Atwood Oceanics Australia Superannuation Plan sub-plan of The Executive Superannuation Fund

Transcription

1 Atwood Oceanics Australia Superannuation Plan sub-plan of The Executive Superannuation Fund ACCUMULATION DIVISION INCORPORATED INFORMATION Prepared: 11 September 2012 The issuer and Trustee of the Atwood Oceanics Australia Superannuation Plan sub-plan of The Executive Superannuation Fund (ABN: ) is The Trust Company (Superannuation) Limited (ABN: , AFSL No: ) Address: PO Box 361, Collins Street West VIC Ph: (03) , Fax: (03) The Administrator of the Atwood Oceanics Australia Superannuation Plan sub-plan of The Executive Superannuation Fund is KPMG Superannuation Services Pty Limited (ABN: , AFSL No: ) Address: PO Box H67, Australia Square NSW Ph: (02)

2 The information in this document forms part of the Product Disclosure Statement ( PDS ) for members in the Accumulation Division of the Atwood Oceanics Australia Superannuation Plan sub-plan of The Executive Superannuation Fund ( Fund ), dated 11 September The Atwood Oceanics Australia Superannuation Plan is referred to as the Plan in this document. The information provided in the PDS and this Incorporated Information is a summary of the benefits and terms and conditions of the Plan including on transfer of members to the Plan s Personal Division (after ceasing employment with Atwood Oceanics Australia Pty Limited or any other participating employer of the Plan ( Employer ), however, the terms of the trust deed governing the Plan have precedence over anything in the PDS and this Incorporated Information. The PDS and Incorporated Information provides general advice only and does not take into account your individual financial situation, circumstances or needs. You should take these into account when making decisions about your benefit in the Plan, and consult a financial adviser where required. All parties named in the PDS and Incorporated Information have consented to being named in the form and context in which they have been named and have not withdrawn their consent prior to printing of the PDS and Incorporated Information. Any statements attributable to third parties have also been consented to by those parties. 2

3 0BContents Section 1. Super and your benefits Part A: Contributions and rollovers 4 Part B: Withdrawals 9 Part C: Other important benefits and features 14 Section 2: Risks of investing in super 16 Section 3: How we invest your money 18 Section 4: Fees and costs 24 Section 5: How super is taxed 28 Section 6: Insurance in your super 32 Section 7: Other information 35 Further information and how to contact us 37 3

4 Section 1: Super & your benefits Part A: Contributions and rollovers This is a summary only based on current laws and is subject to change. Refer to for more information about contributions limits ( caps ) and taxes relating to superannuation. Concessional contributions Concessional contributions include any Superannuation Guarantee (SG) contributions made by your Employer on your behalf, and any additional contributions your Employer may make and contributions you choose to make from your pre-tax salary (salary sacrifice contributions). Contribution types Superannuation Guarantee contributions and contributions made by your Employer In general, your Employer contributes an amount equal to 13% of your Ordinary Time Earnings each year to the Plan. These contributions meet your Employer s requirement to contribute at least 9% (increasing to 12% in the future) of your Ordinary Time Earnings, up to a prescribed maximum in superannuation guarantee legislation. Under SG legislation, employers are required to pay the 9% SG contributions on a quarterly basis by certain prescribed dates as follows: Quarter July September October December Required payment date 28 October 28 January To assist your additional employer to make contributions to the Plan, you can obtain a Standard Choice Form with the details regarding the Plan already filled in for you from the Plan website, or by contacting the Plan (contact details back page). A guide with further information in relation to how contributions can be made by external employers is also available by contacting the Plan. If you give this information to your additional employer, they will be able to contribute to the Plan on your behalf. If your other employer is subject to Choice of fund legislation, it will generally be required to implement your request. However you should contact your other employer for more information about this. Salary sacrifice contributions Your Employer may agree with you to make additional voluntary superannuation contributions to the Plan on your behalf in lieu of pre-tax remuneration (called salary sacrifice contributions ). These contributions are concessional contributions. To make salary sacrifice contributions to the Plan, you must contact your payroll contact from your Employer, or alternatively, contact the Plan Administrator (contact details on back page). Please note that while salary sacrifice contributions may provide some tax advantages, they will count as income when assessing your eligibility for the Government co-contribution, tax deductibility of personal contributions, spouse contributions rebate and certain welfare benefits. Consider your own personal circumstances and obtain advice from an appropriately qualified adviser about how salary sacrifice contributions may affect you. January March April - June 28 April 28 July Superannuation Guarantee contributions from other employers If you have a second job (e.g. you work in a bar at night or on the weekend), you can request that this employer pay your superannuation contributions into the Plan. 4 Limits on concessional contributions Concessional contributions (which include your SG, additional employer and salary sacrifice contributions) are limited to $25,000 per individual for each financial year (subject to indexation). The limit applies across all superannuation funds to which concessional contributions are made, regardless of age. The $25,000 limit will be periodically increased in line with Australian Weekly Ordinary Time Earnings ( AWOTE ) in $5,000 increments.

5 Concessional contributions made up to the $25,000 limit will ordinarily be subject to tax payable by the Plan at the rate of 15%, deducted by the Fund. (Note: the Government has proposed an increase in the concessional rate of tax for individuals earning over $300,000 per year. For further information go to the ATO website or consult a taxation adviser). Any concessional contributions made in excess of the $25,000 limit will be subject to tax at the rate of 46.5%. The liability for the excess tax (that is, the tax in excess of the concessional rate which ordinarily applies) will be levied on you personally by the ATO, i.e. you will receive a notice from the ATO requesting payment of the excess tax. However, on receipt of the notice, you can nominate a superannuation fund to release monies to pay the liability. In addition, any excess contributions you make above the limit will be counted towards your nonconcessional contribution limit (see below). Note: the Government has proposed that excess concessional contributions up to a certain amount can be returned to a member in limited circumstances. For further information go to the ATO website or consult a taxation adviser. Amounts excluded from the concessional contributions cap Some amounts that can be contributed or transferred to superannuation do not count towards your concessional contribution cap including: Rollovers (including those from an overseas superannuation fund) subject to some special rules for any untaxed amounts; and Government co-contributions. See information published by the ATO at for more information regarding the concessional contributions cap. Non-concessional contributions Non-concessional contributions are contributions you make to superannuation from your after-tax salary. You can make up to $150,000 of nonconcessional contributions to superannuation each financial year. This limit will be maintained at six times the $25,000 (indexed) cap on concessional contributions (see above). If you are under age 65, you can average this limit over three years, i.e. you can make contributions of $450,000 in one year, provided you do not make any additional nonconcessional contributions for the following two years. Contributions made up to the $150,000 (or $450,000) limit will not be subject to tax. Any contributions in excess of the limit will be taxed at the rate of 46.5%. The liability for this tax will be levied on you personally by the ATO. You must then nominate a superannuation fund to release monies to pay the liability. Any excess contributions you make during a year that, in total, are above the limit may remain in the Plan. Where you make a contribution in excess of the 3-year limit (if you are under age 65 on 1 July of the relevant financial year) or, otherwise, the 1- year limit, the amount in excess of the limit will be returned to you, as it cannot be accepted by the Plan. The amount returned may be adjusted for investment fluctuations and reasonable expenses. You can make non-concessional contributions to the Plan on a one off basis at any time, or on a regular basis. You can change your ongoing election to make non-concessional contributions quarterly. To do so, contact the Plan (contact details on the back page). The Plan does not monitor whether your nonconcessional contributions (over a year) will result in you exceeding your cap. It is your responsibility to monitor your ongoing contributions to the Plan for tax purposes. Other amounts measured against the nonconcessional contributions cap Other amounts that count towards your nonconcessional contributions cap include: Any excess concessional contributions you make; The non-taxable portion of any benefit transferred from an overseas superannuation fund; and Contributions made to your account by your Spouse. Amounts excluded from the nonconcessional contributions cap Some amounts that can be contributed or transferred to superannuation are not counted towards your non-concessional contribution cap. They include: Rollovers from within the superannuation system; The taxable portion of a benefit transferred from an overseas superannuation fund. Note, the untaxed portion will count towards your non-concessional limit; 5

6 Government co-contributions; Proceeds from the sale of qualifying small business assets which have been held for 15 years or are subject to the CGT retirement exemption (subject to a lifetime limit which varies from year to year); and Settlements for personal injuries resulting in permanent disablement made to the Plan within 90 days of receiving the payment. See information published by the ATO at for more information regarding the non-concessional contributions cap. Inability to apply contributions without a Tax File Number ( TFN ) You or an employer will be unable to make any contributions to the Plan if we have not been provided with your TFN. The law does not allow us to accept or retain member contributions if we do not have your TFN, and the Trustee has decided that employer contributions will not be permitted if we do not hold your TFN to more effectively manage the Fund s tax liabilities. Any contributions that you attempt to make to the Plan will be returned to you within 30 days if you do not provide your TFN to the Plan, after taking into account any allowable adjustments for investment fluctuations and reasonable costs. You can provide your TFN by contacting the Plan Administrator (contact details on the back page). Your Employer is required to automatically provide your TFN to the Plan, however this may not always occur. You should ensure that the Plan holds your TFN. You can provide your TFN by contacting the Plan Administrator (contact details on the back page). Eligibility to contribute to superannuation Any person under age 65 may contribute to superannuation, regardless of whether or not they are employed. From the ages of 65 to 69, you must have worked at least 40 hours during a continuous 30- day period during the financial year ( work test ) in order to be able to make a contribution to superannuation. However, mandated employer contributions are not subject to the work test. You cannot make personal contributions to superannuation past the age of 74 (contributions to your account by a person other than your employer cannot be made past the age of 70). Generally, from age 75, no contributions other than award or compulsory employer contributions can be made to superannuation. Contributions made to the Plan in contravention of these eligibility rules must be rejected or refunded by the Trustee in certain circumstances. A refund may be adjusted for any allowable investment fluctuations and reasonable costs. Government co-contributions Some members of the Plan may be eligible to receive the Government co-contribution. The Government co-contribution applies to nonconcessional contributions made by low and middle-income earners. The Government co-contribution matches eligible personal non-concessional contributions made by qualifying low and middle-income earners, up to a specified amount. The Government cocontribution is paid annually to qualifying low and middle-income earners superannuation funds. The Government has announced that the maximum co-contribution for the 2012/2013 financial year is $500 and is available to people earning an assessable income plus reportable fringe benefits and reportable employer superannuation contributions of $31,920 or less. It has also been announced that the maximum co-contribution amount phases out completely for incomes of $46,920. The Government co-contribution (the amount contributed by the Government) does not count towards either your concessional or nonconcessional contribution caps. Refer to to determine eligibility criteria for the Government co-contribution (including income thresholds and the available cocontribution amount) applicable from year to year. How to contribute to the Plan SG and salary sacrifice contributions (where applicable) are made automatically to the Plan by your Employer. All other contributions made to the Plan must generally be made by cheque, payable to The Trust Company (Superannuation) Limited ATF The Executive Superannuation Fund. Cheques should be accompanied by a Contribution Form (available on the Plan website or by contacting the Plan), detailing your membership number, name and the type of contribution employer SG, member after-tax, spouse contribution etc. Contributions cannot be made to the Plan electronically. You may be required to provide additional information in respect to other amounts that you wish to 6

7 contribute to superannuation (e.g. sale of small business proceeds). Contribution Splitting You can request that up to 85% of your concessional (SG, employer and salary sacrifice) contributions made during a financial year are split with your spouse, including a de facto spouse. This is subject to a maximum of your concessional contributions limit. The Trustee may also make whatever adjustments to the splittable amount it considers necessary or appropriate (for example, to meet any tax liabilities relating to your benefits). You are unable to split non-concessional contributions, your previously accumulated account balance, previously rolled over amounts or employment termination payments paid into your superannuation account with your spouse. In general, you can apply to split contributions made to the Plan during the financial year after the end of each financial year. You can only split your contributions with your spouse once each financial year. Where you are terminating your membership of the Plan and are rolling over your entire benefit to another superannuation fund, you can request to split the contributions made in the current financial year immediately prior to your exit from the Plan. Your applications to split the contributions made during the year and to rollover your entire benefit to another Plan must be made together. The contributions that you split with your spouse can be transferred to your spouse s account in a superannuation fund of which your spouse is a member. Your spouse must be under the age of 65, under their preservation age or aged between their preservation age and 65 and not permanently retired in order to be able to receive split contributions. If your spouse is between their preservation age and 65, they must submit a declaration to the Plan with your splitting application, stating that they are still gainfully employed either on a full-time or part-time basis and are not permanently retired. Contribution splitting may provide tax planning opportunities where superannuation benefits are withdrawn prior to age 60, or provide superannuation benefits to a spouse who is not working. You may wish to discuss the advantages of contribution splitting with a licensed or authorised financial adviser to determine whether splitting contributions with your spouse is appropriate for you. To request to split contributions, contact the Plan (contact details on the back page). The Trustee may establish rules or policies in relation to contribution splitting from time to time at its discretion. Rolling over into the Plan If you have benefits in another superannuation fund, Retirement Savings Account or Approved Deposit Fund, you may choose to transfer these into the Plan. Such amounts will accrue earnings as per your other benefits in the Plan. Advantages of rolling over benefits into the Plan may include: The Plan may have lower administration fees than the current superannuation fund, Retirement Savings Account or Approved Deposit Fund where your benefit is currently located; and You only pay administration fees to one fund as a consequence of consolidating your benefits. To roll over other superannuation benefits that you may have to the Plan, refer to the guide titled How to rollover into the Fund, available on the Plan website or by contacting the Plan (contact details on the back page). The guide contains instructions on how to roll over your superannuation benefits to the Plan. You may incur fees or lose benefits if you withdraw benefits from your other fund (contact your other fund for more information). UK Pension Transfers The Fund is registered with the UK s HM Revenue and Customs as a Qualifying Recognised Overseas Pension Scheme ( QROPS ) (reference number QROPS/500104). As such, you can elect to transfer any monies you hold in a UK pension fund into the Plan. If you are considering such a transfer, you should be aware that such a transfer is subject to complex rules (including guidance issued by relevant UK authorities which may change from time to time) and may have significant tax implications depending on your personal circumstances. There may be other taxation implications for any lump sum transferred from an overseas fund depending on your personal circumstances. As such, members should seek appropriate advice prior to considering overseas transfers and in particular, amounts that are in excess of the nonconcessional contribution cap. 7

8 Up to date information relating to UK pension fund transfers is available by contacting the Plan (see contact details on the back page). Other payments into the Plan Other payments may also be made into the Plan, for example, disability settlement amounts, foreign sourced superannuation (other than UK Pension Transfers) and the proceeds from the sale of a small business. The rules relating to the transfer of other amounts into the Plan are complex. We recommend you seek advice (including taxation advice) from an appropriately qualified adviser. 8

9 Section 1: Super & your benefits Part B: Withdrawals Withdrawing benefits from superannuation The preserved component of your superannuation benefit must remain within the Australian superannuation system, generally until your permanent retirement from the workforce after you reach your preservation age. Your preservation age is determined in accordance with the following: Date of birth Preservation age Before 1 July July June July June July June July June After 30 June From 1 July 1999, all superannuation contributions (including member contributions) and earnings are preserved. Any component of your benefit that was non-preserved at 1 July 1999 will continue to be non-preserved and can be taken in cash at any time. Your ability to claim preserved benefits other than at retirement (as described above) is restricted, however, the law does allow for the release of benefits where you are an Australian citizen, New Zealand citizen or permanent resident and otherwise satisfy a condition of release, including as follows: When you reach age 60 and cease an employment arrangement; When you reach age 65; When you die; When you suffer from a terminal medical condition as defined in superannuation legislation; When you have ceased gainful employment with your Employer and your account balance is less than $200; If in the Trustee's opinion you are "permanently incapacitated" in accordance with superannuation legislation; If the Trustee approves the early release of preserved benefits on the grounds of severe financial hardship. Should you wish to apply 9 for a benefit on these grounds, the application form is available on the Plan website, or by contacting the Plan (contact details on the back page); If the Department of Human Services ( DHS ) determines preserved benefits should be released on pre-defined specified grounds ( compassionate grounds ), such as to cover palliative care or funeral costs; or Where the law otherwise permits (for example, to satisfy an ATO Release Authority). The Trustee may also allow the payment of your benefit in the form of a Transition to Retirement Pension, once a member has reached their preservation age, but chooses to continue employment. See the Plan s Pension PDS for more information, available by contacting the Plan Administrator (contact details on the back page). Different rules apply to temporary residents. Some (but not all) of the conditions of release outlined above apply to temporary residents (e.g. death, permanent incapacity) and a former temporary resident may be able to access their superannuation benefits as a Departing Australia Superannuation Payment ( DASP ) on permanently departing Australia and expiry of their visa. More details are available by contacting the Plan Administrator (contact details on the back page). Withdrawing benefits from the Plan Whilst employed by your Employer While you are still employed with your Employer you can transfer some or all of your benefits to an alternative superannuation plan at any time, provided the following conditions are met: You have not rolled over benefits from the Plan within the last 12 months; and If you are rolling over part of your benefit, your remaining account balance within the Plan will be at least $5,000. If a member chooses to utilise this feature, the Trustee must be satisfied that you have received or know you have access to all the information you need about your entitlements. You should be aware that the transfer of your benefit to another fund may have consequences such as the loss of insurance cover and employer subsidisation of fees and costs under the Plan.

10 A standard form and standard proof of identity requirements apply when transferring benefits between superannuation funds. Upon the receipt of all necessary information, superannuation funds have a maximum of 30 days to transfer benefits, however a longer period may apply in the case of illiquid investments. Additional information may be required in the case of a request to transfer benefits to a self managed superannuation fund. Any partial payment of superannuation benefits from the Plan must be withdrawn from the exempt (tax-free) and taxable components in proportion (see the Taxation section of this Incorporated Information for more information about these components). The Trustee is required to carry out proof of identity procedures before paying a benefit in cash (lump sum or pension payments) or purchasing a superannuation pension. The requirements arise under the Government s Anti Money Laundering and Counter Terrorism Financing (AML/CTF) legislation. These requirements may also be applied by the Trustee from time to time in relation to the administration of your superannuation benefits as required or considered appropriate under the Government s legislation. You will be notified of any requirements when applicable. If you do not comply with these requirements there may be consequences for you, for example, a delay in the payment of your benefits. If any further information is required from you to enable a benefit payment to be made, you will be notified. Upon termination of employment with your Employer Upon termination of employment with your Employer, your benefit will automatically be transferred to the Personal Division of the Plan (unless you are an insurance only member with no account balance). Your chosen investment option(s) will be maintained. However, the Personal Division has some notable differences from the Accumulation Division. Your Death and TPD insurance cover will cease upon retirement or termination of employment and transfer to the Personal Division. The Personal Division does not provide insurance cover. Your Employer will no longer meet any part of your fees (they are deducted from your account). You will need to ensure that you maintain a sufficient account balance for the deduction of these fees. UK Pension Transfer amounts If you transfer benefits from a UK pension fund into the Plan, withdrawal restrictions may apply to satisfy requirements of the relevant UK authorities. For further information, contact the Plan (contact details on the back page). When you die nomination of beneficiaries You can nominate those persons whom you would prefer to receive your benefit in the event of your death. You should notify the Trustee whenever you decide to alter your beneficiary nomination. The Plan offers you two types of beneficiary nominations to allow you to confirm your intentions for the payment of the benefit from the Plan upon your death. The two types of nominations are as follows: 1. Non-lapsing Binding beneficiary nominations; and 2. Discretionary beneficiary nominations. These nominations apply to lump sum payments only and will apply to any benefits you accrue in the Plan until such time as the nomination expires, is revoked or replaced with another valid and effective nomination. A summary of each type of beneficiary nomination is outlined below. Please consider each type of nomination and, where appropriate, seek qualified estate planning, financial or taxation advice, prior to choosing the one which is right for you. Non-lapsing Binding beneficiary nomination You can elect to make a non-lapsing binding death benefit nomination, which means that upon your death, the Trustee is obliged to pay any remaining account balance to the person(s) you have nominated provided the nomination is valid and effective at the date of death. With a non-lapsing binding death benefit nomination, the nominated individuals must be either a dependant or your legal personal representative. A non-lapsing binding nomination cannot be made on your behalf under a Power of Attorney. To be accepted, your non-lapsing binding nomination must be witnessed by two individuals who are over the age of 18 (and not your nominated beneficiaries). A valid nonlapsing binding death benefit nomination remains 10

11 effective for as long as you are a member of the Plan unless (after you give the nomination) you: Marry; or Enter into a defacto or like relationship with a person of either gender; or Separate on a permanent basis from your spouse or partner; or Have a child with a person other than your spouse or partner. If any of these circumstances occur, the Trustee must pay your death benefit to your legal personal respresentative. You can amend or revoke your non-lapsing binding nomination at any time. Any amendment or revocation must also be in writing and signed before two witnesses (as described above). Where a non-lapsing binding death benefit nomination is not validly made or is no longer effective (for example, under government legislation, the Trust Deed or rules made by the Trustee at the time of death), the death benefit becomes payable to the Member s personal legal representative. To the extent that a non-lapsing binding death benefit nomination nominates some (but not all) individuals who are not a dependant or legal personal representative, the proportion of the death benefit applicable to these individuals must be paid to the legal personal representative. The Trustee may, at any time, withdraw its consent to members giving non-lapsing binding nominations. This may affect any existing nonlapsing binding nominations held by the Trustee, where the Trustee considers appropriate or necessary. If there is any other information you reasonably need to understand your right to make a non-lapsing binding Nomination, please contact the Plan Administrator (contact details on the back page). Discretionary beneficiary nomination By utilising a discretionary beneficiary nomination, you may nominate a dependant and/or legal personal representative to receive your benefit within the Plan upon your death, however, the Trustee has the discretion to pay your benefit to whom it believes is the most appropriate recipient. Whilst full consideration is given to your wishes when utilising a discretionary beneficiary nomination, it is important to realise that, where you have dependants or legal personal representative, the Trustee is required, under the Fund s Trust Deed, to pay the benefit to your dependants or legal personal representative (estate) in such proportions as the Trustee sees fit. General Information about nominations In relation to a member, a dependant includes the spouse of the member, any children of the member or the member s spouse, any person financially dependent on the member and any person with whom the member has an interdependency relationship. A spouse may include person to whom you are legally married or any other person recognised by law and the Fund s trust deed as your spouse. Two people have an interdependency relationship if: They have a close personal relationship; and They live together; and One or each of them provides the other with financial support; and One or each of them provides the other with domestic support and personal care. If two people have a close personal relationship but the other criteria above are not satisfied due to the fact that one person suffers from a physical, intellectual or psychiatric disability, they may still have an interdependency relationship. Note: for taxation purposes, a child aged 18 or more is not a dependant (unless financially dependent on the member or interdependent). In the situation where you do not have any dependants or legal personal representative, the Trustee has the discretion to pay the benefit to a third party who is a non-dependant. In making a payment to a non-dependant, the Trustee takes into account your personal circumstances at the time of your death in making its decision, however, the Trustee may distribute the benefit to individuals that you have not nominated. It should be noted that different tax treatment applies to death benefits paid to a non-dependant of the deceased. For tax purposes, a nondependant includes a child aged 18 or more (unless the child is otherwise financially dependent or interdependent). For more information about the taxation of benefits, see the Taxation section of this Incorporated Information Booklet. If you are unsure which nomination is right for you, seek professional advice. Furthermore, it is always advisable to make a will. If you would like to do so, you should consult a solicitor or the office of the Public Trustee. You can update your nominated beneficiaries at any time by completing a Nomination of Beneficiary Form, which is available online via the Plan website ( 11

12 In the case of lump sum death benefits, you may also receive an anti-detriment payment (refer to Section 5 of this document for more information). Splitting superannuation upon relationship breakdown Superannuation benefits are treated as property when deciding a financial settlement in the event of marriage breakdown or a breakdown of other recognised relationships (breakdown). You can enquire about your benefit in the Plan for the purposes of considering a financial settlement in the event of breakdown. Provided certain requirements are met, your spouse can also enquire about your superannuation. Your spouse may request information from the Plan regarding your benefits in the Plan, without your knowledge or consent. The Trustee is restricted by legislation from informing you about such an enquiry from your spouse. As part of a financial settlement in the event of breakdown, your benefit in the Plan can be split between you and your spouse. This must be by instruction to the Trustee via a Superannuation Agreement between you and your spouse or by a court order. Note: As a result of reforms to Federal Government legislation, splitting of superannuation benefits may also occur when de facto relationships (including same sex relationships) breakdown. The rules are complex. For more information, contact the Plan Administrator (contact details on the back page) and seek advice from a legal adviser. Pensions The Plan s Pension Division offers members the ability to take out an account based pension (Superannuation Pension) upon retirement. A Superannuation Pension allows you to receive your superannuation benefits as an income stream, as opposed to one lump sum payment. Superannuation Pensions are highly flexible. You can select the frequency of your pension payments, as well as the size of the pension payments you wish to receive, provided government limits are met. Except for Transition to Retirement Pensions, you can also commute (end your pension and take the remaining assets as a lump sum) or take a portion of your account balance as a lump sum, at any time (subject to tax rules). Your Superannuation Pension will last until the assets supporting the pension are exhausted. The amount of assets you begin the pension with, the size of the pension payments you select, whether or not you withdraw any lump sums (where permissible) and the investment returns your account balance earns will all affect how long your pension lasts. You can invest the assets supporting your pension in one of the Plan s four investment options available to pensioners. Upon your death, pension payments can be continued to a dependant (subject to government restrictions applicable to the payment of pensions to children), or can be paid out as a lump sum to a dependant or non-dependant. If you have passed your preservation age but have not yet fully retired, you can take out a Transition to Retirement Pension, which is a Superannuation Pension that is subject to additional limits, including that it is unable to be commuted until you retire (except in very limited circumstances). For further information regarding the pensions available from the Plan, see the website or contact the Plan Administrator for a copy of the Pension PDS (contact details on the back page). You should consider this PDS, issued by the Trustee, before making a decision about whether to acquire a pension. We also recommend you obtain appropriately qualified advice. Your contact details with the Plan It is important that you keep the contact details that the Plan has for you up to date. If the Plan loses contact with you, your benefit in the Plan may be transferred to the Fund s nominated Eligible Rollover Fund ( ERF ) or to the ATO (see below for further details). To stop this happening, you simply need to keep the Trustee informed if you change address or other contact details. You can update your contact details on the Plan website or by contacting the Plan directly (contact details on back page). Eligible Rollover Fund The Trustee has selected the Super Safeguard Fund ( SUSA ) as the Fund s nominated Eligible Rollover Fund (ERF). An ERF is a fund designated by the Australian Prudential Regulation Authority ("APRA") to receive and invest the entitlements of superannuation members in certain circumstances. Subject to any requirement on the Trustee to transfer accumulation benefits to the ATO, your benefit may be transferred to SUSA if: 12

13 Your benefit in the Plan falls below $1,000, or You become a "lost member", where two pieces of mail are returned to sender and the Plan no longer has updated contact details for you and is otherwise unable to contact you. Note: if your benefit is transferred to the SUSA any insurance cover that you may have will cease as at the date of transfer. Once your benefit has been transferred to the SUSA or the ATO, you will have no entitlement to benefits from the Plan. If your benefit is transferred to SUSA, you will become a member of SUSA and be subject to its governing rules. If the Trustee holds your current address or contact details, you will be provided with a PDS from SUSA upon transfer of your benefit to them. The SUSA PDS will outline the operational and membership details of SUSA. The investments, fees and costs in relation to the SUSA will be different from those of the Plan. In addition, SUSA does not offer insurance benefits in the event of death or disablement. As such, apart from the grace period for Death and TPD cover described in Section 6 of this Incorporated Information, on leaving the Plan, any insurance benefits you may have will cease at the time your benefit is transferred to the SUSA. Members wishing to locate their benefit after it has been transferred from the Plan, or members who have any enquiries on the nominated ERF, should contact SUSA at the following address: Postal address Super Safeguard Fund GPO Box 3426 MELBOURNE VIC Unclaimed Money Under Federal Government (Unclaimed Money) legislation, there are a number of circumstances in which superannuation must be paid to the Australian Taxation Office as unclaimed money including inactive benefits of an uncontactable member who has reached age 65 and lost members with: Account balances of less than $200; or Accounts which have been inactive for a period of five years and there are insufficient records to ever identify the owner of the account. A former temporary resident s superannuation benefit must also be paid to the ATO as unclaimed money where it has been at least six months since they have departed Australia and their visa has lapsed AND the ATO issues a notice to the Fund requesting the benefit be paid to the ATO. If this happens, you have a right, under the Government s legislation, to claim your super money directly from the ATO (subject to the applicable tax rates). Further information about unclaimed money can be found obtained from If you are a former temporary resident whose superannuation benefits are transferred to the ATO as unclaimed money, you may not be notified of this or receive an exit statement after the transfers occurs. The Trustee will rely on relief provided by the Australian Securities & Investments Commission (ASIC) Class Order [CO 09/437] which says, in effect, that the trustee of a superannuation fund is not obliged to meet certain disclosure requirements in relation to non-residents that have ceased to hold an interest in the fund as a result of the payment of unclaimed superannuation to the Commissioner of Taxation. If you require any further information, contact the Plan Administrator. 13

14 Section 1: Super & your benefits Part C: Other important benefits and features Allocation of investment returns to your account The Trustee has adopted a policy of fully allocating the Plan s investment earnings (net of relevant taxes, fees and costs) to members accounts, based on the investment performance of the investment options in which a member participates. As such, it does not hold any investment fluctuation reserves. The net earnings of your chosen investment option(s) are based on the option s actual investment earnings, less relevant taxes, fees and costs, and are equal to the net investment return. (For details regarding fees and costs deducted from earnings, see Section 4 of this Incorporated Information). Net earnings are allocated to your account on a pro-rata daily basis and are compounded annually each 30 June, when you elect to change investment options or close your account, based on monthly earning rates declared by the Trustee. The net earnings of the Plan s investment options are subject to normal investment market movements and future investment performance cannot be guaranteed. As a result, the earning rate of any investment option may be positive or negative. Interim crediting rates Members who close their account before 30 June, transfer to another category of membership (eg. the Pension Division), make a partial withdrawal or switch investment options are entitled to an interim crediting rate. The interim crediting rates change over time and reflect the investment experience of the Plan at the time of the interim rate calculation, less any applicable taxes, fees and costs. Interim crediting rates are determined by the Trustee at such times as deemed relevant by the Trustee. Interim crediting rates may be positive or negative. How do I know the value of my account and benefits in the Plan? You will be provided with an Annual Member Statement showing your account and benefit entitlements in the Plan as at the Plan s Annual review date of 30 June each year. This information is also available on the Plan website or by contacting the Plan Administrator (contact details on the back page). 14 Privacy This privacy statement relates to the collection, use, storage and disclosure of personal information about you in all communications with the Trustee. The Trustee collects personal information about you to: Process your enrolment in the Plan (in accordance with the Superannuation Industry (Supervision) Act 1993); Administer and manage your participation in the Plan and communicate with you about the Plan; Provide you with information about other products or services that may be of assistance to you; and Facilitate our internal business operations, including fulfilment of any legal requirements. If you do not provide the personal information sought from time to time, it may mean that your enrolment in the Plan cannot be processed or that services cannot be provided to you. The Trustee may disclose your personal information (as necessary): To its agents, contractors or third party service providers that provide financial, administrative or other services in connection with the operation of the Plan or its business, for example where a fund administrator is appointed; To your financial adviser, or sponsoring employer, if any, unless you tell us not to; To an insurer where insurance services are arranged in connection with your enrolment in the Plan; To any new Trustee as may be appointed from time to time; To any party which holds amounts on your behalf which will be transferred to the Plan; and Where the law requires or permits us to do so (e.g. to law enforcement agencies or other government agencies such as AUSTRAC, the agency responsible for monitoring anti-money laundering and counter-terrorism financing legislation), or if you consent. By becoming a member of the Plan, you agree to the Trustee collecting, using, storing and

15 disclosing personal information about you in accordance with this privacy statement. For a further explanation of our privacy practices and how we comply with privacy laws, please contact the Plan for a copy of the privacy policy. Access to information Under privacy laws, you are entitled to request access to personal information held by the Trustee about you and to ask the Trustee to correct this information where you believe it is incorrect or out of date. No fee will be charged for an access request. You may be charged the reasonable expenses incurred in giving you any information you have requested (e.g. searching and photocopying costs). To access personal information about you or to obtain more information about your rights or our privacy policy, please contact the Plan Administrator (contact details on the back page). Member online access and the Plan website You can access your account details online through the Plan website at To log on to the website, you need to provide your member number in the Plan and your log-in PIN number. You will be provided with your member number and initial PIN details upon joining the Plan. Alternatively, you can also request your initial PIN by contacting the Plan Administrator via phone or (see details back page). Your should contain the subject line PIN request and provide your name, date of birth, residential address and member number in the Plan in the body of the . Your PIN will then be ed to you along with instructions to log onto the website. You can personalise your password when you log onto the website for the first time. Individual member account details You can view the following details regarding your account online and confirm transactions that may occur from time to time: Your insurance details; and Details regarding your chosen investment option(s). You can also update/provide certain details regarding your account such as: Your address details; Your nominated beneficiaries (however please note that you can only update nonbinding nominations via the website). Please see pages 10 to 12 of this Incorporated Information for more details regarding beneficiary nominations; and Your TFN. You can also access general information about the Plan on the website, such as investment updates, as well as other product information. The website is provided by the Administrator to the Plan, KPMG Superannuation Services Pty Limited (AFSL No ). With the exception of the Plan documentation issued by the Trustee which can be accessed via the website (such as this Incorporated Information), the Trustee is not responsible for the information provided on the website. More information in relation to the website can be obtained from the Plan (contact details on the back page). Policy Committee Members are required to elect a Policy Committee, in accordance with superannuation legislation governing the operation of the Fund. The role of the Policy Committee encompasses reviewing the overall management of the Fund and making any suggestions to the Trustee relevant to the Fund s operation. For information on the method and process utilised in appointing and removing representatives of the Policy Committee or for information regarding the current Policy Committee, contact the Plan Administrator (contact details on the back page). Your membership details such as your name, date of birth, the date you joined; Your up to date account balance and benefit quotes; The transaction history of your account; Your nominated beneficiaries; 15

16 Section 2: Risks of the Plan There are a number of significant risks associated with investments in superannuation funds and associated with particular investment options within superannuation funds. These include: Market risk Various economic, technological, political, legal and social factors have an effect on the value of investment markets and may affect the value of your investment in your chosen investment option within the Plan. The Trustee and the Plan s underlying investment managers seek to reduce and manage this market risk through the specific investment strategies adopted for each investment option, as described in Section 3 of this Incorporated Information. Investment risk Investment risk can be described as the variability of returns or the chance of negative returns. An investment that has a high chance of fluctuations or negative returns is considered high risk and an investment with a low chance of negative returns is considered low risk. Generally, share investments are considered high risk and cash or fixed interest investments are considered low risk. Investment risk is also affected by the length of time that an investment is held because the chance of a negative return may decrease (and the potential for higher returns may increase) the longer that an investment is held. For example, a share investment held over a period of only one year might be considered very high risk compared to a share investment held over a much longer period (say 10 years). Over the long term, highrisk investments may, therefore, lead to greater returns than low risk investments. Risks associated with various investment options may change depending on the economic environment and other external factors. This means that different asset classes perform differently at different times. For example, returns in relation to shares may increase over a period, whereas, the returns in relation to fixed interest investments may decrease over the same period of time. Should you leave the Plan or withdraw monies, fluctuations in investment returns (in addition to taxation, fees and costs) may result in you getting back less than you have contributed. The risk associated with any particular investment option will depend on the composition of the assets and underlying investments used in each investment option. See the investment profiles later in this Incorporated Information for each of the investment options available in the Plan for a general indication of the level of risk associated with each option (this is a general guide only and does not take into account your personal circumstances). The risk level shown is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option. Superannuation fund risk Risks specific to the Plan, as with any other superannuation fund, include the possibility of changes to the Plan or its internal operations such as changes to key staff involved in the management of the Plan or a disruption of its systems. The Trustee seeks to minimise these risks by taking into account the best interests of members at all times when making decisions about the Plan and maintaining a risk management and compliance framework in accordance with legislative requirements. Risk of changes in the legal environment Superannuation laws, the Corporations Act, Australian taxation laws and other laws affect the Plan and the Plan s investments. Changes in superannuation laws may affect your ability to access your benefit in the Plan. Changes in taxation laws may also affect the value of your benefit. Diversification risk The Plan offers four investment options, each with allocations to particular market sectors, with limited diversification of underlying assets. Diversification in underlying assets or investments may help you to realise your goals and potentially moderate the risk of lower investment returns. By spreading your investments across different assets classes you may reduce your exposure to risk. We recommend you consult a licensed or authorised financial adviser for assistance with how to manage your investment risk having regard to your personal objectives, situation or needs. 16

17 You can help manage your investment risk and the volatility of returns by diversifying your investments and by giving consideration to and selecting an investment option suited to your personal circumstances (including your investment timeframe). 17

18 . Section 3: How we invest your money To provide investment flexibility, you can choose how your account balance and future contributions to the Plan are invested. There are four investment options available to members: The Aggressive option; The Balanced option; The Conservative option; and The Cash option. These options are designed to suit different time horizons and levels of risk. Each option has its own investment objectives. These objectives are not a promise or guarantee of any particular benefit or return but are used to measure the performance of the Plan s investments. You need to choose the one that best suits your circumstances. The investment options are described in more detail on the following pages, and in the Member Investment Choice Brochure issued by KPMG Superannuation Services Pty Limited available on the website or by contacting the Plan (see contact details on the back page). You can choose a combination of the investment options offered, however you must ensure that your total investment allocation between the four options totals to 100%. You should review your investment strategy regularly, to ensure that it continues to suit your circumstances and fits in with your overall financial plan. Investment choice for existing account balance Existing account balances in the Plan can be split between multiple investment options. You can split the investment of your existing account balance in any proportion between the Plan s four investment options. If you select more than one investment option, after your existing account balance has been invested in the proportions nominated by you, no adjustments are made to your existing balance s allocation to each option (ie. the account balance is not rebalanced so that your nominated proportions are maintained over time). This means your account balance s allocation to each option will fluctuate from time to time. 18 Investment choice for future contributions You can direct your future contributions to one of the Plan s four investment options. How often can I change my investment choice? You can change your nominated investment option(s) for your account balance or future contributions once per month. The table below shows the switching dates for 2012 and 2013, as well as the due date by which you need to return your "Investment Choice Form" to affect an investment switch. Due date of request Switch effective date 22 June June July July August August September September October October November November December December January January February February March March April April May May June June 2013 Note that changes to your investment option apply to the account balance at the time of switching and any future contributions. While there is no fee charged by the Plan for switching investment options, you should however be aware that a buy/sell spread (reflecting fees charged by the Plan s underlying investment managers for the redemption and acquisition of assets) may apply. Further details regarding buy/sell spreads are contained in Section 4 of this Incorporated Information. How do I change my investment choice? You can change your investment choice by completing an Investment Choice Form, available on the Plan website or by contacting the Plan (contact details on the back page). What if I don t choose an option? If you don t choose an investment option for your existing account balance and/or future

19 contributions when you first join the Plan, your account balance and/or future contributions will be invested in the Balanced option (the Plan s default option). Further details regarding the Balanced option are contained on page 21 of this Incorporated Information. Choosing an investment option The information contained in this Incorporated Information is general information only. It does not take into account your individual objectives, financial situation or needs. As such, you should consider your investment goals and the time your superannuation will be invested, as part of your investment choice decision. When making an investment choice, the performance of the investment options may also be considered, however, past performance is not necessarily an indicator of future performance. If required, contact a licensed or authorised financial planner before making an investment decision, to ensure that your investment choice fits in with your overall financial plan and goals. Investment of superannuation benefits between the date of a member s death and payment to beneficiaries Upon receipt of written notification of a member s death, the Trustee will invest the benefit of the deceased member into the Plan s Cash Option. This approach is intended to ensure that the final benefit paid from the Plan corresponds as closely as possible to the value of the deceased member s benefit at the time of their death. The Cash Option is invested entirely in cash assets and, as such, provides a low-risk investment vehicle which is suitable for the investment of superannuation death benefits during the short timeframe in which most death benefits are paid out from the Plan. Trustee considerations The Trustee of the Plan does not take into account labour standards, environmental, social or ethical considerations in making investment decisions or selecting underlying investment managers. Underlying investment managers may take these factors into account, however they do so in their own right and not on behalf of the Trustee. Asset Consultant The Asset Consultant to the Plan is Newport Investment Consulting Pty Ltd (AFSL ). The Asset Consultant regularly reviews the investments of the Plan and provides recommendations to the Trustee of the Plan. 19

20 The Plan s investment options Aggressive option Suitability Investment objectives This option is intended to be suitable for members seeking long term returns with high levels of volatility. To achieve investment returns (net of tax and investment fees) exceeding: Consumer Price Index ( CPI ) + 4.5% p.a. over rolling 5 year periods; and The return of the median superannuation fund high growth investment option, as measured by the SuperRatings 25 High Growth Index over rolling 5 year periods. Risk Level Potential long term return Likely variability of return Potential for negative returns High High 5 in 20 years on average Minimum Suggested Investment Timeframe Members should be invested for the long term with a minimum time frame greater than 10 years. Asset classes and Strategic Benchmark Allocations Aust Shares 57% Overseas Shares 32.6% Property 5.3% Private Equity 0.1% Aust Fixed Interest 2.0% Overseas Fixed Interest 1.5% Cash 1.5% Historical crediting rates- year ending 30 June (net of relevant fees and taxes) Five year compound average to 30 June % 11.36% % % 17.92% -0.32% p.a. Information about underlying assets utilised in this investment option is available in the Plan s Annual Report. Past performance is not a reliable indicator of future performance. 20