Concept ne. Great News. Concept ne. and Concept One Superannuation Plan will merge to form... the Industry Superannuation Fund

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1 Great News FOR EMPLOYERS! The Industry Superannuation Fund and Concept One Superannuation Plan will merge to form... Concept ne the Industry Superannuation Fund SIGNIFICANT EVENT NOTICE On 22 February 2013 The Industry Superannuation Fund (TISF) will merge with the Concept One Superannuation Plan (Concept One) and this will result in a number of positive outcomes for TISF members and employers. The outcomes are outlined on the following pages. Merger employer changes at a glance All employer details will transfer automatically. You do not need to do anything! New employer web available from 26 March 2013 New Fund contact details Additional options for making Contributions Great member benefits for your employees New bank details Contributions Concept ne If you currently receive a monthly contribution return this will not change Introduction of a clearing house facility for large employers (over 20 staff) No change to the way you submit contributions. BPay, EFT or cheque all still available the Industry Superannuation Fund All Employer details will transfer automatically No forms to complete, your details will automatically be transferred from TISF to the merged fund No change to your employer number New employer web available from 26 March 2013 Employers will be able to submit SG payments, add or delete members and update information online Easy to use and reduces paperwork All of your account information at your fingertips. Further information on how to register will be sent to you closer to 26 March 2013 New contact details from 23 February 2013 The administration will continue to offer the same personal level of service employers have experienced in the past thus ensuring a smooth transition Phone Freecall: Mail Locked Bag 90 West Perth WA conceptone@tasgwa.com Web Fax No change Great member benefits for your employees Pages 2 to 8 outline the improved changes that will benefit members New bank details We will provide you with updated bank account and BPay details closer to 26 March The good news is that both funds use the Commonwealth Bank as their primary bank. To allow for the smooth transition for employers during the merger period, Commonwealth Bank will accept any contributions paid into the TISF bank account, however we will encourage employers to pay into the new account. Many of the changes are to improve member benefits. As an employer paying into TISF, there will be little change. Need or want to know more? Contact us to arrange a site visit to your work place. The TISF Business Development Manager, Angela McDonnell will be able to answer your questions or queries. Please call to speak to Angela. Alternatively, call to book an appointment.

2 AND GREAT NEWS FOR MEMBERS! The affiliation of the two funds will have a positive outcome for all members. Both Funds, which commenced in Western Australia in 1986, have always provided WA members with the advantage of having their superannuation accounts managed within WA, where they enjoy local time, local knowledge and support employment within our great State. At the same time both Funds also have a significant number of members and employers in the other States. For the past 26 years, each Fund has demonstrated a strong commitment to providing members with personalised service. Members have been able to speak one on one to qualified superannuation administrators and not a call centre. Going forward, the joint Board will ensure the personalised administration service provided to members and employers by both Funds is maintained under the new identity. Tax consequences If you have not supplied your Tax File Number (TFN) then it is IMPORTANT you read item 2 on page 7. Quick Facts: Reduced Member weekly fee Increased Death/TPD Insurance Benefits New Income Protection Financial Planning Advice Money Coach Improved web access Will reduce from $1.75 pw to $1.50 pw Nominated Concept One Superannuation Plan Super Ratings 2013 Rising Star Finalist Personal Service You will continue to receive the same level of personal service. No automated cues or numbers to select - speak to the administrator who is involved in the dayto-day admin and not a call centre Cover increases for Death & TPD across ALL ages and categories at no extra cost Death cover only - cost reduces New Education & White Collar categories Maximum cover limits Death or Death &TPD $3,000,000 MLC will continue to be the insurer Option to increase your cover without medical evidence on life events marriage, birth of a child or mortgage - there are also other life events that qualify. If you are employed and TISF is receiving your SG contributions then you will receive default Income Protection from 23 February 2013 Education/White Collar benefit $4,000 pm Standard benefit $3,000 pm Ability to select waiting period 30,60 or 90 days and a benefit period for 2 years or to age 65 Maximum income protection cover limit $30,000 per month Financial advice via a Concept One Money Coach over the phone or full financial planning Remember the first piece of single issue advice is paid for by the Fund Single issue advice includes: Investment option choice Risk profile How much do I need to retire on? Income protection - is it suitable in my circumstances? Pension New web site that will enable members easier access to information about superannuation. Available March 2013 New Pension You will now be able to access a cost effective pension product. For more information visit com Investment performance The KEY FEATURE of any superannuation fund is its performance over the long term 5, 7 and 10 years. Concept One Superannuation has consistently performed well. See below: 30 June 2012 returns Portfolio 5 years 7 years 10 years Trustee Balanced (default option) 0.29% 3.79% 5.27% Super Ratings Balanced upper quartile performance 0.16% 4.43% 5.88% As part of the successor fund transfer, from 22 February 2013, The Industry Superannuation Fund will be renamed to Concept One the Industry Superannuation Fund. In addition, there will also be some changes to investment options, fees and charges and your insurance benefits. 2

3 What will change? 1. Investment Options At present, TISF members have four investment options. From 22 February 2013, Concept One the Industry Superannuation Fund will also offer four investment options. These investment options will have similar exposure to growth and defensive assets as the current TISF investment options. The table on page 3 shows what the options will be in the merged fund from the transfer date (22 February 2013) and the new name of the investment option. As a result of the merger, members in Core (default option) will take on a more conservative asset allocation to reflect the volatility that continues in the investment markets. The new Balanced (previously Core) investment option will have a target strategic asset allocation of 60% growth assets and 40% defensive assets. Present Portfolio Name Core Growth Capital Stable Cash New Portfolio Name Balanced Assertive Conservative Cash (unchanged) Asset Allocation ** Current 70% growth assets and 30% defensive assets 80% growth assets and 20% defensive assets 30% growth assets and 70% defensive assets 100% cash Asset Allocation ** Post transfer 60% growth assets and 40% defensive assets Standard risk measure * (Based on the estimated number of negative annual returns over any 20 year period) Medium to high Rating 5 High Rating 6 Medium Rating 4 Very Low Rating 1 * Standard risk measure ratings are calculated 1 very low to 7 very high which reflects the likelihood of a negative return within a 20 year period ** Percentage of assets invested in each sector 2. Fees There will be some changes in fees and charges applicable from 22 February The difference between the current fees and charges and those which will apply from 22 February 2013 are summarised in the table below: Current TISF fees Concept One the Industry Superannuation Fund fees from 22 February 2013 Type of fee or cost Amount Amount Fees when your money moves in or out of the fund Establishment fee Nil Contribution fee Nil Withdrawal fee Nil if balance is below $1,000 $60 if balance is $1,000 or more Termination fee Nil Management costs The fees and costs for managing your investments Administration fee $1.75 per week ($91.00 p.a.) $1.50 per week ($78.00 p.a.) Investment management fees Family law fee Investment management charge depends on your chosen investment option. $ for any information requested. This fee will apply each time a request for information is made after a 12 month period. Investment switching fee Nil 3

4 3. Insurance It s cost effective to purchase insurance through your superannuation fund. The Trustee of the Fund has negotiated a new insurance offering for existing members which provides increased benefits! TISF s current insurance policy is underwritten by MLC Ltd (ABN ; AFSL ) and as part of the transfer, the Trustee has negotiated new improved Death and Total and Permanent Disablement cover and will introduce default Income Protection cover to members from midnight 23 February New and improved cover - Death or Death and Total and Permanent Disablement cover Age Next Birthday Death only $2.24 per week Current Death & TPD $4.00 per week Death only $2.00 per week Death & TPD $4.00 per week New Cover limits Standard Other Death only $2.00 per week Death & TPD $4.00 per week Education White Collar 15 to age 35 $102,000 $149,000 $167, $303, $98,200 $144,800 $162, $285, $90,400 $134,800 $152, $267, $82,600 $124,600 $140, $248, $75,600 $115,000 $129, $230, $69,400 $104,000 $117, $212, $64,200 $95,400 $107, $196, $59,800 $87,400 $98, $181, $55,200 $80,200 $90, $165, $50,000 $72,400 $81, $149, $46,400 $66,000 $74, $133, $42,000 $60,400 $68, $123, $39,700 $54,600 $61, $112, $36,600 $50,200 $56, $101, $34,000 $46,000 $51, $91, $30,800 $41,000 $46, $80, $28,200 $ $40, $72, $25,800 $32,200 $36, $64, $23,800 $29,200 $33, $77, $21,600 $26,000 $29, $48, $19,400 $22,600 $25, $40, $17,200 $19,400 $22, $36, $14,800 $17,000 $19, $33, $14,200 $15,200 $17, $29, $12,800 $12,800 $14, $26, $12,000 $12,000 $13, $22, $5,600 $12,000 $13, $19, $5,000 $12,000 $12, $17, $4,400 $12,000 $12, $15, $4,400 $12,000 $12, $12, $3,800 $12,000 $12, $12, $3,400 $12,000 $12, $12, $2,800 $12,000 $12, $12, $2,800 $12,000 $12, $12, $2,200 $12,000 $12, $12, $2,200 $12,000 $12, $12,

5 New default cover for Income Protection If you are employed and TISF is receiving your SG contributions then you will receive default income protection insurance cover in Concept One the Industry Superannuation Fund provided you meet the eligibility criteria. The table below sets out the level of cover provided. White Collar/Education Standard Benefit Period Waiting Period $4,000 per month (4 units) $3,000 per month (3 units) 2 years 60 days The cost of any income protection insurance you obtain is set out in the table below. Premium for 1 unit of cover (1 unit = $1,000 per month) Waiting Period 60 days White Collar/Education Unit cost per week ($) Standard Unit cost per week ($) Up to age If you do not wish to have any income protection insurance in Concept One the Industry Superannuation Fund, an Opt Out Form will be issued to you upon entering the new fund. This form will need to be completed and returned within the specified time limit for your Income Protection to be cancelled. If you do not notify us, the Trustee will begin to deduct premiums from your account after the merger to pay for your default income protection insurance cover. For further details on your insurance in Concept One the Industry Superannuation Fund go to 5

6 4. Key features that will not change The Trustee confirms there will be no changes to the following key features. Current TISF features Interim Crediting Rates What if I want to change my investment option? What types of contributions can I make? Contribution caps Salary sacrifice your contributions Government Co-contribution Spouse contributions Contribution splitting Nominating a beneficiary Who is a dependant? Member Benefit Protection Anti-detriment payments When can I access my money? Portability of super Proof of identity How your super is taxed Supplying your Tax File Number (TFN) Complaints Eligible Rollover Fund (ERF) Protecting your privacy Concept One the Industry Superannuation Fund features from 22 February 2013 Check your Annual Member Statement to see if you have notified us of your Tax File Number (TFN). See item 2 on page 7. 6

7 5. Other things you should know Things you need to be aware of: 1. There will be a Blackout Period The Blackout Period is the period during which TISF will be UNABLE to pay or rollover your benefits. Why: To enable the successor fund transfer to occur there will be a period where the Trustee will not be able to process transactions in relation to your investment in the fund. This means the Trustee will be unable to action: Investment switches; Roll overs or transfers; Provide estimates of earnings; and Payment of benefits. TISF has made an application to the Australian Prudential Regulation Authority for a period (Blackout) of relief in order to complete the transfer of data to Concept One. TISF needs to prepare a set of audited financial accounts, that will be audited to ensure members benefits have been transferred in line with the audited figures. When: We estimate that this period will be from 22 February 2013 until 26 March We aim to have all the processes completed and the new entity (Concept One the Industry Superannuation Fund) available from 5 April However, the actual period required may be shorter or longer than 5 April The new Concept One website will keep you updated on developments. 2. Ensure your Tax File Number (TFN) is recorded with TISF: If your TFN has already been recorded with us, you need to take no action at all ; (To find out if TISF has your TFN check the front page of your statement issued with this notice). If your TFN is not recorded, you will need to ensure you advise us before 8 February Why: Because TISF is transferring into Concept One the Industry Superannuation Fund, your ability to claim back any additional tax paid for no-tfn contributions will change. If TISF does not have your TFN (check your front page of your statement with this notice) the following will apply No TFN income Whilst, it is not compulsory for you to provide your TFN to TISF, if you fail to do so, you will be liable for an additional tax of 31.5% (on top of the usual 15%) with respect to employer, salary sacrifice and personal deductible contributions. If contributions have been made to TISF without a member s TFN, they are classified as no-tfn contributions. Ordinarily if you provide your TFN to TISF within 4 years of the no-tfn contributions tax being payable you are able to receive back the additional tax you paid. You will NOT be eligible to claim back the additional tax unless TISF receives your TFN before 8 February When: Provide your TFN before 8 February 2013 in order to claim back any no-tfn contribution tax or Providing your TFN on or after 8 February 2013 but before 22 February 2013 If TISF receives your TFN on or after the 8 February 2013 but before 22 February 2013, TISF will try to process this information but it does not guarantee it will be done before 22 February This means there is a risk you will not be eligible to claim back the additional tax paid on the no-tfn contributions.(this is despite providing your TFN to TISF within the regulated 4 years of no-tfn tax being payable). or Provide your TFN on or after 22 February 2013 If you provide your TFN to Concept One the Industry Superannuation Fund on or after 22 February 2013 you will not be entitled to a tax refund of the additional tax paid for no-tfn contributions. To avoid disappointment we strongly recommend you provide your TFN to TISF as soon as possible and in any case BEFORE 8 February

8 3. Contribution splitting To take advantage of the benefits from Contributions splitting, TISF must receive a contribution splitting request. When: If you are intending to split your contributions with your spouse, TISF must receive your request before 8 February Why: If TISF receives the request on or after 8 February 2013 but before 22 February 2013, it will try to process your request but there are no guarantees this will be done before 22 February 2013, in which case you will not be able to make a contribution splitting request for the contributions made during the period from 1 July 2011 to 21 February You will be unable to make a contributions splitting request to Concept One the Industry Superannuation Fund for the contributions made during the period 1 July 2011 to 21 February 2013 once your membership is transferred to Concept One the Industry Superannuation Fund on 22 February You will be able to make a contribution splitting request for the period of 22 February 2013 to 30 June If you intend to make a contributions splitting request for contributions for the period 1 July 2011 until February 2013, then you should consider providing the required forms to TISF by no later than 8 February Contributions splitting forms can be downloaded from our website. Keep updated by visiting the website The Concept One website will be updated on a regular basis to keep you informed of significant developments or changes. Contacting us is easy If you have any questions about TISF or this Significant Event Notice please contact the Administrator, The Australian Superannuation Group (WA) Pty Ltd. Call: or (08) tisfadmin@tasgwa.com Write to: PO Box 1439 WEST PERTH WA 6872 Website: or The information provided in this significant event notice is general information only and does not take into account any person s individual objectives, financial situation or needs. You should consider obtaining financial advice tailored to your own personal circumstances, before making a decision. The Industry Superannuation Fund Pty Ltd (ABN RSE L ) The Trustee for The Industry Superannuation Fund (ABN RSE R SFN ) 8 TI/EMP/SEN /12 ISS1