What does binding mean in superannuation?

When you put money into superannuation your employer usually holds the funds on your behalf and allows you to access them once you reach a certain age. One of the ways you can access your super is through a loan, but the loan must be repaid. In order to do that, your super account must be bound to your loan.

What does binding mean in superannuation certificate?

If you’re investing in a super fund you’ll need to ensure you know where your money is. One of the ways you can do this is by ensuring your fund is bound. This means your money is locked in until you decide to withdraw it. As soon as you transfer your money to your fund, it’s automatically bound to your fund. You don’t have to worry about your money being invested in the wrong place or any other type of issue,

What is binding mean in superannuation?

Binding refers to the legal contract between an asset manager and its members. It states that the asset manager is responsible for protecting the members' money and providing them with an accurate report on the funds. The asset manager must not make withdrawals from member accounts without the member's consent.

What does binding mean in superannuation quizlet?

Binding means that your investment portfolio is frozen when you pass away. Once you pass away the funds are removed from your account, and the beneficiary can only access the funds once the will is probated. This gives your family time to pay off any debts and distribute the remaining funds however they wish.

What does the word binding mean in superannuation?

Binding refers to the process of locking in the value of your superannuation fund. When you lock in the value, you stop investing in your fund and start withdrawing from it. As a result, the value of your fund will decrease until you dip below the balance cap. Once your fund balance drops below the balance cap, the money will be withdrawn as a lump sum.