BT Lifetime Super SuperWrap Foreign Superannuation Transfers

Transcription

1 BT Lifetime Super Employer Plan SuperWrap Foreign Superannuation Transfers Employer Brochure 1 July 2015 Employer Brochure Dated 1 July 2015

2 Table of contents Welcome to BT Super 1 Benefits of BT Super 3 A guide to setting up your plan 5 1. Set up your plan online 6 2. The BT MySuper Lifestage Default Investment Option for your employees 7 3. Select insurance cover for your employees 9 4. Register for BT Online Employer Setting up your BT Super plan 15 How we keep in touch 16 Your super obligations 17 Direct Debit Request Service Agreement 18 Terms and conditions 19 Things you should know 20 Application form

3 Welcome to BT Super BT Lifetime Super Employer Plan (BT Super) is committed to making super easy for you and of great value to your employees. Brought to you by BT Financial Group (BT) BT has been helping Australians create and manage wealth since BT provides a diverse range of investment choices, including funds managed by some of the world s leading investment managers. BT is a wealth management specialist that s wholly owned by Westpac. Why BT Super for employers? BT Super can provide you with a plan tailored to the unique needs of your business and employees. Although there are of rules and regulations to comply with and many options to consider, choosing the right super fund provider can make your job easy. Super is a valuable entitlement for all employees and it can have a huge impact on their retirement lifestyle, so selecting the right fund for your employees super is very important. BT s workplace super solution offers a modern, flexible plan design, and will help you provide your employees with the benefits they expect. Our administrative service, educational and investment skills will deliver a world super service, and will remove any unnecessary costs, time and frustrations associated with managing your business super obligations. Benefit from BT s MySuper Lifestage fund With BT Super, your employees can benefit from BT s MySuper Lifestage fund a simple, costeffective investment option which invests your employees super based on their decade of birth. Our BT MySuper Lifestage Investment Option can help your employees prepare for the best retirement possible. Why BT Super? BT Super will allow you to remain focused on your core business activities by providing: Online functionality easy to use online super admin tool that allow you to add new employees, update their details and making your employees contribution easy A product that offers an extensive investment menu with over 40 investment choices managed by a selection of quality fund managers Flexible insurance options to suit the varying needs of your employees An administration system that can interface directly with CEMTEX compatible payroll systems to offer straight through processing of all your contributions to save you time and money A dedicated phone support team to assist in managing your plan. BT Super also helps to deliver benefits to members, allowing them to manage their superannuation to meet their individual needs: Online and automated phone services to make it easier to manage their super, to view their balance and transactions, make additional contributions and switch Investment Option(s) An extensive range of education services to help employees make informed decisions including face to face seminars and individual appointments (for larger plans), online information, interactive tools and flyers A BT Customer Relations team who have the expertise needed to respond to members enquiries promptly and accurately. bt.com.au 1

4 Welcome to BT Super (continued) Selecting BT Super for your business With Super Choice, your employees may be able to choose where their super contributions are paid. BT Super is a great choice for employers looking for a default option for employees. BT s clearing house facility through BT Online Employer (BTOE) makes it easy to pay contributions into multiple funds for members who have elected Super Choice. For more information on Super Choice you should contact your Financial Adviser or call BT Customer Relations on BT has not reviewed any awards or other industrial instruments or agreements that are, or may become relevant to your employees. It s possible that BT Super may not satisfy your obligations under any such award or industrial instrument or agreement. As such, before making a decision about BT Super, we recommend that you seek legal advice on its appropriateness, having regard to the requirements of any awards or other industrial instruments or agreements that are, or may become applicable

5 Benefits of BT Super With BT Super, you can provide a powerful super offering to your employees and still have plenty of time to get on with your day-to-day business. That s because BT Super is about making it easier for you. Benefits for your business Feature Benefits More information Competitive fees Expert administration Online solution Cost-effective insurance Ongoing dedicated support Members get the advantage of having their balances pooled together for the purposes of calculating Administration fees. The Administration fee is based on the total funds under management in your company s plan. This could mean that your employees are entitled to a reduced Administration fee as a rebate in the form of additional units. Manage your employees super more effectively, saving time and money, with our simple, efficient and flexible administration service. We provide a wide range of services which include: Getting your super plan up and running Adding and maintaining your employees records Arranging insurance, and Easy transacting. Manage your plan easily with our BT Online Employer (BTOE) website. Save time and paperwork by using BTOE to: Make contributions for members in BT Super as well as Super Choice contributions to multiple other super funds through BTOE s online clearing house Set up an automatic payment to pay contributions from your bank account Ensure member and employer details are up to date Access and generate a range of employee reports, and Keep pay-centre contact details up-to-date to ensure you receive s such as contribution payment reminders. You can also set up additional pay centres if you need to separate members into different cost centres for accounting or reporting purposes. Simply contact us on You can tailor your insurance arrangements including Death and Total and Permanent Disablement (TPD) cover and Salary Continuance Insurance (SCI) cover, to suit your employees. Your employees will also receive the benefit of insurance at group premium rates. Employers have a dedicated phone support team. If you have a large super plan, you ll also have a dedicated Relationship Manager and Client Executive to provide ongoing service and support. Refer to the Fees and other costs section of the Additional Information Booklet. Visit bt.com.au/workplacesuper To see how easy it is, visit bt.com.au and view Employer Super under Online Help. Refer to the Select insurance cover for your employees section of this brochure. Call us on bt.com.au 3

6 Benefits of BT Super (continued) Benefits for your employees Feature Benefits More information Education Extensive range of investment choices Easy access to information Spouses enjoy most features and benefits Super and insurance consolidation assistance Super savings through Benefits Now program When employees change jobs Members have access to an interactive educational website, newsletters and online information. Onsite educational seminars tailored to suit your employees needs and individual appointments are also available for larger plans. Members can choose from over 40 Investment Options managed by: BT Investment Management BT Multi-managers (a range of managers selected by our investment specialists) other external fund managers. BT offers your employees 24 hour access to information through: BT Online BT s online transaction facility on our website at bt.com.au BT Customer Relations on from 8.00am to 6.30pm (Sydney time) Monday to Friday. Your employees can set up a BT Super account for their spouses, into which both partners can make contributions. Spouses can apply for insurance cover and have access to a broad range of Investment Options. Consolidation can save your employees time and money. We can help your employees bring together multiple super accounts through BT s Easy Rollover Tool on our website. BT Super members enjoy great discounts on health services, overseas travel and entertainment and health insurance premiums through the Benefits Now program. Your employees can remain with BT Super even if they change jobs. Visit our website at bt.com.au To read our latest newsletter visit prepare.bt.com.au Refer to the How we invest your money section of the Additional Information Booklet. Visit bt.com.au or call us on Refer to the PDS at bt.com.au Visit bt.com.au/easyrollovertool Visit our website at bt.com.au/benefitsnow Refer to the When you change jobs section of the Additional Information Booklet. Policy Committee establishment assistance Where employers have 50 or more employees, or where five or more employees wish to establish one, a policy committee is required. BT will provide comprehensive tools and support to assist you to establish and manage your policy committee, including step-by-step guidance and templates of documents you might need to use with employees or in meetings. Larger super plans can obtain additional support from their Relationship Manager to establish and manage their policy committee. Trustee responsibilities As the Trustee of the Fund, we provide a fully compliant MySuper product and insurance offering. We provide members with access to competitively priced MySuper lifestage investment options and standard insurance. We also handle compliance with legislation, lodgement of returns and the calculation of taxes as well as all reporting and member enquiries

7 A guide to setting up your plan Who is eligible? BT Super is suitable for employers who seek to administer their super plan through BT Online Employer who have two or more members, with an average minimum contribution of $2,700 per year. How do we get started? We re here to help get your company started with BT Super. You can speak to a super consultant, your specialist BT representative or Financial Adviser to help you design a super solution that s right for you and your employees. Then once you have read all the information, signing up is easy, simply follow the steps outlined in this brochure. Steps to setting up your plan Set up your plan online Go to page 6 Review the MySuper Lifestage default Investment Option which will be made available to your employees. Go to page 7 Select insurance cover for your employees Go to page 9 Register for BT Online Employer Go to page 15 Setting up your BT Super plan Go to page 16 bt.com.au 5

8 1. Set up your plan online xx You can join BT Super by completing the online application form with just a few clicks. From here, we can begin to understand your super and insurance needs and collect some details about your company. You ll need: General company details, such as a mailing address and an ABN. Details around any current insurance held in your default plan (if applicable). Debit bank account details (if you wish to set up a Direct Debit Facility)

9 2. The BT MySuper Lifestage Default Investment Option for your employees BT offers you and your employees access to an extensive range of Investment Options, managed by a variety of professional fund managers. These Investment Options cover all the main asset classes shares, property, fixed interest securities and cash. Each Investment Option has a different objective and level of risk and returns so your employees have maximum choice and flexibility. For more information on the Investment Options below and other details about what BT Super can offer you and your employees, please refer to the How we invest your money section of the PDS and Additional Information Booklet. BT MySuper Lifestage Investment Options BT s MySuper Lifestage Investment Option is backed by an award winning and experienced asset manager with a proven track record. We ve chosen a Lifestage investment approach, which is well-suited to those employees who want to leave it to us to manage their money. How does a Lifestage Fund work? When an employee invests in the BT MySuper Lifestage Investment Option, they ll be invested according to their decade of birth and our investment experts automatically adjust the asset mix throughout their life. When an employee is younger (and has more time to withstand ups and downs in their investment returns) their asset mix will be more growth orientated to target a higher return. Over time the fund will gradually shift to a more conservative asset mix. It generally does this by decreasing its allocation to growth assets and increasing its allocation to conservative assets. Example Joe is 49 years old (born in 1966) and invests in BT s MySuper Lifestage Investment Option. He will be automatically invested into the 1960 s Lifestage Investment Option. This investment option is designed for your employees where retirement is approaching. Therefore the asset mix is balanced between growth and conservative assets. Over time Joe s investment option will gradually shift to a more conservative asset mix as shown in the graph on the following page. This is done automatically, which means your employee does not have to be moved from one fund to another. MySuper Benefits for your employees BT is a pioneer of Lifestage super in Australia. BT has been successfully managing Lifestage funds for over seven years, while many other Australian super funds are new to this investment approach. A highly experienced investment team The BT MySuper Lifestage Investment Option in BT Super is actively managed by leading fund manager Advance Asset Management Limited (Advance). Active investment management which can outperform the index and reduce risk Advance uses an active investment management approach, which means they focus on reducing portfolio risk, while offering the potential to achieve sustainable out performance over the long term. bt.com.au 7

10 2. The BT MySuper Lifestage Default Investment Option for your employees (continued) Diversification across assets and investment managers Members don t have to worry about having all their eggs in one basket. The BT MySuper Lifestage Investment Option invests across a number of different asset classes, managed by Advance. Where appropriate, Advance partners with global managers with complementary active investment expertise

11 3. Select insurance cover for your employees A quick how-to guide ` ` xx Choose Standard cover or tailored cover for Death and Total and Permanent Disablement (TPD) cover for your employees Choose Salary Continuance Insurance (SCI) cover for your employees Transfer the Death, TPD or SCI cover from another plan or policy Where to find the forms Complete section 3A of the Employer Application form. Complete section 3A of the Employer Application form. Complete section 3B of the Employer Application form. The Employer Application form is available at the back of this brochure. For a flexible insurance arrangement that allows you to ensure that your employees have insurance cover, BT offers your business the following: Standard cover Death and TPD, or Tailored Death and TPD cover, and/or SCI cover. To meet its obligations the Trustee requires employers to offer their employees a minimum amount of cover on an opt-out basis. You can select either one unit of standard cover Death and TPD or an acceptable tailored cover design. Please see further information on the next page. Who provides the insurance? To help you receive competitive insurance rates and terms and conditions, BT Super provides insurance through a group policy (the Policy) with an external insurer, AIA Australia Limited ABN , AFSL (Insurer), located at 553 St Kilda Road, Melbourne, Victoria 3004 and contactable by phone on Insurance benefits By providing your employees with insurance cover through BT Super, they receive a number of very important benefits: Group insurance rates, which are generally cheaper than the same cover arranged under a personal policy The cost of cover is deducted from each member s super account Cover may be set up under an Automatic Acceptance arrangement, which means that your employees may not have to provide medical or other evidence in order to receive a certain level of cover, and Once accepted by the Insurer, an employee s cover will continue as long as they remain eligible for insurance and insurance fees (also referred to as premiums) are paid, which in some cases means automatic continuation of cover even after they leave their employment with you. The Insurer may decline to offer or renew cover. Payment of premiums Providing insurance cover for your employees requires minimal administration by you. Monthly premiums will be paid from each member s super account. You can, however, elect to reimburse the premiums for your employees by making additional monthly contributions in excess of your Super Guarantee contributions. Note that any additional contributions will be considered employer contributions and will count towards your employee s concessional contribution cap. bt.com.au 9

12 3. Select insurance cover for your employees (continued) Death and TPD cover options 1 Standard cover Standard cover is the default age based scale of Death and TPD cover that will apply to eligible members 1. It s designed to provide a simple, low cost, basic level of cover that increases or decreases depending upon a member s age. One unit of standard cover provides eligible members up to $300,000 of cover automatically, without the need for medical checks (please refer to the table of cover and premiums in the Additional Information Booklet Part 3 Insurance). Note: no adviser commission is payable on standard cover premiums. 2 Tailored cover You may specify a formula of insurance for different categories of employees (prescribing the type of insurance and amount of cover). If you specify a formula for cover, your employees may have that cover accepted under the Automatic Acceptance Limit (refer to page 11). The formula used to determine the amount of automatic cover is established on commencement of your plan, although it may be changed each year at the time of the annual review. A business partner or sole trader is eligible for insurance cover on the same terms and conditions as employees, provided they meet all the eligibility requirements (including working the required number of hours with the business participating in BT Super). Employees can also elect to increase their cover above the automatic cover amount if they wish, without your approval. This is subject to the increase being approved by the Insurer. Employees may decrease or cancel their cover without your consent. If a significant number of employees cancel their cover your Tailored cover may be replaced by Standard cover. Option Benefit 1 One unit of Standard cover Tailored cover options (available to plans of 20 or more members) 2 Age based units of cover for a fixed premium (minimum 2 units) 3 Multiple of Income (eg 4 Income) 4 Fixed dollar amount of cover (eg $250,000 for each member) 5 Fixed percentage of Income per annum for each year of service remaining to age 65 (calculated at entry and annually at each 1 July, and on certain other events) 3 No Insurance This option is only available if you can demonstrate you already have MySuper compliant Death and TPD insurance arrangements for your employees outside of superannuation. Salary Continuance Insurance (SCI) cover options You also have the flexibility to request the amount of SCI cover that will apply. This benefit will be paid up to a maximum of two years, five years or to age 65. SCI cover provides for a proportion of the employee s Income to be replaced if they are disabled temporarily. The maximum cover is 75% (plus up to 15% super contributions) of their Pre-disability Income or $30,000 per month benefit, whichever is lesser. Benefits paid to replace your super contributions will be remitted to the employee s BT Super account. You can also select whether a 30 day, 60 day or 90 day waiting period should apply. Calculation of cover The amount of cover is calculated on an employees commencement, on notification of certain changes to membership details (eg occupation) and at 1 July each year. For SCI, if (at the date of the disability) a member s Income is lower than the amount advised to us at the last review date or the date the member joined BT Super (whichever is later), the member s benefit will be adjusted to reflect the Income earned in the period of 12 consecutive months immediately before the disability. 1_ Plans with employees in Special Risk occupations are subject to individual consideration

13 In the event of a claim, if a member s annual wage or salary has increased and caused their SCI benefit amount to increase by more than 25% since the last annual review date, then the Insurer reserves the right to limit the increase in benefits to 25% above the member s SCI benefit amount at the last annual review date. However the Insurer will increase cover in excess of the 25% subject to the cover being underwritten and accepted by the Insurer. Any increased benefit is also subject to you having regularly updated your employees income at annual review. For Death and TPD or Death Only cover, the initial amount of cover will be based on the Income that you provide when an employee joins BT Super. For the following years, the amount of cover will be based upon the employee s Income at 1 July that you advise us as part of their annual review. Prior to 1 July each year, you may be required to provide updated Income information in respect of employees and to confirm certain member information. Automatic Acceptance of tailored cover Insurers normally require medical and other evidence to assess the risk of insuring each individual. However, if you decide to nominate cover for a group of employees (with the exception of those stated as excluded), Automatic Acceptance cover, up to the prescribed limit (the Automatic Acceptance Limits), may be available without the need for your employees to supply evidence of health or other information. To be eligible for Automatic Acceptance of cover, each of the following conditions must be met: Your super plan has been nominated as an employer default plan Your super plan has two or more eligible employees for Death and TPD or Death Only cover, or ten or more eligible employees for SCI You choose a benefit design approved by the Insurer You define employees eligibility conditions and insurance cover for each benefit category Note: Once you have defined your employees eligibility conditions and insurance cover for a benefit category, you and your employees are not able to select the amount of cover or elect the benefit category that your employees are to join. You complete and provide new employee details within 120 days of the employee s commencement of employment or on the plan commencement date (employees who join after this will have cover on a New Events basis. Please refer to the Additional Information Booklet Part 3 Insurance for details) The formula for calculating automatic insurance cover must be the same for all employees in each benefit category The benefits provided by each benefit category are broadly similar to ensure that the same Automatic Acceptance Limit can apply across the whole membership There must be no other group life insurance arrangement in place for your employees At commencement, eligible employees must be actively At Work or on approved leave such as annual leave or long service leave on the date they commence employment with the employer or on the date the employer joins BT Super (whichever is the later). If an employee was on restricted duties or modified hours due to sickness or injury, they ll not be considered to be At Work. Employees not At Work on the date cover is due to commence will receive New Events cover until such time as they have been At Work and performing their normal duties and hours for at least 30 consecutive days at which time they ll receive full cover Eligible employees must be under 70 for Death cover, age 67 for TPD cover, and age 65 for SCI cover The maximum number of eligible employees allowed to opt out of automatic cover is no more than 25% Automatic Acceptance cover isn t available for any additional cover where the employee elects to increase cover above their formula-driven cover. The Insurer reserves the right to vary any Automatic Acceptance Limits. The Insurer also reserves the right to apply Automatic Acceptance Limits and conditions which are different from those disclosed in this brochure. Plans with employees in Special Risk occupations are subject to individual consideration. Automatic Acceptance cover isn t available for spouse members. However, cover can be provided to spouses after being underwritten and accepted by the Insurer. bt.com.au 11

14 3. Select insurance cover for your employees (continued) Automatic Acceptance Limits (AALs) 1,2 Number of members Death & TPD AAL SCI AAL 2 years, 5 years, and to age 65 benefit Less than 2 Nil Nil unit of Standard Insurance Cover unit of Standard Insurance Cover Nil Up to $6, Up to $600,000 Up to $7, Up to $600,000 Up to $8, Up to $600,000 Up to $8, Up to $900,000 Up to $12, Up to $900,000 Up to $12, Up to $1,200,000 Up to $12, Up to $1,200,000 Up to $12,500 or individual consideration Up to $1,200,000 Individual consideration 1,000+ Individual consideration Individual consideration 1_ Members who have standard cover are not included in the member count for tailored cover AALs. 2_ AALs will be reviewed each year and increased, decreased or removed in accordance with changes in the insured membership of your plan. 3_ New events conditions apply to plans of 2-4 members. How do I set up the insurance for my plan? Designing an insurance benefit You can work with your BT Super Consultant or Financial Adviser to design the most suitable insurance plan for your employees by selecting one or more of the three types of cover for your plan. You also have the flexibility to have different insurance arrangements for different categories of employees. Refer to pages 8 to 10 of this brochure for more information on the plan design options available to you. BT Super also enables you to conveniently transfer your existing group insurance cover. Refer to the Takeover of insurance what we need section of this brochure to find out what is required. The following examples should be used as a guide only. The actual premiums may vary. Examples of how Tailored Cover insurance benefit designs may be applied Please note that the following example has been constructed to illustrate how three insurance benefit design formulae can be applied to a plan. It s not a real life example. As a result, it s not a substitute for financial advice or a formal quotation. The information provided in this example has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness having regard to your objectives, financial situations and needs. ABCD Pty Ltd is a manufacturing company with 24 employees as follows: 2 directors 8 administration staff, and 14 Qualified Electricians. For the purposes of this example, there will be three categories of insurance: Category 1 Directors Category 2 Administration staff, and Category 3 Qualified Electricians. For each insurance category, we ve selected the following benefit designs as examples: Category 1 Directors Death and TPD 4 x Income SCI 75% of Income, 90 day waiting period with a benefit up to age 65 Category 2 Administration staff Death and TPD 15% x Income x Years of Future Service (YFS) to age 65 SCI 75% of Income, 90 day waiting period with a benefit of five years Category 3 Qualified Electricians Death and TPD applicable benefit at the cost of $2.70 per week For a plan of this size, the Automatic Acceptance Limit (AAL) will be $600,000 for Death and TPD and $6,000 per month for SCI. This means that the lower of the relevant formula or the AAL will apply. For employees whose formula provides for a sum insured higher than the AAL, the benefit will be capped at the AAL

15 The following table illustrates the sums insured and applicable premiums for the employees of ABCD Pty Ltd: Name Age Gender Occupation category Income per annum Insurance category Death & TPD sum insured Death & TPD premium per month SCI sum insured per month SCI premium per month Director 1 40 F W $100,000 1 $400,000 $45.20 $6,000 $54.60 Director 2 45 M W $100,000 1 $400,000 $81.20 $6,000 $60.60 Admin 1 25 F W $50,000 2 $300,000 $8.10 $3,125 $6.25 Admin 2 30 F W $50,000 2 $262,500 $9.19 $3,125 $6.56 Admin 3 40 F W $50,000 2 $187,500 $21.19 $3,125 $18.75 Admin 4 45 M W $50,000 2 $150,000 $30.45 $3,125 $18.44 Admin 5 50 M W $50,000 2 $112,500 $38.81 $3,125 $32.50 Admin 6 52 M W $50,000 2 $97,500 $41.24 $3,125 $42.19 Admin 7 58 F W $50,000 2 $52,500 $31.71 $3,125 $ Admin 8 62 F W $50,000 2 $22,500 $19.19 $3,125 $ Electrician 1 43 M B $45,000 3 $40,562 $11.70 N/A N/A Electrician 2 60 M B $45,000 3 $7,234 $11.70 N/A N/A Electrician 3 47 M B $45,000 3 $26,462 $11.70 N/A N/A Electrician 4 56 M B $45,000 3 $10,852 $11.70 N/A N/A Electrician 5 39 M B $45,000 3 $60,348 $11.70 N/A N/A Electrician 6 49 M B $45,000 3 $21,422 $11.70 N/A N/A Electrician 7 36 F B $45,000 3 $93,369 $11.70 N/A N/A Electrician 8 49 F B $45,000 3 $25,377 $11.70 N/A N/A Electrician 9 36 M B $45,000 3 $78,548 $11.70 N/A N/A Electrician M B $45,000 3 $32,771 $11.70 N/A N/A Electrician F B $45,000 3 $58,912 $11.70 N/A N/A Electrician M B $45,000 3 $13,022 $11.70 N/A N/A Electrician M B $45,000 3 $8,868 $11.70 N/A N/A Electrician F B $45,000 3 $12,820 $11.70 N/A N/A The plan design example above illustrates how three insurance benefit design formulae can be applied to a plan. Obtaining an insurance quote what we need For all members, we require the following information: Date of birth/age Gender Occupation category Sums insured Death, TPD, SCI (or formula for calculation) SCI waiting and benefit periods Annual Income (required to calculate sums insured) Any non-standard arrangement required, eg age only rate tables, own occupation TPD. Takeover of insurance what we need Group insurance cover may be transferred to BT under takeover terms under certain circumstances. As part of the transfer process, in addition to the details above, we require the following insurance information: Type of insurance cover (for SCI including waiting and benefit periods) Listing of TPD and other definitions (many are non-standard and need to be reviewed to see if they can be supported/matched) Automatic Acceptance Limits If more than one insurance category, the criteria used to decide membership of each Takeover insurance formula details Levels of cover per member Underwritten loadings, restrictions or exclusions Forward underwriting limits Five-year claims and membership history. For other plans, members can easily consolidate insurance policies held within other super funds or held outside super, by completing an Individual Insurance Consolidation form. Refer to the Additional Information Booklet Part 3 Insurance for further information. 13 bt.com.au

16 4. Register for BT Online Employer A quick how-to guide Fill in all the details to obtain a BT Online Employer (BTOE) login Establish a direct debit arrangement to pay contributions automatically from your bank account Where to find the forms Complete section 4A of the Employer Application form. Complete section 4B of the Employer Application form. The Employer Application form is available at the back of this brochure. What can you do with BT Online Employer? Make contributions online You can make contributions via your preferred method: online form, payroll or file upload for members of your BT Super plan. Alternatively, you may be able to contribute through Bpay (a separate Bpay transaction is required for each employee). Please note: legislative changes may place restrictions on the use of this facility by employers. Visit the ATO website at ato.gov.au for more information on ways employers can make contributions and the data and payment standards. Set up and amend automatic payment Pay contributions automatically from your bank account. Ensure member and employer details are up to date Add, amend and remove details for members of your super plan. Update your contact details View reports Access information about members of your BT Super plan such as employee contributions, insurance and investment details. Set up several pay centres If you need to separate members into different cost centres for accounting or reporting purposes, refer to the BTOE Easy User Guide available on our website at bt.com.au for step-by-step instructions on ways to reduce your administrative burden using BTOE. Provide employee details As part of the plan set up, you ll need to provide us with your employees details (including their Tax File Numbers). A New Employee Details form is available from our website at bt.com.au. The first time you provide us with your employee details, we ll upload these into our system. From then on, you will be able to add and edit employee details simply and efficiently online. Make payments to other super funds using BTOE BTOE has an online clearing house functionality to help you administer super payments for Super Choice employees who may have selected another super fund. Through BTOE, employers will be able to get access to Quick Super, a non-cash payment facility issued by Westpac Banking Corporation ABN Quick Super allows employers to make super contributions to multiple super providers, so that they don t have to communicate with each provider individually. You should carefully read the Product Disclosure Statement (PDS) for Quick Super, before deciding whether to use or continue to use this facility. You can obtain a copy of the PDS for Quick Super by calling _Registered to Bpay Pty Ltd ABN

17 5. Setting up your BT Super plan Setting up a BT Super plan for your business is easy - follow the steps below. 1. Send us your completed Employer Application form 2. Transfer your existing plan to BT 3. Set up a Policy Committee Complete the Employer Application form, New Employee Details form (if applicable), any other relevant forms and BTOE registration details and send them to us at: BT Financial Group BT Lifetime Super Employer Plan GPO Box 2919 Adelaide SA 5001 As soon as you receive your BTOE login details, you will have access to BTOE. Please note: In the future, we plan to streamline the process by introducing the capability for the above forms to be completed electronically. Once introduced, we may require that all Employer Application forms be completed electronically. Therefore, you will need to agree to this as a condition of participation as an employer in BT Super. Work with your BT Super Consultant or Financial Adviser to agree an implementation plan that will facilitate the transfer of your employees existing super and insurance to BT Super. A BT Consultant who specialises in transitioning super funds will work with you to make the transfer happen smoothly and will also speak to your payroll officer to ensure an efficient plan is set up. If you would like to transfer your existing insurance (which we may agree to, or refuse at our discretion), you will need to provide us with details of your employees current insurance cover at the same time as you forward your Employer Application form (this is normally only available if there are a minimum of five members transferring). We ll then liaise with our Insurer to set up any insurance arrangements. Under super law, you must establish a policy committee if your plan has 50 members or more. If there are between five and 49 members in your plan, there must be a policy committee if requested in writing by at least five members. The policy committee will serve as an avenue for you and your employees to ask the Trustee for specific information and to lodge complaints or enquiries about the operation or management of your plan. It is also a requirement that the policy committee meet at least every 12 months. If a policy committee is required, as part of the ongoing service to you, the Trustee will facilitate the process of asking your employees to nominate and elect member representatives. An Employer s Guide to Policy Committees will be sent to you at the commencement of your plan. All active members of your super plan will also receive an Employee s Guide to Policy Committees which explains all aspects of how a policy committee works. Important information for sole traders, business partners or spouses of existing members Sole traders, business partners and spouses of existing members will need to complete the Spouse or Sole Trader and Business Partner application form if they intend to join the plan as a member. Sole traders and business partners will also need to complete the standard BT Super Employer Application form. To obtain a copy of the BT Lifetime Super Employer Plan Spouse or Sole trader and Business Partner application form, please go to our website at bt.com.au or call BT Employer Relations on bt.com.au 15

18 How we keep in touch Once you join BT Super, we ll communicate with you and your employees on a regular basis to ensure your plan is running smoothly. Communication you will receive includes the following: 1 New Employer Pack This contains the details of your benefit design and your employees insurance arrangements (if applicable). 2 Policy Committee Kit If your plan has 50 or more employees, you ll receive this kit explaining all aspects of how a policy committee works and how the Trustee will facilitate the process of establishing your policy committee. If your plan has less than 50 members, but five or more members request a policy committee, we can send you a Policy Committee Kit on request. 3 End of year communications Before the end of each financial year and prior to issuing Annual Statements to your employees, as a timely reminder we ll contact you so you can confirm your employees details, contributions and insurance benefits (if applicable) to make sure that all the information on the statements is correct. 4 Annual Report The Annual Report, which you can access from our website at bt.com.au, will provide you with information including changes and enhancements to BT Super along with updated information on all the Investment Options over the financial year. 5 Quarterly Employer newsletters Each quarterly edition provides you with information such as the latest developments in superannuation and handy tips for your plan

19 Your super obligations BT is committed to helping you meet your super obligations and the super needs of your employees. This section provides general information about some of your responsibilities in relation to your employees super. It s intended as a brief guide only and you should, of course, seek independent professional tax advice that s specific to your circumstances. More detailed information about your super obligations can be found in the BT Super Additional Information Booklet. Things to consider when setting up your plan MySuper obligations Super Guarantee (SG) requirements What MySuper means for your business MySuper is a part of Stronger Super and from 1 January 2014, for those employees who have not chosen their own super fund, it will generally 1 be compulsory for you to direct their future Superannuation Guarantee (SG) contributions to a super fund which offers a MySuper product. BT s MySuper Lifestage Investment Option is a fully compliant MySuper product. We ll automatically direct the future super contributions for members who haven t made an investment choice into BT s MySuper Lifestage investment. What MySuper means for your employees MySuper is about offering a simple, cost effective default super product for your employees who prefer not to play an active role in their super. Your employees will have their super contributions directed to the BT MySuper Lifestage Investment Option, unless they choose otherwise. You re required to make super contributions for all eligible employees to the value of 9.5% (for the 2015/2016 financial year) of the employee s ordinary time earnings (OTE). Refer to the ATO website, ato.gov.au, for a definition of OTE and SG requirements. The OTE for an employee is subject to a maximum amount called the maximum super contribution base, which is $50,810 per quarter (for the 2015/2016 financial year). SG contributions for employees 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 you don t make the required level of contributions for your employees by the relevant cut-off date each quarter you ll need to pay the Super Guarantee Charge (SGC). Please note that this amount is greater than the minimum super contribution and is also non tax-deductible. We recommend that you seek professional advice to ensure that you re meeting all your SG obligations. Tax File Numbers (TFNs) If an employee has quoted their TFN to you for employment purposes on or after 1 July 2007, you re required to give that TFN to the super fund to which you make contributions on behalf of that employee. Penalties may apply if you fail to do so. In addition: We are not permitted to accept member contributions if we do not hold the member s TFN and We are required to apply additional tax on employer contributions if we do not hold the member s TFN on 30 June of the financial year in which the contributions were made. Taxation of employer super contributions You can claim a tax deduction for the full amount of all contributions to a complying super fund on behalf of your eligible employees. Reportable employer super contributions (RESC) If you make super contributions under a salary sacrifice arrangement, or make extra super contributions for an employee (above SG), you may need to report these contributions on your employee s payment summary as an RESC. RESC are generally all employer contributions an employee could have chosen to receive as salary and wages rather than super contributions. Therefore, SG and mandated employer contributions are specifically excluded from RESC. You can find more detailed information about RESC on the ATO website at ato.gov.au. Employment termination payments (ETP) ETPs (certain lump sums paid by an employer on termination of an employee, such as amounts of redundancy payments above the tax free limits) can t be contributed to a super fund. bt.com.au 17

20 Direct Debit Request Service Agreement By completing the Direct Debit Request that forms part of the Employer Application form, you ll be providing us with the ability to debit from your nominated account. This agreement sets out the terms on which you authorise us to deduct from your account with your financial institution when instructed via BT Online Employer. Direct Debit arrangements For super contributions received and validated by 4.00pm (Sydney time), Monday to Friday, we ll debit your nominated bank account on the same day. Where received and validated after 4.00pm (Sydney time) or where the date falls on a non-business day, we ll draw the amount on the next Business Day. A valid instruction will be any instruction received via BT Online Employer. Your responsibilities It s your responsibility to: Ensure that your financial institution allows direct debits on your nominated account Ensure that your nominated account details are correct, and if uncertain, to check with your financial institution before completing the Direct Debit Request Ensure that sufficient cleared funds are available in your nominated account by the due date to permit payments under the Direct Debit Request with us if you re uncertain when debits will be processed to your account Ensure that the authorisation given to draw on your nominated account is identical to the account signing instruction held by your financial institution where the nominated account is based Advise us if your nominated account is transferred or closed or your nominated account details change Arrange with us a suitable alternate payment method if the drawing arrangements are cancelled either by you or your financial institution. Your rights You may change your Direct Debit account details at any time via BT Online Employer. However contributions will not be processed until the new Direct Debit Request has been received (this should be printed at the time of changing account details, signed by account holders and sent to the address below). You may cancel or suspend the Direct Debit arrangement by providing written notice to us at BT Employer Relations. BT Lifetime Super Employer Plan GPO Box 2919 Adelaide SA 5001 If you have any questions or concerns about your Direct Debit Request, such as where you consider that a drawing has been initiated incorrectly, you should take the matter up directly with us by calling BT Employer Relations. Our commitment to you We ll debit the nominated account only for the amounts specified by you or the people you authorise to use BT Online Employer. We ll only vary the terms of this agreement after giving you 30 days notice. We ll keep all your records and information pertaining to your nominated account at the financial institution private and confidential, except where you have made a claim relating to a debit you claim has been made incorrectly, or wrongfully, in which case Westpac Banking Corporation ABN (as our sponsor in the Bulk Electronic Clearing System) may require us to provide this information to them in connection with your claim to the extent necessary to resolve your claim

21 Terms and conditions By completing the Employer Application form you: Consent to us or a related party (including the administrator) receiving payment or commission as set out in the Fees and other costs section of the PDS and Additional Information Booklet Agree to be bound by the provisions of the Trust Deed governing the Plan including the rules for the Plan (as amended from time to time), the policy documents (as amended) held by the Trustee and the terms of all current disclosure materials including all the provisions in the PDS and Additional Information Booklet for the Plan issued by the Trustee from time to time which are intended to be binding on you Consent to the Trustee providing your Financial Adviser with details, including investment details for the members of your plan Agree to compensate the Trustee for any loss or expense which results from incorrect or misleading information given by you in establishing or maintaining the plan, or for the failure to provide information Agree to the collection and use of data collected by the Trustee about you, your officers and employees Agree to inform your employees that we may collect their personal information as set out under Protecting your privacy in the Other information section of the Additional Information Booklet Agree that the accompanying New Employee Details form comprise part of this declaration (as applicable) Acknowledge that the Application form attached to this brochure and the declarations, conditions and acknowledgements made herein cover future applications for investment Acknowledge that if the Trustee reasonably believes a signature on a document, such as a withdrawal request, to be genuine the Trustee is entitled to rely on that signature and will not be liable for any loss you may suffer if it s later found that the signature was fraudulent Acknowledge that if the Trustee reasonably believes an or facsimile communication it receives from you, your Financial Adviser or representative is genuine, the Trustee is entitled to rely on that or facsimile communication and will not be liable for any loss you may suffer if it is later found the or facsimile communication was fraudulent Consent to the Trustee continuing to act as Trustee notwithstanding a conflict of interest arising from circumstances referred to in Related party transactions and conflicts of interest in the Other information section of the Additional Information Booklet or any other circumstances Acknowledge that information, reports and any other communication to you may be delivered electronically, and agree to the provision of information by this means Agree that any sent to coolingoff@btfinancialgroup.com will be taken to be by you and, further acknowledge that we may act on those instructions and will not be liable for any loss you may suffer if it s later found that the was fraudulent Acknowledge that we may reject any application we receive for whatever reason Acknowledge that there may be changes to the Investment Options, or other changes within BT Super or the Plan (including the addition and deletion of Investment Options) and in the case of significant changes, will be notified in the manner described in the PDS and Additional Information Booklet, including by agreeing to access this information from our website Consent to telephone conversations being recorded and listened to for training purposes or to provide security transactions Agree that if the Trustee makes an incorrect payment to you, the Trustee is entitled to deduct the amount incorrectly paid from any holding you may have with the Trustee or a related body corporate. BT Online Employer (BTOE) and BT s online electronic clearing house By completing the Employer Application form, you agree to the following terms and conditions in relation to BTOE and/or BT s online clearing house facility: A confidential Personal Identification Number (PIN) and/or password will allow you to use BTOE and you remain responsible for their confidentiality Access will be given to any person who uses your PIN or password or complies with any other security procedure from time to time. Any action by that person will be taken to be done by you We may vary the terms and conditions of using BTOE at any time, with or without a notice as we think appropriate We may suspend or cancel your ability to transact via or use BTOE at any time without notice You must tell us immediately if you lose your PIN or password or think an unauthorised person has knowledge of it You agree to release, discharge and indemnify us and other members of Westpac Banking Group from and against all liabilities that are suffered by you or suffered by or brought against us (or other members of Westpac Banking Group), arising out of BTOE. bt.com.au 19