Corporate Finance Case Study

Corporate Finance Case Study

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................3
QUESTIONS...................................................................................................................................3
1. Assessing the factors that tertiary sector employees need to consider while making decision
about superannuation fund...........................................................................................................3
2. Explaining the ways in which time value of money concept affects potential investment
return and retirement savings.......................................................................................................5
3. Identifying retirement investment products that can be offered to the members by UniSuper
Ltd................................................................................................................................................6
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9

EXECUTIVE SUMMARY
In the present time, business organizations places high level emphasis on the
superannuation fund. This in turn enables personnel to save and invest money for their near
future and thereby ensures them to secure their life to the large extent. In this regard, both
employer and employee contributes specific amount of money in the fund with the aim to get
high level of financial benefits at the time of retirement. Specifically there are mainly two types
of fund which can be chosen or undertaken by the employees are defined benefit and investment
choice plan. The present report is based on the case situation of tertiary sector employees who
offers transport, health, insurance, teaching services etc. In this, it can be summarized from the
report that employees must consider the time value of money concept at the time of making
selection of investment or pension options. By this, personnel of tertiary sector can assess the
extent to which specific option will offer high level of monetary benefits to them in the
upcoming time period.
QUESTIONS
1. Assessing the factors that tertiary sector employees need to consider while making decision
about superannuation fund
Superannuation may be defined as an initiative which is undertaken by the government
with the motive to secure life of individuals after their retirement. Government has also
introduced laws and legislation in relation to the amount which employer needs to contribute in
the superannuation fund on the behalf of employees (Butler, 2015). In this, amount of
contribution is highly influenced from the basic pay or salary of the personnel. For this purpose,
UniSuper offers various kinds of investment options to the employees of university.
The cited case situation presents that employer is obliged to contribute in the superannuation
fund on the behalf of employees minimum 3%. Such minimum can be increased by 9% which is
highly dependent on the concerned organization. Thus, in accordance with the decision and
announcement of Australian government both employer and employees are obliged to contribute
some amount of fund in the superannuation (O'Connor, 2015). In this regard, employees have