Supplementary Product Disclosure Statement

Transcription

1 Supplementary Product Disclosure Statement Defined Benefit Division and Accumulation 2 Product Disclosure Statement Date issued: 1 July 2015 This Supplementary Product Disclosure Statement (SPDS) adds to and updates the information in the Defined Benefit Division and Accumulation 2 Product Disclosure Statement (PDS) dated 3 January This SPDS should be read in conjunction with the PDS and How we invest your money, Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? important information booklets, which are incorporated by reference in the PDS. Further conditions of release page 64 Risks of super page 23 We ve outlined the government s proposed changes to accessing benefits in case of terminal illness. Accessing your super if you have a terminal illness The government has proposed to amend the provision which allows people suffering a terminal illness to access their super early. Currently, people with a terminal illness can only access their super early if they can get certification from two medical specialists that they have less than 12 months to live. The government is expected to change this period to 24 months, meaning more terminally ill people could access their super early. This change is proposed to take effect from 1 July IMPORTANT: There could be significant consequences to accessing your super early under the Government s proposal. The certification period for UniSuper s inbuilt terminal medical condition benefits (DBD members only) and externally insured terminal illness benefits has not changed both benefits currently require certification from two medical specialists that you have less than 12 months to live. Accessing your super under the Government s proposed changes could mean you forfeit eligibility for inbuilt terminal medical condition benefits and externally insured terminal illness benefits. We ve identified an additional risk that we re adding to the general risks of super outlined on page 23. Please be aware of the following: CYBER RISK This is the risk of financial or data loss, business disruption, or damage to the reputation of UniSuper as a result of a threat or failure to protect the information or personal data stored within its information technology systems and networks. Making standard member contributions pages 29, 41 and 46 We ve clarified the way we describe contribution flexibility for DBD members. You should note the important update below, illustrated in the first paragraph on page 29, but also appearing on pages 41 and 46. In addition to employer contributions, you re required to make standard member contributions of 7% of your salary unless you elect to reduce them through UniSuper s contribution flexibility arrangements. All DBD members are required to make standard member contributions of 7% unless they elect to reduce their member contributions through contribution flexibility. We strongly recommend you read the Terminal medical condition benefit fact sheet at unisuper.com.au/formsand-documents/forms-and-brochures and call us on to discuss your options. unisuper.com.au

2 Government co-contributions page 50 We ve updated the government co-contribution details for the new financial year, as follows: If your total income is $34,488 per annum or less for 2014/15, the government will put in $0.50 for every dollar of after-tax personal contributions you make into your super, up to a maximum of $500. This is called a cocontribution. If you earn more than $34,488 per annum for 2014/15, you may still benefit from government co-contributions but the amount of co-contribution gradually reduces as your total income increases, before phasing out completely if you earn $49,488 per annum or more. Government co-contributions are tax free. To be eligible for the 2015/16 financial year, your income would need to be less than $35,454. You may still benefit from a co-contribution if you earn more than this, but the amount would phase out completely if you earn more than $50,454. We have also clarified the information under Eligibility requirements. At the fifth bullet point in this section, delete the word comment. Government caps on contributions page 51 We ve updated the table and footnotes on page 51 for the new financial year. Please replace the table and notes on page 51 with the following information: Your contribution caps $30,000 # $30,000 # Tax on amounts over the cap Concessional (general cap)* $35,000 for members aged 49 and over on the last day of the previous financial year $35,000 for members aged 49 and over on the last day of the previous financial year Included in your income tax return and taxed at your marginal rates Nonconcessional cap $180,000 $180,000 up to 49% (including the Medicare Levy) * There is 15% tax payable by your fund on concessional (before-tax) contributions paid into a super fund. Your super fund usually reduces your super account by your share of this tax. Caps on non-concessional (after-tax) contributions page 53 On page 53 we refer to proposed changes to allow individuals to withdraw super contributions in excess of the non-concessional contributions cap made from 1 July 2013 and any associated earnings (with the earnings taxed at the individual s marginal tax rate). This legislation was passed in March This change means that if you exceed the non-concessional (after-tax) contributions cap, you may elect to withdraw from an accumulation account the excess contributions. If you do so, you will also be required to withdraw 85% of any associated earnings. The amount of associated earnings will be calculated by the ATO and included in their release authority. Note: you cannot use the ATO release authority to withdraw the contributions from UniSuper s Defined Benefit Division but you can release monies from any associated accumulation account. Any non-concessional contributions you withdraw will no longer be taxed at up to 49%. However, the total amount of the associated earnings will be taxed at your marginal tax rate for the year in which you made the excess contributions. A tax offset of 15% of the associated earnings will apply. (Note that these amounts can t be withdrawn from a Defined Benefit component.) These changes relate to excess non-concessional contributions made on or after 1 July If you have made excess non-concessional contributions and don t elect to have them withdrawn and taxed at your marginal rate, they will be taxed at up to 49%. It s important that you are aware that monitoring your contributions is your responsibility. MemberOnline has up-to-date details of how you re tracking against the caps, available at unisuper.com.au. Fees and costs pages 68 and 73 We ve updated the fee table on page 68, and the Administration Fees section on page 73, for the new financial year. The administration fee for DBD membership will change from $218 per year to $221 per year on 1 July Also, the first footnote under the Fees and costs table on page 68 refers to further information about Risks associated with defined benefits being on page 23 of the PDS. This information is actually found on page 28 of the PDS. unisuper.com.au

3 Tax on withdrawals page 76 The low rate threshold described on page 76 for tax on withdrawals made by members under age 60 is shown as $185,000 for the 2014/15 financial year. For the 2015/16 financial year, the low rate threshold is $195,000. Glossary and important definitions page 84 We ve updated the Glossary and important definitions section which starts on page 84 with an additional term to help you understand this product. ACCUMULATION 1 ACCOUNT An Accumulation 1 account refers to another accumulationstyle account within UniSuper. Accumulation 1 accounts are typically made up of your employer super guarantee contributions, any voluntary member contributions you make, investment returns (which can be positive or negative), money you roll over from other super funds, and any other contributions such as spouse contributions. Contact details back cover Our Helpline number for overseas members and fax number have changed. Our updated contact details, including Helpline operating times, are: HELPLINE (Overseas members) A 8.30am to 7.00pm Monday to Thursday A A 8.30am to 6.30pm Friday (Melbourne time). FAX (Overseas members) UNISUPER ADVICE (Overseas members) Fees, costs, insurance premiums (if you have cover) and taxes are deducted from these accounts. Important information: This SPDS was prepared and issued by UniSuper Limited (ABN ) as Trustee of UniSuper (ABN ). The information contained in this SPDS is of a general nature only and does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of the information for your personal circumstances and consider consulting a qualified financial adviser before making an investment decision. To the extent that this SPDS contains information which is inconsistent with the UniSuper Trust Deed and Regulations (together the Trust Deed), the Trust Deed will prevail. UNIS000107S 0715 unisuper.com.au

4 This page has been intentionally left blank.

5 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Issued 3 January 2015 by UniSuper Limited ABN A A DBD member, Associate Professor Elizabeth Koch OAM, Elder Conservatorium of Music, the University of Adelaide

6 About this Product Disclosure Statement This PDS has been prepared and issued by UniSuper Limited as Trustee of UniSuper. This PDS is for UniSuper Defined Benefit Division (DBD) and Accumulation 2 members. It contains the membership application form and describes the important features of membership, including the benefits and risks and how fees, costs and taxes may apply. The information in this PDS will help you make important choices about your super. In conjunction with this PDS, it is important that you read the How we invest your money, Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? booklets (which are incorporated by reference in this PDS) prior to making any decisions for your super. If you would like to request a paper copy (free of charge) of this PDS or any of the incorporated important information booklets that are referred to, please call us on or you can access at unisuper.com.au/pds. The information provided in this PDS is of a general nature only and does not take into account your personal financial situation or needs. You should therefore consider whether it is appropriate for your personal circumstances before relying on it and you should consider obtaining financial advice tailored to your personal circumstances before making a decision about this product. To the extent that this PDS contains any information which is inconsistent with the UniSuper Trust Deed and Regulations, (together, the Trust Deed), the Trust Deed will prevail. Information in this PDS is current as at the date of issue. Information contained in this PDS which is not materially adverse may change from time to time. Updated information can be found on our website or by calling us. You will be given notice of material changes or significant events within timeframes required by law. UniSuper Management Pty Ltd, SuperRatings Pty Limited, Chant West Pty Limited and Selecting Super (Pty Ltd) have consented to their logo and/or statements being included in this booklet, in the form and context in which they have been included, and consent has not been withdrawn as at the date of this booklet. IN THIS PDS UniSuper is referred to as UniSuper or the Fund, ABN UniSuper Limited is referred to as USL or the Trustee, ABN UniSuper Management Pty Ltd is referred to as USM, ABN , Australian Financial Services Licence (AFSL) No , MySuper Authorisation No The Trustee has delegated administration of the Fund to USM, which is wholly owned by USL in its capacity as Trustee of the Fund. USM s AFSL authorises it to deal in financial products and to provide financial product advice to members, which it does through UniSuper Advice. External insurance cover is provided to UniSuper through group insurance policies the Trustee has taken out with TAL Life Limited, ABN , AFSL No (referred to as the Insurer throughout this document). UniSuper Limited Overview About UniSuper 4 How super works 8 Getting started 10 Choose your style of super 14 What are the DBD and Accumulation 2? 16 Insurance and inbuilt benefits 18 Joining UniSuper or transferring to the DBD 19 Still not sure which type of super will suit you best? 20 Risks of super months to make a decision about your membership 24

7 Defined Benefit Division and Accumulation 2 Product Disclosure Statement contents Defined Benefit Division What is the defined benefit division? 26 Risks associated with defined benefits 28 Making contributions 29 Inbuilt benefits 30 Insurance cover through your accumulation component 31 Your super 32 Accumulation 2 What is Accumulation 2? 40 Insurance 40 Making contributions 41 Accumulation 2 membership types of benefits 43 General information Making contributions 46 Investment options 56 Inbuilt benefits and insurance 58 Risks of super 59 Accessing your benefit 63 Fees and costs 67 How super is taxed 75 Other information 78 Glossary and important definitions 84

8 2 How to read this PDS We know that super can be complex, so we ve tried to make it as easy as possible for you to understand the features of your membership, the decisions you can make and what you can do now to make the most of your super. The terms of your employment mean that you are now a Defined Benefit Division (DBD) member. This is a product that we re proud to offer, with a long history and unique design. Because we know that the DBD may not suit everyone, we offer our members the option to permanently transfer to the Accumulation 2 Division of the Fund (Accumulation 2) within the first 24 months of membership. Accumulation 2 is the type of account you re probably more familiar with, being similar in style to a personal account in which your superannuation contributions are accumulated, as well as any investment returns (which could be positive or negative) less any fees, costs, charges, premiums and taxes. This Product Disclosure Statement (PDS) explains these two types of super, highlights some decisions you may want to make through the life of your membership, and provides you with information to assist you with those decisions. This PDS is broken up into four sections: 01 Overview Part 1 introduces UniSuper and explains the basic characteristics of the DBD and Accumulation 2. It also highlights some key decisions to consider and provides some general information relevant to those decisions. 02 Defined Benefit Division Part 2 provides more detailed information particular to the DBD. 03 Accumulation 2 Part 3 provides more detailed information specific to Accumulation Other information Part 4 covers the general, but important, information relevant to both the DBD and Accumulation 2. This includes making contributions, how your super is taxed, and the fees and costs that apply. find out more You can visit our website unisuper.com.au for more information or call us on

9 01 Overview

10 4 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Overview About UniSuper Since 1983, we ve been Australia s only super fund dedicated to people who work in the higher education and research sector. With more than $44 billion in funds under management and over 400,000 members, we are one of Australia s largest super funds. Since inception we ve helped over 1.1 million Australians in saving and preparing for retirement. We are committed to providing competitive and high-quality retirement saving products and services to our members, as well as a range of investment options. Benefits of UniSuper membership with you all the way No matter where you work or what you do, you can keep your super with us for life. That way we can continue to help you build and manage your super and achieve your retirement goals. Whether you re: Starting out in the workforce Progressing in your career Changing jobs Winding down your work hours Taking a well-earned break, or Transitioning-to-retirement. We offer a range of products and investment options to help you achieve your goals. Download or order over the phone You can download any of our documents including this PDS and related important information booklets at unisuper.com.au/pds. If you d prefer a paper copy, you can order one free of charge by calling us on Stay with us even if you leave your employer You have the option to keep your super with us if you leave the higher education and research sector. If you re eligible for Choice of Fund, you can ask your new employer to pay your Superannuation Guarantee contributions into your existing UniSuper account. Access our competitive pension products You can take out a UniSuper pension when you retire or in the lead-up to retirement as part of a transition to retirement strategy. We have a range of Pension options to help our members continue to benefit from our competitive fees and returns. For more information, refer to the relevant Pension PDS and/or Your guide to a better retirement booklet available from unisuper.com.au/pds or by calling us on Competitive fees Our fees are consistently amongst the most competitive in the industry and we strive to offer great value, excellent service and relevant choice to our members. As a member, you won t be charged for: Any entry or exit fees, or The first investment option switch you make each financial year We don t pay commissions to financial advisers and don t pay external shareholder dividends.

11 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Overview 5 Control and choice over your investments We know everyone has different needs when it comes to investments. So we offer you the flexibility and freedom to choose your own investment strategy. We offer a wide range of carefully built investment options, including sustainable options, which you can combine to create your own portfolio or leave it to our team of experts via one of our pre-mixed diversified investment options. A record of strong long-term investment performance We re proud to have achieved returns that have exceeded industry benchmarks and averages for many of our investment options.* For example, our Balanced option has achieved returns that place it in the first quartile (top 25%) over one, three, five, seven and 10 years. 1 And for the financial year our Balanced option returned 13.9% 1, ranking it the third best of the 50 largest (according to funds under management) surveyed Australian super funds. Most of our pre-mixed options also exceeded their respective peer group medians over these periods and in most cases also ranked in the top quartile. We re a MySuper-authorised fund UniSuper is authorised to offer MySuper. MySuper is the Government-driven initiative for members default superannuation contributions. It is designed to protect members through ensuring certain rules are met in relation to investment strategy, fees and insurance cover. Generally, only funds authorised to offer MySuper can accept compulsory default super contributions (Superannuation Guarantee) from employers. UniSuper has selected its Balanced option to be its MySuper investment strategy. Award-winning fund With a string of awards and high ratings from Australia s top ratings and research agencies SuperRatings and Chant West we re one of Australia s most award-winning super funds. SuperRatings, an independently owned superannuation research company, has awarded UniSuper a Platinum rating for its Accumulation 2 product. # SuperRatings Infinity Recognised is awarded to super funds that clearly demonstrate excellent sustainable business practices and responsible investment principles. Go to for details of its rating criteria. SuperRatings does not issue, sell, guarantee or underwrite this product. Chant West has awarded UniSuper a 5 Apples rating for its Accumulation 2 product.^ For further information about the ratings methodology used by Chant West, see www. chantwest.com.au. Chant West does not issue, sell, guarantee or underwrite this product. # SuperRatings Fundamentals Report: UniSuper Accumulation Super (2), 30 September Issued by SuperRatings Pty Ltd ABN: , AFSL (SuperRatings). ^ See Chant West Super Fund Ratings at Chant West Pty Limited ABN Accumulation 2 members with any part of their account invested in our Balanced option will automatically become part of MySuper. DBD members are not able to become part of UniSuper s MySuper offering while they remain in the DBD. * Past performance is not a reliable indicator of future performance. 1 Source: SuperRatings Pty Ltd s Fund Crediting Rate Survey June 2014 published on 21 July 2014, A survey median was not available for all categories of investment options. It does not take into account any subsequent revisions or corrections made by SuperRatings. At the time of preparation, UniSuper was not aware of any revisions or corrections which would be materially adverse to members. Go to for details of its rating criteria. SuperRatings does not issue, sell, guarantee or underwrite this product.

12 6 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Overview Generous employer contributions Your employer makes contributions that are well above those required by government Superannuation Guarantee legislation, which, when combined with your member contributions, can help you build your retirement savings. Spouse Accounts You ve built your life together, so it makes sense to secure a financial future together. UniSuper Spouse Accounts may help you and your partner achieve the retirement you deserve. You don t have to be married to open a Spouse Account If you re a UniSuper member, we recognise a spouse as being a person who: You are legally married to; Is in a relationship with you (whether of the same or opposite sex), and the relationship is registered under an Australian state or territory law, or Is in a relationship with you (whether of the same or opposite sex), and you live together on a genuine domestic basis as a couple. To open an account for your spouse, you need to have a current UniSuper account yourself. You can read more information on this and the Spouse Account membership entitlements in the Spouse Account PDS available at unisuper.com.au/pds or by calling us on More about us At unisuper.com.au/governance you will find any information about the Trustee which we re required to disclose to members (such as executive remuneration). You can find our MySuper dashboard at unisuper.com.au/mysuper/mysuperdashboard. How UniSuper s standard DBD and Accumulation 2 contribution rates compare to the standard Government contribution rate 7% 2 post-tax employee contributions into defined benefit component 7% 2 post-tax employee contributions 3% pre-tax employer contributions into accumulation component (if applicable) 14% pre-tax employer contributions into defined benefit component Unisuper DBD super contributions 9.5% pre-tax employer contributions standard government contributions required Unisuper Accumulation 2 super contributions 17% pre-tax employer contributions (or 14% if applicable) 2 Contribution flexibility allows most members to reduce how much they pay down to zero.

13 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Overview 7 We can help you make informed decisions Attend one of our free seminars or webinars As a UniSuper member, you can come along to one of our many face-to-face seminars held on and off-campus in locations around Australia. This is a great opportunity for you to learn more and ask questions about all sorts of super and pension-related topics. We also offer live webinars which you can attend from the comfort of your own computer. See unisuper.com.au/learning-centre/seminars to find out more. Online learning tools Our online Learning Centre lets you learn at your own pace, with videos, tutorials and calculators to help simplify some of the more complex aspects of super. Manage your account online You can also keep track of your super with MemberOnline. This secure, personalised portal lets you update your details, make investment switches, keep an eye on your account balance, contributions and insurance, and do a range of other things to help you stay in control. Financial advice for members through UniSuper advice UniSuper offers the opportunity to access financial advice as part of our services to members. UniSuper Advice is operated by UniSuper Management Pty Ltd, which is licensed to provide financial product advice to members. This means you can get financial advice from someone who understands the Fund and the higher education and research sector. The advice service operates exclusively for UniSuper members and their spouses. It offers personal advice over the phone on specific issues, including your super contributions, investment options and insurance as they relate to your UniSuper account, as well as comprehensive financial advice, on areas that include retirement planning, non-superannuation investments, accumulating wealth and insurance. UniSuper requires its advisers to achieve a high standard of relevant education. Most of our advisers have tertiary qualifications, many in financial planning or related disciplines, and almost all of our comprehensive advisers have the internationally recognised certification of CERTIFIED FINANCIAL PLANNER (CFP ) professionals, which demands advisers satisfy requirements in respect of four Es : ethics, education, experience and examination. UniSuper Advice operates on a fee-forservice basis. If you request personal advice services, UniSuper Advice will provide you with a quote of the fees to be charged for those services before you incur any personal advice service fees. UniSuper advisers are salaried employees and do not receive any commissions. CFP, CERTIFIED FINANCIAL PLANNER are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd (FPSB). Financial Planning Association of Australia Limited is the marks licensing authority for the CFP Marks in Australia, through agreement with FPSB. No matter your stage of life, it s never too late to plan your financial future. Contact UniSuper Advice on

14 8 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Overview How super works Superannuation (super) is a way to save for your retirement which is, in part, compulsory. It is a long-term investment and designed to provide you with a nest-egg to help you fund your retirement. CONTRIBUTIONS You can make a range of different types of contributions to your account, for example, employer contributions, standard member contributions, voluntary contributions, rollovers (i.e. transfers from other funds) and, if you meet the eligibility criteria, government co-contributions. There are limits, called contributions caps, on how much you can contribute to your super each financial year and still receive concessional tax treatment. It s your responsibility to monitor the total contributions made each year into your UniSuper account and to any other super accounts you have to ensure you don t exceed the caps (unless it s part of your contribution strategy to do so). You can monitor your account by logging onto MemberOnline at our website. For more information on contributions and contribution caps see page 46. ACCESSING YOUR SUPER Super s designed to provide you with an income in retirement, so there are restrictions on withdrawing your money from super funds to protect your balance and keep it invested until you need it. You usually can t access your super until you are aged between 55 and 60 and retired, but there are some special circumstances when you can withdraw it earlier. There may be additional restrictions imposed on the DBD. For more information on accessing your super see page 63. What does it mean? Standard member contributions Members of the DBD or Accumulation 2 are required to make 7% standard (aftertax) member contributions. Members can elect to reduce this level under contribution flexibility arrangements, however this can have important implications for their final benefit (see page 47 for more information). Voluntary member contributions Voluntary member contributions are those contributions made over and above your standard member contribution level. For DBD members, it s important to note that voluntary member contributions are allocated to the accumulation component of your benefit. TAX SAVINGS THROUGH SUPER Super can be a tax-effective way to save and invest because of the tax concessions (favourable tax treatment) it attracts. You can read more about how super is taxed on page 75. Your super is one of the most important and probably one of the biggest - investments you will have. Take the time to read through this PDS to work out the best options for you.

15 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Overview 9 You ve just become a DBD member. Congratulations and welcome! Getting started. Page 10 What is the DBD? Page 26 Defined Benefit Which style of super should I choose? Page 20 Accumulation 2 How does Accumulation 2 work? Page 40 How much can I contribute? Page 29 How do I invest my accumulation component? Page 56 What are inbuilt benefits and insurance options? Pages months to decide. Page 24 How much can I contribute? Page 41 How do I invest my super? Page 56 Already a UniSuper member but your super s changed? Page 19. What are my insurance choices? Page 43 What if I become ill? Page 34 What if I become ill? Page 43 Who receives my benefit if I die? Page 78 Who receives my benefit if I die? Page 78 What happens if I leave my employer? Page 65 I ve just retired. What do I do? Page 4 What happens if I leave my employer? Page 65 I ve just retired. What do I do? Page 4

16 10 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Overview Getting started: a guide to your decisions To help guide you through the decision-making process, we have provided a range of topics you may want to consider. Remember, before making any decision you may also wish to obtain professional financial advice. What style of super will you choose? You are now a DBD member. Read the information on page 16 for a summary of the key features of the DBD and Accumulation 2 and the detailed information in Sections B and C. Remember, you have 24 months 3 to decide whether to permanently transfer to Accumulation 2. What level of contributions do you want to make? Decide what level of member contributions you d like to make (known as contribution flexibility). Limits apply to the amount of contributions you can make each financial year (see page 46). How do you want to invest your super? Accumulation 2 members With our wide range of investment options, you can tailor your account to suit your individual needs. You can choose the way contributions are made to your account and any transfers into your account are invested. Over time you can change these strategies without changing the way your account balance is invested. You can also change the investment options for your existing account balance. DBD members You can only choose how your accumulation component (see definition on page 84) of your account is invested. You should read How we invest your money together with this PDS prior to making any decisions about your super available at unisuper.com.au/pds. If you choose Accumulation 2, your inbuilt benefits will also be transitioned to Death, TPD and Income Protection insurance cover (if you re eligible). This is in addition to your default cover. Choosing or changing your investment options in your accumulation component/account can be completed quickly and easily through MemberOnline. 3 You have 24 months from when your Defined Benefit Division/Accumulation 2 application form is accepted by UniSuper, or the first employer contribution paid on your behalf is accepted by UniSuper (or as determined by us) to decide whether to stay in the DBD or transfer your benefit to Accumulation 2. Once you have made your decision, you can t change your mind. Your decision will continue to apply throughout the life of your UniSuper membership. If you don t elect to transfer to Accumulation 2 within this period, you will remain a DBD member.

17 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Overview 11 Do you want Inbuilt Benefits? DBD members DBD members can claim an inbuilt benefit in the event of death, disablement, temporary incapacity and terminal medical condition. Inbuilt benefits are self-insured by UniSuper and the value of the benefit is determined by a formula in the Trust Deed. Inbuilt benefits are compulsory and DBD members can t opt out of them. Accumulation 2 members If Accumulation 2 members choose to transfer from the DBD, their inbuilt benefits cease and are transitioned to external Death, TPD and Income Protection cover through TAL Life Limited (our Insurer) if they re eligible for this cover. A pre-existing condition exclusion will apply to some or all of this external cover for between 12 months and three years, depending on when you transfer from the DBD. To find out how the DBD inbuilt benefits are converted to unitised external cover, and the terms, conditions and restrictions that apply to this cover, read the What happens to your inbuilt benefits if you choose Accumulation 2? important information booklet which is incorporated by reference in this PDS and available at unisuper.com.au/pds. Accumulation 2 members can opt out of the external insurance cover. The type and level of cover provided is determined by the group insurance policies UniSuper has with the Insurer. For more information on the terms and conditions that apply to the external insurance cover read the Insurance in your super important information booklet (incorporated by reference in this PDS), available at unisuper.com.au/pds. Do you want additional insurance cover? You re automatically provided with inbuilt benefits as part of your DBD membership. These benefits are designed to protect you financially if you become temporary or permanently unable to work due to illness or injury, and provide benefits for your loved ones on your death. Eligible members also receive default external Death and Total and Permanent Disablement (TPD) cover through our Insurer when first joining UniSuper. This default cover is in addition to inbuilt benefits provided to DBD members. You can opt out of this cover or apply for changes to your default external cover if you re eligible and decide it s right for your personal situation. Who do you want to receive your benefit in the event of your death? You have the option of making a preferred beneficiary nomination or a binding death benefit nomination (see page 78). Do you need to see a professional financial adviser to help you make the decisions that are best for you? Consider seeking advice from a licensed financial adviser to ensure the decisions you make are the right decisions for you.

18 Compare Features at a glance DBD membership Accumulation 2 membership Contributions Up to 17% employer contributions Go to page 26 Go to page 41 7% standard member contributions (after-tax) Go to page 26 Go to page 41 Ability to reduce level of standard member contributions (contribution flexibility) Go to page 47 Go to page 47 Ability to make standard member contributions on a before-tax (salary sacrifice) or after-tax contributions Go to page 46 Go to page 46 Regular and lump sum voluntary member contributions accepted on before-tax (salary sacrifice) or after-tax basis Into your accumulation component only. Go to page 29 Go to page 41 Ability to split super contributions with your spouse From your accumulation component only. Go to page 6 Go to page 6 Rollovers Rollovers from other funds accepted Into your accumulation component only. Go to page 8 Go to page 8 Investments Choice of how your super is invested For your accumulation component only. Go to page 56 Go to page 56 The value of your benefit is directly determined by the performance of your investment options For your accumulation component only. Go to page 32 Go to page 40 Inbuilt benefits In the event of temporary incapacity, disablement, terminal medical condition and death you may receive inbuilt benefits if you are eligible. Inbuilt benefits are compulsory and determined by a formula in the trust deed. They contain a component which is self-insured by UniSuper. Go to page 34 Inbuilt benefits cease if you choose to transfer to Accumulation 2. See the important information booklet What happens to your inbuilt benefits if you choose Accumulation 2? to learn more.

19 Insurance You receive one unit of death and TPD insurance cover automatically when you first join UniSuper provided you meet the eligibility criteria. You can apply for more cover if you need it or you can opt out altogether. If you choose Accumulation 2, your inbuilt benefits will also be transitioned to Death, TPD and Income Protection insurance cover (if you re eligible). This is in addition to your default cover. Go to page 31, and read the important information booklet Insurance in your super which is incorporated by reference in this PDS. Go to page 40, and read the important information booklets Insurance in your super and What happens to your Inbuilt Benefits if you choose Accumulation 2? which are incorporated by reference in this PDS. Beneficiaries Options when nominating beneficiaries for your death benefit Go to page 78 Go to page 78 Risks of super Investment Accumulation component only Go to page 60 Go to page 60 DBD Go to page 23 That Clause 34 may be enacted, requiring a change or reduction to the formula used to calculate your defined benefits Go to page 28 General Go to page 59 Go to page 59 Fees You may be charged a range of fees and other costs which may be deducted directly from your account, from the returns on your investment, or from UniSuper s assets. You should read all the information about fees and costs to understand their impact on your account. Go to page 67 Go to page 67

20 14 Defined Benefit Division and Accumulation 2 Product Disclosure Statement Overview Choose your style of super Everyone has different needs when it comes to managing their super. That s why, as a UniSuper member, you re given the opportunity to choose a style of super that suits you. UniSuper members can choose either defined benefits, where your final benefit is determined by a formula, or accumulation super that lets you decide how your super is invested. Both options also offer different benefits if you become unable to work, are disabled or die. Here we illustrate how the respective components are comprised for typical DBD and Accumulation 2 members. Accumulation 2 benefit Up to 17% employer contributions + any standard member contributions, voluntary contributions, rollovers, investment returns (positive or negative) -- any fees, costs, charges, insurance premiums and taxes Defined benefit component 14% employer contributions + standard member contributions (if any) Accumulation component Accumulation 2 benefi 3% employer contributions Up to 17% employer co (if applicable) + any standard membe + any voluntary member voluntary contributio contributions, rollovers, investment and returns ( investment returns -- any (positive fees, costs, charg or negative) and taxes -- any fees, costs, charges, insurance premiums and taxes Accumulation component 3% employer contributions (if applicable) + any voluntary member contributions, rollovers, and investment returns (positive or negative) -- any fees, costs, charges, insurance premiums and taxes