: at three days a week (0.6 FTE) your multiple grows at 60% of the standard rate.
• Leave without pay: your multiple doesn't grow at all (WorkCover may be treated differently; ask QSuper).
• Leave on half pay (for example, long service leave at half pay): your multiple grows at half the rate for that period.

How QSuper works out your final salary

Each financial year your employer reports your superannuable salary: your permanent full-time-equivalent salary as at 1 July, including approved allowances. Shift allowances, weekend penalties and locality allowances aren't included. Higher duties count only if you've acted in the higher role continuously for at least 12 months before that 1 July.

If you leave on or after turning 54, QSuper doesn't just use your last salary. It averages your superannuable salary over the 12 months before you leave, by proportioning your two most recent 1 July salaries (calculated in days). QSuper's own example: Colin retires on 1 September at 62 with a current superannuable salary of $110,000 (for 2 months) and a previous one of $104,000 (for 10 months), giving a final salary of $105,000.

Your options from preservation age

For anyone currently under 60, preservation age is 60. From then, while you're still working and under 65, you can transfer some or all of your defined benefit into a Transition to Retirement (TTR) Income account. QSuper caps TTR withdrawals at 10% of the account balance a year, and payments are tax-free if you're over 60.

• Moving money into a TTR reduces your multiple so the defined benefit is worth exactly that much less. QSuper's example: transfer $300,000 and your defined benefit falls by $300,000.
• Your Defined Benefit account stays open and keeps growing with future service.
• Money can't go back into the Defined Benefit account once it's out. QSuper suggests getting personal financial advice first.
• Any salary reduction benefit is split in the same proportion (for example, a 30% TTR transfer takes 30% of it).
• At 65 you can move your defined benefit to an accumulation account even if you're still working; your multiple resets to 0 and starts growing again.

When you retire, your lump sum moves to an accumulation account, from which you can open a Retirement Income account (an account-based pension) or buy a Lifetime Pension if you're between 60 and 80. QSuper's Lifetime Pension pays for life, but it's a permanent purchase after a six-month cooling-off period. We don't compare products; the trade-offs are a question for QSuper's advice service or a licensed adviser. Read transition to retirement for teachers for worked TTR numbers.

Leaving before 55, or leaving Queensland Government

The account was designed around retiring from 55. If you resign or leave after 55, your whole defined benefit moves to a QSuper accumulation account (invested in the Lifetime option unless you choose otherwise). If you leave before 55, it's split:

You can keep the Defined Benefit account if, within one month of leaving, you start with another eligible defined benefit employer and haven't withdrawn anything in between. Moving to an interstate public school system or a non-government school closes it. Get a quote first if you're thinking about leaving teaching or moving interstate.

Caps, notional contributions and salary sacrifice

Because employer contributions go to a pool, QSuper uses a notional taxed contribution (NTC) formula: 1.2 x (14% x your 1 July salary, less any after-tax standard contributions). Part-time and LWOP scale the salary down. QSuper's example: Cooper earns $125,000, pays the standard 5% after tax, and has an NTC of $13,500, leaving $19,000 of room under the $32,500 concessional cap for 2026–27. The defined benefit NTC itself is capped at the concessional cap.

Any extra employer top-up to your accumulation account (QSuper notes some employers top up to at least 12.75% of ordinary time earnings) and any salary sacrifice count on top. Check your NTC before you salary sacrifice, and remember carry-forward of unused cap only applies if your total super balance was under $500,000 at the previous 30 June (ATO).

Questions to ask QSuper

QSuper offers financial advice to eligible members (see its advice page for what's included and any cost). This guide is general information, not personal advice. Plan the years ahead with our teacher retirement checklist, and see can teachers retire at 60?.