ANZ Superannuation Savings Account

Transcription

1 ANZ Superannuation Savings Account Product Disclosure Statement 21 June 2012 Contents 1. About ANZ Superannuation Savings Account 2 2. How super works 2 3. Benefits of investing with ANZ Superannuation Savings Account 2 4. Risks of super 3 5. How we invest your money 3 6. Fees and costs 4 7. How super is taxed 5 8. Insurance in your super 5 9. How to open an account 6 Additional Information 6 OnePath Custodians Pty Limited ABN , AFSL , RSE L OnePath MasterFund ABN , RSE R SFN OnePath Life Limited ABN , AFSL Contact details If you have any questions or would like more information about ANZ Superannuation Savings Account please contact us at: Customer Services Phone enquiries: Postal address: ANZ Superannuation Savings Account (Mon Fri, 8.30am GPO Box 4028 to 6.30pm AEST) Sydney NSW 2001 Fax: (02) customer@onepath.com.au Website This Product Disclosure Statement (PDS) is a summary of significant information about investing in ANZ Superannuation Savings Account and contains a number of references to important information contained in the ANZ Superannuation Savings Account Additional Information Guide (Incorporation by Reference Document). You should consider all that information before making a decision about ANZ Superannuation Savings Account. If you invest in ANZ Superannuation Savings Account, you can access a copy of the PDS and any matter in writing that is applied, adopted or incorporated by the PDS from our website at Alternatively, you can request a copy of this information free of charge by contacting Customer Services. This PDS has been prepared in accordance with the shorter PDS regime. The information provided in this PDS is general information only and does not take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances. OnePath Custodians is not an authorised deposit taking institution under the Banking Act 1959 (Cth). Except as described in the PDS or Additional Information Guide, this product is not a deposit or other liability of ANZ or its related group companies and none of them stands behind or guarantee the issuer or the capital or performance of the product.

2 1. About ANZ Superannuation Savings Account The ANZ Superannuation Savings Account (ANZ SSA) provides a flexible and convenient way to save for retirement with a low level of investment risk. When you or your employer (on your behalf) invests in ANZ SSA, you become a member of the OnePath MasterFund (the Fund). OnePath Custodians Pty Limited (the Trustee) is the trustee of the Fund. The Trustee invests all contributions in a master policy issued by OnePath Life Limited (OnePath Life), which then invests in underlying investments. This policy is governed by the Life Insurance Act 1995 and is a contract between the Trustee and OnePath Life. OnePath Life guarantees that your account balance will not be reduced by negative investment returns. All contributions into ANZ SSA currently invest in secure, low risk, ANZ retail bank deposits. Contributions may also be invested in other fixed interest assets such as debentures, government and semi-government bonds. 2. How super works Super is a tax effective long-term savings plan that enables you to save money for your retirement and is, in part, compulsory. There are different types of contributions available to you. While you are working, your employer is, in most cases, required to make contributions into your super account (known as compulsory super or Super Guarantee). Generally you have the right to choose the super fund to which contributions, including employer contributions are made. You, your spouse or your employer can also make voluntary contributions to your super account (subject to eligibility). Sometimes, even the Federal Government may make contributions to your super account. The Federal Government also provides tax concessions and incentives for you to contribute towards your super. However, there are limitations on contributions to, and withdrawals from, super. When you reach age 65, or your preservation age and have retired, you can access your super savings as a lump sum or receive a regular income stream through a pension account. There may be other circumstances when you can access your super. You should read the important information about How super works before making a decision. Go to the section How super works in the ANZ Superannuation Savings Account Additional Information Guide by visiting our website or contacting Customer Services on The material relating to How super works may have changed during the period from the day you acquired the product and the time when you read this PDS. 3. Benefits of investing with ANZ Superannuation Savings Account The ANZ SSA provides a flexible and convenient way to save for retirement with a low level of investment risk. It offers: A secure investment - Protecting your capital value. The Trustee does not guarantee investment returns. However, OnePath Life guarantees all amounts credited to and remaining in members accounts, after deducting fees, insurance costs (where applicable) and taxes. Tax-effectively save for retirement - The Federal Government encourages all Australians to save for their retirement, and one of the ways it does this is to provide tax concessions for money invested in superannuation. We recommend that you see your tax adviser for independent tax advice. Death Only and Death and Total and Permanent Disability (TPD) insurance Insurance which enables you or your employer to tax effectively package insurance cover for Death Only or Death and TPD for you. Additional health evidence may be required Employee members who are employed full-time automatically receive one unit of Death and TPD Cover if insurance is selected by your employer Employee members who are employed part-time, will automatically receive one unit of Death Only Cover if insurance is selected by your employer. An easy way to invest - ANZ SSA allows you to make one-off or regular contributions into your account. There are certain restrictions that apply to who can make contributions, when contributions can be made and the maximum amount of contributions that can be made. You should read the important information about the Benefits of investing with ANZ Superannuation Savings Account before making a decision. Go to the section Benefits of investing with ANZ Superannuation Savings Account in the ANZ Superannuation Savings Account Additional Information Guide by visiting our website or contacting Customer Services on The material relating to Benefits of investing with ANZ Superannuation Savings Account may have changed during the period from the day you acquired the product and the time when you read this PDS. 2

3 4. Risks of super All investments carry risk. Different investment strategies may carry different levels of risk, depending on the assets that make up the strategy. For instance, assets with the highest long-term returns may also carry the highest level of short-term risk. Before investing, you should consider the level of risk involved with a particular investment and whether the potential returns justify those risks. When considering the risk associated with your investments, it is important to keep the following in mind: The value of investments can rise and fall The returns you receive from your investment will vary, and future returns may be different from past returns Returns are not guaranteed and you may lose some of your money Your future super savings (including contributions and returns) may be insufficient to meet your retirement needs adequately Your investment may be affected by changes in legislation, particularly in relation to taxation and super. Other risks associated with investing in the ANZ Superannuation Savings Account include: Risk of low capital growth ANZ SSA may produce lower returns compared to other types of superannuation funds. You should be aware that ANZ SSA is not designed for capital growth, and may be inappropriate for long-term investment. Other superannuation products with different investment options may provide greater returns over the long-term. You should seek advice from a financial adviser in this regard Investment risk generally means the value of an investment could fall. However OnePath Life guarantees that investment returns will not reduce your account balance Liquidity risk - the risk that an investment may not be able to be sold to realise enough cash to fund withdrawals Restricted access you may not be able to withdraw your money at the time you want to, as the law restricts when you can withdraw your funds Insurance risk the risk of benefits being insufficient to provide adequate insurance cover in the event of injury or illness. The level of risk you face will vary depending on a range of factors, including your age, investment timeframes, risk tolerances and what other investments you may hold. You should read the important information about the Risks of super before making a decision. Go to the section Risks of super in the ANZ Superannuation Savings Account Additional Information Guide by visiting our website or contacting Customer Services on The material relating to Risks of super may have changed during the period from the day you acquired the product and the time when you read this PDS. 5. How we invest your money In choosing whether or not to invest in ANZ SSA, you should consider the level of risk involved with the particular investment, the level of likely investment return and your timeframe for investment. Your financial adviser can help you establish an investment profile that suits your needs and achieves your retirement goals. Investment objectives - ANZ SSA aims to protect the value of investments while achieving returns generally consistent with bank deposit rates. Investment strategy - All deposits in to ANZ SSA are invested in a master policy, which forms part of OnePath Life s No. 3 Statutory Fund, which currently invests in ANZ retail bank deposits. It may also invest in other fixed interest assets such as debentures, government and semi-government bonds. Who is it suitable for? ANZ SSA is suitable for investors seeking a steady and reliable investment with a high level of capital security. Minimum time horizon - No minimum. Risk profile - Defensive. Defensive funds are more likely to suit you if you seek to maintain the original value of your investment and you are prepared to accept lower returns for lower risk. What is guaranteed? Except for the guarantees provided by OnePath Life, neither ANZ nor any of its subsidiaries guarantee the performance of investments or the repayment of capital. OnePath Life guarantees that investment returns credited to your account will not reduce the account balance. Your account balance may still reduce due to fees, insurance costs (where applicable) and taxes. Return on your investment - Interest is calculated on the daily balance of your account and is credited quarterly before making any allowance for tax. The interest rate is determined by OnePath Life. This rate is derived from the gross earnings of ANZ SSA, which are calculated on a regular basis as the sum of: the interest earned the distribution of profits and losses arising from the sale of assets spread over no more than two years transfers to the Equalisation Reserve. Equalisation Reserves are maintained so that all investment proceeds (after allowable deductions) are ultimately distributed to policies. The Equalisation Reserves as at OnePath Life s balance date each year will be distributed over the following 12 months by way of equal daily transfers. The Equalisation Reserves are invested in line with the investment strategy outlined on this page. The Equalisation Reserves form part of the master policy issued by OnePath Life. The interest rate is calculated to distribute all the investment earnings to you after deducting fees, charges and transfers from the Equalisation Reserve. Your earnings are taxed at a maximum rate of 15% on ANZ SSA s gross earnings. Standards we adhere to when investing Due to the nature of the investments in ANZ SSA, the Trustee does not take into account labour standards, social, environmental or ethical considerations for the purposes of selecting, retaining or realising investments. 3

4 6. Fees and costs DID YOU KNOW? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser. TO FIND OUT MORE If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website ( au) has a superannuation calculator to help you check out different fee options. Main fees and costs This section provides summary information about the main fees and costs applicable to ANZ SSA. Full details of all fees and costs are contained within the ANZ SSA Additional Information Guide that should be read in conjunction with this PDS. You can use the information in the table below to compare the fees and costs of ANZ SSA with those for other super products. The fees and costs will be paid directly from your account or deducted from your investment returns. The fees and costs disclosed in this section that are charged to you include the net effect of Goods and Services Tax (GST), which is any GST at the applicable rate less any reduced input tax credit available to the Fund. TYPE OF FEE OR COST AMOUNT Fees when your money moves in or out of the fund Establishment fee Contribution fee Withdrawal fee Termination fee Management costs The fees and costs for managing your investment* Investment Management Fee: 0.98% p.a. of the balance** Expense recoveries: 0.75% p.a. of the balance** Member Fee: $97.74 p.a #. Example of annual fees and costs This table gives an example of how the fees and costs can affect your superannuation investment over a one year period. You should use this table to compare this product with other super products. EXAMPLE: ANZ Superannuation Savings Account Contribution Fees PLUS Management Costs EQUALS Cost of fund 1.73% + $97.74 p.a. ($1.88 per week^) BALANCE OF $50,000 WITH TOTAL CONTRIBUTIONS OF $5,000 DURING YEAR For every $5,000 you put in, you will be charged $0. And, for every $50,000 you have in the fund you will be charged $865 each year plus $97.74 in member fees # regardless of your balance. If you put in $5,000 during a year and your balance was $50,000, then for that year you will be charged fees of: $ What it costs you will depend on the fees you negotiate with your fund or financial adviser. ^ This amount relates to the Member Fee only. * These fees include an amount payable to ANZ for selling this product. Refer to the ANZ SSA Additional Information Guide for more information. ** The Investment Management Fee and Expense recoveries are calculated daily as a percentage of your account balance and deducted before determining the interest rate applied to the Fund. # The Member Fee of $97.74 p.a., current as at the date of this PDS, is indexed to increases in the Consumer Price Index as at 30 June each year. It is deducted from a member s account shortly after 1 October each year. You can get confirmation of the current fee at anytime by contacting Customer Services on There is a calculator provided by ASIC on its Moneysmart website, which can be used to calculate the effects of fees and costs on account balances. Go to Changes in fees and costs The fees and costs are current at the time of issuing this PDS. The Trustee may change fees and costs from time to time. We will provide you with 30 days advance notice of any fee increase. You should read the important information about our Fees and costs before making a decision. Go to the section Fees and costs in the ANZ Superannuation Savings Account Additional Information Guide by visiting our website or contacting Customer Services on The material relating to Fees and costs may have changed during the period from the day you acquired the product and the time when you read this PDS. 4

5 7. How super is taxed The tax you pay on monies invested in a superannuation fund is generally lower than the tax you would pay outside a superannuation fund, however many factors can influence the way your super is taxed. Tax may apply to your super at the contribution stage, during the investment earning stage and at the withdrawal stage. The amount of tax payable will depend on your age and individual circumstances. Tax on concessional contributions and investment earnings is paid by the Trustee to the Australian Taxation Office (ATO) on a quarterly basis, with an annual payment made if required. Tax collected from withdrawal payments is paid to the ATO twice a week. Tax on contributions - Concessional contributions, which include employer (e.g. super guarantee, salary sacrifice contributions, fees and insurance premium payments), and personal contributions claimed as a tax deduction are generally taxed at 15% in the Fund. Non-concessional contributions which include spouse, government co-contributions and personal contributions not claimed as a tax deduction are not subject to tax in the Fund. You should be aware that annual caps apply to both concessional and non-concessional contributions and if you exceed these caps in the relevant financial year there will be taxation consequences including that, excess contributions tax may be payable on the amounts that exceed the caps. You should monitor the amount of contributions to your super to ensure that you do not exceed the caps that apply to you. Government co-contributions are not available in the ANZ SSA. Tax on investment earnings - Investment earnings are taxed at a maximum rate of 15% in your super account. However this rate may be reduced by franking credits, foreign tax offsets and concessions on discounted capital gains. Investment earnings are not taxed within the pension phase. Tax on withdrawals - Your account will generally consist of taxable and tax-free components. You are required to draw down proportionately from these components. If you are aged less than 60, tax may be payable on the taxable component of lump sums and income stream payments. Tax is not payable on: The tax free component Lump sum payments if paid as a terminal medical condition payment, regardless of age Withdrawals of lump sum and income stream payments if you are aged 60, and over. Special tax rules apply to lump sum and income stream payments on an investor s death. Tax is not payable on lump sum payments made to death benefits dependent(s). In other circumstances, tax may be payable based on the age of the investor, the recipient and the relationship between the investor and the recipient. Providing your Tax File Number (TFN) - You should provide your TFN when applying for ANZ SSA. You are not obliged to provide your TFN and deciding not to quote your TFN is not an offence. However, if you do not provide us with your TFN you could pay 46.5% tax. Tax law in relation to super is complex and the above information has been prepared as a guide only and does not represent personal taxation advice. Please see your tax adviser for independent taxation advice taking into account your individual circumstances. You should read the important information about How super is taxed before making a decision. Go to the section How super is taxed in the ANZ Superannuation Savings Account Additional Information Guide by visiting our website or contacting Customer Services on The material relating to How super is taxed may have changed during the period from the day you acquired the product and the time when you read this PDS. 8. Insurance in your super Protect those closest to you by tax effectively packaging your insurance within your superannuation. Cover through ANZ Superannuation Savings Account - When you join ANZ SSA either as a personal member or through your employer, you may access Death Only or Death and Total and Permanent Disability (TPD) cover (subject to eligibility). Your eligibility - You are eligible for insurance cover provided you are aged between 15 and 64. You must be an Australian citizen or permanent resident of Australia and must reside in Australia (unless the Trustee has received written approval from the Insurer that cover may continue whilst residing outside of Australia). TPD cover is not available for certain excluded occupations. Please refer to the ANZ Superannuation Savings Account Additional Information Guide for more information on the excluded occupation categories. Insurance Cover table - The amount of insurance cover available on both Death and TPD are shown in the table below: Age next birthday Death and TPD (1 unit) Death Only (1 unit) Up to 35 $50,000 $70, $36,000 $54, $22,000 $35, $11,000 $20, $6,000 $12, $3,000 $6, $1,500 $3,500 Insurance premiums - There are costs associated with insurance cover. These costs are called premiums. Premiums for any life insurance cover offered through ANZ SSA are debited from your account monthly in arrears. The type of cover available (Death Only or Death and TPD) depends on your eligibility (including the number of hours you work each week and whether or not you are engaged in an excluded occupation). Both types of cover cost $1 per member per unit per week. The amount of cover available depends on your age next birthday. Cover available for employee members - When your employer enrols as a participating employer in ANZ SSA, your employer s plan may be established with one unit of Death Only or Death and TPD insurance cover, provided all eligible employees are enrolled in the plan. Whether or not one unit of Death Only or Death and TPD insurance cover is automatically available for an employee member depends on whether or not your employer selects insurance cover for all of their employees. It is important to note there are minimum member information requirements to establish insurance for a member. Insurance cover will not be provided until this minimum information is provided and all eligibility criteria are met. 5

6 The insurance cover available to you depends on whether your employer has selected insurance cover, and whether you are a full-time, part-time or casual employee. The type of cover provided for each employment classification is detailed in the ANZ Superannuation Savings Account Additional Information Guide. Cover available for personal members - If you are a personal member (your employer has not joined ANZ SSA as an employer sponsor) you can select up to two units of either Death Only or Death and TPD Cover. The insurance cover available will depend on the occupation and your work status at the date of application. You are required to provide health evidence when first selecting cover and/or if you wish to increase any existing cover previously accepted by the Insurer. TPD Cover is only available if you satisfy the 20 hour rule. To receive a TPD benefit you must also satisfy the 20 hour rule at the date of the event giving rise to your total and permanent disability. If you do not satisfy the 20 hour rule, you are only eligible for Death Only Cover. Personal members who work in an excluded occupation will not be eligible for TPD Cover, irrespective of whether you satisfy the 20 hour rule or not. It is important that you accurately disclose your occupation and work status (either full-time, part-time or casual) on the Life Insurance Application Form available from Important: The section Insurance in your super in the ANZ Superannuation Savings Account Additional Information Guide includes important information about eligibility for, cancellation of, and conditions and exclusions that may apply and that may affect your entitlement to insurance cover. You should read that information before deciding whether the insurance is appropriate. You should read the important information about Insurance in your super before making a decision. Go to the section Insurance in your super in the ANZ Superannuation Savings Account Additional Information Guide by visiting our website or contacting Customer Service on The material relating to Insurance in your super may have changed during the period from the day you acquired the product and the time when you read this PDS. This material may also affect your entitlements to insurance cover. You should read this information before deciding whether the insurance is appropriate. 9. How to open an account Simply visit and complete the ANZ Superannuation Savings Account Personal Application Form or Employer Application Form found under the Superannuation and retirement section. It is important that prior to making an application that you have read this PDS and the ANZ Superannuation Savings Account Additional Information Guide. The Trustee reserves the right to reject applications without giving a reason. Cooling-off period Once you have opened an ANZ SSA, you will have the opportunity to review your investment to ensure it meets your expectations. This is known as a cooling-off period. If you are not satisfied with the investment you have made, you may cancel your initial application within 14 days of the earlier of: The date you receive a confirmation from us, or The end of the fifth day after we first issue or sell a superannuation interest to you. If you cancel your investment within the cooling-off period, you may have it rolled over to another super fund or, if eligible, have it paid to you. Your investment amount will be adjusted for any changes in the value of the benefit, less any withdrawals and transaction costs. If you wish to cancel your initial application, you can contact Customer Services. Customer concerns We aim to resolve all complaints quickly and fairly. If you have a complaint, please contact Customer Services or us at: The Complaints Resolution Officer ANZ Superannuation Savings Account OnePath Custodians Pty Limited GPO Box 4028 Sydney NSW yourfeedback@onepath.com.au Having followed our dispute resolution process, if you are not satisfied with our response, you can contact the Superannuation Complaints Tribunal: Superannuation Complaints Tribunal (SCT) The SCT is a statutory body that deals with complaints about the decisions and conduct of super providers (including trustees of super funds, relating to members) but not in relation to decisions and conduct relating to the management of the fund as a whole. Locked Bag 3060 GPO Melbourne VIC 3001 Phone: Fax: info@sct.gov.au Website: If your complaint is outside the jurisdiction of the SCT, you may have the right to take your complaint to the Financial Ombudsman Service (FOS): Financial Ombudsman Service GPO Box 3 Melbourne VIC 3001 Phone Fax info@fos.org.au Website You should read the important information about How to open an account. Go to the section How to open an account in the ANZ Superannuation Savings Account Additional Information Guide by visiting our website or contacting Customer Service on The material relating to How to open an account may have changed during the period from the day you acquired the product and the time when you read this PDS. Additional Information Updating information in this PDS Information in this PDS is subject to change and may be updated by us from time to time. Updated information if not materially adverse, can be obtained by going to our website or contacting Customer Services on You can request a paper copy of updated information anytime, free of charge. Australia and New Zealand Banking Group Limited (ANZ) ABN ANZ s colour blue is a trade mark of ANZ W276891