RBF Tasmanian Accumulation Scheme Redundancy

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1 Fact sheet RBF Tasmanian Accumulation Scheme Redundancy Important note This information is only for members of the RBF Tasmanian Accumulation Scheme. Please refer to the Membership Category as shown on your Member Benefit Statement which is available on the member secure website at If you are not a member of this Scheme, this information does not relate to you. Please contact RBF and request information appropriate for your membership. It is important that you consider all the information before you make your decision. If you are unsure about your options, please call the RBF Enquiry Line on for assistance. You may also make an appointment with an RBF Superannuation Consultant to discuss your situation and ask for more information. A referral to a Financial Planner from RBF Financial Planning is also available where you are seeking personal, written advice about your financial situation. A fee may be applicable for financial planning services. When considering a significant life-changing event such as redundancy, it is essential that you receive the best possible information and advice. As a valued member of RBF, we will continue to assist you through this period and into the future by providing information about your super options and entitlements. It is important that you fully understand the options available before making a financial decision. What happens when you are offered a redundancy? If you are considering a redundancy the first step is to read the Redundancy administrative process fact sheet available on the RBF website at You will remain a member of the RBF Tasmanian Accumulation Scheme and continue to enjoy access to a range of products and services offered by RBF. You should note however that your cover for Income Protection benefits in the RBF Tasmanian Accumulation Scheme will cease after four months of your redundancy separation date unless you make alternative arrangements with RBF s insurer. Your Life (including Total and Permanent Disablement) cover will continue after that date subject to certain requirements being met. Please see What happens to my insurance cover when I am made redundant? section below for more details. For information on the step by step process please refer to the Redundancy administrative process fact sheet. What happens to my insurance cover when I am made redundant? When you cease employment with your Tasmania public sector employer and you are under age 70, your Life cover (which includes Death, Terminal Illness and Total and Permanent Disablement cover) in the RBF Tasmanian Accumulation Scheme will automatically continue, as long as premiums continue to be paid. You can opt-out of this cover at any time. If you have Basic Income Protection cover and you cease employment with your Tasmania public sector employer and you are under age 65, your Income Protection cover will automatically continue at its existing level for a period of four months from the effective date of your redundancy, providing your premiums continue to be paid. However, you can optout of this cover at any time. If your Basic Income Protection cover has a two year benefit payment period and a 90 day waiting period, you may, within 90 days of your Basic Income Protection cover starting, apply to maintain your Income Protection cover on existing terms and conditions. You can make this request by completing an RBF Tasmanian Accumulation Scheme Introductory cover application form. Please refer to the Fact sheet: Insurance in your super as there are conditions that you must satisfy in order to have your request approved. For further details about insurance cover, and the options available to you please refer to the Fact sheet: Insurance in your super available on the RBF website at Our staff are available to discuss your options and entitlements and to explain the various ways in which you can maintain a strategy to continue to save for your retirement and maintain appropriate insurance cover. 1 Redundancy RBF Tasmanian Accumulation Scheme Fact sheet

2 What is my preservation age? Your preservation age is set by Commonwealth legislation and is determined by your date of birth. Date of birth Preservation age Before 1/7/ /7/60 30/6/ /7/61 30/6/ /7/62 30/6/ /7/63 30/6/64 59 After 30/6/64 60 What benefits can I access when I am made redundant? If you are over age 65, your benefit will be fully accessible to you. If you are under age 65 and have not retired from the workforce, your benefit will consist of the following preservation components: Unrestricted non-preserved amount This amount is fully accessible to you and will remain in your RBF Investment Account, allowing it to accrue investment earnings for your retirement. You have the option of requesting a cash withdrawal from this component at any time. Taxation may be payable on cash withdrawals made prior to age 60. After age 60, no tax is payable on this component. Preserved amount Under preservation age Generally your preserved benefit must remain in the super environment until you have reached your preservation age and retired from the workforce. You can access your benefit at any time in the case of death, total and permanent disablement, and severe financial hardship or compassionate grounds. After preservation age After preservation age, the preserved amount can be accessed: to commenc. a Transition to Retirement income stream; or to purchase an RBF Life Pension (if eligible). The RBF Life Pension is a non-commutable income stream, which means it cannot be converted to a lump sum at a future date. You do not need to have retired from the workforce to purchase an RBF Life Pension. The preserved amount will remain in your RBF Investment Account where you can continue to utilise RBF s Member Investment Choice options to implement your investment strategy. Accessing cash lump sum If you have reached your preservation age and are able to complete a retirement declaration, you will be able to access your entitlement without restriction. If you are 60 years or over when you cease employment with the Tasmanian public sector, your total benefit is fully accessible to you. Tax Tax may be payable on cash withdrawals made prior to age 60. After age 60, no tax will be payable on this component. What products and services can I continue to access? Member Investment Choice You retain the flexibility to choose from RBF s wide range of investment options ranging from conservative to aggressive investment strategies. This means you can choose the Member Investment Choice option(s) to best suit your individual investment profile and needs. If you do not make a choice, your benefit will be invested in the default option, RBF MyPath. More information on our Member Investment Choice options can be obtained from the Fact sheet: How we invest your money by visiting the RBF website or requesting information directly from the RBF Enquiry Line on Insurance You may be entitled to the full range of our insurance cover options such as: the ability to apply for Voluntary insurance cover including: Death and Total and Permanent Disablement; or Death only; and/or Income Protection. the flexibility to increase or decrease your insurance cover (or even opt-out); and the once-off opportunity to increase your Life cover without the need to provide any health evidence following certain significant Life Events. For more information about the insurance cover and the options available, refer to the Fact sheet: Insurance in your super. available on the RBF website at Transition to Retirement You can access a Transition to Retirement income stream through RBF if you have reached your preservation age but have not fully retired from the workforce. A Transition to Retirement income stream allows you to convert all or part of your benefits to an income stream while you are looking for work or working. Under Transition to Retirement, members can purchase an RBF Transition to Retirement Account Based Pension or an RBF Life Pension (if eligible). 2 Redundancy RBF Tasmanian Accumulation Scheme Fact sheet

3 The RBF Transition to Retirement Account Based Pension has the following restrictions: your minimum annual pension is 4% of the balance of your RBF Transition to Retirement Account Based Pension account as at the date you first commence your pension and each 1 July thereafter; your maximum annual pension is limited to 10% of the balance of your RBF Transition to Retirement Account Based Pension account as at the date you first commence your pension and each 1 July thereafter; and you cannot make any lump sum cash withdrawals. When you permanently retire or attain age 65, whichever occurs first, the lump sum cash withdrawal restrictions are lifted and your pension becomes an RBF Account Based Pension. More information on the RBF Transition to Retirement Account Based Pension is available in the Fact sheet: Pensions available on the RBF website at RBF Account Based Pension You can only purchase an RBF Account Based Pension when you reach your preservation age and retire from the workforce. The RBF Account Based Pension is not subject to the withdrawal restrictions that apply to RBF Transition to Retirement Account Based Pensions. The RBF Account Based Pension is subject to minimum payment amounts based on your age as prescribed by the Federal Government. RBF does not charge a fee to establish an RBF Account Based Pension. Prior to age 60 you will receive a 15% tax offset on the taxable portion of your RBF Account Based Pension. RBF Account Based Pensions will become tax exempt when you are aged 60 or over. You may choose to continue to make super savings and purchase an RBF Account Based Pension at a later time. To boost your RBF Investment Account balance, you can roll in amounts from other super funds or make lump sum or regular deposits. More information on the RBF Account Based Pension is available in the Fact sheet: Pensions on the RBF website at or you can request a copy of the Fact sheet by calling the RBF Life Pension You will retain any rights you currently have to convert all or part of your benefit to an RBF Life Pension. This can be done any time after you reach your preservation age. Only certain members and their surviving spouses have a contingent right to transfer all or part of their accrue. benefits in the RBF Tasmanian Accumulation Scheme to the Contributory Scheme to purchase an RBF Life Pension. You are eligible to purchase an RBF Life Pension if all of the following criteria are satisfied: 1 you fall into one or more of the following categories: a you are a member or former member of the Contributory Scheme; or b you were a member of the former Non-Contributory Scheme as at 14 May 1999; or c you were an RBF Investment Account holder or an RBF Account Based Pensioner as at 14 May 1999; or d you are the spouse or former spouse of a Contributory Scheme member and your spouse (the Contributory Scheme member) established a Spouse RBF Investment Account in your name in accordance with Contributory Scheme governing rules immediately before 2 October 2010; and 2 you have maintained a continuous financial interest in RBF; and 3 you have attained your preservation age or you have retired from the workforce on the grounds of Terminal Illness or Total and Permanent Disablement. A surviving spouse of a member referred to in 1a to 1d above who has maintained a continuous financial interest in RBF is also eligible to purchase an RBF Life Pension. The RBF Life Pension is indexed twice yearly in line with adjustments to the Consumer Price Index. You have a choice of either a reversionary RBF Life Pension (to provide an income for your surviving spouse) or a non-reversionary RBF Life Pension. An RBF Life Pension coming from a fully taxed super scheme will become tax exempt when you reach the age of 60. More information on the RBF Life Pension is available in the Fact sheet: Pensions on the RBF website at Spouse RBF Investment Account Your spouse may be eligible to open a Spouse RBF Investment Account and become a member of RBF in his or her own right. Both you and your spouse may be eligible to make contributions to your spouse s account. Contributions into your spouse s account will count towards his or her annual contribution caps. Cash lump sum You can make cash withdrawals from the accessible amount of your benefit at any time or when your preserved amount becomes accessible. 3 Redundancy RBF Tasmanian Accumulation Scheme Fact sheet

4 Can I still make contributions to RBF? You can continue to build your retirement benefits by making the following contributions: Non-concessional (personal) contributions Provided RBF has your tax file number, you can make nonconcessional (personal) contributions to your account on a regular basis (e.g. by BPAY from your bank account) and pay in lump sum amounts at any time. Contributions above the non-concessional contributions cap may be taxed at the highest marginal tax rate. Registered to BPAY Pty Ltd ABN Concessional contributions RBF members who are self-employed or substantially selfemployed can make concessional contributions into the RBF Tasmania Accumulation Scheme by way of tax deductible contributions. The concessional contribution caps apply. For more information on contribution caps and taxation, please refer to our Fact sheet: How super is taxed which is available on the RBF website at or you can request a copy by calling the RBF Enquiry Line on Rollover You can rollover money from other super funds into your RBF Investment Account. Spouse contributions and contributions splitting RBF can accept contributions: made by your spouse on your behalf; and split from your spouse s super from the previous financial year. Conditions apply. Please refer to the Fact sheet: Spouse RBF Investment Account for more details which is available on the RBF website at or you can request a copy by calling the Please note your spouse must provide their tax file number before contributions can be accepted by RBF. Superannuation Guarantee contributions RBF is unable to accept Superannuation Guarantee contributions (compulsory employer contributions) from private sector employers. You will be able to rollover other super accounts into your RBF Investment Account at a later date to purchase a retirement product. What if I recommence employment in the Tasmanian public sector? If you recommence employment in the Tasmanian public sector, you will retain your membership in the RBF Tasmanian Accumulation Scheme unless you elect to join another super fund. In most cases, your insurance cover can be reinstated, but this may be subject to certain conditions. For more information, please read the Fact sheet: Insurance in your super which is available on the RBF website at or you can request a copy by calling the Tax file number If RBF does not have your tax file number, any cash withdrawal from your RBF Investment Account will be taxed at the highest marginal tax rate. Please check to ensure RBF has a record of your tax file number to ensure you don t pay unnecessary tax. What can I still access at RBF? Once you have received your redundancy benefit and continue to have a financial interest in the RBF Tasmanian Accumulation Scheme, you can continue to access RBF s member services and build your retirement benefits using RBF s products, services and super options. If you retain a benefit in your RBF Investment Account you will have access to: a choice in how your money is invested with Member Investment Choice; an account with no deductions for commission or entry or exit fees; access to an RBF Account Based Pension, RBF Transition to Retirement Account Based Pension and an RBF Life Pension (if eligible); an account for your spouse providing potential benefits and the opportunity for your spouse to save for their retirement; an annual Member Benefit Statement at 30 June; state-wide seminars, workshops and interviews; access to RBF Superannuation Consultants and Financial Planners from RBF Financial Planning; and the member secure website where you can access your RBF Investment Account details and choose options on communication preferences. If you recommence with another Tasmanian public sector agency, your RBF Investment Account provides access to: an account where your Superannuation Guarantee contributions can be paid; automatic Total and Permanent Disablement, Death, Terminal Illness and Income Protection cover in most cases; salary sacrifice; and BPAY, which allows you to nominate the amount and frequency of personal contributions you make to your account, directly from your bank or credit union. Need help? After reading this fact sheet, you may require further information or assistance. Personal interviews are available in Hobart, Launceston, Burnie and Devonport by appointment only. To arrange an interview, call the If you require personal financial advice, a Financial Planner from RBF Financial Planning Pty Ltd will be available to assist you. 4 Redundancy RBF Tasmanian Accumulation Scheme Fact sheet

5 Related documents Fact sheet: How we invest your money Fact sheet: Insurance in your super Fact sheet: Pensions Fact sheet: How super is taxed Fact sheet: Spouse RBF Investment Account Fact sheet: Redundancy administrative process Fact sheet: Accessing your super early Fact sheet: Accessing your super early on compassionate grounds RBF Tasmanian Accumulation Scheme Application for an RBF Account Based Pension form April 2015 Retirement Benefits Fund Board as trustee for the Retirement Benefits Fund. This Fact sheet contains general information only. It is not intended to be, and should not be relied upon as legal, financial or other advice. It has been prepared without taking into account your personal objectives, financial situation or needs. Consider whether this information is appropriate to your circumstances and read any relevant RBF documentation available at before making a decision. We also recommend that you consider talking to a financial adviser. Every care has been taken in providing accurate and up-todate information in this Fact sheet. However, things may have changed since this Fact sheet was published and some of the information may no longer be correct. If there are mistakes or omissions in the information, we reserve the right to correct those errors or omissions. The governing rules of RBF will prevail over any misstatement in this Fact sheet. RBF Financial Planning Pty Ltd (ABN , AFS Licence No ) is a wholly owned subsidiary of the RBF Board and operates as a separate legal entity. The privacy and confidentiality of your personal information is important to RBF. We hold your personal information securely and use it only for the purposes described in the RBF Privacy Policy, available on the RBF website at Issued by Retirement Benefits Fund Board ABN as Trustee for Retirement Benefits Fund (RBF) ABN Contacting RBF Contact RBF if you would like additional information or assistance. RBF Enquiry Line: Visit: Fax: or (international) (03) or (international) Write: RBF, Reply Paid 446, Hobart TAS 7001 Office: Ground Floor, 21 Kirksway Place, Hobart Ground Floor, Cimitiere Street, Launceston RBF18753_ Tas Accumulation Scheme_Redundancy Process_FS Update_0215_FA 5 Redundancy RBF Tasmanian Accumulation Scheme Fact sheet AC/S/00308 (V5-04/15)