Salarylink. Member Guide. Commencement date 1 July 2014

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1 Salarylink Member Guide Commencement date 1 July 2014

2 Important information Contents Welcome to StatewideSuper Salarylink 3 What is super? 6 While we have taken care to ensure the information in this Member Guide is correct at the time of issue, changes may occur from time to time. Any change which is not materially adverse may be updated and made available at in Annual Reports or newsletters. Copies of updated information are available on request free of charge. You should not make commitments based on the information in this Member Guide without checking to see how the information relates to your individual situation. Contribution options boost your super 7 Two types of super 9 Your benefit options 14 Insurance options to suit you 17 Salarylink fees and other costs 24 General information 25 The Trustee is governed by, and must adhere to, the terms of its Trust Deed. In the event of any inconsistency between this Member Guide and the Trust Deed, the Trust Deed will prevail. The information contained in this Member Guide is of a general nature only and does not take into account your personal objectives, financial situation and needs. Accordingly, before acting on it you should consider these things to determine whether any advice is appropriate for you. It is recommended that you seek independent financial advice about your personal situation before making any financial decisions. Issued by Statewide Superannuation Pty Ltd ABN AFSL RSE Licensee and Trustee of Statewide Superannuation Trust ABN Making super easy for you This Member Guide contains important information that will help you understand your Salarylink membership. About your StatewideSuper accumulation account In this Member Guide, you ll find information about your Salarylink membership (your defined benefit). However, you also have a StatewideSuper accumulation account (your accumulation benefit). For information about your StatewideSuper accumulation account, please refer to the StatewideSuper Product Disclosure Statement (PDS), available from the StatewideSuper website at or by calling To the extent that this Member Guide refers to a benefit payable from your StatewideSuper accumulation account, it is a reference to the benefit payable under the StatewideSuper Division and does not form part of your defined benefit Page 2 StatewideSuper Salarylink Member Guide

3 Welcome to StatewideSuper Salarylink This Member Guide will help you make an informed decision about your super. It outlines key features and benefits of your Salarylink membership. Salarylink is closed to new entrants. A reference in this Member Guide to a StatewideSuper employer is a reference to an employer who participates in Salarylink. About StatewideSuper StatewideSuper is a local you can trust to make super easy for you! We have over $5 billion in assets and manage the super obligations on behalf of over 18,000 employers, providing flexible administration options and expert assistance. We return profits to members by providing personalised service and lowcost retirement products, as well as a comprehensive insurance range and access to a variety of online services. And we re totally committed to helping you reach your retirement goals. The StatewideSuper Advantage StatewideSuper is here solely for the benefit of our members people just like you. We re committed to ensuring that we provide you with everything you need. Help when you need it Our Client Services Officers are available to give you information over the phone when you call us on , or you can book an appointment to speak to one of our Member Solutions Advisers for a face-to-face discussion at our Member Centre, located on the ground floor at 211 Victoria Square, Adelaide. You also have the option of speaking to a Financial Planner # to help you with your super. Here s how to contact our Client Services Officers: T F W E info@statewidesuper.com.au *Financial information and advice may be provided by representatives of the Fund s Administrator and wholly owned company, Statewide Financial Management Services Limited, ABN Australian Financial Services Licence (AFSL) No or by authorised representatives of Quadrant First Pty Ltd (Quadrant First) ABN AFSL No Fees may apply for financial planning advice. StatewideSuper Salarylink Member Guide Page 3

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5 The StatewideSuper Advantage Program The StatewideSuper Advantage Program brings exclusive special offers * from South Australian businesses to your inbox each month. These offers are only available via our e-news, so if you haven t yet signed up, visit our website at * Offers available in South Australia only. Extra services for members StatewideSuper does more than look after your super! Our members have access to: Discounted health insurance with Health Partners, with a 6%^ discount across their range of health insurance products. Please note that conditions apply and more information can be found at ME Bank s range of banking products including home loans, term deposits, online and saving accounts and more Access to discounted first aid courses, kits and other products through St John SA. Want more information? Then why not call our friendly Client Services Officers on ^Premium payments must be made by direct debit from a bank account on the 1st of the month. 6% discount is inclusive of 3% discount for direct debit payment. No further discount applies. Need advice on super that you can understand? If you re looking for detailed financial planning advice, you can talk to one of our Financial Planners #. There s a fee for this service, however, all fees are agreed upon in advance and your first appointment is free and without obligation! Our Financial Planners can provide you with advice on a range of topics, including: Your super Retirement planning Investment strategies Taxation and Estate planning Debt consolidation and reduction. Remember we re here to help make super easy! That s part of the StatewideSuper Advantage! *Financial information and advice may be provided by representatives of the Fund s Administrator and wholly owned company, Statewide Financial Management Services Limited, ABN Australian Financial Services Licence (AFSL) No or by authorised representatives of Quadrant First Pty Ltd (Quadrant First) ABN AFSL No Fees may apply for financial planning advice. StatewideSuper Salarylink Member Guide Page 5

6 What is super? Superannuation (super) is the money you put aside and invest during your working life to financially support you in retirement. Retirement may seem like a long way off, but it s never too early to start planning for it. The earlier you start thinking about your retirement goals and start planning, the easier it will be for you to achieve your goals and lead your desired retirement lifestyle. Your retirement should be the time you enjoy everything you ve worked hard for and that s something to get excited about. Staying with StatewideSuper Whether you move on to another job or leave your employer, you can keep your benefit with us and continue to add employer and personal contributions and rollovers to your StatewideSuper accumulation account until retirement. When you re ready to retire, we can help with pension options to suit your situation. For further information about these options, please visit or contact us directly on We offer you a complete investment and retirement solution so that you ll have peace of mind. Track your super online To help keep track of your investment when it suits you, you have access to your super account online at On the website you ll find: Forms and documents including the latest versions of our Member Guide, PDSs and booklets available to download Calculators Statewide.On.Line, our secure online member area where you can update your details, track and/or change your StatewideSuper accumulation account investment option(s) or obtain real-time account balance information. Consolidate your super You can consolidate any super money you have in other superannuation products from previous jobs into your StatewideSuper accumulation account and save on fees and unnecessary paperwork *. * Please note that while the Trustee doesn t charge a fee for receiving money from other funds, you should check with your other fund(s) if any fees are applicable if you withdraw your money or whether you will lose benefits, such as insurance. Page 6 StatewideSuper Salarylink Member Guide

7 Contribution options boost your super Additional contributions above the required contribution from your employer are a great way to boost your super savings. Salary Sacrifice Salary sacrifice is an arrangement between you and your employer in which you choose to give up, or sacrifice, part of your before-tax salary to add it directly into your super. The sacrificed income is a superannuation contribution and is taxed at 15%. Salary sacrifice contributions effectively reduce your gross taxable salary which may assist in reducing how much income tax you may need to pay. Criteria If you re under 65 years of age, there are no restrictions to making contributions. If you re between 65 and 74, you must have worked at least 40 hours in not more than 30 consecutive days in the financial year of making the contribution. If you re aged 75 and over, we cannot accept contributions. You can only salary sacrifice with your employer s approval. Contribution limits apply. Member Voluntary Voluntary contributions are your personal contributions paid from your after-tax salary. They are reported to the ATO for the Government co-contribution. As these contributions have already been taxed as earnings (at your marginal tax rate) they are not taxed when deposited into your super account or if you withdraw your super benefit as cash when you retire. Criteria If you re under 65 years of age, there are no restrictions to making contributions. If you re between 65 and 74, you must have worked at least 40 hours in not more than 30 consecutive days in the financial year of making the contribution. If you re aged 75 and over, we cannot accept contributions. Contribution limits apply. StatewideSuper Salarylink Member Guide Page 7

8 Government co-contribution The co-contribution is a tax-free Government contribution of up to $500 to your StatewideSuper accumulation account if you have made member voluntary (after-tax) contributions to your super, provided you meet income and contribution criteria. Visit for full details about the Government co-contribution. Criteria Your total income * must be less than $34,488 paˆ to receive the maximum co-contribution (a lesser co-contribution is payable if income is less than $49,488 paˆ). 10% or more of your total income * must be from eligible employment or carrying on a business or a combination of both. You must be less than 71 years of age at the end of the year of income. You must not hold an eligible temporary resident visa in the relevant income year and you must lodge an income tax return. If you re eligible for a Government co-contribution, it will automatically be paid into your StatewideSuper accumulation account. You should refer to the StatewideSuper PDS, available from or by calling , for more information. Spouse You can also make a contribution on behalf of your spouse (to their super account) or have your spouse make a contribution on your behalf to your StatewideSuper accumulation account. This type of contribution may allow the contributing spouse to receive an 18% tax offset for contributions up to $3,000 pa where a contribution is made on behalf of a low income or non-working spouse. Criteria We cannot accept spouse contributions for you if you re aged 70 and over. To qualify for the tax offset, your spouse must not be earning an income or must have a total income * below $13,800 pa. If you would like to arrange this, please call For further information about contributions and contribution limits, please refer to the How super works booklet, available from or by calling us on * Total income for these purposes means the sum of the person s assessable income and reportable fringe benefits. Thresholds apply. ˆFigures shown are for the financial year. You should check with your tax or financial adviser before relying on these figures. Depending on the type of contributions you make there may be different taxation consequences for you. There are a number of easy ways to contribute to your account: Payroll deduction Electronic Funds Transfer (EFT) Cheque BPAY Direct bank deposit. Registered to BPAY Pty Ltd ABN Page 8 StatewideSuper Salarylink Member Guide

9 Two types of super As a Salarylink member, you have an important decision to make regarding your super contributions. You can choose how your contributions will be allocated between: Salarylink (your defined benefit), (see pages 9-12) and StatewideSuper (your accumulation account), (see page 13). You can contribute to Salarylink, your StatewideSuper accumulation account or a combination of both. As a Salarylink member, you have some of your super defined by a formula rather than linked to the market. You also have a StatewideSuper accumulation account (formerly your Marketlink account). If you cease your Salarylink contributions and decide to contribute to your StatewideSuper accumulation account only, or choose to stop your contributions, you will still be a Salarylink member (see page 12 for details). Salarylink was closed to new entrants with effect from 25 November You ll find more information related to your StatewideSuper accumulation account in the StatewideSuper PDS, available to download from the Tools section of our website at or call to have a copy sent to you. How Salarylink works Your formula based defined benefit provides some certainty for your super savings. Insurance cover includes an Income Protection benefit. You can contribute to both Salarylink and your StatewideSuper accumulation account. Your Salarylink benefit, also known as a defined benefit, is financed from your personal contributions (minimum of 1% and maximum of 10%) and those from your employer. You re not required to choose an investment strategy for your Salarylink benefit. All Salarylink contributions are pooled together, invested in the Defined Benefit option and used as required to pay members Salarylink benefits. The Defined Benefit option has the same investment strategy as the StatewideSuper MySuper investment option (see the StatewideSuper PDS for more information). Administration fees and insurance premiums are not deducted directly from your Salarylink benefit, (see Minimum Benefit Requirements on page 12). Salarylink is available to age 65. What goes into Salarylink? Concessional contributions Employer Salarylink contributions currently 6.3% * Salary sacrifice (before-tax) contributions designated as Salarylink. IN Non-concessional contributions Member voluntary (after-tax) contributions designated as Salarylink. * As determined by the Fund s Actuary to finance your Salarylink benefit (this figure may change in the future). Calculating your Salarylink benefit If you cease employment * on or after age 55, or prior to age 55 and select Option 2: Retirement super (see page 15), your Salarylink benefit is worked out using a formula based on: Your benefit percentage based on your Salarylink contribution rate x The number of years and complete months you contributed to Salarylink x Your final average salary (FAS) * If you move to casual employment you will be taken to cease employment (see page 12). StatewideSuper Salarylink Member Guide Page 9

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11 Your benefit percentage Your benefit percentage is based on your Salarylink contribution rate. Any contributions that you may make to your StatewideSuper accumulation account will not be included when working out your benefit percentage, as your StatewideSuper account is accumulation based. The higher the rate of your Salarylink contributions, the higher your benefit percentage, as you can see from the table below. Your Salarylink contribution rate (% pa) Your benefit percentage (% pa) Example: If you contribute 5% to Salarylink for one year and 6% for two years, your accrued benefit percentage would be: (1 x 15%) + (2 x 16.2%) = 47.4% Salarylink example John works full time and has contributed to Salarylink for exactly five years at a rate of 5% of salary each year. His final average salary (FAS) is $40,000. Step 1 - Calculate John s accrued benefit percentage: John s benefit percentage based on his Salarylink contribution rate 15% x The number of years and complete months John contributed to Salarylink 5 Step 2 - Using John s FAS, calculate his Salarylink benefit: = John s accrued benefit percentage 75% John s accrued benefit percentage 75% x John s FAS $40,000 = John s Salarylink benefit $30,000 What if John goes part time? If John works part time, his benefit percentage is worked out as a proportion of the full-time benefit percentage, based on the part-time hours that he works. If John worked 50% of full-time hours, his benefit percentage would be 50% of his full-time benefit percentage, as his contributions would be 50% of his full-time contributions. John s full-time equivalent FAS of $40,000 is used in the calculation. 50% x 15% (full-time benefit percentage) 7.5% x The number of years and complete months John contributed to Salarylink 5 x John s FAS $40,000 = John s Salarylink benefit $15,000 Ceasing your Salarylink contributions If you stop contributing to Salarylink, you no longer accrue a benefit percentage until you recommence contributing to Salarylink. Your Salarylink insurance will cease (see the insurance section on page 20 and 21 for further details). All future employer contributions will be made to your StatewideSuper accumulation account. If you start contributing to Salarylink again in the future your employer s contributions will again be split between Salarylink and your StatewideSuper accumulation account and you may need to provide medical evidence to be eligible for Salarylink insurance (refer to pages for more information about your insurance). StatewideSuper Salarylink Member Guide Page 11

12 Turning age 65 If you re still working at age 65 your Salarylink benefit is calculated (as at the day you turned 65) and transferred to your StatewideSuper accumulation account where it will be invested in the Cash option, unless you make an investment choice. You can make a new investment choice at any time (see the StatewideSuper How we invest your money booklet, available from or by calling us on , for more information). All future contributions will be allocated to your StatewideSuper accumulation account. Salarylink insurance ceases at age 65. If you remain employed on your 65th birthday you will be able to access your benefit in cash. For further information contact us. If you re retired or aged 65 or over there is no requirement for your StatewideSuper accumulation account benefit to be paid to you or for you to close your account. This means you can keep your money invested in super for as long as you need to. Moving to casual employment If you move from permanent to casual employment, your Salarylink benefit will be calculated at that time as if you had ceased service on the day you moved to casual employment (see page 14 for Your benefit options ) and transferred to your StatewideSuper accumulation account. You will no longer be eligible to make Salarylink contributions and your Salarylink insurance will cease. Superannuation Guarantee (SG) minimum benefit requirements Under legislation, you re required to be provided with a minimum level of employer support. To ensure this occurs, we calculate your minimum SG entitlements as follows: Your contributions to us, plus employer contributions at the full SG rate less 3% (which is allocated separately to your StatewideSuper account), plus any Government co-contribution, less any contributions tax (or other tax) payable and administration and insurance expenses, plus investment earnings. The allowance for administration costs, tax and insurance cover is 2.5% * of your salary. This allowance is different to the fees, costs and taxes applicable to your StatewideSuper accumulation account (described later in this Member Guide). Should your standard benefit as a Salarylink member, as detailed later in this guide, be less than this minimum, your benefit will be increased to ensure that you receive the minimum entitlements and to ensure that your employer meets its obligations under SG legislation. * As determined by the Fund s Actuary. This figure may change. Important lingo Final average salary (FAS) Your final average salary is the average of your superannuation salaries paid over the previous three years to the date you cease work. If you haven t been a Salarylink member for three years, it is the average of your superannuation salaries over the period that you have been a Salarylink member of the fund. Your superannuation salary is the salary figure used to work out your super entitlements. Where you re working on a part-time basis, your final average salary will be calculated using your full-time equivalent superannuation salary. Superannuation salary for Salarylink benefits Salary in relation to the calculation of Salarylink benefits means your regular wages or salary from your StatewideSuper employer. This includes any allowances paid as a regular and continuing part of your wages or salary but excludes commission, sums paid for overtime or other special services, bonuses and allowances of a non-permanent nature provided that such allowances as may be prescribed by the Trustee to be included as part of salary shall be included and such allowances as may be prescribed by the Trustee to be excluded from salary shall be excluded. SG contributions and OTE The Superannuation Guarantee (SG) is calculated on Ordinary Time Earnings (OTE). The contribution to your StatewideSuper account is 3% of OTE with the balance of your benefits to meet the SG provided via your Salarylink arrangements as outlined above. Page 12 StatewideSuper Salarylink Member Guide

13 How your StatewideSuper accumulation account works As a Salarylink member, you also have a StatewideSuper accumulation account set up in your name. You ll find more detailed information about your StatewideSuper accumulation account, including your investment options, fees and additional insurance arrangements, in the StatewideSuper PDS and additional information booklets, available to download from the Tools section of our website, at What goes into your StatewideSuper accumulation account? Concessional contributions Employer StatewideSuper contributions 3% for Salarylink members * Salary sacrifice (before-tax) contributions designated as StatewideSuper contributions Employer contributions above SG requirements. IN Non-concessional contributions Member voluntary (after-tax) contributions designated as StatewideSuper contributions Contributions made for you by your spouse. Other amounts Government co-contributions (if eligible) Rollovers or transfers Any payments received from the ATO relating to Superannuation Holding Accounts Special Account (SHASA) Refunds of no-tfn contributions tax. * Superannuation Guarantee (SG) contributions % if you re not currently making Salarylink contributions. What comes out of your StatewideSuper accumulation account? Fees Administration ($1.50 per week) Insurance premiums (if any). OUT Tax Contributions tax (15%) Excess contributions tax (if any) No-TFN contributions tax (if any). Other Benefits paid Rollovers/transfers to other super products. Any investment earnings for your StatewideSuper accumulation account are allocated via the unit price for your chosen investment option(s) and may be positive or negative. An asset-based fee and investment fees are applied prior to determining the unit price of each option. StatewideSuper Salarylink Member Guide Page 13

14 Your benefit options Ceasing employment If you cease employment, your StatewideSuper employer will notify us. You may also wish to notify us. All outstanding contributions must be received prior to the processing of any transactions from your membership. If you re under age 55 You will receive details outlining your two benefit options and a form to complete so that we know which option you ve decided to take. If we don t receive this form from you within 30 days from when we send you your benefit options, we ll transfer the Salarylink component of your Option 1: Basic super benefit to your StatewideSuper accumulation account. Your Salarylink benefit will be invested in the Cash option with effect from the date you ceased employment. You can make a new investment choice at any time (see page 16). If you re aged 55 or over You will receive details outlining your benefit and a form to complete to provide your instructions. If we don t receive this form from you within 30 days, we will transfer your Salarylink benefit (if applicable) to your StatewideSuper accumulation account where it will remain invested in the Cash option until you make an investment choice. Moving from one StatewideSuper employer to another If you re leaving one job to take up a position with another participating employer governed under the Local Government Act 1999, your Salarylink membership and StatewideSuper accumulation account may continue. Contact us for more information. Your options on leaving your StatewideSuper employer are: Keep some, or all, of your benefit with us Transfer to the StatewideSuper Pension (if applicable) Have the benefit paid to you (if applicable) Rollover to another fund. Your new employer (if applicable) can contribute to your StatewideSuper accumulation account. Contact us for more details. For information about your options for your StatewideSuper accumulation account on ceasing employment, as well as some important information you should know about accessing your benefits, refer to the StatewideSuper PDS and How super works booklet, available to download from the Tools section of our website at Your preservation age The age at which your preserved amount can be paid to you if you have retired from the workforce is dependent on when you were born. Date of birth Preservation age * Before 1 July Between 1 July 1960 and 30 June Between 1 July 1961 and 30 June Between 1 July 1962 and 30 June Between 1 July 1963 and 30 June After 30 June * If your preservation age is under 60 you must have permanently retired in order to satisfy a condition of release. The law requires that preserved or restricted non-preserved amounts stay invested in an approved superannuation arrangement unless a condition of release has been satisfied. Staying invested in super could include maintaining your StatewideSuper accumulation account, transferring to another employer s fund, a personal super fund, a rollover fund or a retirement savings account in circumstances where you cease employment with an employer. Page 14 StatewideSuper Salarylink Member Guide

15 Preserved amounts Preserved amounts (benefits over $200) are only accessible in cash if you satisfy one of the conditions permitted under superannuation law shown below: You have permanently retired from work on or after your preservation age You are aged 60 or more and you resign or retire from your current employer You are aged 65 or more The Trustee is satisfied that you are permanently incapacitated or suffer a terminal medical condition * You have compassionate grounds for applying * You suffer severe financial hardship * You die. From 1 April 2009, if you are or have ever been a temporary resident (and you are not an Australian or New Zealand citizen, or permanent resident), you can only access your super upon departing Australia if your temporary visa has ceased to be in effect, or if you suffer a terminal medical condition *, temporary or permanent incapacity or death. * As specified by superannuation law and permitted by the Trust Deed. Salarylink members Ceasing employment before age 55 If you resign or are retrenched before age 55, you have two benefit options to choose from. The two options available are: Option 1: Basic super Option 2: Retirement super. On leaving employment, all or some of your total benefit, can be retained with us or transferred to a new super fund of your choice. The various components that make up your benefit will be advised at this time. Option 1: Basic super With this option, you re entitled to the higher value of A or B below: A The balance of your StatewideSuper accumulation account, plus Double (2 x) your personal contributions (up to 5%) to your Salarylink benefit, allocated with investment earnings (currently at the net rate of return for the Defined Benefit option), plus Any contributions over 5% which you directed towards your Salarylink benefit, allocated with investment earnings (currently at the net rate of return for the Defined Benefit option). B The balance of your StatewideSuper accumulation account, plus Your Salarylink benefit calculated as: Your accrued benefit percentage multiplied by your final average salary, at the date you cease employment discounted by an actuarial figure * for the period (in years and complete months) until you reach age 55. * This figure changes from time to time and is determined by the Fund s Actuary. StatewideSuper Salarylink Member Guide Page 15

16 Option 2: Retirement super The total benefit will be made up of the following: The balance of your StatewideSuper accumulation account, plus Your Salarylink benefit calculated as: Your accrued benefit percentage multiplied by your final average salary at the date you cease employment. That portion of the above amount which is not your Deferred Benefit (as detailed below) may be retained with us, paid to you (subject to preservation rules) or be rolled over to another fund. If retained with us in your StatewideSuper accumulation account, you ll have access to investment choice in respect of this amount. Your Deferred benefit must remain in StatewideSuper until you reach age 55, or you re accepted for an Ill-health or Ill-health retirement benefit, you re accepted for a TPD benefit or on your death. The amount of your Deferred benefit is calculated as the total of the accrued Salarylink benefit (as detailed on page 15) less the total of your Salarylink related personal contributions together with investment earnings. The Deferred benefit is indexed each year in line with the variation in the Adelaide CPI (as calculated at 31 March), plus 2%. Investment choice does not apply to this amount until you reach age 55. At age 55 your Deferred benefit is transferred to your StatewideSuper accumulation account where it will be invested in the Cash option, until you make an investment choice. Ceasing employment between ages 55 and 65 The total benefit will be made up of the following: The balance of your StatewideSuper accumulation account, plus Your Salarylink benefit calculated as: Your accrued benefit percentage multiplied by your final average salary at the date you cease employment. However, if at age 55 your Option 1: Basic super benefit is greater than your Option 2: Retirement super benefit, your benefit will be the greater of the two on ceasing employment. On ceasing employment prior to age 65, your applicable Salarylink benefit is transferred to your StatewideSuper accumulation account and invested in the Cash option while we wait for your payment instructions. You can make a new investment choice at any time (see the How we invest your money booklet for more information). Ceasing employment after age 65 The total benefit will be made up of the following: The balance of your StatewideSuper accumulation account. This will include your Salarylink benefit (as at the day you turned 65) calculated as: Your accrued benefit percentage multiplied by your final average salary at age 65, invested in the Cash option until you make an investment choice. Your applicable Salarylink benefit is transferred to your StatewideSuper accumulation account when you turn age 65 and invested in the Cash option, unless you make an investment choice. Requirements for payments and ID Transfers and rollovers can only be made to a Self Managed Super Fund (SMSF) or to a registered superannuation entity that has a licensed trustee. When processing any withdrawal or rollover request or to commence a pension you will be asked to provide a certified copy of relevant identification documentation such as a driver s licence or passport. Page 16 StatewideSuper Salarylink Member Guide

17 Insurance options to suit you Life is unpredictable. If an unfortunate event happens to you, insurance may provide crucial financial protection for you and your family. We offer a full range of insurance options to help you manage your financial security. Types of cover You can control the level of insurance you have, how it s calculated and you can also manage how the cost of the insurance is calculated. The range of insurance options on offer include: Salarylink insurance: Death and Total and Permanent Disablement (TPD) Terminal Illness Ill-health Income Protection Additional StatewideSuper insurance * : Death and Total and Permanent Disablement (TPD) Death Only Income Protection. * Available through your StatewideSuper accumulation account. Insurer All Death, Total and Permanent Disablement (TPD) and Terminal Illness benefits are insured by MetLife Insurance Limited (ABN ) (AFSL ) (the insurer). Ill-health retirement benefits are self insured by the Trustee. Copies of the policies issued to the Trustee are available upon request by contacting StatewideSuper. The Trustee has the right to change the insurer from time to time. Salarylink insurance Death and TPD Terminal Illness Ill-health Income Protection. Salarylink insurance applies to members while they contribute to Salarylink (minimum 1%). It s formula based Death and TPD Cover and Income Protection (automatic for eligible Salarylink members). If your Salarylink Death and TPD Cover increases such that it exceeds $800,000 or your Income Protection Insurance increases such that it exceeds $12,000 per month, evidence of health will be required before the additional cover is provided. There are no deductions made from your membership to cover the cost of Salarylink insurance as it s provided as part of your Salarylink benefit which is funded by your employer s contributions. Deductions will be made from your StatewideSuper accumulation account where you have taken out additional StatewideSuper insurance. Cover on recommencing Salarylink contributions Members who are eligible to and choose to recommence Salarylink contributions will receive Salarylink insurance cover, however evidence of health may be required. Any previously approved additional StatewideSuper insurance (excluding any automatic units) will continue and is in addition to your Salarylink insurance. Automatic StatewideSuper Death and TPD Insurance will only be transferred where this cover is in excess of the Salarylink insurance and where this excess amount is greater than the minimum unit of cover applicable to your age. Contact us for further information. Death, TPD and Terminal Illness benefit If you cease employment due to death, TPD or terminal illness before age 65, your benefit may include an insured benefit set at a percentage of your final salary for each year and complete month to age 65. StatewideSuper Salarylink Member Guide Page 17

18 Your benefit is worked out as: The balance of your StatewideSuper accumulation account, plus Your accrued Salarylink benefit determined by multiplying your final salary * by your accrued benefit percentage, plus Your Salarylink insured benefit set at 15% ** of your final salary for each year (with completed months counted as a fraction of a year) from the date you ceased service or the date of death to age 65, plus Any additional StatewideSuper Death and TPD or Death Only Insurance (if applicable). * Final salary is your annual superannuation salary at the date of cessation of employment. ** If you were a Salarylink member at 1 January 2005 transitional arrangements may apply. Your benefit is subject to approval. For information on who you can nominate to receive your Death benefit please see page 25. Ill-health and Ill-health retirement benefit If you cease employment with your StatewideSuper employer due to Ill health and you re not entitled to a TPD benefit (including a certified Terminal Illness benefit), you may be eligible to receive an Illhealth or an Ill-health retirement benefit depending on your age. Your payout will still be subject to preservation requirements (refer to pages for preservation age details). Ill-health benefit if you re under age 50 The benefit is calculated as follows: The balance of your StatewideSuper accumulation account, plus Your accrued Salarylink benefit. Ill-health retirement benefit if you re over age 50 The benefit is calculated as follows: The balance of your StatewideSuper accumulation account, plus Your accrued Salarylink benefit, plus 50% of your Salarylink insured benefit as at the date you cease working. Your benefit is subject to approval by the Trustee. Income Protection Insurance Income Protection Insurance protects you and your family by providing you with an income when you need it the most. If you can t work due to injury or illness, your mortgage, bills and expenses still need to be paid. Key criteria include: Cover is subject to a maximum benefit of the lesser of 75% of salary (a lower rate will apply if your annual salary exceeds $400,000) or $30,000 per month. Payments are made in arrears upon receipt of regular medical certification. A 90 day waiting period applies. An income protection benefit in respect of an injury or illness (or a related injury or illness) is payable for a maximum period of 24 months. Proof of hours worked will be required when you lodge a claim and you must have been engaged in permanent employment working at least 15 hours per week. Your payment is subject to approval by the insurer (see pages for more information). Page 18 StatewideSuper Salarylink Member Guide

19 How to calculate a Salarylink Death and TPD benefit Example Michael is a Salarylink member. He is 25 years old and his final salary is $30,000. Michael s Death and TPD insurance cover is calculated as follows: 15% x 40 (years to age 65) x $30,000 (final salary) = $180,000 Michael s TPD benefit at age 25 would be $180,000 plus the balance of his StatewideSuper accumulation account and any StatewideSuper Death and TPD or Death Only Insurance he may have. Years later... Michael is 60 when he has to stop work due to TPD. His StatewideSuper accumulation account is $50,000. His accrued benefit percentage is 525%. His insured benefit percentage (to age 65) is 75%. His final salary is $60,000. His StatewideSuper Death and TPD Insurance is $25,000. Michael s TPD benefit would be calculated as: StatewideSuper accumulation account = $50,000 + (525% + 75%) x $60,000 = $360,000 + StatewideSuper Death and TPD Insurance = $25,000 TPD benefit = $435,000 NOTE: The calculation for Michael s Death benefit is identical to this example. This example is provided for illustrative purposes only. StatewideSuper Salarylink Member Guide Page 19

20 How to calculate a Salarylink Income Protection (IP) benefit Example Michael is 50 when he has to stop work after becoming temporarily disabled through injury. His salary at the time of injury was $50,000. Once Michael has served the 90-day waiting period and his claim has been approved, his monthly IP benefit will be calculated as: $50,000 x 75% = $37,500 / 12 = $3,125 IP benefit = $3,125 per month This example is provided for illustrative purposes only. If you do not meet the criteria for a Salarylink TPD or Terminal Illness claim you may alternatively be eligible for an Ill-health or Ill-health retirement benefit calculated as follows. How to calculate an Ill-health benefit if under age 50 How to calculate an Ill-health retirement benefit if over age 50 Example Tom is 45 when he ceases employment due to ill-health. The value of his StatewideSuper accumulation account is $30,000 and his accrued Salarylink benefit is $130,000. As Tom is under 50 years of age, his Ill-health benefit will be calculated as: StatewideSuper accumulation account = $30,000 Example Lucy is 55 when she ceases employment due to ill-health. Her StatewideSuper accumulation account is $60,000. Her accrued benefit percentage is 375%. Her Salarylink insured benefit is $78,750 as at the date she ceased working. Her final average salary is $35,000. Her final salary is $40,000. As Lucy is over 50, her Ill-health retirement benefit will be calculated as: + Salarylink benefit = $130,000 A. StatewideSuper accumulation account = $60,000 Ill-health benefit = $160,000 plus This example is provided for illustrative purposes only. B. 375% x $35,000 = $131,250 plus C. 50% of her Salarylink insured benefit of $78,750. $78,750/2 = $39,375 Ill-health retirement benefit = $230,625 This example is provided for illustrative purposes only. Page 20 StatewideSuper Salarylink Member Guide

21 When Salarylink insurance cover stops When your Salarylink insurance cover stops, you will receive continued cover through your StatewideSuper accumulation account in the circumstances set out below and, to that extent, you will be subject to the insurance policy terms and conditions that apply to StatewideSuper accumulation accounts. When you cease Salarylink contributions or if you move from permanent employment to casual employment with a StatewideSuper employer: your Salarylink Death and TPD cover will be converted to StatewideSuper Death and TPD Insurance (rounded down^) in your StatewideSuper accumulation account and premiums will apply; your Salarylink Income Protection will be converted to units of $500 per month (rounded down^) of StatewideSuper Income Protection through your StatewideSuper accumulation account and premiums will apply. ^Subject to a minimum of 4 units. When you cease employment with a Salarylink employer: your Salarylink Death and TPD cover will be converted to units of StatewideSuper Death and TPD Insurance (rounded up) in your StatewideSuper accumulation account and premiums will apply; your Salarylink Income Protection will be converted to units of $500 per month (rounded up) of StatewideSuper Income Protection through your StatewideSuper accumulation account and premiums will apply. When you attain age 65: you will be allocated 4 units of Standard Death and TPD Insurance cover in your StatewideSuper account and premiums will apply, and any additional Death and TPD Insurance cover you have through your StatewideSuper account will continue; your Salarylink Income Protection Insurance will cease. When you join military service (other than the Australian Armed Forces Reserve where you are not on active duty outside Australia). Important note: On ceasing employment any additional insurance you have through your StatewideSuper accumulation account while employed with a StatewideSuper employer will be continued, unless you were approved an Ill-health, Ill-health retirement, Death, TPD or Terminal Illness benefit claim. Any limitations previously applicable to your insurance will also apply to insurance cover continued due to a change in membership type. Refer to the Insurance in your super booklet for more information. Applying for additional StatewideSuper insurance You can apply for additional insurance through your StatewideSuper accumulation account, subject to underwriting. Please refer to the StatewideSuper PDS and Insurance in your super booklet, available from or by calling Insurance premiums There are no deductions made from your membership to cover the cost of Salarylink insurance (unless the benefit you receive is the super guarantee minimum benefit) as it is provided as part of your Salarylink benefit which is funded by your employer s contribution. If you have additional StatewideSuper insurance, any applicable premiums for this insurance will be deducted from your StatewideSuper accumulation account. Please refer to the StatewideSuper PDS and the Insurance in your super booklet, available from or by calling us on , for more information. Insurance premium changes The Trustee or the insurer may amend (including increase) the cost of any insurance cover available through StatewideSuper. We will provide you with written notice in accordance with the legislative requirements before any increase occurs. StatewideSuper Salarylink Member Guide Page 21

22 Qualifying criteria Conditions apply to your Salarylink insurance Like most forms of insurance certain conditions (and exclusions) apply to the granting of your insurance cover or payment of insured benefits. The Trustee or the insurer can ask for evidence of health and other factors relevant to insurance cover to be provided prior to insurance cover being provided to you. Qualifying for a TPD benefit Members permanently employed by a StatewideSuper employer One of the following a), b), c), or d) applies: Page 22 a) You have suffered the permanent loss of use of two limbs, or the sight of both eyes, or the loss of one limb and the sight of one eye (where limb is defined as a whole hand or whole foot). b) You have been continuously absent from your job for six consecutive months due to illness or injury and you have provided proof to the insurer s satisfaction that you have become incapacitated to such an extent that you are unlikely ever to be capable of engaging in or working for reward in any occupation or work for which you are reasonably qualified by education, training or experience. c) You have provided proof to the insurer s satisfaction that you are permanently unable to perform at least two of the following six basic activities of everyday living: Bathing - to shower or bathe Dressing - to dress or undress Toileting - to use the toilet, including getting on and off Feeding - to eat and drink Continence - to control bladder and bowel functions, or Mobility - to get out of a bed or chair or wheelchair. (Note: If you can perform an activity by using special equipment, you will be considered able to perform the activity.) d) You are suffering from permanent deterioration or loss of intellectual capacity due to illness or injury and you have provided proof to the insurer s satisfaction that you are required to be under continuous care and supervision by another adult person six consecutive months and such care is likely to be on a permanent daily basis and ongoing. Any limitations that may have been placed on your disability cover by the Trustee and the insurer will apply. Your benefit is subject to approval. Qualifying for a Terminal Illness benefit Two Medical Practitioners, one of whom specialises in your illness, certifies in writing that despite reasonable medical treatment the illness will lead to your death within 12 months time, and The insurer has determined that despite reasonable medical treatment, the illness will lead to your death within 12 months of the date of medical certification referred to above. Qualifying for an Ill-health or Ill-health retirement benefit You must be suffering from a continuous or recurring injury or illness that stops you carrying out your normal duties, and Your employer cannot provide another suitable position for you, and You are not eligible for Income Protection or a TPD benefit payment. The Trustee must be satisfied that you meet the eligibility conditions to qualify for an Ill-health or Ill-health retirement benefit. Any limitations that may have been placed on your disability cover by the Trustee and the insurer will apply. Your benefit is subject to approval. Qualifying for an Income Protection benefit You must meet the waiting period provisions. An Income Protection benefit may be payable after the waiting period has ended. Waiting period means 90 days commencing from the date a Medical Practitioner certifies you as disabled and for which you have to be disabled or partially disabled before a benefit starts to accrue, subject to the following requirements: (a) You are disabled for at least the first 7 of 12 consecutive days of the waiting period to qualify for a benefit. StatewideSuper Salarylink Member Guide

23 (b) If you return at full capacity during the waiting period more than once and for longer than 5 consecutive days, then the waiting period will start again. The insurer must determine that solely as a result of an illness or injury occurring you: Are unable to perform at least one income producing duty of your occupation; and Are not working in any occupation, whether or not for reward; and Are under the regular care and following the advice of a Medical Practitioner. You may be eligible for a Partial Income Protection benefit if you are unable to work in your occupation at full capacity as a result of an illness or injury and you: Are working in your occupation or any other occupation but only in a limited capacity; and Are earning less than your pre injury or illness monthly income. The following exclusions apply: Intentional self inflicted injury or any attempt to commit suicide; War; Threatened miscarriage; and Normal and uncomplicated pregnancy (including caesarean birth) and associated procedures and discomforts. Your Income Protection benefit will be reduced by the amount of any worker s compensation or other insurance payments you receive or any wages or salary, or like payments, received during the Income Protection claim period. The amount of any income you could reasonably be expected to earn will also be considered. You ll continue to receive your Income Protection payment until the earliest of one of the following occurs: You die You reach age 65 You have received payments until the end of the maximum benefit period (24 months from the end of the waiting period) You cease to be totally and temporarily disabled. Whilst receiving a benefit you may be required to attend medical examinations or provide evidence of health on a regular basis as requested by the insurer. Any limitations that may have been placed on your disability cover by the Trustee and the insurer will apply. Your benefit is subject to approval. Lodging a claim Once you have lodged a claim by providing the appropriate Statement of Claim and medical information and we have received an Employer s statement (where required), the claim will be put to the Trustee and the insurer for consideration. Further information may be requested to be able to make a decision about your claim. This may involve the use of investigation agents, legal advisers and the collection of personal information via surveillance, including health information that the insurer considers relevant. Once all information has been considered, a decision will be made and you will be advised of the outcome. The Trustee must be notified in writing as soon as reasonably practicable after an event giving rise to a claim. Lodging a TPD claim Complete a Statement of Claim TPD and attach two Medical certificates. Attach any additional medical information to support your claim. Lodging a Terminal Illness claim Complete a Statement of Claim Terminal Illness and attach two Medical certificates. Lodging an Ill-heath or Ill-health retirement claim Complete an Invalidity claim form and attach two Medical certificates, along with any additional medical information to support your claim. Lodging an Income Protection claim Complete a Statement of Claim Income Protection and attach two Medical certificates, along with any additional medical information to support your claim. Lodging a claim for a Death benefit Provide the death certificate (certified copy) and birth certificate (certified copy) of the deceased. If the deceased has changed their name please send confirmation of change of name information. StatewideSuper Salarylink Member Guide Page 23