Flexible Lifetime Super

Transcription

1 Issued ₁ July ₂₀₁₅ Flexible Lifetime Super Employer plans fact sheet Registered trademark of AMP Life Limited ABN

2 This document is a fact sheet that forms part of the product disclosure statement (PDS) dated 1 July 2015 for Flexible Lifetime Super. Contents Making contributions How to transact AMP esuper InstantCover Basic cover Information for employer sponsors and employees The information in this document forms part of the product disclosure statement for Flexible Lifetime Super dated 1 July 2015 (PDS). To understand how Flexible Lifetime Super works, read this fact sheet with the PDS, the investment options fact sheet, the insurance fact sheet and the getting to know your Flexible Lifetime Super fact sheet. Information in this document may change from time to time. We may update information which is not materially adverse to you and make it available at amp.com.au/pdsupdates. A paper copy of the update can also be obtained (at no charge) by calling us on or from your financial adviser. The information provided in this document is general information only and does not take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances. Flexible Lifetime Super is part of the AMP Superannuation Savings Trust. AMP Superannuation Limited is the trustee and is referred to as ASL, trustee, we or us in this document. No other company in the AMP group of companies or any of the investment managers of the investment options: is responsible for any statements or representations made in this document guarantees the performance of ASL s obligations to members, or assumes any liability to members in connection with Flexible Lifetime Super. If you would like advice on your insurance cover in this super product, contributions to your account, or investment options, you can call us on A fee will not be charged for this once-off intrafund advice. If you would like to obtain other financial advice, ongoing financial advice or other information about your account, you should speak to a financial adviser. Except as expressly disclosed in the PDS or a fact sheet: investments in the investment options are not deposits or liabilities of ASL, AMP Bank Limited ABN , AFSL No (AMP Bank), any other member of the AMP group or any of the investment managers, no person guarantees the performance of this super product or any of the investment options, any particular rate of return or the repayment of capital. The trustee may enter into financial or other transactions with related bodies corporate in relation to Flexible Lifetime - Super. That related body corporate may be entitled to earn fees, profits, reimbursements or expenses or other benefits in relation to any such appointment or transaction and to retain them for its own account. Flexible Lifetime Super is managed and administered in accordance with the PDS and fact sheets. We may change the way Flexible Lifetime Super is managed and administered at any time with, in the case of an increase in fees, at least 30 days notice. Otherwise, notice will be provided before or as soon as practicable after the change occurs. This offer is available only to persons receiving (including electronically) the PDS and fact sheets within Australia. Flexible Lifetime Super is closed to new employer plans. However, an employer sponsor with an existing employer plan continues to be able to establish super accounts for its employees. Flexible Lifetime Super offers a MySuper solution that has been approved by the Australian Prudential Regulation Authority, so employers can use it as their default fund. Issued by AMP Superannuation Limited ABN , AFSL Licence No , RSE Licence No. L , the trustee of the AMP Superannuation Savings Trust, ABN

3 Section ₁ : Making contributions In this section we look at: Employer responsibilities for contributions Industrial awards and workplace agreements Award modernisation

4 Making contributions Employers can make contributions on behalf of their employees if: the contributions are to satisfy Superannuation Guarantee (SG) obligations and are consistent with any industrial award/workplace agreement and Choice of Fund provisions in the SG legislation, and/or the employee otherwise satisfies the rules under when we can accept contributions (see the making a contribution section in the getting to know your Flexible Lifetime Super fact sheet). Employer responsibilities for contributions Employers wanting to make Superannuation Guarantee contributions generally need to make them quarterly for their employees. If a member authorises their employer to deduct voluntary member contributions from their after-tax salary, then these contributions must be made to the member s account within 28 days of the end of the month in which the deduction was made. Industrial awards/workplace agreements Modern awards require employers to make contributions to specific superannuation funds. A financial adviser can help provide details on this. You should check your obligations, if any, before making contributions. Award modernisation important information for employers in respect of award covered employees As well as dealing with wages and work conditions, most modern awards specify the superannuation funds to which an employer can make its Superannuation Guarantee contributions and any additional post-tax employee contributions for an employee where an employee has not exercised Choice of Fund (ie the employer s default fund). If an employer is considering using this fund as its default fund (ie the fund to which the employer will contribute unless the employee exercises Choice of Fund), the employer should consider obtaining legal advice on the application of any awards or agreements and whether they preclude it from using this fund as its default fund. The AMP group, including AMP Superannuation Limited (trustee), does not warrant and takes no responsibility for the appropriateness of its fund in meeting an employer s obligations under the modern awards or other industrial awards, agreements or arrangements. The Fair Work Act 2009 imposes penalties on employers for each breach of a modern award. Choice of Fund Flexible Lifetime Super satisfies the default fund requirements for Choice of Fund purposes. Contributions made to Flexible Lifetime Super can meet Superannuation Guarantee (SG) requirements. 4

5 Section ₂ : How to transact In this section we look at: Transacting on your Flexible Lifetime Super employer plan

6 The following table sets out how you can make contributions to and transact on your Flexible Lifetime Super employer plan. Employee Minimum per member Method used Internet (AMP esuper) Phone Fax Mail Form required for fax/mail Making contributions Additional contribution at any time No minimum Direct debit request EFT (iii) (iii) (i), (iii) Via your financial institution AMP esuper, superannuation contribution form, Employer direct debit arrangement form or payment notice Cheque (ii) Regular contributions $800 pa Direct debit request (iii) (i), (iii) Via your financial institution AMP esuper, Employer direct debit arrangement form or payment notice EFT (iii) Cheque (ii) InstantCover InstantCover details (see section on InstantCover for more detail) n/a n/a Increasing cover Adding subsequent employees Application to add or alter InstantCover Employer application (to add employees) form Employee details Change employee details (iii) n/a Add new employees Change details AMP esuper or Employer application (to add employees) form Notify when employee leaves

7 Employee Minimum per member Method used Internet (AMP esuper) Phone Fax Mail Form required for fax/mail Employer details Policy committee details n/a (Refer to Employer sponsors and employees section for more detail) Notify or change details Notification of Policy Committee details form (i) Direct debit via AMP esuper is Customer Initiated Direct Debit (CIDD) see electronic payment options using AMP esuper in the Page 9 section of this fact sheet. (ii) Please note: The introduction of the Government s Data and Payment Standards legislation will require alterations to existing payment methods and some may no longer be compliant. By law, payment by cheque is a non-compliant way of making contributions for medium and large employers (20 or more employees) and will be non-compliant from 1 July 2016 for small employers (19 or less employees). (iii) Under the Government s Data and Payment Standards legislation, large and medium employers (20 or more employees) must pay contributions and advise of employee details via a SuperStream compliant solution. Small employers (19 or less employees) must pay contributions and advise of employee details via a SuperStream compliant solution from 1 July To make a SuperStream compliant payment to this product you will need to use the Unique Superannuation Identifier (USI) AMP0195AU. Web amp.com.au/enquiry Phone Mail Customer Service AMP Life Limited PO Box 300 PARRAMATTA NSW 2124 Fax My Portfolio amp.com.au/myportfolio Make your cheque payable to: AMP Life Limited Flexible Lifetime Super Registered to Pty Ltd ABN

8 Section ₃ : AMP esuper In this section we look at: What an employer can do using AMP esuper Benefits of AMP esuper Electronic payment options using AMP esuper AMP esuper is AMP s SuperStream solution. It is an online service for employers to easily manage their employee super payments.

9 What can an employer do using AMP esuper? An employer using AMP esuper can: pay superannuation contributions for their employees electronically to Flexible Lifetime Super pay up to three different contribution types: Superannuation Guarantee and award employer salary sacrifice and additional employer, and member contributions update employee details eg change of address, salary updates add new employees to the employer plan add automatic insurance to new members joining an employer sponsor s plan, and notify us when employees leave. Benefits of using AMP esuper AMP esuper enables an employer to: securely process and manage superannuation information online for employees enquire on past transactions processed for up to two years check transactions status online, and choose a payment method eg Customer Initiated Direct Debit, or Electronic Funds Transfer (EFT). Electronic payment options using AMP esuper BPAY and Electronic Funds Transfer (EFT) The employer contacts their bank, building society, credit union or financial institution to make either a or EFT payment from their cheque or savings bank account. The employer must do this each time they send us their payment details (via the AMP esuper service). The employer can select their preferred payment when they register for AMP esuper. Customer Initiated Direct Debit Customer Initiated Direct Debit (CIDD) is an electronic payment method that allows an employer to arrange for AMP to make a direct debit from the employer s nominated bank account when needed. This is not an automatic periodical deduction for a fixed amount. Each transaction will not happen until the Employer authorises it. The confirmed amount will then be requested by AMP from the employer s nominated bank account. This is generally an overnight process (except on weekends or public holidays) involving the employer s bank or financial institution. AMP Bank Limited offers employers a CIDD clearing house facility via AMP esuper, which is an electronic payment facility allowing employers to use a single process to submit contributions to a variety of funds for employees. The CIDD clearing house facility via AMP esuper is only available if the employer s AMP plan is the default fund for relevant employees. Refer to the AMP Bank Limited CIDD request PDS, available online at amp.com.au or call the AMP contact centre on or speak to your financial adviser for further information. You should consider the PDS in deciding whether to use the CIDD. 9

10 Section ₄ : InstantCover In this section we look at: InstantCover insurance benefits What an employer sponsor need to know Employee eligibility rules Additional InstantCover information for employer sponsors What you need to know as a sponsored employee InstantCover premiums payable

11 InstantCover InstantCover allows an employer sponsor to apply for insurance for a group of eligible employees so they can obtain insurance without having to provide information on the state of their health, full occupation details or pastime pursuits. InstantCover provides the following combinations of insurance benefits: Extra Death Benefit (EDB) alone, or EDB and Total and Permanent Disablement (TPD) benefit, or EDB, TPD benefit and Temporary Salary Continuance (TSC) benefit Please refer to the insurance fact sheet for full explanations of the above benefits and the cover they provide. To have the InstantCover feature on an employer plan, an employer sponsor must apply for it and satisfy the employer eligibility rules (see the employer eligibility rules section below). The eligible employees nominated by the employer sponsor will obtain the type and amount of insurance approved under the InstantCover levels approved on the employer plan. Please note: the TPD benefit insured amount must always be the same as the EDB insured amount the TSC benefit is only available in combination with the maximum insured amount levels of the EDB and the TPD benefit. The maximum insured amount levels are described in this section. Helping you keep pace with inflation the indexation feature To help you keep up with inflation, all insurance obtained under InstantCover will be enabled with the indexation feature. The indexation feature ensures that the EDB and TPD benefit amounts increase on 1 July every year by the higher of: 5%, or the annual change in the Consumer Price Index (CPI). Your TSC benefit amount will increase on 1 July every year by the annual change in the CPI. If you do not want this feature, please write to us to get this removed from your account. For further information on the indexation feature, please refer to the insurance fact sheet. What an employer sponsor needs to know InstantCover allows an employer sponsor to nominate new or existing employees for insurance. To have InstantCover on an employer plan, the employer sponsor needs to satisfy the employer eligibility rules (described in the following section) and apply to the trustee. Employer eligibility rules What are the InstantCover maximum benefit amounts? Number of employees who are eligible (i) EDB maximum insured amount EDB and TPD benefit maximum insured amount TSC benefit maximum monthly benefit 20 or more $350,000 $350,000 for each benefit $5,000 a month 5 to 19 $200,000 $200,000 for each benefit $3,500 per month Less than 5 InstantCover is not available (i) This is also referred to as the eligible employee group. Minimum amounts An employer sponsor can apply for any amounts up to the maximums specified in the table. However, the minimum allowable amount is: $75,000 for EDB and TPD benefit, and $1,250 per month for the TSC benefit. 11

12 Employee plans with existing insurance The insurance amounts under InstantCover that will apply to the employee s account may be less if an employee already has a super account with existing insurance. If an employee already has insurance, they are only eligible for the difference between what they already have and the InstantCover level approved on the employer plan. If the employee s existing insurance exceeds the InstantCover level approved on the employer plan, no insurance under InstantCover will be available on the employee s account. The employee will still be counted as a member of the eligible employee group. TSC benefit The maximum monthly benefit will be based on 75% of the employee s annual income up to the applicable maximum in the What are the InstantCover maximum benefit amounts? section. Under InstantCover the waiting period applicable to the TSC benefit is four weeks and the applicable benefit period is two years. Do all the eligible employees of an employer s group need to be nominated for insurance? No. 75% of the eligible employees in an employer s group must be approved for the EDB for the employer to get InstantCover on their employer plan. A different rule applies to the TPD benefit and TSC benefit. If the TPD benefit and/or TSC benefit is selected: 75% of the eligible employee group must be approved for the EDB, and at least five of the eligible employee group must be approved for the TPD benefit and/or TSC benefit. Example: If an employer has a group of 20 employees that satisfy the employee eligibility rules for InstantCover, at least 75% of the group (or 15 employees) must be approved for the EDB. If the employer is also applying for TPD benefit and TSC benefit, at least five members of the eligible employee group need to be approved for these benefits. How does InstantCover apply to subsequent new employees joining an employer s plan? New employees must be nominated within three months of becoming an employee, in order to obtain InstantCover. Disclosure (as an employer sponsor) for InstantCover applications An employer is required to provide important information on behalf of each employee that is nominated for insurance under InstantCover. The information required is listed in the employee eligibility rules section below and includes the employee s age, occupation category and employment status. The employer needs to ensure that this information is accurate as any incorrect disclosure may result in the insurance being modified or cancelled. Under these circumstances, the employer sponsor may also be liable for the amount of the insurance claim. Employee eligibility rules We will assess whether an employee is eligible for InstantCover based on the information that the employer sponsor gives us. The employee must satisfy the criteria set out in the following section, which is referred to as the employee eligibility rules. Sponsored employee An employee must be part of an employer s plan. That is, the employer has to be an employer sponsor. 12

13 Employee age The employee must be within the minimum and maximum entry ages for each insurance benefit. These are described in the following table. Insurance benefit type EDB TPD benefit TSC benefit Minimum entry age (as at the next 1 July) Maximum entry age Employee occupation category The employee must be in an eligible occupation category for each insurance benefit they are nominated for. Occupation category classification Insurance benefits available EDB TPD benefit TSC benefit White collar Light blue collar - Heavy blue collar - - Hazardous duties We have provided occupation category information (with examples) below to assist in determining which occupation category applies. If you require more information, speak to your financial adviser. Occupation category information Occupation category Description Examples Insurance benefits available under InstantCover White collar All white collar workers and office professionals where duties are of a sedentary nature. Indoor occupations which require tertiary qualifications and may involve very light physical work. White collar workers whose duties are not always limited to an office Accountant, doctor, administrator, computer operator/programmer, receptionist, dentist, graphic designer, journalist, clerk, book keeper, physiotherapist, occupational therapist, environment, who may be required acupuncturist, osteopath, to travel or who require regular vet, lab technician, customer contact outside an office chiropractor, radiographer, environment. sales executive or Occupations involving any of the representative, teacher, following are not included in this category: duties involving manual labour such as lifting or delivery of goods, or supervision of manual labour. architect, engineer, social worker, advertising agent, importer/exporter. EDB TPD benefit TSC benefit 13

14 Occupation category information Occupation category Description Examples Insurance benefits available under InstantCover Light blue collar Occupations involving light manual work performed by skilled crafts people or licensed tradespeople. Includes those supervising manual workers, with some involvement in light manual work only. Chef, mechanic, shop assistant retail, jeweller, technician/electrician, hairdresser, locksmith, screen printer, upholsterer, auto electrician, antique dealer, beautician, battery Occupations involving any heavy manual labour, hazardous duties or fitter, shoemaker/repairer, are performed by unskilled workers cabinetmaker, dressmaker, are not included within this elevator mechanic, panel category. beater, chauffeur, driving instructor, factory manager. EDB TPD benefit Heavy blue collar Heavy manual work performed by skilled workers. Light manual work performed by unskilled workers. Occupations involving any hazardous duties are not included in this category. Carpenter, builder, forklift operator, factory worker, concreter, car detailer, boilermaker, ceiling fixer, cleaner, windscreen fitter, storeman, painter, bus/ truck driver, floor and wall tiler, security guard, zoo keeper, waiter/waitress. EDB Hazardous duties Heavy manual work performed by unskilled workers or those involved in hazardous duties. Asbestos worker, abalone/rescue diver, ammunition worker, driller (oil, gas, mining), explosives worker, flying instructor, horse breaker/jockey, diving instructor, underground miner, scaffolder, rigger, window cleaner working at heights. No insurance available Employee at work requirement On the date the employee is nominated for InstantCover, the employee must be at work and performing all the normal duties of their occupation in a full capacity. If the employee is off work on the date they are nominated, due to illness or injury, their account may be provided with new events cover only. Refer to Page 15 in this fact sheet for more information on new events cover. Please note: The employee may be off work for reasons other than illness or injury (for example, annual leave or maternity/paternity leave) and still be provided with full cover under InstantCover. Additional rules for the TSC benefit On the date of the InstantCover application the employee must be: working for 30 hours or more per week on either a permanent full-time or permanent part-time basis. Casual and contract workers are ineligible for the TSC benefit under InstantCover, and earning an income of $20,000 or more per annum. The maximum monthly benefit will be based on 75% of the employee s income. 14

15 Employee s claim history An employee must not: have previously been paid a benefit under the Terminal Illness benefit in Flexible Lifetime Super have previously been paid a benefit under the TPD Benefit in Flexible Lifetime Super be currently in receipt of benefits for a TSC benefit claim in Flexible Lifetime Super, or be currently having premiums waived for a waiver benefit claim in Flexible Lifetime Super. Additional InstantCover information for employer sponsors How will an employer be notified if InstantCover is approved? If an employer s application for InstantCover is approved, we will notify the employer of the level of InstantCover that has been approved in the employer s welcome letter or an insurance confirmation letter. We will also provide the employer with a listing of the employees who have insurance under InstantCover in the employer s annual statement. If an employer is ineligible for InstantCover, the employer s welcome letter or insurance confirmation letter will advise this. Can an employer increase the level of cover on their employer plan? Higher levels of insurance under InstantCover may be available as an eligible employee group size increases (for example, where an eligible employee group has grown to 20 or more employees). In this case, the employer sponsor still needs to meet the employer eligibility rules described on Page 11 in this fact sheet to offer the higher level. The employer is required to provide current eligible employee information on all existing and new employees at the time of an increase. If an employer is applying for an increase and is unable to meet the employer eligibility rules, employees can apply for personal insurance to increase the insurance on their accounts. This usually involves the completion of a personal statement to provide medical history and other personal details. Refer to the insurance fact sheet for personal insurance details. Does an employer lose InstantCover if it is no longer eligible? We reserve the right to review all employer-sponsored plans for eligibility and cancel or reduce the InstantCover levels if the employer plan no longer meets the employer eligibility rules. We will advise the employer if this happens. This will not affect members who have already been provided with cover. What you need to know as a sponsored employee Does my account have an insurance benefit? If your employer sponsor has nominated you for insurance under InstantCover and we approve the application, you will be notified of the level and type of insurance you have been approved for in your welcome letter or insurance confirmation letter. If you are ineligible for InstantCover, the letters will also advise this. Cancelling or changing cover If you want to cancel or reduce the insurance, you must do so within 30 days of the welcome letter or insurance confirmation letter and we will refund any premium charged to your account. You may still cancel or reduce the insurance after 30 days, however you will not receive a refund. What is New Events cover? New Events cover is issued if you, as the nominated employee, are off work on the date of being nominated for InstantCover due to illness or injury. This means that your TPD benefit and/or TSC benefit will not cover any future disability arising from the illness or injury which caused you not to be at work and actively performing all the duties of your usual occupation with your employer sponsor, on the date you were nominated. To remove the New Events cover from your account and obtain full cover, you need to provide us evidence that you have returned to work performing the normal hours and duties that you performed before being nominated for InstantCover and have done so for six consecutive months in a full capacity. 15

16 What happens if I leave my employer? Any insurance you obtained via InstantCover will continue if you change employment. You should be aware that if you are not working there are restrictions on the TPD benefit and TSC benefit. See the insurance fact sheet for more information. InstantCover premiums payable The insurance premium we charge you for the insurance provided under InstantCover is based on the following premium factors: your age at the last 1 July (when we confirm the insurance) your gender the occupation category your employer has selected the type and level of insurance you have been approved for additional factors for TSC Benefit only: the four week waiting period and the two year benefit period. The insurance amount is based on 75% of the annual salary information provided to us by your employer, and government stamp duty may also apply (refer to the insurance fact sheet for more information). Your employer is not required to disclose if you are a smoker or non-smoker in making an InstantCover application on your account. If you already have insurance on your account or if you apply for personal insurance you need to disclose this information, which is an additional factor that affects the premium you will be charged. Refer to the insurance fact sheet for further information on how the insurance premium is calculated. If your employer s nomination to provide you with insurance is successful, we will advise you of the information that your employer has submitted on your behalf, which includes the premium factors described. Please ensure you advise us immediately if any information submitted by your employer appears incorrect, as incorrect disclosure on your employer s part may mean: you will be charged an incorrect insurance premium, and/or your insurance may be modified or cancelled when you need to claim if you are ineligible for insurance under InstantCover Please note: Your insurance premium will be deducted monthly from your account. 16

17 Section ₅ : Basic cover In this section we look at: Extra death benefit (EDB) Terminal illness benefit Total and permanent disability (TPD) benefit When your cover starts When your cover stops Making a claim What you need to know as a sponsored employee Basic cover premiums payable

18 Basic cover If your account is invested in the AMP MySuper investment option, and: your employer sponsor has not nominated you for InstantCover, and you are aged 55 or under on the date your account commences, you will be provided with the following insurance under Basic cover: Insurance cover type Extra Death Benefit (EBD) which includes the terminal illness benefit Total and Permanent Disablement (TPD) benefit Insured amount $50,000 $10,000 Extra Death Benefit (EDB) When we pay If you have the Extra Death Benefit (EDB) on your account, we will pay the EDB insured amount to your super account if you die. On payment of the EDB, any TPD benefit on your super account will also cease. When we won t pay We won t pay the EDB in the event of your suicide, within 13 months of the insurance commencement date. Terminal illness benefit EDB has an in-built terminal illness benefit at no extra cost. When we pay If you are terminally ill, we will pay 100% of your EDB insured amount to your super account. The amount we pay under the terminal illness benefit is the EDB insured amount on the date we determine you are likely to die within 12 months. We may ask you to provide additional evidence that we require in order to determine whether you are terminally ill. This may include providing information from medical practitioners we choose. No terminal illness benefit will be paid if the EDB has lapsed, been cancelled, or is otherwise not in force prior to this date. We will reduce your TPD benefit insured amount by the amount of any terminal illness benefit that is paid. On payment of the terminal illness benefit, the EDB will cease. When we won t pay We won t pay the terminal illness benefit if either: we have not been provided with any evidence we reasonably require to determine whether you are terminally ill, or you are terminally ill as a result of wilful and intentional self-inflicted illness or injury. Terminally ill means: You are suffering from an illness, or have incurred an injury, and: two registered medical practitioners have certified, jointly or separately, that you suffer from an illness, or have incurred an injury, that is likely to result in your death within a period (the certification period) that ends not more than 12 months after the date of the certification at least one of the registered medical practitioners is a specialist practising in an area related to the illness or injury suffered for each of the certificates, the certification period has not ended, and AMP Life, after consideration of such evidence as it might reasonably determine, is of the opinion that your death is likely within 12 months. 18

19 Medical practitioner means: A legally qualified medical practitioner registered to practise in Australia, New Zealand, the United Kingdom, the United States of America, or Canada. That person may not be you, your business partner, or a member of your immediate family. TPD benefit We won t pay a benefit in some circumstances (see the when we won t pay section of this fact sheet). Also, you must satisfy our claim requirements before we pay a benefit. Otherwise we will pay a benefit in the circumstances set out in this section. When we pay If you have the TPD Benefit on your account, we will pay the TPD Benefit insured amount under this benefit if, as a direct result of illness or injury, while you are engaged in regular remunerative work (or within six months after you cease regular remunerative work): you become permanently incapacitated you remain under the ongoing care and attention of a doctor for that illness or injury, and in AMP Life s opinion, that illness or injury means that you are unlikely to ever return to gainful employment. We will reduce your EDB insured amount by the amount of any TPD Benefit that is paid. Survival period You must survive for eight days from the occurrence of the illness or injury that directly or indirectly caused you to become permanently incapacitated. Qualifying period The illness or injury that caused you to become permanently incapacitated must wholly prevent you from being engaged in regular remunerative work for at least six months in a row. What does permanent incapacity/permanently incapacitated mean? A member is permanently incapacitated if the Trustee is reasonably satisfied that, the member s ill health (whether physical or mental), makes it unlikely that the member will engage in gainful employment for which the member is reasonably qualified by education, training or experience. What does regular remunerative work mean? You are engaged in regular remunerative work if you are doing work in any employment, business or occupation for at least 10 hours per week. You must be doing the work for reward or hope of reward of any type. What does gainfully employed mean? You are employed or self-employed for gain or reward in any business, trade, profession, vocation, calling, occupation or employment. What does ongoing care mean? You: sought advice, care and associated treatment that was reasonably necessary and appropriate, from an appropriate doctor or consultant medical specialist who personally assessed you, and were provided with full clinical details in relation to your illness or injury, and you have continued to do so at reasonable intervals in the circumstances followed the advice, care and associated treatment of the appropriate doctor or consultant medical specialist including consenting to treatment recommended for you and taking reasonable measures to improve your opportunity to return to work, and have taken all other reasonable measures to minimise or avoid further illness or injury. 19

20 Doctor, medical practitioner or consultant medical specialist means: A legally qualified medical practitioner registered to practise in Australia, New Zealand, the United Kingdom, the United States of America, or Canada. That person may not be you, your business partner, or a member of your immediate family. Claim requirements The sooner we are notified of your illness or injury, the more effectively we will be able to work with you through the claims process. If we are not notified of your illness or injury as soon as reasonably possible, we may reduce the amount of any benefit paid, to the extent that we have been prejudiced by the delay and our ability to assess your claim. When we won t pay We won t pay for permanent incapacity directly or indirectly caused by an intentionally self-inflicted illness or injury. When does your cover start? Your cover starts when we tell you in writing, even if you haven t yet paid any money into your Flexible Lifetime Super account. When we receive a contribution, we will deduct the costs of your cover from the day the insurance started. If we don t receive a contribution within 60 days of your account starting, then we will cancel your cover (but only after we have told you in writing). When does your cover stop? Provided there is sufficient money in your account to pay the insurance premium (and unless otherwise advised) your insurance continues until: for EDB, you turn 99 for the TPD benefit, you turn 65 you cancel your insurance benefit(s) you stop being a member, or you die. If there isn t enough money in your account to pay the insurance premium, your insurance will stop 30 days after we give you written notice of this unless sufficient further contributions are made. If your insurance stops, you may be eligible to apply for personal insurance please refer to the insurance fact sheet. 24-hour worldwide coverage For the EDB and TPD Benefit, we will pay for death or an illness or injury that happens anywhere in the world at any time. Making a claim We aim to be proactive in our claims management. Claims requirements vary depending on the type of, and reason for, the claim you are making. We pride ourselves on providing a supportive claims service and are committed to paying genuine claims. This includes the provision of a Claims Concierge Service and a specially trained and empathetic claims team. The four steps of the claims process: Step 1 Contact us Step 2 Send us the claim requirements Step 3 We will assess your claim Step 4 We will assist you with your claim payment and, wherever we can, support you in returning to work. To notify us of your intention to claim a benefit, you or an authorised representative acting on your behalf can contact our Claims team on the following numbers: EDB claims TPD Benefit/Terminal illness benefit claims

21 Upon this notification we will send claim forms for you to complete and return to us. These forms will be specific to the benefit type under which you are claiming. Our initial claims requirements will be outlined in our letter to you, this may include information about your health. In addition, we will advise you of the direct contact details of our claims representative for your future reference. We will pay the costs of obtaining information from medical advisers the insurer chooses. In all other cases, you must pay the costs of providing information in support of your claim. If you die while your TPD claim is being considered, we will consider eligibility to claim under the EDB instead. Payment of EDB, TPD Benefit and terminal illness benefit claims When you die, your account balance, as at the date we receive notification of your death at an AMP processing centre, will be transferred to the AMP Cash Plus investment option. For TPD Benefit and Terminal illness benefit claims, you can only receive an insurance benefit payment in cash if you are eligible to access your super and have satisfied a condition of release. If we cannot pay your benefit to you in cash, we will pay the benefit amount into your account and invest it in the AMP Cash Plus investment option. You may change your investment options at any time see Changing your investment options in how to transact section of this fact sheet. Taxation You may have to pay tax on insurance benefits we pay you. We will deduct any tax that we are required to withhold before we pay you. What you need to know as a sponsored employee Does my account have Basic cover? If you are provided with Basic cover, you will be notified in your welcome letter or insurance confirmation letter. Cancelling or changing cover If you want to reduce or cancel the insurance, you may do so at any time. We will reduce or stop deducting premiums from your super account from the date we confirm the change to your insurance. If you want to increase your insurance, you may be eligible to add personal Insurance to your super account please refer to the insurance fact sheet. Pre-existing conditions No benefits will be paid under Basic cover for pre-existing conditions. Pre-existing condition/s means: An injury or illness you were diagnosed with, had any symptoms of, or were treated for, prior to the commencement of cover, unless attributed to a sickness or disability that: you were not aware of, and a reasonable person in the circumstances could not be expected to have been aware of, at the time the cover commenced. However, you will be covered for claims arising from an illness which became apparent, or an injury which occurred, on or after the date that cover started. What happens if I leave my employer? Any Basic cover on your super account will continue if you change employment. 21

22 Basic cover premiums payable The insurance premium we charge you for the insurance provided under Basic cover is based on the following premium factors: your age at the last 1 July (when we confirm the insurance) your gender the type and level of insurance you have been approved for, and government stamp duty may also apply. Premiums (including any applicable stamp duty) are deducted on a monthly basis from your super account. If you are provided with Basic cover, you will be notified of your monthly premium in your welcome letter or insurance confirmation letter. Your insurance premium is recalculated each year on 1 July based in your age at that time. The recalculation will be based on your age next birthday after that 1 July. Your premium will usually increase as you get older. Stamp duty means: Stamp duty is a state/territory Government tax payable on insurance. It may be either incorporated into the base premium or as an additional charge. Stamp duty is a state/territory Government tax and differs between states and territories. The additional stamp duty charges are currently up to 11% of the cost of premiums, depending on your insurance benefits and the state or territory we record as your residential address. We will deduct any stamp duty amount payable on your insurance based on the residential address that we have on our records for you. It is your responsibility to inform us of any corrections or changes to your address. If you move, for example from New South Wales to Queensland, the rate of stamp duty you pay may change. Stamp duty charges can change without notice (up and down), as the Government introduces a new stamp duty or revises an existing one or as we change our address records. We may also change the way we recover stamp duty; that is, from incorporating the duty into the base premium rates to making the duty an additional charge, or vice versa. 22

23 Section ₆ : Information for employer sponsors and employees In this section we look at: Keeping employer sponsors informed Taxation Superannuation Guarantee (SG) requirements

24 Important note We are responsible for processing the information the employer provides on behalf of employees. However, neither AMP Life nor the trustee is liable for any loss caused to the nominated employees as a result of the information provided by the employer being insufficient, incomplete, incorrect or delayed. If the employer is negligent in providing information to us, they may be liable for any resultant loss to the employee. Keeping employer sponsors informed Each year (as at 30 June) we will send the employer an annual statement covering: current members contributions we have received for the last 12 months contribution arrangements for the next 12 months fees that apply insurance arrangements (if applicable), and policy committee details, including current representatives (if applicable) If an employer would like information at a time that suits them, the employer can use AMP esuper to keep informed about their plan. An employer can also ask to receive a regular (hard copy) payment notice. Both facilities provide the employer with a list of current members, and contributions received on behalf of members. They also allow the employer to nominate new members to join the account and inform us of members who have left employment. Taxation Tax concessions on employer contributions An employer can claim tax deductions on all contributions to a complying superannuation fund on behalf of employees, subject to eligibility rules. Additional tax will apply to members who have received contributions in excess of certain contributions caps. Tax File Numbers (TFNs) If an employee has quoted their TFN to an employer for employment purposes, the employer is required to give that TFN to the super fund to which it makes contributions on behalf of the employee. Penalties may apply if the employer fails to do so. In addition, we are not permitted to accept member contributions if we do not hold the member s TFN. Superannuation Guarantee (SG) requirements An employer is required to make contributions for its employees (where applicable). These are known as Superannuation Guarantee (SG) contributions. As at 1 July 2015, the mandatory SG rate is 9.5% of an employee's ordinary time earnings. These amounts must be paid at least quarterly by the 28th day following the end of the quarter (ie 28 April, 28 July, 28 October and 28 January). If an employer does not make the required level of contributions for its employees the employer will be liable to pay the Superannuation Guarantee charge. This amount is greater than the minimum super contribution and is non tax-deductible. Please note: We recommend that employers speak to a financial adviser to ensure that they are meeting all their SG obligations. 24

25 Policy committee An employer-sponsored plan may have a policy committee. The role of the policy committee is to help a member or employer of the plan enquire about the investment strategy, performance and operation of the fund. The policy committee may also assist the trustee to obtain the views of members on these issues and in dealing with any enquiry or complaint. We are required to take all reasonable steps to set up a policy committee where: an employer has 50 or more employee members, or an employer has at least five, but less than 50, employee members and the trustee has received a written request to do so on behalf of at least five of those employee members. There must be equal numbers of employer and member representatives on the policy committee. Employer representatives are appointed or removed by the employer. Employer representatives can also be removed as a result of specific events under superannuation law. Member representatives are generally elected and removed by members except when they are removed as a result of specific events under superannuation law (for example, when a member representative resigns from their appointment as a member representative). Details of the policy committee arrangements (if any) for the plan are shown on a member s annual statement. For more details of the policy committee arrangements (if any) for the plan, including obtaining a free copy of our guide please contact us. Members and employers of the plan can also download a copy of the how to set up a policy committee guide at amp.com.au/employerforms. 25

26 Contact us phone fax web mail am 6pm (Sydney time) Monday Friday amp.com.au/flexiblelifetimesuper Customer Service AMP Life Limited PO Box 300 PARRAMATTA NSW 2124 NS /15