ENTERPRISE SUPER MEMBERS GUIDE. EMPLOYER SPONSORED SUPERANNUATION & PERSONAL SUPERANNUATION Issue Date: 22 June 2012

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1 ENTERPRISE SUPER EMPLOYER SPONSORED SUPERANNUATION & PERSONAL SUPERANNUATION Issue Date: 22 June 2012 Enterprise Super is a division of General Retirement Plan, ABN PO Box 1282, Albury NSW 2640, Member Services: , Website: Members in Western Australia, please phone our Member Services number The Trustee and Issuer of the General Retirement Plan Equity Trustees Limited (ABN , AFSL No ) GPO Box 2307, Melbourne Victoria 3001, Telephone: , Facsimile: (03) , Website: The Fund Administrator, Promoter, and Investment Manager SMA Super Pty Ltd (ABN , AFSL No ) PO Box 281, Collins Street West Victoria 8007, Telephone: (03) , Facsimile: (03) , Website:

2 Contents Introduction... 2 Enterprise Super... 2 Who We Are... 3 What is Enterprise Super... 3 Employer-Sponsored & Personal Superannuation... 4 Accessing Your Benefits... 6 Financial Advice... 8 Taxation... 9 General Information Glossary Certificate of Compliance Important This Members Guide was prepared on 22 June This Members Guide forms part of the Enterprise Super Product Disclosure Statement (PDS) issued on 22 June The information is current at the time of release and may change from time to time. For more up to date information you should visit the Fund website or contact the Fund by telephone. You should read this Members Guide and the PDS (including the other Guides which form part of the PDS) before making a decision to acquire this product. The Enterprise Super PDS can be obtained by contacting Member Services on Western Australian members should call Directory Enterprise Super PO Box 1282, Albury NSW 2640 Member Services: Members in Western Australia, please phone our Member Services number Website: Trustee and Issuer Equity Trustees Limited (ABN , AFSL No ) GPO Box 2307, Melbourne, Vic 3001 Telephone Facsimile (03) Website: Fund Administrator, Promoter and Investment Manager SMA Super Pty Ltd (ABN , AFSL No ) Level 16, 114 William Street, Melbourne, VIC 3000 Unit 2/ 20 Kearns Crescent, Applecross WA 6153 Telephone (03) Facsimile (03) Auditor PKF Level 14, 140 William Street, Melbourne VIC 3000 Eligible Rollover Fund SuperTrace Eligible Rollover Fund Locked Bag 5429 Parramatta NSW 2124 Website: The organisations listed above have given their consent to the inclusion of information about them and their products in this document. This Members Guide forms part of the Enterprise Super Product Disclosure Statement 1

3 Introduction This information in this Members' Guide forms part of the Enterprise Super Product Disclosure Statement (PDS) issued on 22 June The information is current at the time of release and may change from time to time. For more up to date information you should visit the Fund website or contact the Fund by telephone. The information contained in this document is general information only, and should not be taken as advice or a recommendation to invest in the Fund. It does not take into account your particular objectives, your financial situation or needs. You should consider obtaining professional advice tailored to your personal circumstances before making an investment decision. The Enterprise Super Product Disclosure Statement can be obtained by contacting Member Services on Western Australian members should call Any Reference to: Trustee means Equity Trustees Limited (ABN , AFSL , RSE Licence No. L ) Fund Administrator means SMA Super Pty Ltd (ABN , AFSL No ) Investment Manager means SMA Super Pty Ltd (ABN , AFSL No ) Fund means General Retirement Plan (ABN ) Enterprise Super means a division of General Retirement Plan (ABN ) Members Guide means this document Product Disclosure Statement or PDS means the Product Disclosure Statement issued by Equity Trustees Limited for your Employer Sponsored, or Personal Superannuation plan Superannuation Legislation means the Superannuation Industry (Supervision) Act 1993 and regulations made under it us/we/our means Equity Trustees Limited (ABN , AFSL , RSE Licence No. L ) Glossary An explanation of capitalised terms used in this Members' Guide can be found in the Glossary. Enterprise Super consists of the following: Employer-Sponsored Superannuation If your employer has joined Enterprise Super as a participating employer, the PDS will contain information specific to your employer s plan, for example, key information, fees, and insurance information. Personal Superannuation This option is available to any individual eligible to contribute to a Complying Superannuation Fund; including employees who nominate the Fund under Choice of Fund Legislation. The PDS applicable to Personal Superannuation contains information specific to its members. Allocated Pension This is for individuals who commence an Allocated Pension by transferring from either the Employer-Sponsored Superannuation or Personal Superannuation, or by transferring benefits from another superannuation fund. Although a plan of Enterprise Super, the Allocated Pension is not covered in this Members Guide and a copy of the Allocated Pension PDS can be obtained by contacting Member Services. Enterprise Super You should read this entire document and your PDS (including any other Guides which form part of the PDS) carefully before making an investment decision. To join the Employer-Sponsored Superannuation your employer will be required to join the Fund as a participating employer. Please refer to your PDS for further information. To join the Personal Superannuation, please complete the Personal Superannuation application form. The information contained in this document is general information only, and should not be taken as advice or a recommendation to invest in the Fund. This document does not take into account your particular objectives, financial situation or needs. Accordingly, you should seek advice from a licensed adviser before making an investment decision. The Financial Planning Association of Australia can provide you with details of advisers in your area by calling or visiting The Australian Securities & Investments Commission (ASIC) can tell you if an adviser is licensed. All investments have inherent risk. There are also risks in choosing to invest in superannuation. Information about the significant risks of investing in the Fund is set out in the Investment Guide. It is important to note that the repayment of capital invested, the payment of income or the investment performance of any of the investment options is not guaranteed by any person including the Trustee, the Fund Administrator (which is not part of Trustee) or any of their related bodies corporate, or any of the officers, employees or agents of any member of the Trustee or Fund Administrator. An investment in Enterprise Super does not represent a deposit with or other liability of the Trustee or the Fund Administrator. Past performance should not be taken as an indication of future performance. This document has been prepared to explain the benefits, risks, conditions and key features of membership of the Employer-Sponsored Superannuation This Members Guide forms part of the Enterprise Super Product Disclosure Statement 2

4 and the Personal Superannuation, which are plans of Enterprise Super. It should not be seen as a replacement for the Trust Deed, the legal document governing the Fund. In the event of any differences between the PDS and the Trust Deed, the Trust Deed will take precedence. This document can only be used by investors receiving it (electronically or otherwise) in Australia. This document does not constitute an offer in any jurisdiction in which, or to any person to whom, it would not be lawful to make such an offer. Applications from outside Australia will not be accepted. Accessing up-to-date information Information in this document may change from time to time. Unless changed information is materially adverse to members, we may not always update and replace this document immediately to reflect the changed information. To find out about any up-to date information you can access the Enterprise Super website at or contact the Fund Administrator. A paper copy of any updated information will be given to you without charge on request. A Glossary of some superannuation terms is provided in this document. If you have any queries about this document or Enterprise Super you should contact the Fund Administrator. Anti-Money Laundering and Counter- Terrorism Financing The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 ( AML/CTF Act ) requires the Trustee to adopt and maintain an anti-money laundering and counter-terrorism financing ( AML/CTF ) program. An integral part of the AML/CTF program is the legal requirement for the Trustee to know its customers. To meet this legal requirement certain identification information, including in some cases documentation, will need to be collected from members making applications. Applications made without providing this information cannot be processed until all the necessary information has been provided. The AML/CTF program will also include on-going customer due diligence, which may require the Trustee to collect further information. Who We Are Equity Trustees Limited (the Trustee ) Equity Trustees Limited (ABN , AFSL No ) was established in 1888 by its own special act of Parliament to provide trustee services to the people of Victoria. Equity Trustees Limited holds Registrable Superannuation Entity (RSE) Licence Number L , issued by the Australian Prudential Regulation Authority (APRA), the regulator of superannuation funds in Australia. The Trustee is responsible for the PDS and issues interests in the Fund. In addition, the Trustee is responsible for ensuring that the Fund is managed in accordance with the Trust Deed and relevant Government legislation. The Trustee is bound by statute and common law to act in the best interests of all members of the Fund. SMA Super Pty Ltd (Fund Administrator, Promoter & Investment Manager) The Fund Administrator is SMA Super Pty Ltd (ABN , AFSL No ), a firm of professional superannuation administrators, whose responsibility is to attend to the day to day operations of Enterprise Super such as processing member applications, processing insurance and investment requests, allocating contributions, paying benefits and responding to member queries. SMA Super Pty Ltd was established in 1987 and is one of the largest privately owned superannuation service providers in Australia. As the Promoter of Enterprise Super, SMA Super s role is to promote and market Enterprise Super to prospective members and participating employers and to help ensure proper and efficient management as well as Enterprise Super s on-going development. SMA Super s role as the Investment Manager of Enterprise Super is to manage the investment of Enterprise Super s assets in accordance with the Investment Strategy. What is Enterprise Super Enterprise Super is a division of the General Retirement Plan, a regulated Complying Superannuation Fund. Enterprise Super is designed to provide superannuation benefits for Employer-Sponsored Superannuation, Personal Superannuation and Allocated Pension members in a costeffective, simple and flexible manner. Enterprise Super operates in the form of a Master Fund (refer to Glossary) and is divided into a number of plans established for each participating employer (or group of related employers) within the Employer-Sponsored Superannuation as well as a separate plan for both the Personal Superannuation and the Allocated Pension. Employer-Sponsored Superannuation and Personal Superannuation Features of Enterprise Super for Employer-Sponsored and Personal Superannuation members include the flexibility to make voluntary member contributions to boost your retirement savings the ability to consolidate rollovers and transfers from other funds This Members Guide forms part of the Enterprise Super Product Disclosure Statement 3

5 a range of investment options designed to suit different investors the ability to transfer between investment options insurance cover may be provided (refer to your PDS for details of cover) access to your personal account information via the internet or from the Fund Administrator tax concessions associated with complying superannuation funds as set out in superannuation law Employer-Sponsored & Personal Superannuation Choice of fund legislation Choice of Fund gives eligible employees the right to choose which Complying Superannuation Fund will receive Superannuation Guarantee (SG) contributions made on their behalf by their employer. Your employer can advise if this applies to you. If Choice of Fund is applicable and you want your employer to contribute to a particular fund, you need to complete a Standard Choice Form available from your employer, the Australian Taxation Office (the ATO) or the ATO s website, You can obtain further information about Choice of Fund by calling the ATO on Choice of Fund can apply to this Fund in 2 ways: 1. If Choice of Fund applies to you a. you can nominate the Personal Superannuation yourself by completing the Standard Choice Form and giving this to your employer b. your employer can register as a participating employer within Enterprise Super 2. If you do not choose another fund, your employer will nominate the Employer-Sponsored Superannuation as the default fund. Contribution information Member Account Once we accept an application for your membership, we will establish a member account for you and invest your money in the investment option that you have selected. If you wish to change your investment selection at a later date you can do so by completing an Investment Portfolio Update form which is available on the Enterprise Super website or by contacting Member Services on If you have not selected an investment option your money will be invested in the default Balanced investment option of Enterprise Super. Contributions received during a month will be credited with the net after tax cash rate for that month and, thereafter, earnings will be allocated from the chosen investment option. Whilst your money is in Enterprise Super, we will deduct certain fees from your member account (refer to your PDS), as well as insurance premiums if you have insurance cover (refer to your PDS). Your Member Account Balance in Enterprise Super Comprises: contributions made by, or in respect of, you (including contribution splitting amounts rollovers and transfers positive or negative earnings resulting from your investment selection Less taxes and surcharge tax fees insurance premiums benefits paid payments made if your benefit is split under the Family Law Legislation rollovers or transfers to other funds any other amounts payable. Eligibility to make contributions Below is a table to assist you to work out the circumstances in which you, your employer or your Spouse may make contributions to Enterprise Super:- Your Age Requirements You Employer Spouse < 65 Nil Yes Yes Yes You are gainfully employed and have worked least 40 hours in a period of 30 consecutive days during the financial year in which the contribution is made You are gainfully employed and have worked least 40 hours in a period of 30 consecutive days during the financial year in which the contribution is made Yes Yes Yes Yes Yes No 75 Nil No Limited No This Members Guide forms part of the Enterprise Super Product Disclosure Statement 4

6 If you are age 75 or more, generally only contributions required under an industrial award (if any) can currently be accepted. Contribution caps There are limits on the amount of contributions that can be made to superannuation at concessional tax rates. These are called contribution caps. Contributions over the caps will incur extra tax. For an explanation of how these caps apply, please read the Taxation section in this Members Guide or refer to your PDS. Employer contributions (Concessional Contributions) Subject to the eligibility rules outlined above, a participating employer may contribute to Enterprise Super on your behalf, including SG contributions or contributions required under an industrial award, certified agreement or workplace agreement. They may also make additional contributions for you. Employer Contributions are generally tax deductible to the employer. Salary sacrifice contributions (Concessional Contributions) If your employer agrees, you may make additional contributions to Enterprise Super by salary sacrifice. This involves reducing your pre-tax salary and diverting that amount to superannuation as an Employer Contribution. Salary Sacrifice contributions are regarded as Employer Contributions. Personal deductible contributions (Concessional Contributions) If you earn less than 10% of your income (including assessable income, reportable fringe benefits and reportable employer superannuation contributions) from being an employee, then you may be able to claim a tax deduction for your superannuation contributions. You will need to obtain a Deduction for Personal Super Contribution form from the Administrator and lodge this with Enterprise Super by October 31 each year. Contact the ATO or your financial /tax adviser for more information. Voluntary (after-tax) member contributions (Non-Concessional Contributions) In addition to the contributions from your employer, and subject to the above conditions, you or your Spouse can make contributions from your after-tax salary into your superannuation account to boost your retirement savings. These contributions may be arranged by regular payroll deduction with the agreement of your employer. Voluntary (after-tax) contributions will be subject to the non-concessional contribution cap. Government co-contributions (Non-Concessional Contributions) If your income is below a certain level and you make aftertax contributions to superannuation, you may be eligible for a co-contribution from the Federal Government. From 1 July 2012, if you are eligible the Government will contribute up to $0.50 for every $1.00 of after tax contributions you make in a financial year, up to a maximum of $500. The maximum co-contribution applies if your income is less than $31,920 (for the financial year) and you make after-tax contributions of $1,000 or more. The Government co-contribution reduces if your income is greater than $31,920 and phases out entirely if your income is greater than $46,920. Your income for this purpose is equal to your assessable income from your tax return, plus any reportable fringe benefits and reportable employer superannuation contributions applicable to you. Other eligibility conditions also apply. You do not need to apply to be eligible for the Government Co-Contribution. The ATO will assess whether you are entitled to receive a co-contribution using information from the Fund (and any other superannuation funds applicable to you) and your tax return and will make the payment to your superannuation fund. Therefore, you must lodge an income tax return to receive a Government co-contribution. Contact the ATO for further information on the co-contribution. Spouse contributions (Non-Concessional Contributions) You can make after-tax contributions for your Spouse and he/she can join Enterprise Super as a Spouse member provided you both meet the following eligibility criteria: you are living together on a genuine domestic basis as a couple (i.e. married or in a de facto, including same sex, relationship) you are both Australian residents for tax purposes when the contribution is paid; and you meet the age restrictions in the table on page 8. Certain requirements must be met to enable a contribution to be an eligible Spouse contribution and for Enterprise Super to accept the contribution. If you wish to make such contributions please contact the Fund Administrator. You may be eligible for a tax rebate in respect of certain Spouse contributions you make for your Spouse. Contribution splitting Contribution splitting enables you to split up to 85% of your taxed splittable contributions for that financial year (generally these are your employer s contributions on your behalf, along with any Salary Sacrifice contributions you make) with your Spouse. You cannot split after-tax contributions, Spouse contributions, or amounts rolled This Members Guide forms part of the Enterprise Super Product Disclosure Statement 5

7 over or transferred into Enterprise Super, nor amounts that are subject to a Family Law Order or Agreement. At the end of each financial year, you can apply to split contributions made in the previous financial year. If you are leaving Enterprise Super, you can apply to split contributions in the current financial year. You can only make one splitting application in a financial year. Fees may apply for splitting contributions; you should refer to your PDS for details of any fees that apply. It is important to note that split contributions count towards your concessional contribution cap and not your Spouse s. Split contributions become the entitlement of your Spouse, and are required to be Preserved until your Spouse satisfies a Condition of Release. Whether splitting contributions is right for you will depend on your personal circumstances and we suggest that you consider obtaining professional advice before making an application to split your contributions. Rollovers and transfers You may rollover or transfer superannuation benefits from any other Complying Superannuation Fund, Approved Deposit Fund or Retirement Savings Account into Enterprise Super. Combining your superannuation benefits into one fund will save you paying multiple administration fees which will have an impact on your final benefit and will also allow you to manage your superannuation more effectively. However, your other funds may charge you fee to rollover your benefits. You should also consider matters such as the impact on any insurance benefits in your other funds before proceeding. To transfer or rollover superannuation savings, you need to complete a Consolidation Form which is available by contacting the Fund Administrator. Once we receive your rollover request, we will establish a member account for you and invest your money in the investment options you have selected. If you fail to make a selection, your money will be invested in the option your existing account is invested in or, if you do not have an existing account, in Enterprise Super s default Balanced option. Accessing Your Benefits Restrictions The Government has placed restrictions on when you can access your benefits in cash. This is in keeping with the long-term investment nature and purpose of superannuation as being predominantly for retirement. Your superannuation benefits are classified into 3 categories; Preserved, Restricted Non-Preserved and Unrestricted Non-Preserved. This classification determines when your benefit may be paid to you. Your annual Member Benefit Statement from Enterprise Super will tell you how much of your benefit is in each of these 3 categories. Preserved benefits From 1 July 1999, all contributions made into a superannuation fund and all investment earnings are classified as Preserved. Preserved benefits can only be paid in cash when an applicable Condition of Release is satisfied. Conditions of Release include: ceasing gainful employment on or after your Preservation Age, where the Trustee is satisfied that you intend never again to be gainfully employed on a full time or part time basis (i.e. more than 10 hours per week) reaching age 65 ceasing gainful employment on or after attaining age 60 Permanent Incapacity meeting the Terminal Medical Condition definition in superannuation law Death satisfying the conditions for severe financial hardship in superannuation law (restrictions apply to the amount that can be released in this case) early release approved by the Department of Human Services (DHS) based on compassionate grounds, as set out in superannuation law (DHS may impose restrictions on the amount that can be released in this case) ceasing gainful employment with a Standard Employer- Sponsor who contributes to the Fund where your Preserved benefit in the Fund is less than $200 if you were in Australia on a temporary resident visa (excluding New Zealand citizens and sub-class 405 and 410 visas) and have permanently departed from Australia). Restricted non-preserved benefits These benefits can be accessed in the same circumstances as Preserved benefits; however, there are tax implications for withdrawal of funds prior to Preservation Age being reached. In addition, you are able to access your Restricted Non-Preserved Benefits if you cease gainful employment with an employer who had contributed to Enterprise Super on your behalf at any time. Unrestricted non-preserved benefits These are payments that can be paid in cash at any time. How Long Can Your Money Stay in Enterprise Super? There are no restrictions on how long your superannuation can remain in Enterprise Super, regardless of your employment status. However, you should ensure Enterprise Super always has your current contact details to prevent unintended consequences that may result from This Members Guide forms part of the Enterprise Super Product Disclosure Statement 6

8 you being classified as a Lost Member or your benefit being classified as unclaimed. Temporary Resident Members If you accrued your superannuation whilst in Australia on a temporary resident visa (excluding New Zealand citizens and excluding sub-class 405 and 410 visas), you are entitled to withdraw your benefit in cash once you have permanently departed Australia and your visa has been cancelled. This is known as a Departing Australia Superannuation Payment (DASP). If you elect to receive your benefit as a DASP, the taxable component of your benefit must be taxed at 35% and the untaxed component at 45%. Under certain circumstances, the Trustee is required to transfer a temporary resident s superannuation account to the ATO. This will only occur in the event at least 6 months has passed since a temporary resident s visa has ceased to be in effect or the temporary resident has left Australia and has not taken his/her benefit. The Fund is not obliged to issue an exit statement upon completion of a transfer to the ATO and a member can subsequently access his/her benefit directly from the ATO by contacting them on Limited Conditions of Release have now been introduced concerning funds held by temporary residents. Benefits will only be released under the conditions of Death, Terminal Medical Condition, Permanent Incapacity, Temporary Incapacity, departing Australia permanently, Trustee payments to the ATO and release authorities under the Income Tax Assessment Act Retirement, resignation or termination of employment benefit Employer-Sponsored Superannuation If you leave your employer you will be entitled to a benefit equal to your member account balance. Generally, the options available to you at this time are one or more of the following: transfer your benefit to the Personal Superannuation or to the Allocated Pension section of the Fund, if eligible rollover the benefit into another approved fund (such as another Complying Superannuation Fund or Retirement Savings Account, or an Approved Pension Product) access any Restricted Non-Preserved or Unrestricted Non-Preserved part of your benefit in cash (refer to above for more information) register your new employer with Enterprise Super and leave the benefit in Enterprise Super s corporate division. Upon termination of employment from an Employer- Sponsored Plan, you will be contacted by the Fund Administrator in writing and provided with options as to how you may apply for your benefit. If you have insurance cover in your employer s plan, you will be required to respond to the written options within 30 days of the date of the correspondence or the Trustee will transfer your benefit to the Personal Superannuation to ensure your insurance cover continues. If you do not have insurance cover, you will be given 90 days to respond before the Trustee transfers your benefit to the Personal Superannuation. Personal Superannuation No action required if you leave your employer. You may continue to make contributions subject to the age based eligibility requirements. If you are eligible and you would like your new employer to direct your SG contributions to your account in the Personal Superannuation, you will need to provide them with a Standard Choice Form. Death benefit In the event of your death whilst a member of the Fund, the benefit payable is a lump sum, which consists of: your member account balance, plus the proceeds of your Death insurance cover (if any) The Trustee may generally pay the Death benefit to one or more of: your Dependants and/or your legal personal representative (i.e. the executor of your estate). If you have no Dependants and the Trustee forms the view that you do not have a legal personal representative and none is likely to be appointed, then the Trustee may pay your Death benefit to another person as permitted by superannuation law. You can make either a binding or a non-binding nomination in relation to the payment of your Death benefit. There are no fees for making a nomination. A nomination enables you to indicate your preference as to whom, and how much, of your Death benefit is to be paid on your death. In either case, you can only nominate your Dependants and/or your legal personal representative to receive your benefit. It is important to understand that the Death benefit payable under the Fund may not necessarily be subject to the provisions of your Will. There may be tax and estate planning implications with making a binding or nonbinding nomination. You should consider obtaining professional advice prior to making a decision. The payment of superannuation benefits is subject to superannuation law, the terms of the Fund s Trust Deed and the Family Law legislation dealing with the treatment of superannuation on marriage breakdown. This Members Guide forms part of the Enterprise Super Product Disclosure Statement 7

9 Binding Nomination If you make a binding nomination and it is valid at the time of your death, then the Trustee will be required to pay your Death benefit in accordance with the nomination. A binding nomination must be witnessed by 2 people who are at least 18 years old and who are not nominated beneficiaries. They must sign and date the form at the same time as you do, or the nomination will not be valid. In addition, the nomination will not be valid if you nominate someone other than your Dependants and/or legal personal representative, or if the percentages of your benefit that you allocate to each nominated beneficiary do not add up to 100%. Binding nominations expire after 3 years and it is your responsibility to update your nomination prior to the expiry date. Also, it is important to note that if your nomination is valid at the time of your death, then the Trustee must pay your benefit in accordance with your nomination, even if your personal circumstances have changed since you made it. You should, therefore, ensure you update your nomination if your personal circumstances change. To make a binding nomination, you are required to complete the Nomination of Beneficiary form which can be obtained by contacting the Fund Administrator. You may also use the Nomination of Beneficiary Form to update, re-confirm or revoke your binding nomination at any time. Non-Binding Nomination If you choose to make a non-binding nomination, then the Trustee will consider your nomination in determining to whom your benefit will be paid. However the Trustee will have ultimate discretion as to which of your Dependants and/or legal personal representative receive the benefits and in what proportions, and may override your nomination. To make a non-binding nomination, you will be required to complete the Nomination of Preferred Beneficiary(ies) section of the Membership form. To update your non-binding nomination please complete the Nomination of Beneficiary form which can be obtained from the Fund Administrator. Total and Permanent Disablement benefit In the event of being accepted by the Insurer (if applicable) and the Trustee as suffering Total and Permanent Disablement (TPD), the benefit payable is a lump sum, which consists of: your member account balance, plus the proceeds of your TPD insurance cover (if any) Your annual Member Benefit Statement from Enterprise Super sets out the amount of your TPD insurance cover. Terminal Medical Condition In the event that the Trustee and, if applicable, the Insurer determine that you meet the definition of Terminal Medical Condition (TMC) under superannuation law, the benefit payable is a lump sum, which consists of: your member account balance. plus the proceeds of your TMC insurance cover Generally, the definition of TMC in superannuation law (which applies for preservation and tax purposes) means that 2 registered medical practitioners (1 of whom is a specialist in an area relating to your Injury or Illness) have certified, together or separately, that you have an Injury or Illness that is likely to result in your death within 12 months of the date of the certification. The certification cannot be more than 12 months old. If you have TMC insurance cover in the Fund, then a different definition may apply for determining whether your insurance cover is payable. Depending on the nature of your condition, you may meet 1 definition but not the other, and this may affect whether your benefit can be paid in cash and whether it will be tax free. You will be advised if this affects you. Income Protection This type of cover is available to both Employer-Sponsored Superannuation and Personal Superannuation members. Your annual Member Benefit Statement sets out the amount of your Income Protection cover (if any) and the conditions that apply to the payment of the benefit. Payment of benefit in other circumstances Preservation Age restrictions apply as to when you can receive your benefit in cash, which generally means that benefits must be retained in the superannuation system until your retirement. In addition, you are able to transfer your benefit to another Complying Superannuation Fund at any time. This is referred to as a portability transfer. Generally the Trustee must transfer your benefit to your chosen fund within 30 days of receiving all the information required to process your request. However, the Trustee is not required to accept more than one request for a portability transfer from you in any 12 month period. Generally any insurance cover that you have in the Fund will cease upon the Trustee making your portability transfer. The Trustee recommends that you discuss your options with a licensed financial adviser if you are considering a portability transfer. Financial Advice As a member of Enterprise Super you can seek financial advice on your super and have the fee paid from your account. It is important to recognise that we do not pay adviser commission. The Trustee does not endorse or recommend any one particular financial adviser or group of financial advisers. This Members Guide forms part of the Enterprise Super Product Disclosure Statement 8

10 Payment for financial advice is limited to advice provided to fund members on their superannuation planning and savings in Enterprise Super. We will not pay for financial advice given to your spouse, your siblings, or your other associates. Fees will only be paid to your financial adviser where he or she is a representative of an organisation licensed to give financial advice. Your financial adviser will provide you with a Statement of Advice (SOA). It explains the financial service to be provided and cost of the service. You must give Enterprise Super a copy of your SOA (or equivalent) and authority to pay your adviser. Enterprise Super will pay the eligible fee by a deduction from your account. The fee can be negotiated between you and your adviser. We will pay up to the following maximum amounts: Initial advice: $4,500 Adviser Service Fee: $1,500 p.a., or 1% p.a. of your account balance. Once-off advice $2,200 Payment for financial advice is limited to $7,000 per year. Taxation It is important to note that the following information regarding taxation is believed to be correct at the time of preparing this document. However, there may have been changes to the law or the interpretation of the law since that time. We recommend that all members and employers seek the advice of a registered tax agent in relation to their own circumstances. Further information is available from the ATO by phoning , or via their website: Contribution caps There are limits on the amount of contributions that can be made to superannuation by you, or on behalf of you, at concessional tax rates. These are known as Contribution Caps, and they apply on a per person basis (i.e. to the total of all your superannuation contributions to all funds that you may be a member of). There are 2 caps: Concessional Contribution Cap Concessional contributions include your employer s contributions and any Salary Sacrifice contributions you make, as well as any personal contributions you are able to claim a tax deduction for. Certain other amounts are also included and more information on these amounts can be found on the ATO website, For the financial year, the concessional contribution cap is equal to: $25,000, for all age groups. The cap may be indexed in future years. Non-Concessional Contribution Cap Non-concessional contributions include: contributions made from your after-tax salary any contributions made for you by your Spouse any amounts you transfer into superannuation from overseas superannuation or retirement funds, except to the extent that you elect for them to be taxed in your Australian fund any concessional contributions that exceed your concessional contribution cap in the year and certain other amounts (refer to the ATO website for more information on these amounts). For the financial year, the non-concessional contribution cap is generally equal to $150,000. However, if you are under age 65 years, you can bring forward up to 2 years of future contributions, allowing you a limit of up to $450,000 in a particular year (but with reduced or no further non-concessional contributions in the following 2 years). What happens if I exceed the contribution cap If you exceed the concessional contribution cap, the excessive contributions will be taxed at 31.5% (in addition to the 15% tax that applies to all concessional contribution). If you exceed the non-concessional contributions cap, the excess will be taxed at 46.5%. The ATO assesses whether your contributions in any year have exceeded the caps, and will send you an assessment notice in respect of any extra tax that you need to pay. You will also be sent a release authority which you can give to your fund and ask them to pay the tax from your account, or you can choose to pay the tax from your own resources. Note that if you exceed the non-concessional cap, you are required to have the amount of the excess non-concessional tax deducted from your super benefit. Time limits apply to the payment of the tax. Spouse contributions tax rebate A tax rebate may be available to you in respect of after-tax contributions you make to superannuation for your Spouse. The rebate is calculated as 18% of the Spouse contributions made, up to a maximum rebate of $540 where your Spouse s assessable income plus reportable fringe benefits and reportable employer superannuation contributions is up to $10,800. Where your Spouse s income is over $10,800, the rebate you can claim reduces proportionally and ceases when your Spouse s income is $13,800 or more. Certain conditions must be met to be eligible for the rebate including both Spouses being Australian residents. This Members Guide forms part of the Enterprise Super Product Disclosure Statement 9

11 Spouse contributions are preserved until a Condition of Release is met and are tax free when paid as a benefit. Taxation of contributions Concessional contributions are taxed at the rate of 15% by the Fund. You may receive an assessment for additional tax if your concessional contributions exceed the applicable cap. From 1 July 2012 the contributions tax for individuals on income greater than $300,000 will increase from 15% to 30%. The definition of income includes concessional contributions. Non-concessional contributions that are less than the nonconcessional contribution cap are not subject to contributions tax. However, you may receive an assessment for additional tax if your non-concessional contributions exceed the applicable cap. If you have not provided your Tax File Number (TFN) to the Fund, your employer and Salary Sacrifice contributions will be taxed in total at 46.5% (including the 15% contribution tax that applies to all concessional contributions), and the Fund will not be able to accept any after-tax contributions or personal deductible contributions from you. For more information you should read the TFN section of this Members Guide.. Surcharge tax The surcharge was a tax on certain employer contributions in respect of members on higher incomes. The Government abolished the surcharge from 1 July However, assessments may still be issued by the ATO in respect of contributions made prior to that date. Where a surcharge assessment is received by the Fund your account will be debited and the required amount paid to the ATO. Taxation of earnings As a Complying Superannuation Fund, the Fund is required to pay tax on its capital gains and investment earnings. A provision for tax liability is accrued in each unit price. The unit price reported to members is net of fees and taxes and there is no further tax on earnings payable. Account based pension investments are tax exempt and are not required to pay tax on capital gains and investment earnings. Taxation of Death benefits Special rules govern how a Death benefit is taxed. In general terms, a lump sum benefit will be tax-free if it is received by a person who is a Death benefit s Dependant under tax legislation. This is different to the definition of Dependant for other superannuation purposes. A Death benefits Dependant is: a child under age 18 any other person who was wholly or partially financially dependent on you and any other person who, in the opinion of the Trustee, was in an interdependency relationship with you. Benefits paid to persons who are not Death benefit Dependants will generally be taxed at 15% to 30%, depending on whether the component is a taxed or untaxed element, plus the Medicare levy. Where your benefits are paid to your legal personal representative, the Fund does not withhold tax from the payment, but tax may be payable by your estate depending on how much of the benefit is likely to be received from your estate by non-death benefits Dependants. Taxation of Total and Permanent Disablement benefits Although Total and Permanent Disablement benefits are treated as superannuation benefits, concessional tax rates may apply. Social security benefits may also be affected. It is recommended that individual members seek qualified professional advice before deciding how to spend or invest a Total and Permanent Disablement benefit. Taxation of Terminal Medical Condition benefits Benefits which meet the definition of Terminal Medical Condition in tax legislation are tax free. Taxation of Salary Continuance benefits Salary continuance payments are treated as personal income. Personal income tax will be deducted from each payment made. Taxation of other lump sum benefits Lump sum benefits received by members age 60 and over are tax free. Lump sum benefits paid to members under age 60 generally consist of a tax free component and a taxable component. The tax free component generally consists of after-tax member contributions and any Spouse contributions made for you by your Spouse. It may also include certain other amounts, for example, if you accrued part of your superannuation prior to 1 July 1983 or if you transferred an amount from an overseas fund into your account. If you make a partial withdrawal, it will be drawn proportionally from the taxable and tax free components of your Member Account. Tax payable on lump sum withdrawals in : your Spouse (including a de facto or same sex Spouse) or former Spouse This Members Guide forms part of the Enterprise Super Product Disclosure Statement 10

12 If you are under age 60 Threshold Tax Rate Tax-Free Component 0% Taxable Component Preservation age to 59 $0 - $175,000 0% Over $175,000 15% Under preservation age 20% Plus Medicare Levy (1.5%) Effect of Goods and Services Tax (GST) The Fund is subject to GST and, therefore, registered for this purpose and is entitled to claim Reduced Input Tax Credits from the ATO in relation to any GST paid. This credit is currently equal to 75% of the GST paid on the services provided by the Trustee. The effect of this is that the GST borne by members is effectively only 2.5%. General Information Trust Deed The Fund is governed by a Trust Deed dated 27 January, 1989 (as amended). The Trust Deed sets out in detail the operation of the Fund and our relationship with you. It includes rules covering membership, contributions and accounts, fees and charges, and the powers and obligations of the Trustee. Under the Trust Deed and superannuation law, the Trustee is responsible for operating the Fund and investing the Fund s assets in accordance with the Trust Deed and superannuation law. When joining the Fund, you agree to be bound by the provisions of the Trust Deed, and in the event of any differences between this document and the provisions of the Trust Deed, the Trust Deed is the final authority. A copy of the Trust Deed may be inspected by arrangement during business hours at the office of the Fund Administrator. Online access Upon becoming a member of Enterprise Super you can access online certain relevant information including details of: your account balance; insurance cover levels; investment options; and investment performance. If you wish to use the facility you must first obtain a username and password. Internet access including details on how to gain access to your account is available at Reports on your investments and other available information A Member Benefit Statement is issued annually detailing your account balance as at the end of the financial year and summarising transactions which occurred during that period including any fees, charges and tax deducted. If you make certain transactions during the financial year (such as rollovers into Enterprise Super) these will be confirmed upon receipt. You will also receive information on the Fund as a whole which includes financial and investment information. An annual report for the Fund is prepared as at 30 June each year and you will be advised when a copy is available on Enterprise Super s website (or a hardcopy can be obtained free of charge on request from the Fund Administrator). You may also view copies of the audited accounts, auditor s reports of the Fund, and the Trust Deed of the Fund. All enquiries relating to Enterprise Super should be addressed to the Fund Administrator. Privacy Under the Commonwealth Privacy Act 1988, privacy rules now cover almost all personal information held by organisations in Australia. Purpose and use of personal information The main reason the Trustee and Fund Administrator collect personal information about you is to establish and administer your benefits in Enterprise Super. As part of the administration of Enterprise Super, your personal information may be disclosed for purposes that include: compliance with superannuation and taxation law enabling your employer, if applicable, to maintain their superannuation arrangements and to enable your financial adviser, if applicable, to provide advice to you. Other organisations to which your personal information may be disclosed for these purposes include: your bank or other financial institution for any direct credits or debits other entities for the purpose of financial advice and rollover or transfer of benefits advisers, auditors, consultants, legal or accounting firms, Insurers and financial services industry bodies and where relevant, your executor, administrator, trustee, guardian or attorney. If the requested personal information is not provided on the application form and other relevant forms it may not be possible to process or administer your application. By becoming a member of the Fund you consent to the collection, use and disclosure of your personal information as described above. This Members Guide forms part of the Enterprise Super Product Disclosure Statement 11

13 Access to your personal information You can request access to your personal information or obtain the full privacy policy by writing to, phoning or ing the Fund Administrator. Proof of identity As a result of legislation designed to counteract money laundering and terrorism financing, you may be required to provide proof of identity or meet other requirements as determined by us from time to time prior to being able to access your benefits. You will be notified of any requirements when applicable. This legislation may also require us to report suspicious transactions to AUSTRAC (the Government agency responsible for anti-money laundering and counter-terrorism financing). This may require the disclosure of your personal information to AUSTRAC. By law, the Trustee may not be permitted to inform you if this happens. Collection of Tax File Numbers (TFN) Providing your TFN to the Trustee is optional and, prior to doing so, the Trustee is required to inform you of the following: the Superannuation Industry (Supervision) Act 1993 permits us to collect your TFN your TFN is confidential if you do provide your TFN, it will only be used for legal purposes. These include finding or identifying your superannuation benefits where other information is insufficient, calculating tax on any superannuation payment to which you may be entitled, and providing information to the Commissioner of Taxation. These purposes may change in the future as a result of legislative changes. However, we may provide your TFN to: the Trustee of any other superannuation fund, rollover fund or Retirement Saving Account (RSA) to which your benefits are transferred in the future (unless you instruct us in writing not to do so) and the Commissioner of Taxation. Your TFN will not be disclosed to anyone else. Why your Tax File Number is Important It is not an offence if you do not provide the Trustee with your TFN. However, if you do not do so: tax at 46.5% will be deducted from your concessional contributions the Fund will not be able to accept non-concessional contributions from you you may pay more tax on your benefits than you would otherwise need to (although you may be able to reclaim this through the income tax assessment process) and it may be more difficult to trace benefits from previous funds, to consolidate your benefits or to pay your benefits to you. If you provide your TFN to the Trustee within 4 years of the tax being paid, the Trustee can potentially reclaim the additional tax withheld from the Australian Taxation Office on your behalf. Please seek professional advice from your tax agent on this matter. Cooling off period Employer-Sponsored Superannuation Fund An employer joining Enterprise Super is entitled to a 14 day cooling off period which commences on the earlier of: the employers receipt of confirmation of its application the end of the 5th day after an interest is issued (contribution made) in Enterprise Super for the employee/s. If written or electronic notice of cancellation of the initial application is received by the Fund Administrator within the 14 day cooling-off period, arrangements will be made to refund (to a superannuation entity or RSA which must be nominated by the employer within 1 month of the notice of cancellation) any contributions made for employee/s during this period. Repayment will take into account any change (positive or negative) in the value of the amount contributed. As a result, the amount transferred to another superannuation entity or RSA may be less than the amount invested. We may also deduct any tax or duty as well as reasonable administrative and transaction costs. Any insurance cover granted to the employees will be cancelled from commencement and any premiums deducted will be refunded to the member/s account/s. This means that no insurance claims will be paid in respect of affected employees if the employer s cooling off rights are exercised. If the employee s member account with Enterprise Super consists of any contributions made by the employee or Preserved or Restricted Non-Preserved amounts rolled over from another fund, the employee must nominate another superannuation entity or RSA to which these amounts are to be transferred. The employee must do this within 1 month after the employer notifies the Trustee of its wish to exercise its cooling off rights. If the nominated superannuation entity or RSA does not accept the nomination, the Trustee may transfer the superannuation benefits to an Eligible Rollover Fund (ERF). Cooling off does not apply to contributions made after the cooling off period ends nor for any Employer-Sponsored members who join Enterprise Super after the cooling off period. This Members Guide forms part of the Enterprise Super Product Disclosure Statement 12

14 Personal Superannuation Immediately following the date on which we notify you that your application to join Enterprise Super has been accepted, you are entitled to a 14 day cooling off period during which you may write to the Fund Administrator and cancel your membership of Enterprise Super. Any contributions you have made will be repaid and there will be no fees and charges incurred. The amount of repayment may be adjusted to take into account any increase or decrease in the investment value and any taxes which were payable in respect of contributions made. If any of the contributions were transferred from another superannuation fund and were subject to Preservation requirements, they cannot be repaid to you in cash. Such amounts must be transferred to another Complying Superannuation Fund, Approved Deposit Fund or Retirement Savings Account of your choice. If the nominated fund or account does not accept the transfer, the Trustee may transfer the amounts to an ERF. Keeping in touch It is very important you advise us when you change your address details by using the Application for Membership/Change of Details form available by contacting the Fund Administrator or by downloading the form from the website; Information regarding Enterprise Super and your member account can only be sent if we have your current address. If we lose contact with you, we may transfer your benefits to the Fund s nominated ERF. Lost members A Lost Member is considered to be a member for whom the Fund has never been provided an address or where at least 1 written item of correspondence sent by, or on behalf of, the Trustee to the member s last known address has been returned unclaimed. You may also be considered Lost if you have been a member of the Fund for more than 2 years and the Fund has not received a contribution or rollover request for a period of 5 years. A member account which has been determined to be Lost may be transferred to an Eligible Rollover Fund (ERF). If your benefit is transferred to the ERF, you will cease to have any entitlements in the Fund which includes cessation of your insurance cover. Further information on ERFs is detailed below. The Trustee is also required to transfer Lost Member benefits to the ATO if the account balance is less than $200 or member accounts have been inactive for 5 years and there are insufficient records to identify the account holder. The ATO can be contacted by calling Eligible Rollover Fund (ERF) An ERF is a special superannuation fund which protects the value of its members benefits against the effect of fees and charges. However, an ERF is not considered to be a suitable investment option for superannuation benefits, as generally, they have more conservative investments which may only earn a low rate of interest. In order to claim your benefit, you will need to contact the nominated ERF for the Fund whose details appear below: Customer Service Officer SuperTrace Eligible Rollover Fund Locked Bag 5429 Parramatta NSW 2124 Telephone Website: However, as the Fund is required by law to report Lost members to the ATO twice a year, your benefit may have been transferred to the ATO and can be recovered at any time by contacting the ATO on , or visiting the ATO s website and using the online tool to confirm if a lost balance has been reported. Unclaimed money Your benefit will be unclaimed money if: you have reached age 65 you are eligible for payment of your benefit your member account has been inactive for at least 2 years we have been unable to locate you for a period of 5 years. Currently, the Trustee must pay unclaimed money to the Australian Taxation Office ( the ATO ). After payment to the ATO, you must apply to the ATO to claim your entitlement, as the Trustee is discharged from any further liability for payments of the benefit. Family law and superannuation The Family Law legislation allows couples (including, in most Australian States and Territories, de facto and same sex couples) to split superannuation benefits in the event of a relationship breakdown. The benefits may be split by formal agreement or by a Court Order. The legislation also allows for eligible people to obtain information about your benefits for Family Law purposes and the Fund is not permitted to advise you if such a request is received. In the event that your benefit is subject to a Family Law split, your former Spouse s entitlement will be transferred to another regulated superannuation fund and your member account will be reduced by the amount of that entitlement. Fees apply for splitting benefits and for requests for information about benefits for Family Law purposes. Refer to your PDS for information on these fees. We recommend that you seek professional advice from your legal adviser as to the consequences of separation or divorce on your superannuation. This Members Guide forms part of the Enterprise Super Product Disclosure Statement 13

15 Policy committees (Employer-Sponsored Superannuation only) A Policy Committee is an advisory body which provides members with an avenue to enquire about all functions of Enterprise Super and to make suggestions about its management. However, the ultimate responsibility for the Fund rests with the Trustee. It is a legislative requirement that, if a superannuation plan has more than 49 members, all reasonable steps must be taken to establish a Policy Committee consisting of equal numbers of employer and employee representatives. (Sub-funds that have between 5 and 49 members must also establish a Policy Committee but only if a formal request is received in writing from 5 or more members). Enquiries and complaints What to do if you have a complaint The Fund provides an enquiry and complaints service for members. Through this service, you may make a general enquiry about your superannuation benefits or the operation of the Fund as it relates to you, or make a complaint if you are dissatisfied about some aspect of your membership or benefits. If the SCT accepts your complaint, it will attempt to resolve the matter through conciliation, which involves assisting you and the Trustee to come to a mutual agreement. If conciliation is unsuccessful the complaint will be referred to the SCT for a determination that is binding. Importantly, before you can lodge a complaint with the SCT you must first go through the Fund s internal complaints process. You can contact the SCT by: telephone (for the cost of a local phone call, excluding mobiles) fax - (03) by writing to Superannuation Complaints Tribunal, Locked Bag 3060, GPO Melbourne, VIC, 3001 by - info@sct.gov.au. Any enquiries or complaints should be addressed in the first instance to: The Enquiries Officer SMA Super Pty Ltd Level 16, 114 William Street Melbourne VIC 3000 Telephone: (03) Fax: (03) Alternatively complaints can be lodged directly with the Trustee at: Equity Trustees Limited Level 2, 575 Bourke Street Melbourne VIC 3000 Telephone: (03) Fax: (03) Under Federal superannuation legislation, the Trustee has 90 days in which to respond to a complaint. However, a response will generally be given within 30 days. The Trustee endeavours to resolve all complaints through the internal complaints process. However, if your complaint is not resolved to your satisfaction by the Fund s internal procedures you may have a right to lodge a complaint with the Superannuation Complaints Tribunal (SCT). The SCT is an independent body established by the Federal Government to provide a simple and inexpensive review mechanism for complaints about the decisions of superannuation fund trustees affecting individual members (as opposed to trustee decisions relating to the management of the Fund as a whole). This Members Guide forms part of the Enterprise Super Product Disclosure Statement 14

16 Glossary Allocated Pension An account in which superannuation monies may be invested as a lump sum, from which a regular amount is paid each year. The amount and frequency of payment may be altered each year, but must remain between minimum and maximum levels set by the Government. Australian Prudential Regulation Authority (APRA) The Commonwealth prudential regulator of the financial services industry. It is charged with ensuring the safety and good management of particular financial institutions such as banks, life offices, general Insurers, credit unions, friendly societies, and superannuation funds. Australian Securities and Investments Commission (ASIC) This Commonwealth organisation has wide consumer protection powers that extend to superannuation. ASIC supervises dispute resolution, prosecutes where there is fraud against superannuation fund members, and enforces legislation designed to provide adequate information for members. Major activities include supervision of financial markets and corporate entities. Choice of Fund The right of eligible employee to nominate a fund into which their employer shall make Superannuation Guarantee (SG) contributions on the employee's behalf. Complying Superannuation Fund A resident superannuation fund that qualifies for concessional tax treatment. Only a regulated superannuation fund that meets operational standards can be a complying fund. Superannuation Guarantee contributions must be paid into a complying fund. Benefits in a complying fund, if rolled over, must only be rolled into another complying fund. Conditions of Release The various means by which it is possible for a superannuation member to access preserved superannuation benefits in cash. Refer to the section Accessing Your Benefits in this Members Guide for more information about the conditions of release. Dependant The Dependants of a member for superannuation purposes are: the member s Spouse which includes a legally married or de facto Spouse of either sex; the member s children of any age which includes step children and adopted children and the children of the member s Spouse; any other person who is wholly or partially financially dependent on the member or who has a legal right to look to the member for support; and any other person who, in the opinion of the Trustee, is in an interdependency relationship (refer to definition) with the member. Diversification The extent to which investments are spread across a number of asset classes (such as Shares, Property and Fixed Interest) or spread across different investments within an asset class. Eligible Rollover Fund (ERF) A superannuation fund that is set up to receive benefits rolled over from other funds. ERF s are required to provide member benefit protection. ERF s accept inactive small accounts, lost member accounts, and benefit payments where a member fails to respond to requests to provide payment instructions. Indirect Cost Ratio (ICR) The ratio of a fund s management costs that are not deducted directly from a member s or a product holder s account to the fund s total average net assets. It is the fee charged by an investment manager to manage an investment fund, usually structured as a percentage of fund assets. It covers investment, remuneration, administration expenses and transaction costs of the investment manager. Interdependency Relationship An interdependency relationship is defined as a close personal relationship between 2 people who reside together, where 1 or both provides the other with financial support and 1 or both provides the other with domestic support or care. Factors such as duration of the relationship, whether the relationship was publicly acknowledged and the degree of on-going commitment to a shared life will be relevant in determining whether an interdependency relationship existed at the time of death. For example, the definition of interdependency relationships may include same sex couples, 2 siblings who reside together, or an adult who lives with an elderly parent. However, it will not generally include, for instance, people who share accommodation for convenience (e.g. flatmates), or people who provide care as part of an employment relationship. This is intended to ensure that adults who reside together and offer each other mutual support (whether or not related by family) can be recognised in the way that Spouses or dependent children are on the death of a partner or parent. The definition also includes 2 people, who have a close personal relationship, but the relationship does not satisfy the residential and support requirements as either or both of them have a physical disability. Investment Committee Is a sub-committee formed by the Investment Manager that monitors the investment management and performance of the Fund and reports findings and makes recommendations to the Trustee. Lost Member A person becomes a lost member when the superannuation provider has lost contact with the person or has not received a contribution or rollover from an Employer-Sponsored member within the last 5 years. However, a person would not be considered lost if the This Members Guide forms part of the Enterprise Super Product Disclosure Statement 15

17 superannuation provider has no reason to believe any address held is incorrect or the member indicated or notified the superannuation provider of their existence. Lost accounts of $1000 or less must be member-protected or else rolled over into a fund which accepts such rollovers and does member-protect, such as an Eligible Rollover Fund (ERF). Mandated Employer Contributions Employer Contributions made in satisfaction of the Superannuation Guarantee legislation and Employer Contributions made in satisfaction of an employer s obligations under an agreement certified, or an award made, on or after 1 July 1986 by an industrial authority. Master Fund (also known as master trust) A trust or fund which allows a large number of unconnected individuals and/or companies to operate their superannuation arrangements under a single common trust deed. Permanent Incapacity If a member has ceased to be gainfully employed due to ill-health (whether physical or mental), where the trustee is reasonably satisfied that the member is unlikely, because of the ill-health, ever again to engage in gainful employment for which the member is reasonably qualified by education, training or experience. Permanent Incapacity is a Condition of Release (refer to above). Preservation The regulatory requirements that certain superannuation benefits be maintained in a superannuation entity for retirement purposes or until an earlier Condition of Release (refer to above) is satisfied. From 1 July 1999, all contributions made by or on behalf of members are preserved on entry. All earnings from that date are also preserved. Preservation Age Your preservation age is dependent upon your date of birth, according to the following table: Date of Birth Preservation Age Before July July 1960 to 30 June July 1961 to 30 June July 1962 to 30 June July 1963 to 30 June After 30 June Retirement Savings Account (RSA) A superannuation product that is provided by banks, building societies, credit unions, life insurance companies or prescribed financial institutions. RSAs must be capital guaranteed, cannot have negative earnings and must be fully portable. Salary Sacrifice An arrangement between an employer and an employee that involves the employee sacrificing a part of his/her pre-tax salary in exchange for having the employer makes additional superannuation contributions to your member account. The contributions count as employer contributions for the purpose of the Superannuation Guarantee legislation and are classified as Concessional contributions when received by the fund. SIS The Superannuation Industry (Supervision) Act 1993 and regulations made under it. This is the principal legislation governing the operation of superannuation entities. Spouse in relation to a person, includes another person who, although not legally married to the person, lives with the person on a genuine domestic basis in a relationship as a couple. It includes both married and de facto couples, including same sex couples. Standard Employer-Sponsor An employer who contributes, or would contribute, wholly or partly to the Fund pursuant to an arrangement between the employer and the Trustee of the Fund. Superannuation Complaints Tribunal (SCT) An independent statutory body established by the Federal Government to deal with complaints about decisions of superannuation fund trustees affecting the rights and benefits of individual members and beneficiaries. Matters are heard by the SCT only if they cannot be resolved through the fund s internal dispute resolutions procedure. The SCT may review and alter a trustee s decision. Superannuation Guarantee (SG) Legislation that requires employers to provide a minimum level of superannuation contributions for most employees. Terminal Medical Condition A Member has a terminal medical condition at a particular time if 2 registered medical practitioners (1 of whom is a specialist in an area relating to the Member s Injury or Illness) have certified, jointly or separately, that the Member has an Injury or Illness that is likely to result in the Member s death within 12 months of the date of the certification. The Member will not meet the conditions for a terminal medical condition if it is more than 12 months since the date of the certification. Total and Permanent Disablement Means the definition that is set out in the applicable PDS (which generally will be the definition under the insurance policy (if any) at the relevant time). Trust Deed The Trust Deed is the principal governing rules of the Fund. Volatility The extent to which share prices, bond prices, interest rates, investment returns, etc., change from their trend growth rate over time. Volatility is a commonly used way of measuring the risk of an asset, on the basis that the more volatile an investment, the greater the chance that the actual return will be different to the expected return and therefore the higher the risk. This Members Guide forms part of the Enterprise Super Product Disclosure Statement 16

18 Certificate of Compliance ENTERPRISE SUPER We confirm on behalf of the Trustee of Enterprise Super that the Fund: has been established and is administered in compliance with the requirements of the Superannuation Industry (Supervision) Act 1993 and accompanying regulations satisfies the requirements and operational standards as detailed in the legislation and regulations is able to accept transfers from other funds is not authorised to make loans to members Trustee undertakes to preserve any benefits required to be preserved according to the preservation requirements of the regulations. Enterprise Super is a division of the General Retirement Plan. We confirm that the Australian Business Number (ABN) of the General Retirement Plan is , the Superannuation Fund Number (SFN) is 1488/129/49 and the Registrable Superannuation Entity (RSE) No is R If you have any queries please contact Member Services on SMA Super Pty Ltd This Members Guide forms part of the Enterprise Super Product Disclosure Statement 17