Insurance Cover Changes SIGNIFICANT EVENT NOTICE This Significant Event Notice is issued by CSF Pty Limited (ABN 30 006 169 286), (AFSL 246664) in its capacity as trustee of the Catholic Superannuation Fund (ABN 50 237 896 957) ( Catholic Super ). The cost of your insurance cover and the way insurance cover is provided through Catholic Super will be changing from 1 July 2012. This will affect all members of Catholic Super. An example comparison of the current and new insurance costs for a member turning 45 at their next birthday is shown below. From 1 July 2012, the cost of insurance cover for Death and Total and Permanent Disablement (TPD), Death Only and Income Protection will be changing. In addition to the change in the cost of cover, we are also changing the way cover is calculated we will move from a unit cost structure to a simpler dollar amount scale. The cost of cover will continue to vary with age. For many members, the cost of your insurance cover will not change. Where there is an increase in the cost of cover, this is generally associated with a higher benefit level being provided.* These changes will also make it easier for members to calculate the cover they require and purchase exactly the amount of insurance they need. You do not need to do anything unless you wish to change this level of cover. To change your level of cover, please call Member Services on 1300 655 002. For more information about the changes to our insurance cover, please call Member Services on 1300 655 002. Full details of the new insurance cover scales are set out on the following pages. From 1 July 2012, the Insurance section of our website www.csf.com.au will also show full details of the new insurance cover scales and the corresponding cost. As before, you can reduce your cover including basic cover and you can cancel your cover at any time. To opt out or reduce your cover, please write to us at the address below: Catholic Super GPO Box 180 Melbourne VIC 3001 Example comparison Current and new insurance costs for a member turning 45 at their next birthday Type of Cover Current Cover (to 30 June 2012) New Cover (from 1 July 2012)* Current Cost per annum New Cost per annum Death and TPD Basic Cover Death and Total & Permanent Disablement 2 units $129,200 $142,100 $157.04 $173.36 Death Only 2 units $129,200 $142,100 $91.52 $100.89 Death and TPD Build Your Own Cover Death Only $400,000 $400,000 $312.00 $284.00 Death and Total & Permanent Disablement $400,000 $400,000 $532.00 $488.00 Income Protection Cover 5 units 60 day waiting period, 5 year benefit payment period $35,100 annual benefit 5 units 60 day waiting period, benefits paid to age 65 $35,100 annual benefit 5 units 30 day waiting period, 5 year benefit payment period $35,100 annual benefit 5 units 30 day waiting period, benefits paid to age 65 $35,100 annual benefit $36,000 annual benefit $36,000 annual benefit $36,000 annual benefit $36,000 annual benefit $153.40 $158.04 $304.20 $313.20 $262.60 $270.36 $553.80 $569.88 *To be eligible for any automatic benefit increase, a member needs to be at work. For a definition of at work please see the Super Product Disclosure Statement on our website www.csf.com.au or call 1300 655 002.
Insurance Cover Changes NEW Insurance cover scales Full details of the new insurance cover scales are set out below and on the following pages. Standard Cover Fixed Dollar Cover Amount Annual Cost Age Next Birthday New Insured Persons from 1 July 2012 $ Existing Insured Persons on 30 June 2012 $ Existing Insured Annual Premium Death Only $ Existing Insured Annual Premium Death & TPD $ 16 150,000 201,000 28.14 38.19 17 150,000 201,000 34.17 48.24 18 150,000 201,000 46.23 62.31 19 150,000 201,000 54.27 72.36 20 150,000 201,000 58.29 74.37 21 150,000 201,000 56.28 74.37 22 150,000 201,000 52.26 68.34 23 150,000 201,000 48.24 62.31 24 150,000 201,000 44.22 54.27 25 201,000 201,000 40.20 52.26 26 201,000 201,000 42.21 52.26 27 201,000 201,000 42.21 54.27 28 201,000 201,000 42.21 54.27 29 201,000 201,000 46.23 56.28 30 201,000 201,000 48.24 60.30 31 201,000 201,000 50.25 64.32 32 201,000 201,000 52.26 68.34 33 201,000 201,000 52.26 72.36 34 201,000 201,000 54.27 76.38 35 201,000 201,000 60.30 84.42 36 189,400 189,400 60.61 85.23 37 189,400 189,400 64.40 94.70 38 189,400 189,400 71.97 106.06 39 189,400 189,400 75.76 113.64 40 189,400 189,400 83.34 126.90 41 142,100 142,100 68.21 108.00 42 142,100 142,100 75.31 120.79 43 142,100 142,100 82.42 135.00 44 142,100 142,100 90.94 153.47 45 142,100 142,100 100.89 173.36 46 94,800 94,800 74.89 131.77 47 94,800 94,800 84.37 149.78 48 94,800 94,800 93.85 170.64 49 94,800 94,800 107.12 195.29 50 94,800 94,800 119.45 223.73 51 57,400 57,400 82.66 156.13 52 57,400 57,400 92.41 177.94 53 57,400 57,400 104.47 204.34 54 57,400 57,400 117.67 233.04 55 57,400 57,400 133.17 266.91 56 57,400 57,400 146.94 303.07 57 57,400 57,400 164.74 347.27 58 43,000 43,000 136.31 295.41 59 43,000 43,000 151.79 336.26 60 43,000 43,000 168.13 382.27 61 28,800 28,800 124.13 290.02 62 28,800 28,800 137.38 330.62 63 28,800 28,800 152.64 377.86 64 14,400 14,400 85.68 217.44 65 14,400 14,400 95.62 250.42 66 11,200 11,200 95.54 250.43 67 11,200 11,200 95.54 279.55 68 11,200 11,200 95.54 314.16 69 11,200 11,200 95.54 352.80 70 11,200 11,200 95.54 395.36
Insurance Cover Changes NEW Insurance cover scales Build Your Own Cover Annual Cost per $1,000 Sum Insured Age Next Birthday Death $ Death and TPD $ 16 0.14 0.19 17 0.17 0.24 18 0.23 0.31 19 0.27 0.36 20 0.29 0.37 21 0.28 0.37 22 0.26 0.34 23 0.24 0.31 24 0.22 0.27 25 0.20 0.26 26 0.21 0.26 27 0.21 0.27 28 0.21 0.27 29 0.23 0.28 30 0.24 0.30 31 0.25 0.32 32 0.26 0.34 33 0.26 0.36 34 0.27 0.38 35 0.30 0.42 36 0.32 0.45 37 0.34 0.50 38 0.38 0.56 39 0.40 0.60 40 0.44 0.67 41 0.48 0.76 42 0.53 0.85 43 0.58 0.95 44 0.64 1.08 45 0.71 1.22 46 0.79 1.39 47 0.89 1.58 48 0.99 1.80 49 1.13 2.06 50 1.26 2.36 51 1.44 2.72 52 1.61 3.10 53 1.82 3.56 54 2.05 4.06 55 2.32 4.65 56 2.56 5.28 57 2.87 6.05 58 3.17 6.87 59 3.53 7.82 60 3.91 8.89 61 4.31 10.07 62 4.77 11.48 63 5.30 13.12 64 5.95 15.10 65 6.64 17.39 66 8.53 22.36 67 8.53 24.96 68 8.53 28.05 69 8.53 31.50 70 8.53 35.30
Insurance Cover Changes NEW Insurance cover scales Income Protection Premium Rates Annual Rates per $1,000 Annual Benefit Age Next Birthday 5 Year Benefit $ 30 day waiting period 60 day waiting period Benefit To Age 65 $ 5 Year Benefit $ Benefit To Age 65 $ 16 2.45 4.01 1.56 2.30 17 2.45 4.01 1.56 2.30 18 2.45 4.01 1.56 2.30 19 2.45 4.01 1.56 2.30 20 2.45 4.01 1.56 2.30 21 2.45 4.01 1.56 2.30 22 2.53 4.09 1.56 2.30 23 2.53 4.16 1.56 2.38 24 2.60 4.24 1.56 2.38 25 2.60 4.31 1.56 2.45 26 2.60 4.46 1.56 2.45 27 2.45 4.24 1.49 2.38 28 2.38 4.09 1.41 2.30 29 2.38 4.16 1.41 2.38 30 2.30 4.09 1.34 2.30 31 2.38 4.31 1.41 2.38 32 2.45 4.53 1.41 2.45 33 2.75 5.05 1.56 2.68 34 2.82 5.28 1.56 2.75 35 3.05 5.87 1.71 3.05 36 3.34 6.47 1.86 3.34 37 3.72 7.43 2.08 3.79 38 4.01 7.95 2.16 4.09 39 4.39 8.92 2.38 4.53 40 4.76 9.81 2.60 4.98 41 5.13 10.63 2.82 5.50 42 5.65 11.82 3.12 6.17 43 6.32 13.23 3.57 7.06 44 6.69 14.20 3.87 7.66 45 7.51 15.83 4.39 8.70 46 8.03 16.95 4.83 9.51 47 8.85 18.66 5.43 10.63 48 9.59 20.14 6.02 11.74 49 10.48 21.85 6.69 13.01 50 11.52 23.64 7.51 14.42 51 12.64 25.50 8.40 15.83 52 13.83 27.35 9.44 17.54 53 15.31 29.58 10.63 19.70 54 16.80 31.44 11.82 21.70 55 18.51 33.60 13.31 24.01 56 20.44 35.83 14.87 26.39 57 22.75 38.13 16.72 28.69 58 25.35 40.21 18.81 30.77 59 28.32 42.15 21.11 32.41 60 31.66 43.56 23.71 33.30 61 33.67 33.67 25.20 25.20 62 33.45 33.45 24.98 24.98 63 26.91 26.91 19.99 19.99 64 15.46 15.46 10.70 10.70 65 5.57 5.57 3.05 3.05 Issued by CSF Pty Limited (ABN 30 006 169 286; AFSL 246664), the Trustee of the Catholic Superannuation Fund (ABN 50 237 896 957; SPIN CSF0100AU). The information contained herein is about the Fund and is general information only. It has been prepared without taking into account your personal investment objectives, financial situation or needs. It is not intended to be, and should not be construed in any way as, investment, legal or financial advice. CS084 May2012
Product Disclosure Statement (PDS) For Members and Employers Effective 1 April 2010 Issued by CSF Pty Limited ABN 30 006 169 286, Trustee of the Catholic Superannuation Fund ABN 50 237 896 957 AFSL 246664.
Issued on 1 April 2010 by CSF Pty Limited Trustee Company CSF Pty Limited ABN 30 006 169 286 ACN 006 169 286 AFSL 246664 Fund Registration Numbers ABN 50 237 896 957 SPIN CSF0100AU Phone enquiries Call Member Services on 1300 655 002 8:00am to 5:30pm (AEST) Monday Friday Postal address GPO Box 180 Melbourne VIC 3001 Head Office: Level 1, 535 Bourke Street Melbourne VIC 3000 p. 1300 655 002 f. 03 9934 3465 w. www.csf.com.au e. info@csf.com.au Need financial planning advice? Contact our salaried advisers at CSF Financial Services Pty Ltd on p. 1300 655 002 Contents It pays to belong to Catholic Super Joining Catholic Super Members Employers How your account works Making contributions When can you access your super? Investments Fees and charges Tax and super Insurance Death and TPD Cover What is Income Protection cover? Other things you should know about Insurance cover with Catholic Super Staying in touch Financial and retirement planning advice Don t lose track of your super Maintaining an income in retirement Enquiries and complaints Your rights to privacy Financial Services Guide (FSG) Appendix 1: Insurance scales Forms to complete 1 2 3 4 10 12 24 28 31 35 37 41 43 44 45 46 47 48 49 52 54 Disclaimer You should read this Product Disclosure Statement (PDS) carefully before you make a decision to join Catholic Super. The information contained in this PDS is general information only and does not take into account your personal investment objectives, financial situation or needs. It is not intended to be, and should not be construed in any way as, investment, legal or financial advice. We recommend you assess your own financial situation before making a decision based on the information contained in this PDS. To help you with your decision making you may wish to seek the help of a professional financial adviser. Neither the Trustee, nor any of the Trustee s service providers, guarantee the performance of Catholic Super, the repayment of capital, or any particular rate of return. Changes to the Product Disclosure Statement (PDS) From time to time the Trustee may provide updates to the information contained in this PDS via Supplementary Product Disclosure Statements. Where there are any material adverse changes to existing members, we will advise you in writing at least 30 days prior to the change taking effect. Our staff will be pleased to answer your questions and provide information. Our contact details appear above.
It pays to belong to Catholic Super Catholic Super is an industry fund and returns all profits to its members. We have a long history of strong investment returns. We have a range of investment options to cater for different investor profiles. Free investment switching allows members to change their investment strategy as their needs change. Our fees are competitive and offer value for money. We have a number of low cost insurance options to suit our range of members. We have secure online access for members and employers. Our online tools and features are designed to streamline your super transactions. Catholic Super offers free seminars and workplace visits to make sure members are well informed and don t miss out on opportunities to improve their retirement savings. We use a variety of print and online communications to keep members and employers informed. Catholic Super members have access to low cost financial and retirement planning advice through Catholic Financial Services Pty Limited. Other benefits of belonging include low cost home loans and banking services through ME Bank and lower health insurance premiums through Medibank Private. About this guide This Product Disclosure Statement (PDS) explains the main features, costs, benefits and investment risks of Catholic Super. The information contained in this Product Disclosure Statement (PDS) and the Financial Services Guide is correct at the date of issue, 1 April 2010. While the Trustee has taken all due care in the preparation of this document, it reserves the right to correct any error or omission. Changes to Government legislation or superannuation rules made after this date may affect the accuracy of the documents. Any questions? After reading this PDS, if you have any questions or would like more information about Catholic Super, please don t hesitate to contact us. You can call, email, fax or write to us using the contact details that appear on the inside front cover. Our salaried financial planners are available to help you with more complex financial issues and to provide you with personal financial advice on request. From time to time the Trustee may provide updates to the information contained in this PDS via Supplementary Product Disclosure Statements. Updated information, including updated performance of investment options, may also be obtained via our website www.csf.com.au or by calling 1300 655 002. A Trust Deed governs the operation of Catholic Super. From time to time this may need to be amended and members will be notified of any changes. You can request a copy of the Trust Deed. If there is any discrepancy between the Trust Deed and this PDS, the Trust Deed prevails. 1
Joining Catholic Super Superannuation helps you save for a financially secure retirement. It also provides a financial benefit for you or for your family in the case of your death. Catholic Super has been providing our members and employers with superannuation services since 1971. Today we have more than 68,000 members, approximately 6,100 participating employers and over $3.6 billion in assets. Members 1. Employer sponsored members If your employer pays Superannuation Guarantee contributions on your behalf and agrees to pay those contributions to Catholic Super this is the plan you should join. 2. Personal plan members Criteria for joining the Catholic Super Personal Plan depend on your age. If you are less than 65 years old you should meet any of the following criteria: You are self employed You have a rollover amount you wish to deposit (including family law payment splits) You have a cash deposit You have left work due to permanent invalidity Your spouse (including de facto and same sex partner) is an Australian taxpayer wanting to make contributions on your behalf (see page 5 for more details). If you are aged between 65 and 74 years of age you should: Be making personal contributions, and Have worked in paid employment for at least 40 hours in at least one period of 30 consecutive days during the current financial year. Personal contributions can only be made in the year in which this work test is satisfied. If you are aged between 65 and 69 and: Your spouse (including de facto and same sex partner) is an Australian taxpayer wanting to make contributions on your behalf, and You have worked in paid employment for at least 40 hours in at least one period of 30 consecutive days during the financial year in which the contribution is made. Please note that an initial deposit or rollover of $200 is required to open your Catholic Super Personal Plan account. Cooling off period (Personal Plan) You have a 14-day cooling off period from the date your application and contribution is received by Catholic Super Personal Plan within which you can cancel your membership and have the contribution refunded. If you decide to cancel your membership within the 14-day period you must advise the Trustee in writing. Although fees or charges won t be applied to your account, the amount refunded will be adjusted for any increase or decrease in the investment value and any tax payable in respect of the contribution. If you have transferred amounts from another fund during the cooling off period and you cancel your membership in that time, any preserved or restricted non-preserved amounts cannot be refunded to you. Instead they will be transferred to another approved superannuation fund, approved deposit fund or retirement savings account of your choice. Employers Catholic Super welcomes any employers interested in joining the Fund. We have a range of flexible payment options available, including online options and we can assist in setting up your super administration processes. Catholic Super staff are available to assist you and answer your questions. Just call 1300 655 002 or email info@csf.com.au. Non-mandated employer contributions (i.e. irregular employer contributions or salary sacrificed bonus payments) can be accepted provided you meet the work test described previously. 2
Identification requirements Under the Anti-Money Laundering & Counter Terrorism Act 2006, superannuation funds are required to identify, monitor and mitigate the risk that the fund might be used to launder money or finance terrorism. Because of this you may be required to provide certified proof of your identity before you withdraw or rollover your benefit from Catholic Super or commence a pension with Catholic Super. At a minimum, you may be required to provide Catholic Super with evidence that verifies your full name, your date of birth and your residential address. We may need to identify: You. We cannot process a withdrawal or rollover of all or part of your benefit until all relevant information has been received and your identity has been satisfactorily verified. Your estate and/or beneficiaries. If you die while you are a member of Catholic Super, we may need to verify the identity of your legal personal representatives and/or your beneficiaries prior to paying your death benefit. Anyone acting on your behalf. This includes a person exercising your power of attorney. Catholic Super reserves the right to request additional information, or decide to delay or refuse any request or transaction, in relation to your interest in Catholic Super, if we are concerned that the transaction or request may cause us to commit or participate in an offence, and we will incur no liability to you if we do so. How your account works When you join Catholic Super, an individual account is opened in your name. What goes in: your employer s contributions (usually 9 of your salary in accordance with Superannuation Guarantee legislation) if applicable, your own personal contributions and salary sacrifice contributions (see pages 4 5 for more information), any spouse contributions made on your behalf by your spouse (if applicable see page 5 for more information), Government co-contribution (if applicable see page 6 for more information), any amounts you transfer in from other superannuation funds, and investment returns on your account net of fees and taxes (may be positive or negative). Can your account ever decrease in value? Catholic Super offers member investment choice, which means you can choose how your superannuation is invested. Each option has a different investment strategy and risk profile (refer to the Investment section on pages 12 23). It is very important that you understand how investment choice works and that you choose the right option for your personal circumstances. In times of economic volatility, it is possible that some options may provide negative returns and therefore it is possible that your account balance may decrease. If you leave Catholic Super, particularly within a short period of becoming a member, your benefit may be less than the amount of contributions paid because of the rate of investment returns, the fees charged, the insurance premiums deducted and the tax paid on your contribution. What comes out: tax and other Government charges as applicable; administration fees; and insurance premiums (if applicable). A full explanation of fees and taxes appears on pages 24 30. Insurance conditions and costs are explained on pages 31 42 and pages 52 53. 3
Making contributions Employer contributions Superannuation Guarantee The Superannuation Guarantee (SG) legislation requires employers to make contributions to a complying super fund on behalf of each eligible employee. Generally, employers are required to contribute 9 of your Ordinary Time Earnings (OTE) as long as you earn $450 or more in a calendar month. This applies to full-time, part-time and casual employees. OTE is what you generally earn for your ordinary hours of work. It includes over-award payments, commissions, shift allowances, work-related bonuses and paid leave, but does not include overtime. Your employer is not required to pay superannuation contributions in respect of any portion of your OTE above a threshold of $40,170* per quarter. *Threshold for the 2009/2010 financial year, indexed annually. Contributions by the self employed If you are self employed you can decide how much, when and how you want to make contributions to your super account, subject to the contribution caps outlined on page 8. Contributions can be made as a lump sum or as regular fixed contributions via direct debit. Redundancy and other termination payments made by your employer In general, you cannot roll over termination payments made by your employer directly into your super account, although you can make additional contributions once you have received these payments as taxed income. Transitional arrangements which apply until 30 June 2012 may allow you to roll over an employer termination payment into your account if it is paid in accordance with a law or employment contract which was in force on 9 May 2006. Please contact Catholic Super or the Australian Taxation Office (ATO) for more information. Making personal contributions Superannuation is often the largest single asset people have when they retire. To make the most of your super, it is important to start planning as early as you can. Whether retirement is just around the corner or many years away, there are some easy ways to build your super and make your investment work harder for you. Your super contributions, whether before or after tax, are subject to preservation rules (see page 10) so you should consider all of your financial needs before making additional contributions which are likely to be inaccessible until retirement. Contributions, both employer and personal, are subject to annual caps (see page 8 for more information). Personal contributions are one of the best ways to increase your super. With family bills and expenses, it can be difficult to spare any extra money to save for something that may seem very far away, but even a small amount, such as an extra $10 a week, can make a big difference over time. Voluntary contributions Voluntary contributions from your after tax salary have already been taxed at your marginal tax rate so they are not taxed when Catholic Super receives them or when they are withdrawn at retirement. Catholic Super does not charge any fees to make extra personal contributions, and there are several easy ways you can make payments: 1. Organise a payment through BPAY. Contact us on 1300 655 002 for more information. 2. Arrange with your bank or credit union to make a regular contribution via direct debit from your account. Download the Direct Debit Request form from our website www.csf.com.au or call us for a copy. 3. Ask your employer to deduct a specific amount from your pay to go into your Catholic Super account. Your employer can send the amount to us regularly with their own Superannuation Guarantee contributions. 4. Send your own contributions by cheque. Download the Making a one off personal contribution to your Super form from our website www.csf.com.au or call us for a copy to ensure we have enough details to identify your account correctly. Making after tax contributions could make you eligible for the Federal Government s Co-contribution, which will make your super grow even faster. Personal contributions can only be accepted if you have supplied Catholic Super with your Tax File Number (TFN). 4
Salary sacrifice Salary sacrifice means that you make an agreement with your employer to pay an agreed amount of your before tax salary into your super account. These contributions are treated in the same way as employer contributions for taxation purposes. This mean that salary sacrifice contributions are subject to the Government s 15 contributions tax, which is considerably lower than personal income tax rates for many members. Salary sacrifice contributions are not eligible for the Government s Co-contribution. Salary sacrifice contributions count towards the concessional contributions cap. If you have not provided Catholic Super with your Tax File Number and contribute a large amount in this way, you may have to pay more tax (see page 8 for more information). You can use one of our website calculators to make sure your contributions are as efficient as possible. Select Calculators from the Popular Links section on our homepage, then click on Salary Sacrifice Calculator and follow the simple steps. Before entering into a salary sacrifice arrangement you should consider seeking professional advice. Spouse contributions Catholic Super can accept contributions on behalf of a spouse, even if they are not employed. In this context, spouse means a legal or de facto husband and wife and since 1 July 2009, it includes same sex couples. A de facto relationship means that a person lives with you on a genuine domestic basis. It does not include a person who lives separately and apart from you on a permanent basis, even though you may be legally married. Once a spouse contribution is received it is fully vested in the receiving spouse.this means that the contributing spouse no longer has any right to the money and Catholic Super cannot refund it to them. There is no limit on the amount of payments a spouse can make in a particular year. The contributing spouse can be any age but must be an Australian resident. The receiving spouse must be an Australian resident and under 65 when the payment is received or under age 70 if he/she has worked at least 40 hours in a period of not more than 30 consecutive days during the financial year in which the contribution is made. Spouse contributions are subject to preservation rules (see page 10 for more information). In some circumstances, the contributing spouse may be eligible for a tax rebate of up to $540 on these superannuation payments. For more information on the tax rebate, see page 28. Spouse members wishing to join Catholic Super, who do not receive employer SG contributions, should join our Personal Plan. An Application Form is included at the back of this PDS. To make payments on a spouse s behalf, the contributing spouse must complete a Spouse Contribution Advice form with each payment. Copies of this form can be downloaded from the Tools & Forms section of www.csf.com.au or obtained by calling Catholic Super on 1300 655 002. 5
Making contributions cont. The Government Co-contribution The Government Co-contribution can put an extra $1,000 into your super this year. It is a Federal Government initiative designed to help people with lower incomes save for retirement. To be eligible, you must make personal after tax contributions to your super and you must meet all of the criteria listed below: your total income, including salary sacrificed amounts, is less than $61,920* per year, you are a permanent Australian resident, you are less than 71 years of age at the end of the financial year, you lodge a tax return for the financial year, and you earn at least 10 of your total income from running a business or from an employer or a combination of both. How does it work? The co-contribution is calculated on a sliding scale, depending on your income and how much you contribute to your super. At incomes of $31,920* and under, the full co-contribution applies (i.e. dollar for dollar matching of your own contributions up to a maximum of $1,000). The cocontribution decreases as your income increases, cutting out at incomes of $61,920* and over. *These amounts apply for the 2009/10 tax year and are adjusted in line with the annual movement in Average Weekly Ordinary Time Earnings (AWOTE). How much will you receive? For the 2009/10 financial year you will receive $1.00 for every dollar of your own personal contribution. The maximum amount of $1,000 per financial year reduces by 5 cents for each dollar of income you earn over $31,920 up to an income of $61,920 where it phases out completely. The following table shows the amount of co-contribution that applies to different income levels. Annual income Personal contribution required Government co-contribution $31,920 $1,000 $1,000 $36,920 $834 $834 $41,920 $667 $667 $46,920 $500 $500 $51,920 $333 $333 $56,920 $168 $168 $61,920 $0 $0 It may be in your best interests to refer to a financial adviser before making a decision on super co-contribution. Example: James earns $36,920, contributes $834 to his super and meets all other criteria. He will receive a co-contribution of $834. James can contribute more than $834, but the maximum co-contribution he can receive is $834. When is the payment made? You don t have to apply for the co-contribution. The Australian Tax Office (ATO) will use information from your personal tax return and contribution information from Catholic Super to work out whether you are eligible. The ATO will automatically calculate the amount of co-contribution, deposit it into your super account and send you a letter of confirmation. Temporary Reduction to the Co-contribution In this year s budget, the Federal Government announced a temporary reduction in the co-contribution matching rate for after tax contributions made in the five year period from the 2009/10 to the 2013/14 financial years. Contribution year Matching rate Maximum Co-contribution 2008-2009 150 $1,500 2009-2010 100 $1,000 2010-2011 100 $1,000 2011-2012 100 $1,000 2012-2013 125 $1,250 2013-2014 125 $1,250 2014-2015 150 $1,500 6
Consolidate your super accounts It is easy to wind up with several super accounts. If you have ever changed jobs, you probably have more than one super fund account. If you have more than one account you could be paying fees to each fund. Why not put all of your money in one place and get your money to work harder for you? You pay only one set of fees which helps you to save more for retirement. It s also easier for you to keep track of your money and there will be less paperwork to deal with. It s easy with Catholic Super You can do it online. Go to the Catholic Super website www.csf.com.au. If you have your membership number, simply select Consolidate Now Online and follow the simple steps. If you are not yet a member you can Join online and transfer your other super as part of that process. You can transfer your money from up to five funds at once if doing this online. Alternatively you can download the Transfer Your Superannuation into Catholic Super form from our website www.csf.com.au. You will need one form for each fund you re transferring from. You can request the form by calling Catholic Super on 1300 655 002. Once we receive your form we will contact your old fund and do all the work for you. We ll write to you to confirm when we have received the money and deposited it to your account. Catholic Super does not charge any fees for you to transfer other funds into your account. However, your previous fund may charge you a withdrawal fee. Important things to consider Before you decide to transfer other funds into Catholic Super, you should consider the following: ask your previous fund if it will charge any fees or termination penalties for withdrawing your super; and if you have insurance cover with your old fund, find out how transferring out will affect you. You may be able to transfer your insurance coverage into Catholic Super. Some conditions apply. See page 31 for Catholic Super s insurance options. Contribution splitting Members have the option of having some of their super contributions transferred to their spouse s super account either in the same fund or a different fund. Eligible contributions can be split between married and de facto couples including same sex couples, after the completion of the financial year or earlier if the member is withdrawing their benefit. Only concessional contributions (i.e. Super Guarantee contributions, salary sacrifice contributions and contributions made by the self employed) are eligible for contribution splitting. Members can split up to 85 of their concessional contributions. Members cannot split personal after tax contributions, amounts transferred from another super fund or amounts subject to a Family Law payment split. Contribution splitting is subject to contribution caps. (See page 8.) Catholic Super must receive contribution splitting advice by 31 May for the previous financial year s contributions. Superannuation splitting and Family Law legislation Under Australian law, superannuation entitlements can be split between divorcing or separating couples. The law allows the Courts to order the splitting of superannuation in divorce cases or couples may make their own arrangements to do so. The Federal Government passed amendments to the Family Law Act in 2008 giving the Family Court power to split the property, including superannuation, of separated de facto couples. The new law started operating from 1 March 2009. Super splitting for separating de facto couples now applies in all states and territories except South Australia and Western Australia. Upon request, we are required by law to provide prescribed information about a member s superannuation to a spouse, or to a potential spouse in the case of a pre-nuptial agreement. We are not allowed to advise you that this information has been requested, nor are we allowed to release your address to your spouse. You may wish to obtain independent financial advice before making a decision. 7
Making contributions cont. Contribution types and limits Concessional (before tax) contributions cap Concessional contributions are before tax contributions paid by employers and other eligible persons including employer contributions, salary sacrifice contributions and contributions by self employed individuals. Your concessional contributions are capped at $25,000 per year (indexed*). Until 30 June 2012, if you are aged 50 or over on the last day of each financial year, you will be eligible for a higher cap of $50,000 for that year (not indexed). Contributions below the cap are taxed at 15. Contributions that exceed the cap are taxed at the highest marginal tax rate. If this happens, you will be able to ask Catholic Super to release enough money from your super account to pay the excess contributions tax. *Indexed from time to time to the movement in Average Weekly Ordinary Time Earnings (AWOTE). Non-concessional (after tax) contributions cap Non-concessional contributions are generally contributions made by or for a member that are not taxed in Catholic Super. Instead they are made from a member s after tax income such as personal contributions, spouse contributions and some benefits transferred from overseas super funds. These contributions are capped at $150,000 per year (indexed*). Those aged under 65 are allowed to contribute $450,000 in one year with no further contributions in the next two years. Contributions below the cap are not taxed when paid to a super fund. Contributions over the cap will be taxed at the highest marginal tax rate of 46.5 (including the Medicare levy). Catholic Super will not accept contributions in excess of the cap. If you do exceed the cap (e.g. by making large contributions to other superannuation funds in addition to Catholic Super), you will personally have to pay tax on the excess contributions at the top marginal tax rate. You will be required to ask Catholic Super (or another superannuation fund) to release enough money from your super account to pay the excess contributions tax. Exceptions to the caps Contributions pertaining to certain proceeds from the sale of a business have a lifetime cap of $1,100,000 (indexed from time to time). Contributions pertaining to the proceeds from settlements for injuries resulting in permanent disablement do not count towards any cap, provided they are contributed to super within 90 days of receipt. Government co-contributions do not count towards any cap. Transfers from an Australian fund (roll overs for more information see page 7) do not count towards any cap. Some employment termination payments (for more information see page 28) can be rolled over into super until 30 June 2012, but only the taxable component of rollover amounts above $1,000,000 (in aggregate) will count towards the employer contributions cap. Transfers from an overseas fund are subject to the personal contributions cap ($150,000 or $450,000), except for any portion that you have elected to be treated as a taxable contribution by Catholic Super. Spouse contributions count towards the receiving spouse s non-concessional contributions cap. Tax on excess contributions After the end of each financial year, Catholic Super like every other fund, must report to the Australian Taxation Office (ATO) all contributions it received and credited to your account. If the ATO determines that your total contributions exceeded either cap during that year, it will issue you with an excess contributions tax assessment notice stating the amount of extra tax you must pay. If the non-concessional contributions cap is exceeded you must withdraw an amount equal to the extra tax from your Catholic Super account (or from another super fund) so it can be paid to the ATO. If the concessional contributions cap is exceeded, you can choose to withdraw the extra tax amount from your Catholic Super account or pay the tax yourself to the ATO. *Indexed from time to time to the movement in Average Weekly Ordinary Time Earnings (AWOTE). 8
What contributions can Catholic Super receive? Member Age Under 65 65-69 70-74 75 and over Personal Plan members You can contribute to the Fund. You can contribute to the Fund if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made. You can contribute to the Fund if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made. You cannot contribute to the Fund. Spouse You and your contributing spouse can make payments in to your account. You and your contributing spouse can make payments in to your account if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made. No contributions can be made. No contributions can be made. Employer sponsored Your employer can contribute to the Fund on your behalf. Your employer can contribute to the Fund if: the contributions are mandated employer contributions, or you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made. Re employer contribution. The same rules apply as for those aged 65 69 but Superannuation Guarantee contributions are not payable for those aged 70 and over. Your employer can contribute to the Fund only if the contributions are mandated employer contributions. You can make personal contributions to the Fund. You can contribute to the Fund if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made. You can contribute to the Fund if you have been gainfully employed for at least 40 hours in a period of not more than 30 consecutive days during the same financial year in which the contributions are made. You cannot contribute to the Fund. 9
When can you access your super? Because superannuation is designed to provide you with an income in retirement, there are Government restrictions on when your benefit can be paid. These restrictions are known as preservation rules. Your superannuation benefit is split into preserved and non-preserved portions. Your annual member statement will show how much of your benefit is preserved or nonpreserved. Generally, any superannuation contributions received on your behalf after 1 July 1999 are required to be preserved. Investment returns made to your superannuation account after that date will also be preserved. According to legislation and the Catholic Super Trust Deed, the preserved portion of your superannuation benefit (if greater than $200) will not be payable until you meet one of the following conditions: permanently retire from the workforce on or after preservation age (as per the preservation age table in column 2), set up a pre-retirement pension after age 55 while still working (conditions apply see page 46), leave your employer on or after age 60 irrespective of whether or not you are retiring permanently from the workforce, reach age 65, retire due to permanent disability, suffer financial hardship and obtain the required approval, qualify under specific compassionate grounds, permanently depart from Australia, having been an eligible temporary resident, or die (your benefit will be paid to your estate or your dependants). Special consideration may be given in cases of severe financial hardship and on compassionate grounds, but these are subject to Government conditions. Please call us on 1300 655 002 for more information. Temporary residents Some members who entered Australia temporarily on particular classes of visas and are departing permanently from Australia may access their preserved superannuation benefit. The payment of this benefit is subject to special rates of taxation. If you are a temporary resident of Australia and the holder of an eligible visa, once your visa has expired and you have left Australia, you can cash your benefits. You can contact us on 1300 655 002 for more information about eligible visas and an application form. The Australian Taxation Office (ATO) can provide details about the tax treatment of such payments. If you do not claim your superanuation benefit within six months of the date you depart Australia, Catholic Super is now required to pay your benefit to the ATO. You will then need to apply to the ATO to claim your benefit (after the deduction of tax). If your benefit is paid to the ATO, Catholic Super will not provide you with an exit statement and you will no longer be a member of Catholic Super. Preservation age Preservation age is gradually being increased as shown in the following table. Persons born Preservation age From 1 July 1964 onwards 60 From 1 July 1963 to 30 June 1964 From 1 July 1962 to 30 June 1963 From 1 July 1961 to 30 June 1962 From 1 July 1960 to 30 June 1961 Before 1 July 1960 55 Non-preserved benefits Non-preserved benefits fall into two categories. Restricted non-preserved benefits can generally be paid to you upon satisfaction of any of the conditions of release listed in column 1. Unrestricted non-preserved benefits can usually be paid to you at any time, whether you leave employment or not. 59 58 57 56 10
Transition to retirement When you reach preservation age (currently 55) you can access your super even if you are still working. The transition to retirement rules allow people who are over age 55 to access their super by setting up a non-commutable income stream (also known as a pre-retirement pension) while continuing to work either full-time or part-time. For more information, see the Catholic Super Pension Product Disclosure Statement. What happens when you reach retirement? When you reach retirement, there are several options available to you. You can choose to leave your benefit invested with Catholic Super, receive your benefit in a lump sum, or consider purchasing an income stream product such as a pension. You no longer have to cash in your super when you reduce your working hours or retire. Keeping your money in super indefinitely means you pay only 15 tax on investment returns. If you decide to transfer your super account to a superannuation pension, investment returns are tax free. Binding death nominations To provide greater security about who will receive your super benefit if you die, you can make a nomination which requires the Trustee to pay your death benefit to a specified person(s). For more information, see page 35 in the Insurance section. Transferring your super to another account You may transfer part of your account balance from Catholic Super to another complying super fund if the amount you transfer does not reduce your Catholic Super account balance to less than $5,000 and you have not made a request to transfer funds in the last twelve months. Transferring your benefit may have an impact on your insurance cover, as continuation is subject to maintaining sufficient funds to meet the cost of insurance premiums. If your insurance cover lapses, you will need to reapply for cover. You should obtain independent financial advice before making a decision to ensure you are fully aware of tax and Centrelink implications. Catholic Super offers pension products for members aged 55 or more. These products are briefly discussed on page 46 of this PDS. For more detailed information, please call our Pension Service Centre on 1300 730 327 to request a Catholic Super Pension Product Disclosure Statement. One of our salaried financial planners will be pleased to discuss your requirements with you. 11
Investments As a member of Catholic Super, you can choose the investment style that is most suitable for you. It is important that you choose an investment style that suits your personal situation. Some of the things you should consider before making a choice are: your age and the length of time your money will be invested, your attitude to risk and the level of risk you are comfortable with, other investments you may already have and your future financial plans, the amount of money being invested, the level of investment earnings you are looking for, the impact of inflation, and the benefits of compound interest. It pays to do your research. To help you with your decision making you should consider seeking the help of a professional financial adviser. Risk and return explained The risk of an investment is measured by the likely fluctuations (i.e. rises and falls) in investment returns. In general, the higher the expected returns, the higher the risk associated with the investment. Return refers to how much you earn on your investment. This value changes as the market value of the assets within your chosen investment options rises or falls. Generally, there is a relationship between risk and return. As targeted returns increase, the risk taken in achieving that return also increases. Timeframe Everyone has a different attitude towards risk and return. Some people are able to tolerate negative returns in the short term to gain higher returns in the long term. Others prefer to invest very cautiously, often trading off potential gains for the safety of conservative investments. There are others who consider themselves to be somewhere in between. If you believe that you will need to have access to your money soon, you may want to shield it by investing more in lower risk areas, even though this might result in lower returns over the medium to longer term. The short term negative fluctuations which can occur when investing in higher risk assets, such as shares, may not be such a big concern to you if you will not be accessing your funds for many years. This is because it is generally expected that over the long term these assets will produce higher returns. 12
Investing & risk All investments involve some level of risk. Investment risks include the chance that the value of your investment could fall as investment markets change. Other significant risks associated with your super include changes to super laws and tax laws. Risk can be managed and minimised but cannot be eliminated. The following is a summary of some investment-related risks applying to investments in Catholic Super: Risk Inflation Individual investment Market Interest rate Currency Changes to tax or super laws Liquidity Security Volatility Credit Description Inflation may exceed the return on your investment. The investment option you choose may drop in value. Changes to investment markets may occur due to economic, technological, political or legal conditions and market sentiment. Changes to interest rates may influence the value on certain investment returns. When Catholic Super invests in overseas investments, and the currency of those countries rises or falls compared to the Australian dollar, the value of your investment will change. Super and tax laws change often and these changes may affect the tax-effectiveness or value of your investment, or your ability to access it. Difficulty with converting an investment into cash with little or no loss of capital and minimum delay can affect an investment. The failure of a company because of bankruptcy, fraudulent activity or the business environment can see the value of an investment fall sharply. The short term fluctuations in share prices, exchange rates and interest rates can affect an investment. The risk that another party will fail to perform its contractual obligations may result in financial loss to the fund. Diversification Diversification is the term used for spreading risk. This can be achieved by placing your investments in a mix of asset classes. Diversification can help reduce the risk of a low return in any year, as a poor result in one asset class or with an individual manager may be offset by a good result in another. Put simply, it means not putting all your eggs in one basket. Catholic Super achieves diversification by selecting a range of investment managers within each class and by investing the Managed Choice Options in a mixture of different asset classes. A list of Catholic Super s managers as at the date of this PDS can be seen on page 22. Inflation Inflation is defined as the change in the cost of living. Inflation decreases the value of your dollar, meaning that over time you need more money to purchase the same goods. If your investment does not earn the level of returns you need to keep up with the cost of living, there is a chance you will not have enough to fund your retirement. Compound interest Over time, small differences in the value of your benefit can turn into large differences with the power of compounding. Compounding is the process whereby your money earns interest on interest. By choosing the right investment option for your super, or choosing to make additional contributions into your account, you can harness the potential of compound interest and watch your benefit grow. 13
Investments cont. Asset classes An asset is an investment used to gain a return. You can invest your super into different types of assets. Asset classes are groups of assets with (generally) similar risk versus return characteristics. Asset classes can be split into two broad categories: Growth assets. Growth assets generally have relatively higher expected returns over the longer term with a corresponding higher level of risk (i.e. an increased chance of volatility and negative returns in some periods). Catholic Super classifies shares (both Australian and overseas) as growth assets. We also classify private equity, infrastructure, listed property and some unlisted property as growth investments. Income assets. Income assets are generally considered to be lower risk with less possibility of delivering a negative return in any given year. Because they are lower risk, defensive assets usually earn lower returns over the longer term. Fixed interest, cash, absolute return funds and some unlisted property trusts are classified as income assets. Unlisted property has less volatile capital values than listed property and returns come largely from rental income. Catholic Super has substantial investments in alternative assets. These include absolute return funds, infrastructure and private equity. These alternative investments may have characteristics of both growth and income assets. For example, where alternative assets derive a high proportion of their returns from strong income flows (i.e. cash) rather than from capital growth, these assets may be classified as income assets. Where they derive a high proportion of their returns from capital growth rather than income flows, these assets may be classified as growth. Absolute Return Funds. Absolute return funds employ a range of investment strategies which aim to generate absolute or positive returns in both rising and falling markets. Unlike traditional asset classes, these funds do not buy and sell assets relative to a benchmark so they tend to generate returns that are not strongly correlated to returns from traditional markets, such as Australian shares. The focus of this asset class is on the performance and skills of the investment manager as a source of the return, rather than on returns from the market. Infrastructure. These are investments in facilities and services required by the community, including toll roads, railways, power stations, and gas and electricity networks. Private Equity. These are investments in private companies not listed on the stock exchange. These companies are often smaller, less mature investments than listed companies, but may offer faster growth as a result. Private equity investments are usually quite illiquid and management fees are higher. As a result, Catholic Super aims to achieve higher returns than listed shares over the medium term in these investments. Currency Management. When Catholic Super invests overseas, the value of these investments can be substantially impacted by currency fluctuations. Catholic Super uses foreign exchange forward contracts and other instruments, to manage these risks. Unhedged foreign investments are limited to a range of 0-20 for the Balanced option. For more information, we recommend you consult a licensed financial planner. 14
Performance of asset classes Investment markets are volatile and over the short term it is impossible to predict which asset class will perform the best. History has shown that over time, growth assets tend to outperform income assets. It also shows that the main asset classes react differently in different economic environments. A change can be good for one asset class but detrimental to another. It is important therefore, to spread your investments across a range of asset classes so that if one asset class is not performing well, another asset class may be experiencing better returns which could help to offset the losses of the poorer performing assets. Time can be on your side. When investment values fall, it doesn t necessarily mean that your investment will lose money. You don t actually make a loss until you sell an investment for less than you paid for it. If you do have a year or two when the value of your investment falls, remember that if your chosen investment strategy is for the long term, then history shows that investment markets usually go on to recover. You probably wouldn t consider selling your house if the market fell for a year or two. Similarly, your super is a longterm investment and you should not be overly concerned with short-term fluctuations. Making your investment choice It s wise to seek professional advice when making decisions about selecting and changing your investment options as each option has a different risk/return profile. Catholic Super has five Managed Choice options and five Build Your Own options. This broad range of investment options covers all major asset classes and is designed to suit the conservative investor through to the aggressive investor. This means you can invest in an option that best suits your age, investment timeframe, financial plan, appetite for return, and tolerance for risk. You can choose to invest in one option or you can mix and match between the options. For example, you can have 60 invested in the Balanced option and 40 invested in Australian Shares, so long as your total investment equals 100. Managed Choice Options Aggressive Moderately Aggressive Balanced Moderately Conservative Conservative Build Your Own Options Australian Shares Overseas Shares Property Diversified Fixed Interest Cash Each option has different objectives, strategies and risk. This PDS outlines each option and explains important investment concepts to help you decide. If you don t want to make a choice, you don t have to. You will be invested automatically in the default option the Balanced Option. Switching between investment options When you have made your investment choice, you are not locked in. You can change your investment options as your needs and requirements change. This is called switching and it can be done as often as once a week. To switch options, you can either complete an Application to Change Investment Mix form or you can simply switch online through our secure Member Online site. No fee is charged when you switch investment options. Switches will be processed using the unit price declared on the Tuesday of the following week. Further information on unit prices can be found in the Unitisation section on page 21. Download the Application to Change Investment Mix form from our website www.csf.com.au or call 1300 655 002 to request a copy. 15
Catholic Super investment options The investment objectives are not an indicator of the future performance of the investment options, and in no way predict returns. Investors should be aware that changing market conditions can cause the value of investments to change. Return objectives are after fees and taxes. Each option s asset allocation may change without prior notice at the discretion of the Trustee. We will inform you of the changes to these details as required by law, including on our website at www.csf.com.au. Managed Choice options Investment objectives Aggressive Moderately Aggressive Aim To achieve strong long term investment returns, whilst tolerating a very high level of volatility in returns. To achieve attractive long term investment returns, whilst tolerating a high level of volatility in returns Return objective CPI + 4.5 CPI + 4.0 Probability of negative return in any one year 8 in 30 years 7 in 30 years Risk High High Target asset allocation 96 Growth assets, 4 Income assets 80 Growth assets, 20 Income assets Strategic asset allocation Australian shares 49 Australian shares 39 Overseas shares 37 Overseas shares 30 Property (growth) 1 Property (growth) 2 Infrastructure 5 Infrastructure 5 Private Equity 4 Private Equity 4 Property (income) 4 Fixed Interest 10 Cash 3 Property (income) 7 Asset allocation ranges Asset sector Asset range Asset sector Asset range Growth assets Growth assets Australian shares 35-65 Australian shares 30-55 Overseas shares 25-55 Overseas shares 20-45 Property (growth) 1-4 Property (growth) 1-4 Infrastructure 0-10 Infrastructure 0-10 Private equity 0-8 Private equity 0-8 Income assets Income assets Fixed interest 0 Fixed interest 0-15 Cash 0 Cash 0-15 Property (income) 0-10 Property (income) 4-16 Absolute return 0 Absolute return 0-10 16
Balanced Moderately Conservative Conservative To achieve reasonably attractive long term investment returns, whilst tolerating a reasonable level of volatility in returns To limit investment risk, whilst accepting that this is likely to result in lower investment returns over the long term To minimise the risk of loss of capital, whilst accepting that this is likely to result in lower investment returns over the long term CPI + 3.5 CPI + 3.0 CPI + 2.5 6 in 30 years 4 in 30 years 2 in 30 years Medium to High Medium to Low Low 70 Growth assets, 30 Income assets 45 Growth assets, 55 Income assets 25 Growth assets, 75 Income assets Australian shares 33 Australian shares 25 Australian shares 13 Overseas shares 24 Overseas shares 16 Overseas shares 8 Property (growth) 2 Property (growth) 2 Property (growth) 2 Infrastructure 8 Infrastructure 2 Infrastructure 2 Private Equity 3 Fixed Interest 23 Fixed Interest 33 Fixed Interest 15 Cash 20 Cash 30 Cash 5 Property (income) 12 Property (income) 12 Property (income) 10 Asset sector Asset range Asset sector Asset range Asset sector Asset range Growth assets Growth assets Growth assets Australian shares 25-45 Australian shares 15-35 Australian shares 0-25 Overseas shares 15-35 Overseas shares 5-25 Overseas shares 0-20 Property (growth) 1-5 Property (growth) 0-5 Property (growth) 0-5 Infrastructure 0-15 Infrastructure 0-5 Infrastructure 0-5 Private equity 0-10 Private equity 0 Private equity 0 Income assets Income assets Income assets Fixed interest 0-30 Fixed interest 5-30 Fixed interest 10-45 Cash 0-20 Cash 10-35 Cash 20-55 Property (income) 5-20 Property (income) 5-20 Property (income) 8-24 Absolute return 0-15 Absolute return 0-10 Absolute return 0-10 17
Catholic Super investment options Build Your Own options Investment objectives Australian Shares Overseas Shares Aim To maximise long term investment returns through a diversified portfolio of Australian shares To maximise long term investment returns through a diversified portfolio of overseas shares Return objective CPI + 4.5 CPI + 4.5 Probability of a negative return in any one year 8 in 30 years 8 in 30 years Risk High High Target asset allocation 100 Growth assets 100 Growth assets Investment timeframe 10+ years 10+ years Strategic asset allocation Australian shares 100 Overseas shares 100 Investment Performance 2004/2005 2005/2006 2006/2007 Aggressive 16.3 17.7 25.0 Moderately Aggressive 15.0 15.9 22.6 Balanced 14.3 15.3 21.0 Moderately Conservative 11.0 11.3 16.4 Conservative 9.3 8.8 12.2 Australian Shares 26.3 22.6 30.7 Overseas Shares 8.3 12.9 20.0 Property 13.4 12.4 16.2 Diversified Fixed Interest 7.7 3.0 4.4 Cash 5.3 4.7 5.4 Inflation Rate (CPI) 2.5 4.0 2.7 18 Returns shown after fees and taxes * As at 30 June 2009
Property Diversified Fixed Interest Cash To earn moderately high returns via income and growth over the medium to long term To earn moderate returns over the medium term mainly through income returns. In the short term, returns can be negative from time to time To produce a return equal to or above the official cash rate CPI + 3.0 CPI + 2 To achieve capital stability 4 in 30 years 3 in 30 years Never Medium Medium Low 20 Growth assets, 80 Income assets 100 Income assets 100 Income assets 7+ years 5+ years 1+ year(s) Property (growth) 20 Property (income) 60 Listed Property 20 Fixed interest 50 Cash 50 Cash 100 2007/2008 2008/2009 Annualised 3 year return (pa)* Annualised 5 year return (pa)* -12.2-12.05-1.20 5.60-9.4-10.69-0.27 5.62-6.4-9.93 0.67 6.01-3.9-6.00 1.66 5.30 2.3-3.30 3.53 5.67-13.0-12.15-0.05 9.04-19.1-10.03-4.40 1.29 7.0-12.13 2.99 6.43 0.3 6.16 3.57 4.26 5.9 4.85 5.39 5.20 4.5 1.5 N/A N/A 19
Investments cont. Investment management fees The base fee covers the cost of investing Catholic Super s assets and is based on the investment managers in place, their fee structure and the asset allocation for a particular financial year. It also covers the cost of custodian fees and investment advice. Some of Catholic Super s investment managers charge performance fees when they exceed agreed performance benchmarks. When performance fees are incurred, they are accompanied by a more than commensurate increase in returns by the investment manager. If a manager does not meet agreed benchmarks, then no performance fee will be paid. The table below shows the annual investment management fees for the financial year ended 30 June 2009 in percentage terms as well as the equivalent dollar cost for every $10,000 invested. Managed Choice options Base fee Performance fee Total fee Base fee Performance fee Total fee Aggressive 0.78 0.62 1.40 $ 78 $62 $140 Moderately Aggressive 0.75 0.50 1.25 $ 75 $50 $125 Balanced 0.76 0.40 1.16 $ 76 $40 $116 Moderately Conservative 0.53 0.29 0.82 $ 53 $29 $82 Conservative 0.42 0.15 0.57 $ 42 $15 $57 Build Your Own Option Australian shares 0.66 0.72 1.38 $66 $72 $138 Overseas shares 0.83 0.74 1.57 $83 $74 $157 Property 0.76 0.00 0.76 $76 $0 $76 Diversified Fixed Interest 0.20 0.00 0.20 $20 $0 $20 Cash 0.11 0.00 0.11 $11 $0 $11 * Investment management fees will vary from year to year depending on the total amount of funds under management in each option, the investment managers appointed, and the investment performance of each option. 20
How returns are allocated to your account Catholic Super operates with a unitised system. Unitisation helps us to monitor and report on the value of our investments quickly and accurately. Each of our investment options is assigned a unit price. Our independent master custodian values Catholic Super s assets on a weekly basis and then calculates a unit price for each option based on this valuation. The weekly unit price moves up and down depending on the investment performance of underlying assets. What is unitisation? Unitisation means that your account balance will be expressed in units as well as dollars for each investment option you have chosen. When a deposit or withdrawal is made, units are allocated to, or redeemed from, your account by dividing the dollar value of the transaction by the unit price applicable at the date of transaction. The current value of your account balance can be calculated by multiplying the number of units held by the latest unit price available for that investment option. Reserving policy Annual returns for each option are set closely in line with the actual investment return achieved on that option for the period concerned. However a small operational reserve (generally less than 1 of assets) is maintained. The primary purpose of the reserve is to meet any operational or associated expenses incurred by Catholic Super which are not met by the management fees shown in the Fees section (page 24). These expenses may include extraordinary items that could not reasonably have been foreseen when the annual budget was prepared, such as the implementation of new products and services, without the immediate need of recovering these costs from members accounts. The reserve will also be used to cover operational risk over and above the projected normal liquidity requirements to meet unexpected contingencies or other required capital expenditure. The reserve may only be allocated with the authority of the Trustee. The level of the reserve will be set at an amount as determined by the Trustee from time to time. The reserve is invested using an enhanced Cash strategy. Unit prices are calculated weekly and are available on the Catholic Super website www.csf.com.au. These unit prices allow for taxes and fees such as investment management fees and custodian fees, which apply to all members. Note: The net fund earning rates can be positive or negative depending on investment performance. A negative earning rate can result in a reduction in your account balance. 21
Investments cont. Investment managers The table shows the investment managers appointed by Catholic Super for each asset class as at 1 April 2010. These managers may change from time to time. For updates please visit our website www.csf.com.au Asset Class Australian Shares Overseas Shares Property - Income Property - Growth Listed Property Fixed Interest Investment Managers Adam Smith Asset Management AMP Capital Investors Ausbil Dexia Acorn Capital L1 Capital Concord Capital Cooper Investors GMO LLC (Australia) Renaissance Asset Management Orbis Investment Advisory Perpetual Investments Paradice Investment Management Generation Investment Management Orbis Investment Advisory AMP Capital Investors Alliance Bernstein GMO LLC Taube Hodson Stonex Pzena Investment Management Marathon Asset Management LSV Asset Management MFS Investment Management Aberdeen Asset Management Lazard Asset Management Zurich International William Blair and Company AMP Capital Investors Lend Lease Real Estate Investment Colonial First State DPIF Industrial 2 Lend Lease Real Estate Investment Goodman Australia Industrial fund GPT Wholesale Office Fund Industry Superannuation/Grosvenor International South East Asian Property Company ICA Property Group Eureka Funds Management AMP Capital Investors Fiduciary International Real Estate AMP Capital Aberdeen Asset Management Perennial Investment Partners Aberdeen Asset Management Macquarie Funds Management Members Equity Super Loans Trust Colonial First State Global Asset Management Vianova Asset Management Catholic Development Fund 22
Asset Class Cash Term Deposits Infrastructure Absolute Return Private Equity Currency Investment Managers Macquarie Funds Management Aberdeen Asset Management Perpetual Investments Internally managed Infrastructure Capital Group Industry Funds Management Transfield Services Campus Living Villages Macquarie Specialised Asset Management AMP Capital Investors Quellos Capital Management Blackrock Australia Hastings Fund Management AMP Capital Investors Archer Capital Pantheon Ventures Limited Siguler Guff Harbour Vest Partners limited State Street Global Advisors Responsible investing Catholic Super believes that responsible investing is more than a consideration of ethics. Ethical investing has largely failed to make any difference to the behaviour of companies. In part this is because it has captured only a very small share of Australia s superannuation and other savings. By contrast Responsible Investment is rapidly gaining credence as the way in which Australian investors really can make a huge difference in influencing the way companies behave. Catholic Super has been a leader in the development of Responsible Investment with a very strong focus on the sustainability of corporate environmental, social and governance practices. Why not pursue the ethical route of screening out investments that do not meet certain standards of ethical behaviour? After an exhaustive examination of the screening approach to ethical investing, we rejected this approach as it proved impossible to know where to draw the line as to what was ethical and what was not. For example, if you want to screen out cigarette companies - does this mean that you would need to screen out the major retailers who sell the cigarettes, the companies that transport the cigarettes and the banks who provide the finance? If so, there is precious little left in which to invest. More importantly, it is Catholic Super s view that the issues of sustainability and ethical behaviour are not limited to a few particular industries, but rather are broadly spread throughout our economy. Responsible Investment is all about entering into active engagement and constructive dialogue with the broad range of businesses in which Catholic Super invests. Our objective is to bring about major change in corporate behaviour, and it is working. We regard sustainability, or the lack of it, as a significant contributor to investment risk. Moreover, these are risks that few others are doing anything to manage. The time horizon of a superannuation fund is much longer than those considered by investment managers or stockbrokers. Particular focuses of our engagement activities over recent years have included climate change, environmental risk management disclosure, workplace health and safety risk, management and human rights and supply chain issues. In each case we are seeing companies starting to change what they do for the better. Catholic Super is a founding member of the Investor Group on Climate Change (IGCC) and the International Investor Groups on Climate Change (IIGCC), and was one of the very first Australian super funds to sign the United Nations Principles of Responsible Investment. We are also a participant in the Carbon Disclosure Project (CDP) a worldwide survey of companies carbon usage and mitigation policies. Catholic Super is a major sponsor of the Australian Council of Super Investors (ACSI), Regnan Governance, Research and Engagement Pty Ltd, and F&C Investments one of the world s largest and longest established experts in the field of ESG engagement. For Catholic Super, Responsible Investment is all about using the power of your investments to bring about positive change in corporate practices in relation to environmental, social and governance issues in order to enhance their sustainability and significantly reduce long term investment risk. Investors can make a difference and we are determined to keep doing so. 23
Fees and charges This section explains all Catholic Super fees and charges in a simple format that allows easy comparison with other superannuation funds. These fees and costs may be deducted from your super account, from the returns on your investment or from the assets of Catholic Super as a whole. Taxes and insurance costs are explained separately on pages 28 30 and 50 51. Fees and cost for particular investment options are set out in more detail in the Investment section on page 20. You should read all the information about fees and costs because it is important to understand their impact on your investment. Consumer Advisory Warning* 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 (www.fido.asic.gov.au) has a superannuation fee calculator to help you check out different fee options. * This statement is required by law. Catholic Super does not charge contribution fees and our fees are not negotiable. MoneySmart is a website run by the Australian Securities and Investments Commission (ASIC) to help people make smart choices about their personal finances. Visit the MoneySmart website at www.moneysmart.gov.au. 24
Fee summary Type of fee or cost Amount How and when paid Fees when your money moves in or out of the Fund Establishment fee The fee to open your investment.* Nil Not applicable Contribution fee The fee for each amount contributed to your Nil Not applicable investment. Withdrawal fee The fee on each amount you take out of your Nil Not applicable investment. Termination fee The fee to close your investment. Nil Not applicable Management costs - the fees and costs for managing your investment Member fee The fee to manage your account $1.50 per week Deducted monthly from your account. Administration fee The fee to cover the general administration of the fund. Investment management fee The fee for managing the fund s investments. It includes the fees and expenses for investment managers and the fees paid for the services of the Custodian and Asset Consultant. Some managers appointed by the fund have fee scales which incorporate a base fee and a fee which depends on their performance relative to specified benchmarks. The performance component cannot be predicted in advance. If all managers who have performance-based fees outperform their benchmarks by 1, the investment management fee would increase by an amount in the range of 0 to 0.07 pa. When performance fees are incurred, they are accompanied by a more than commensurate increase in returns by the investment manager. 0.16 of your account balances Included in the calculation of unit prices. This fee is not charged directly to members accounts. Managed Choice Options Estimated Investment Management Fee Estimated Performance Fee Aggressive 0.78 0.62 Moderately Aggressive 0.75 0.50 Balanced 0.76 0.40 Moderately Conservative 0.53 0.29 Conservative 0.42 0.15 Build Your Own options Australian Shares 0.66 0.72 Overseas Shares 0.83 0.74 Property 0.76 0.00 These fees are deducted from the investment earnings of the particular investment option and are reflected in the calculation of unit prices. No investment management fees are charged directly to member accounts. Note that these fees applied for the financial year ending 30 June 2009. Investment management fees will vary from year to year depending on the total amount of funds under management in each option, and the investment performance of each option. Diversified Fixed Interest 0.20 0.00 Cash 0.11 0.00 Service fees** Investment switching fee The fee for changing investment option Nil Not applicable * The use of the term investment is required by law. It has the same meaning as account. ** See Additional Explanation of Fees and Costs on page 26 for information on all other fees which may be payable. 25
Fees and charges cont. Additional explanation of fees and costs Advisor fees Catholic Super does not pay commissions or other agent fees to advisors. Insurance costs Please refer to pages 52 53 for insurance costs. Family Law fees Under Family Law, your spouse or prospective spouse or their authorised representatives can request information about your superannuation account balance. Catholic Super will not charge for the provision of this information. Catholic Super will charge a fee of $55 for splitting a superannuation interest upon receipt of a splitting agreement or court order. This fee is divided equally between the member and the non-member spouse and will be deducted from your account at the time the benefit is split. Contribution splitting fees Concessional contributions can be split by a member to be shared with their spouse s superannuation account. An administration fee of $60.50 is payable by the splitting member for each transaction which is deducted from the member s account. The fee is deducted at the time the benefit is split. Financial planning fees If you choose to engage the services of CSF Financial Services Pty Limited, or another financial planner, set fees may apply. These fees would be agreed with the planner and are not charged by Catholic Super. Catholic Super does not pay commissions to financial planners. Fee changes Catholic Super reserves the right to increase fees and other costs. If this occurs, we will advise members in writing at least 30 days prior to the increase being implemented. Other costs Abnormal costs are paid out of the Catholic Super fund and can include the cost of changes to the Trust Deed, defending legal proceedings and special valuations of assets. Taxation All fee calculations are inclusive of GST. For information about taxes, please refer to page 28. Protecting small accounts If at any time your account balance is less than $1,000, member benefit protection rules apply. If your account includes or had included SG or award contributions, the management costs deducted won t exceed the net fund return applied to your account for that year. During periods of poor investment returns, management costs are limited to any positive investment return plus up to $10 per protected account. Management costs don t include insurance premiums and taxes, which will continue to be deducted from your account as applicable. 26
Example of annual fees and costs for the Balanced investment option This table gives an example of how the fees and costs in the Catholic Super Balanced investment option can affect a superannuation account balance over a one year period. You should use this table to compare this product with other superannuation products. It is based on a superannuation account worth $50,000, which is invested in Catholic Super s Balanced investment option over a one-year period. Example Catholic Super Balanced Investment Option Balance of $50,000 with total contributions of $5,000 during the year Contribution fees Nil. For every $5,000 you put in, you will be charged $0. PLUS: Management costs EQUALS: Cost of fund Member fee = $78.00 per year plus Investment management fee (including performance fee) 1.16 = $580* plus Administration Fee 0.16 = $80* You will be charged $78 in member fees which are deducted from your account. The fee is fixed regardless of your account balance. Plus, for every $50,000 you have in the fund, you will be charged $580 in combined investment management costs plus $80 in administration fees regardless of your balance.* If you put $5,000 in your account during a year and your balance was $50,000, then for that year you will be charged fees of: $738* What it costs will depend on the investment option you choose, and the fees you negotiate with your fund advisor.** *The wording in this section is prescribed by law. Investment management and administration fees are deducted from investment earnings of the particular investment options and are reflected in the unit prices. No investment and administration fees are charged directly to members accounts. **Catholic Super is unable to negotiate lower management costs. The figures are current for the 2008/09 financial year and are subject to change. 27
Tax and super This section summarises the main Federal Government taxes that apply to superannuation at the time of preparation. For more information, contact Catholic Super on 1300 655 002 or the Australian Taxation Office (ATO) on 13 10 20 or www.ato.gov.au. Superannuation taxation is complex. You should consult your accountant or financial advisor if you need taxation advice or personal financial advice. Taxation of contributions Concessional (before tax) contributions A tax of 15 applies to concessional (i.e. before tax) contributions. The highest marginal tax rate effectively applies above the concessional contributions cap. See page 8 for details. Non-concessional (after tax) contributions No tax is paid on non-concessional (i.e. after tax) contributions paid to a super fund, up to the nonconcessional contributions cap. Contributions over the cap will be taxed at the highest marginal tax rate of 46.5 (including the Medicare levy). See page 8 for details. Tax on excess contributions For information on the taxing of concessional and nonconcessional contributions, see page 8. Tax on spouse contributions In some circumstances the contributing spouse may be eligible for a tax rebate of up to $540 on the superannuation payment made to their spouse s account. The full rebate is available if the receiving spouse s assessable income is $10,800 p.a. or less. This rebate reduces by $1 for every assessable dollar over $10,800 and stops when the receiving spouse s income reaches $13,800. For tax purposes, payments are treated as: undeducted contributions (but will be preserved), tax-free when withdrawn (but investment returns on these amounts will be taxed), and not subject to the 15 contributions tax. Tax on contributions by the self employed If you are self employed or substantially self employed (i.e. you earn less than 10 of your income, including assessable income and fringe benefits from an employer) you can claim a tax deduction for your super contributions. These contributions will then count against the concessional contributions cap. See page 8 for details. Eligible members intending to claim a tax deduction for their personal contributions should lodge an ATO Notice of Intent to Claim or Vary a Deduction for Personal Super Contributions form (NAT 71121) and receive confirmation from Catholic Super. For more information or to download the NAT 71121 form go to www.ato.gov.au. Tax on employment termination payments The rollover of Eligible Termination Payments (ETPs) under $1 million to super does not count towards either of the contribution caps. Amounts comprising the taxable component of an ETP rolled over in excess of $1 million are counted towards the concessional contributions cap and may be taxed at 46.5 (including the Medicare levy) to the extent that they result in the cap being exceeded. Please note that the taxable component of any ETP rolled into super (i.e. amounts up to the $1 million cap) will be taxed at 15 upon being received by Catholic Super. The rebate is available if: the payment is made after tax (i.e. not salary sacrifice), the payment is not tax deductible for the spouse, both spouses are Australian residents, the receiving spouse is a member of a complying super fund, and the receiving spouse s assessable income is less than $13,800 p.a. 28
Taxation of transfers or rollovers You do not pay any tax when you roll over or transfer your benefit within the Australian superannuation system. Taxation of investment earnings Investment earnings in super funds are taxed at a maximum rate of 15, with capital gains taxed at a discounted rate of 10. Where assets are invested in shares, the tax payable can be partly offset by franking credits and foreign tax credits. Tax is paid by Catholic Super directly from earnings and is included in the calculation of unit prices. It is not deducted from member accounts. Taxation of benefits Tax on withdrawals If you are 60 or older your superannuation withdrawal or retirement benefit will be tax free, whether it is taken as a lump sum or a pension. There is no limit on the amount of superannuation that can be taken tax free at age 60 or over. You will not be required to include superannuation benefits and pension payments in your tax return. If you are under age 60, tax will be deducted when you are paid a benefit from Catholic Super. The amount of tax deducted from your benefit depends on a number of factors, such as: the nature of the benefit (i.e. retirement, death, disablement or resignation), your age when you withdraw the benefit, and whether you take your benefit as a lump sum, retain it in the fund, use it to purchase an annuity, or transfer it to an approved deposit fund, another approved arrangement, or to your new employer s superannuation fund. Catholic Super will deduct the appropriate amount of tax (including the Medicare levy) before paying you a benefit in cash. When you become eligible for a benefit, Catholic Super will send you a benefit statement showing the breakdown of your benefit into components. We will ask you for instructions on transferring your benefit or paying it to you in cash. Lump sums will have two components - an exempt and a taxable component. The exempt component will be tax free. If you would like a calculation of the tax payable on your benefit, please contact Catholic Super. Tax on death benefits No tax is paid on death benefits which are paid to a dependant as defined in the tax legislation (i.e. a spouse, a child less than 18 years of age,a person with whom the deceased had an interdependency relationship on the date of death, or any other person who was a financial dependant of the deceased on the date of death). The taxable component of a lump sum paid to a nondependant is taxed at 16.5 (including the Medicare levy), but part of the benefit may be taxed at up to 31.5 (including the Medicare levy) if it includes insurance proceeds. The taxation of a death benefit paid as a pension depends on the ages of the beneficiaries. For more information contact Catholic Super on 1300 655 002. A refund of contributions tax may also be available where a death benefit is paid to a dependant as defined in the tax legislation. This is known as an anti-detriment payment. For more information, contact the ATO on 13 10 20. Tax on total and permanent disability benefits Total and permanent disability benefits are taxed as a lump sum benefit, with both taxable and tax free components. The amount of tax depends on a number of factors, including your age when you become disabled. Tax on income protection benefits Income protection benefits are generally taxed at your marginal tax rate. Tax on terminal illness benefits If you suffer from a terminal illness, then a lump sum superannuation benefit can be paid to you tax free. To be eligible for the tax free benefit, two medical practitioners (one being a specialist) must certify that death from the injury or illness is likely to occur within twelve months of the certification. Taxation of cash payments when you leave Australia If you hold certain types of temporary residency visas and depart permanently from Australia, higher tax rates will apply to your benefit. Contact the Australian Taxation Office for details on 13 10 20. The taxable component is tax free up to the low rate threshold ($150,000 for the 2009/10 financial year and indexed from time to time) and amounts above the threshold are taxed at 16.5 (including the Medicare levy). If you are under age 55, the rate of tax for the amount above the low rate threshold is 21.5 (including the Medicare levy). 29
Tax and super cont. Tax File Number New superannuation accounts will have all employer and salary sacrifice contributions taxed at the top marginal rate if you do not provide Catholic Super with your Tax File Number (TFN). Personal contributions cannot be accepted at all without your TFN being provided. It is therefore very important that you provide us with your TFN when you join Catholic Super. To advise us of your TFN, complete the details on your Member Application Form, do it online through Member Online at www.csf.com.au or contact the Catholic Super Helpline on 1300 655 002. If you do not have a TFN, contact the Australian Taxation Office on 13 10 20. Unless you specifically request otherwise, your employer is required by law to provide your TFN to Catholic Super. Catholic Super is authorised under the Superannuation Industry (Supervision) Act 1993 to collect your TFN, which will only be used for legal purposes (including paying out money, identifying and consolidating super benefits, for surcharge purposes and other approved purposes) and will otherwise remain confidential. Goods and Services Tax (GST) The Federal Government s Goods and Services Tax (GST) affects Catholic Super in the following ways: Members do not pay GST on benefits received from Catholic Super, Catholic Super pays GST on professional consulting fees and administration services, Receipts and payments relating to Catholic Super s direct property holdings are subject to GST, and Catholic Super receives some relief from GST payments through reduced Input Tax Credits. Superannuation surcharge tax The Superannuation Contributions Surcharge Tax was a tax on high income earners which was abolished by the Government from 1 July 2005. However, surcharge tax assessments relating to previous financial years may still be received. For more details, please refer to the ATO website, at www.ato.gov.au/super. Payment of the surcharge tax is the responsibility of the member and will be deducted from your account. If you have an objection to a surcharge tax assessment, you can lodge an appeal with the ATO by calling 13 10 20. Your TFN will also be disclosed to another superannuation provider if your benefits are being transferred, unless you inform us in writing that you don t want us to pass on your TFN. It is voluntary to quote your TFN and it is not an offence if you choose not to quote it. However if you don t provide your TFN, or don t tell us you are exempt from providing it, Catholic Super must deduct tax at the highest marginal rate plus the Medicare levy, from any withdrawals. You may later be able to reclaim the additional tax fom the ATO upon quoting your TFN. 30
Insurance Why do you need insurance cover? For most of us our ability to work is our major source of income. In the event of a crisis, such as unexpected death or disablement, that income will no longer be available and living expenses and bills will still have to be paid. Insurance cover helps to protect you and your family against the added financial burdens that will arise in these circumstances. Catholic Super s insurance arrangements have been specifically designed to enable flexibility while providing you with simple, low cost cover. Members may select from a range of Income Protection offers and can also apply to increase their Death and Total and Permanent Disability (TPD) cover at any time. Premiums are deducted from your Catholic Super account so you won t feel any impact on your take home pay. The insurance cover applies 24 hours a day, 7 days a week, not just when you are at work, so you can rest easy knowing you are covered. Catholic Super s insurer for Death, TPD and Income Protection Cover is TOWER Australia Limited, ABN 70 050 109 450. What insurance cover does Catholic Super provide? Catholic Super members are able to purchase: Death only cover Death and Total & Permanent Disablement (TPD) Cover Income Protection (IP) cover Death only cover would provide your dependants or estate with a lump sum payment in the event of your death. Death and TPD cover would provide you, or in the event of your death your dependants or estate, with a lump sum payment in the event of your death or total and permanent disablement. Income protection cover would provide you with a monthly benefit replacing part of your income while you are unable to work due to illness or injury. Death cover is available until age 70. TPD and Income Protection cover are available until age 65. Current members may be able to negotiate with the Trustee to vary the terms of their Income Protection cover subject to any conditions imposed by the Insurer. Who is eligible for cover with Catholic Super? An eligible person is someone who is: an Australian resident or temporary resident* unless otherwise agreed in writing and a member of Catholic Super. Where either of the above does not apply, a member may also be accepted by the insurer in writing. *Temporary resident means a person who is residing in Australia on a temporary working visa. If you have previously been paid a TPD benefit, or are eligible to be paid a TPD benefit from another superannuation fund or insurance policy at the time of joining Catholic Super, you are only eligible for Death cover. How much insurance cover do I get when I join Catholic Super? Employer sponsored members Catholic Super s employer sponsored members (those who have SG contributions made by their employer) are automatically provided with a basic level of cover when they join Catholic Super. Basic Cover consists of 2 units of Death and TPD cover and 5 units of IP cover. New members will also have the option of selecting one of the four IP package choice options available at the time of joining Catholic Super. For more details please refer to page 37. If you provide your level of salary at the time of joining, you will be eligible to receive 85 of salary (up to 17 units of cover) without having to provide health evidence. Where a member s salary is not provided, then that member will retain the 5 units of IP allocated under Basic Cover. Please refer to page 35 for details of the amount of Basic Death & TPD cover you will receive. Please refer to page 37 for full details on Income Protection cover. Personal Plan members As a Personal Plan member (including Spouse Members) you are able to apply for Death Only, Death & TPD, and Income Protection cover with Catholic Super. Death and TPD cover is available in multiples of $1,000 and Income Protection cover is available on a unitised basis. To be eligible for Income Protection you are required to be working. To apply for insurance cover, simply complete the Application for Insurance Cover in the forms section of this PDS. All insurance cover for Personal Plan members is subject to assessment and acceptance by the Insurer and your cover will commence from the date advised by Catholic Super in writing subject to a sufficient account balance to pay the premiums. 31
Insurance cont. What is the cost of insurance cover? The cost of your insurance cover depends on your age, the type of cover you have and the amount of cover you have. Death and TPD cover and cost scales are shown on page 52 and Income Protection cover and cost scales on page 53. Premiums will be deducted from your Catholic Super account each month. The cost of cover will alter each year on your birthday. Your annual member statement will clearly show the amount of cover you have and any insurance premiums deducted throughout the year. You can also check these details at any time by using Member Online, our internet facility for members, or by calling Catholic Super on 1300 655 002. When does your insurance cover commence? For employer sponsored members, insurance cover will commence from the latest one of: the date you commence employment with your employer sponsor, the start date of the period for which the first employer contribution is paid on your behalf, the date 120 days before your employer contribution was received, or the date your employer sponsor becomes a participating employer of Catholic Super. If you are not at work on the date your cover commences, you will receive limited cover for TPD and IP until you are again at work. For Personal Plan members, insurance cover will commence from the date advised by Catholic Super in writing subject to a sufficient account balance to pay premiums. At work. This means the member is gainfully employed, attending work and performing all the normal duties of their usual occupation and working their normal hours without restriction due to sickness or injury, or is on approved leave other than leave which is taken for reasons related to injury or illness. To be at work a member also must not be receiving or claiming and/or entitled to receive or claim income support benefits from any source, including workers compensation benefits, statutory transport accident benefits and disability income benefits. For casual employees, at work means the person is available for work and is capable of performing all the normal duties for their occupation without restriction due to illness or injury. Limited cover. This means that a member may only receive a benefit in relation to an illness that first became apparent or an injury which first occurred on or after the date the cover commenced, recommenced or increased under this policy for the member. 32
If you join Catholic Super outside of 6 months If you are an Employer Sponsored member and do not become an insured member, and/or a Superannuation Guarantee (SG) employer contribution is not received by Catholic Super within six months of the date you commenced employment with the employer making the SG contributions to Catholic Super on your behalf, you will receive limited cover for a period of twelve consecutive months. Full cover will then be provided after a period of twelve months provided you are at work at the expiry of the 12 month period. If you are not at work on this date, limited cover will continue to apply until you are again at work. Cover will commence from the latest of: the start date of the period for which the SG contribution is received for the member, 120 days before the date the SG contribution was received, or the date the employer sponsor became a participating employer of Catholic Super. Can I increase my insurance cover? Employer Sponsored and Personal Plan members are able to apply for additional Death, Death & TPD, or IP insurance cover. To apply for additional insurance cover, you have 3 options. 1. Complete the Application for Insurance Cover in the forms section of this PDS, 2. Call 1300 655 002 to request a tele-interview with a Tower underwriter, or 3. Call 1300 655 002 to arrange to meet a financial planner to complete an online application. In option 2, a representative of Tower will call you at a mutually convenient time and take you through the application and you will find out straight away whether your application is successful or if there is any extra information required. In option 3, a Catholic Financial Services planner will meet you and complete an online application with you and you will find out straight away whether your application is successful or if there is any extra information required. A fee may apply. Increased Death or Death & TPD cover is available in fixed multiples of $1,000 and Income Protection cover is available on a unitised basis. As Catholic Super currently does not offer a mixture of Basic and Build Your Own cover, if you apply for additional Death only or Death & TPD insurance cover, any existing Basic Cover will be converted to a fixed cover amount. Basic Cover (units) reduces in value over time according to your age while Build Your Own cover (fixed) does not reduce with age. All applications for additional cover are subject to assessment and acceptance by the Insurer and your insurance cover will commence from the date we advise in writing. Please refer to the insurance tables on pages 52 53 for premium details. Transfer of existing cover As an Employer Sponsored or Personal Plan member, you may be eligible to transfer your existing Death, TPD and/ or Income Protection insurance cover from your current employer sponsored super arrangement or individual insurance policy to Catholic Super. To transfer your existing cover to Catholic Super please complete the Insurance Transfer form. You can download the form from our website or call 1300 655 002 to request a copy. If the transfer is accepted, you will be provided with the equivalent level and type of cover that your previous insurer provided. If you are a new Catholic Super member transferring Death and TPD cover from another superannuation fund as a Choice of Fund nomination, you will receive the higher of the cover held within Catholic Super or the amount of cover you are applying to transfer to Catholic Super. If you are already a member of Catholic Super and wish to consolidate your individual insurance policy into Catholic Super, the transferred cover will be added over and above all existing Death and TPD insurance cover held with Catholic Super. All Income Protection cover transferred into Catholic Super will be limited to the maximum IP benefit payable under this policy which is 85 of earned income (to a maximum income of $352,500). Transfer of cover for consolidation purposes can occur at any time. You are advised not to cancel cover with your previous insurer until advised in writing that your insurance transfer application has been accepted. 33
Insurance cont. How long will your cover continue? Death and TPD cover will continue to be provided for you irrespective of changes in employment subject to the cessation of cover provisions in the policy. Refer below for more details. Income Protection insurance cover will continue for Employer Sponsored members for an initial period of twelve months from the date of the last employer sponsored contribution. Within this twelve month period, members will have the option to continue cover to age 65 by notifying the fund in writing. Cover will be subject to continued membership of Catholic Super and a sufficient account balance to cover the cost of premiums. For Personal Plan members, Income protection cover will continue to age 65 unless otherwise advised by you subject to a sufficient account balance to cover the cost of premiums. In any circumstances Income Protection cover is subject to the cessation of cover provisions in the policy. When will cover cease? Your insurance cover will cease on the earliest of any one of the following situations: the date you cease to be a member of Catholic Super, the date you reach the maximum insurable age for the specified benefit, the date of your death, the date the insurance policy is terminated or cancelled for any reason, the date that Catholic Super receives a request from you asking that cover cease, the last day of the month in respect of which the last premium deduction is made from your account, if there is insufficient money in the account to cover premiums, 12 months from the effective date of the last Participating Employer contribution received by Catholic Super on your behalf unless otherwise agreed in writing (Employer Sponsored members Income Protection only), or the date cover ceases in accordance with overseas employment and worldwide cover policy provisions. Can cover recommence? Employer Sponsored members If you have previously opted out of cover, cancelled cover or reduced your insurance cover, all future requests for cover or increases in cover will be subject to assessment and acceptance from Catholic Super s insurer. If your cover ceases as a result of insufficient funds, and you subsequently receive an employer sponsored SG contribution within 6 months of the end of the month during which cover ceased, cover will be reinstated at the type and level of cover held immediately prior to cover ceasing. In this instance, cover will recommence from the start date of the period for which the employer sponsored SG contribution is received by Catholic Super on your behalf. If you are not at work on the date cover recommences, you will receive limited cover until you are again at work. Where an employer sponsored contribution is received by Catholic Super on your behalf more than 6 months after the end of the month during which cover ceased, cover will recommence at the lesser of the previous type and level of cover or Basic Cover. Cover will recommence from the start date of the first employer sponsored SG contribution received by Catholic Super on your behalf. If you are not at work on the date cover recommences, you will receive limited cover until you are again at work. Personal Plan members There are no recommencement of cover provisions for Personal Plan members. All cover is subject to assessment and acceptance by Catholic Super s insurer. 34
Death and TPD Cover Understanding your Death and Total and Permanent Disablement (TPD) cover When is a Death or TPD benefit paid? A death benefit consisting of the balance of your account with Catholic Super plus any insured death benefit is payable if you die while insured through Catholic Super. A death benefit is generally paid to your estate, unless you have completed a Binding Death Benefit Nomination form (see below for more detail). It is important that you have a current Will. A TPD insured benefit is payable if you are insured for TPD cover at the time you become disabled, and you meet the definition of TPD in the insurance contract that is current at the time of your disablement. In this situation you are entitled to claim the balance in your Catholic Super account and any insured TPD benefit to which you are entitled. The tax payable on TPD benefits varies according to your age, length of service and the amount of the benefit. Catholic Super will provide an outline of such tax payable should you become entitled to a TPD benefit. Beneficiary binding nomination To provide greater security about who will receive your benefit if you die, you can make a nomination which binds the Trustee to pay your death benefit to a specified person(s) providing that you are still a member of Catholic Super on your death. To make a valid nomination, you must follow these procedures. Your nomination must: be made to us in writing on the Catholic Super Binding Death Benefit Nomination form, if you wish to nominate your estate, please write my legal personal representative, clearly set out the proportion of your benefit to be paid to each person nominated (the total must add up to 100 and each person must be a dependant (see column 2), include the full name and date of birth of your nominated beneficiaries, be signed by you in the presence of two witnesses over the age of 18 who are not nominees (i.e. proposed beneficiaries), be sent to us (a nomination will not be valid until we receive it). The binding death benefit nomination applies to all of the benefits you hold with Catholic Super, including superannuation accounts, insurance and pension accounts. Your binding nomination will be valid for three years from the date you sign it. You may renew, change or revoke your nomination at any time by following the procedures outlined in column 1. Catholic Super will generally write to you to confirm your nomination, and any amendment or revocation of the nomination you make. We will also write to you seeking your instructions prior to the expiry of any existing nomination. If your nomination becomes invalid (e.g. if your nominated beneficiaries die before you), the Trustee of Catholic Super will use its discretion to determine how your benefit will be paid. You should consider making a Will or altering your Will to describe who should receive your non-superannuation assets (e.g. home, car, shares, cash etc) and your Catholic Super benefit if it is paid to your estate. Who is a dependant? A dependant includes: your spouse (including a de facto spouse or, in some circumstances, a same-sex partner), your children (including an adopted child, a step child, an ex-nuptial child, a foster child or ward, and a child that is a product of a de facto or same sex relationship), any person who is wholly or partially financially dependent on you, and any person with whom you have an interdependency relationship (see below). A person must be a dependant on the date of your death to be considered a beneficiary. What is an interdependency relationship? Two persons (whether or not related by family) have an interdependency relationship if: they have a close personal relationship, and they live together, and one or each of them provides the other with financial support, and one or each of them provides the other with domestic support and personal care. An interdependency relationship also includes two persons (whether or not related by family): who have a close relationship, and who do not meet the other 3 criteria listed in the paragraph above because either or both of them have a physical, intellectual or psychiatric disability. 35
Death and TPD Cover cont. When do I qualify for a Total and Permanent Disablement (TPD) benefit? TPD insurance cover provides a benefit if you become totally and permanently disabled and meet the definition of TPD applicable at the date of disablement as defined in the Catholic Super Trust Deed and Insurance Policy, while you are: a Catholic Super member, and insured for TPD cover at the time your disablement occurs. If you become disabled and believe that you may be eligible to make a claim for TPD, you should notify us as soon as possible. What is the definition of total and permanent disablement (TPD)? Under the current policy terms, applicable from 15 November 2008, a member is considered to be totally and permanently disabled if the member while insured under this policy, meets one of the following definitions: Definition A: Solely because of illness or injury the member has suffered the permanent loss of: i. the use of two limbs (where limb is defined as the whole hand below the wrist or whole foot below the ankle), or ii. the sight in both eyes, or iii. the use of one limb and the sight in one eye; OR Definition B: Solely because of illness or injury the member has: i. suffered at least 25 impairment of Whole Person Function, ii. is not engaged in any occupation, and iii. is disabled to such an extent as to render them unlikely to ever be engaged in any occupation for which they are reasonably suited by education, training or experience; OR Definition C: Solely because of illness or injury the member is unlikely ever to perform at least two of the following Activities of Daily Living: i. Dressing the ability to put on and take off clothing without assistance, ii. Bathing the ability to wash or shower without assistance, iii. Toileting the ability to use the toilet, including getting on and off, without assistance, iv. Mobility the ability to get in and out of bed and a chair without assistance, or v. Feeding the ability to get food from a plate into the mouth without assistance, where assistance means the assistance of another person; OR Definition D: Where at the time of disablement, the member has been employed in the last twelve months and the member: i. has been absent as a result of illness or injury from employment for 6 consecutive months, and ii. after consideration of all relevant evidence the insured person is disabled to such an extent as to render then unlikely to ever again be engaged in any occupation for which they are reasonably suited by their education, training or experience; OR Definition E: Where at the time of disablement, the member was not employed and was engaged in unpaid domestic duties at home and: i. as a result of illness or injury is under the care of a Medical Practitioner, ii. is unable to perform those domestic duties, iii. is unable to leave their home unaided, iv. has not engaged in any gainful empoyment for a period of six consecutive months after the occurrence of the injury or illness, and v. at the end of the period of six months, in the opinion of the Insurer, after consideration of all relevant evidence the insured person is disabled to such an extent as to render them unlikely to peform those domestic duties or engage in any gainful occupation. The applicable definition is assessed after such time that the member has submitted the claim. Policy Exclusions Death/TPD Please be aware that there are some circumstances where no Death or TPD benefit is payable. For all Personal Plan members and those Employer Sponsored members who have requested additional cover, no benefit shall be payable where a claim is, directly or indirectly caused by, or attributable to: death resulting from suicide within the first 12 months after issue or recommencement, TPD as a result of an intentional self-inflicted act or intentional self-inflicted injury, or any such condition that may have been specifically excluded as a condition of acceptance of cover for a specific member. Members would have been advised of any such exclusion in writing at the point of insurance being accepted. 36
What is Income Protection cover? Imagine what it would be like to be off work for an extended period because of illness or injury without your regular income. After sick pay runs out, how would you pay for your living expenses and bills? Income Protection cover protects you in these circumstances by providing an income if you are unable to work temporarily because of illness, injury or accident. A partial disability benefit may also be payable to you if you return to work in a reduced capacity. Income Protection packages At the time of joining Catholic Super, Employer Sponsored members will be provided with Basic Income Protection cover which is 5 units of cover with a 60 day waiting period and a 5 year benefit period. If you notify us of your salary at the time of joining you will be provided with Income Protection cover of up to 85 of your salary to a maximum of 17 units without health evidence. As a new Employer Sponsored member you will also be able to select one of the following Income Protection package options within 60 days of the date of the Welcome to the Fund letter. These options will allow you to shorten your waiting period or lengthen your benefit period without evidence of health provided your election is received by Catholic Super within 60 days of the date of the Welcome to the Fund letter. Option 1-60 day waiting period, 5 year benefit payment period (Basic Cover) Option 2-60 day waiting period, up to age 65 benefit payment period Option 3-30 day waiting period, 5 year benefit payment period Option 4-30 day waiting period, up to age 65 benefit payment period If you do not make an election at the time of joining, you will automatically fall under Option 1 which is the Basic Cover option. Under this category, where a member is disabled, benefits are payable for up to five years after a waiting period of 60 days. Waiting Period: The waiting period is the minimum number of days that must elapse before any Income Protection benefit may become payable. The waiting period will commence on the first day you are deemed to be Totally Disabled and will continue for a minimum of 14 days followed by a period of Total or Partial Disablement extending to the end of the waiting period. If you return to employment during the waiting period for 5 days or less, and become Totally Disabled as a result of the same illness or injury, then those days will added to the waiting period. If you return to employment during the waiting period for more than 5 days, the waiting period will recommence. Benefit Period: The benefit period commences on the day immediately after the waiting period has concluded and the benefit will be payable for the duration of the applicable benefit period subject to continued eligibility. Catholic Super members can choose either a 5 year benefit period or until age 65. Package choices In addition to the above requirements, you are also required to be at work on the date of your application for a Package Choice option. If you are not at work on the date of your application for a Package Choice, you will receive limited cover for the Income Protection portion of your cover until you at work. Definitions of at work and limited cover are on page 32. When does your insurance cover commence? Please refer to page 32 for full details (refer to Death/TPD section). If you join Catholic Super outside 6 months. Please refer to page 33 (Death/TPD section) for full details. Personal Plan members are required to be assessed and accepted for all Income Protection package choices. Current members may be able to negotiate with the Trustee to vary the terms of their Income Protection cover subject to any conditions imposed by the insurer. 37
What is Income Protection cover? cont. How much Income Protection cover should you have? One unit equals a $585 monthly benefit. The maximum Income Protection benefit payable under this policy is 85 of earned income (to a maximum income of $140,400). If you are insured for the maximum amount, up to 75 of earned income will be payable to you as a benefit (less income tax and any offset amount), and up to 10 will be payable as a superannuation contribution to your Catholic Super account. The table below shows you the number of units required for each salary range to provide the maximum amount of cover. Employer Sponsored members will be provided with 5 units of Income Protection at the time of joining, however if you provide your earned income details at the time of joining, you can obtain 85 of your salary up to a maximum of 17 units without health evidence. You can be insured for less than 85 of your earned income if you wish. If you require cover in excess of 17 units you will need to complete the Application for Insurance Cover form and your application for cover will have to be assessed and accepted for the amount of cover in excess of 17 units. Income Protection Units applicable to annual salary Salary Units of Cover Up to $8,259 1 unit $8,260 - $16,518 2 units $16,519 - $24,776 3 units $24,777 - $33,035 4 units $33,036 - $41,294 5 units $41,295 - $49,552 6 units $49,553 - $57,811 7 units $57,812 - $66,070 8 units $66,071 - $74,329 9 units $74,330 - $82,588 10 units $82,589 - $90,847 11 units $90, 848 - $99,105 12 units $99,106 - $107, 364 13 units $107, 365 - $115,623 14 units $115,624 - $123,882 15 units $123,883 - $132,141 16 units $132,142 - $140,400 17 units If you do not indicate your salary range you will retain the 5 units of Income Protection Cover allocated at the time of joining. Personal Plan members are required to be assessed and accepted for all amounts of Income Protection cover. Applying to increase your Income Protection cover You have the option to increase your cover in line with any salary increases without having to provide evidence of health in the following circumstances: your application for the increase is within 45 days of the effective date or notification date of a salary increase, whichever is later, the level of cover applied for is no greater than 17 units in total, the employer confirms the salary increase in writing, and you are at work on the date the increased cover commences. The increase is available once a year up to a maximum of 25 of salary and any increase is limited to a maximum of 85 of your salary or the nearest number of whole units. To apply for an increase in cover as a result of a salary increase, please complete the Application to Increase Income Protection Cover Due to Salary Increase form which is available for download from our website or call 1300 655 002 to request a copy. Your cover will commence once the insurer has assessed and accepted your application for cover and this will be confirmed to you in writing. Additional premium costs will apply and these are based on your age and the amount of additional insurance being sought. To apply for an increase in cover other than as a result of a salary increase, you have 3 options. (See page 33). Your application will be subject to assessment and acceptance by Catholic Super s insurer. How much do I pay for Income Protection cover? The amount that you will pay for each unit of cover varies with your age as shown in the Income Protection table on page 53. Benefit payable If you make a claim for Income Protection, the benefit payable will be determined by the number of units you hold and your earned income. Each unit has a value of $585 benefit per month, however payments cannot exceed 75 of your earned income and the superannuation contribution benefit cannot exceed 10 of your earned income. 38
For this purpose your gross earned income is determined differently depending upon whether you are a permanent employee, a casual employee or self-employed at the time of injury, sickness or accident. These definitions are listed in the table below: Your Work Status Permanent Employee Non Permanent Employee (including casuals, part-time, unemployed) Self-Employed Definition of Earned Income The total package from employment last agreed between the employer and insured person immediately prior to the commencement of total disability which includes: any salary packaged items taken in lieu of cash, regular overtime and shift allowances (as determined by the average over the previous 12 months or the period since the member started their current occupation if less), and commissions, regular bonuses, fringe benefits and other monetary benefits related to employment, (as determined by the average over the previous 3 years or the period since the member started their current occupation if less). Earned income does not include superannuation contributions made by the employer that are not part of a salary sacrifice arrangement. The total earnings from employment averaged over the 12 months immediately prior to the commencement of total disability, or the period of time since the member joined Catholic Super, whichever is the lesser. The annual income generated by the insured person from his or her personal exertion, calculated by averaging the insured person s net income per year for the 2 years immediately preceding commencement of total disability or the period of time since the member commenced to be self-employed if self-employed for a period less than 2 years. Net income means the insured person s gross income from personal exertion less all expenses incurred by the insured person in earning that income. Income from other sources The amount of benefit payable to you will be reduced by any amount of the following: any employer funded sick leave payments; worker s compensation schemes; insurance benefits from other disability income insurance policies or superannuation funds and statutory compensation, pension, social security or similar schemes*. * Note that part pension amounts will not be offset in the event of disablement for members aged between 56 and 65 unless they are disability pensions. When is an Income Protection benefit paid? To qualify for an Income Protection benefit you must suffer (while insured) an injury or illness that meets the definition of Total Disability or Partial Disability under the terms of the policy at the time that the injury or illness occurred. The current definition is shown below. Type of Income Protection Total Disability and/or Totally Disabled Partial Disability and/or Partially Disabled Definition Means that in the opinion of the Insurer, the Insured Person as a direct result of an illness or injury: a) is unable to perform at least one important income producing duty of his or her regular occupation, and b) is not currently working in any capacity gainfully or otherwise, and c) is under the regular care and following the advice of a Medical Practitioner and, in the Insurer s reasonable opinion, is complying with the advice and treatment given by that Medical Practitioner. Means that immediately following a period of at least 14 consecutive calendar days of Total Disability, and as a result of the same illness or injury that caused the Total Disability, the Insured Person: a) is unable to perform at full capacity the duties of the regular occupation that the insured person was working in prior to commencement of Total Disability, and b) is working in his/her own occupation or other occupation in a reduced capacity, and c) suffers a partial loss of earned income, and d) is under the regular care of a medical practitioner, and in the insurer s opinion, is complying with the advice and treatment given by that medical practitioner in relation to the cause of the partial disability. 39
What is Income Protection cover? cont. A Partial Disability Benefit is calculated by application of the following formula: (Earned Income RTEI) x Total Disability Benefit Earned Income where RTEI is Return to Employment Income, and means the annualised earned income that the insured person is earning (calculated in accordance with the Earned Income definition on page 39). How long will Income Protection benefits be paid? If Catholic Super and the Insurer accept your application for payment of an Income Protection benefit, your payments will continue until: Catholic Super and the Insurer are of the opinion that you no longer meet the definition of Total or Partial Disablement, or benefit payments have been made for the duration of the benefit period, either 5 years (or to age 65 if that option applies to you), or you die, or you reach the age of 65, whichever occurs first. Premium waiver While a member is receiving an Income Protection benefit, their premiums with respect to Income Protection will be waived. Recurrent disablement If you become Totally or Partially Disabled due to the same or a related injury or illness within 6 months after the cessation of Total or Partial Disability benefit payments, the waiting period will be waived and this subsequent period of Total or Partial Disability will be treated as a continuation of the previous claim (provided you are still a member of Catholic Super). The maximum benefit period will take into account any prior claim payments. Benefit escalation If you receive a Total or Partial Disability benefit payment for a continuous period of 12 months or more, from each anniversary date the benefit will be increased by the lesser of: the increase in the Consumer Price Index (CPI) for that period or 5 Making a claim for a benefit If you are prevented from working as a result of becoming disabled due to illness, accident or injury, you must notify us as soon as possible after you become disabled. Claim forms and assistance are available by contacting us on 1300 655 002. Exclusions Income Protection An Income Protection Benefit is not payable if the insured member s Total Disability or Partial Disability results directly or indirectly from: a) an intentional self inflicted act or intentional self inflicted injury, b) uncomplicated pregnancy or childbirth, c) war or acts of war whether declared or not, d) service in the armed forces of any national or international organisation other than the Australian Army Reserves (during scheduled Army Reserve exercises, but not if called up for active service), or e) any exclusion applied to the member as as a condition of acceptance of cover. Tax on benefits Income Protection insurance benefits are paid as taxable income and like salary and wages, attract Pay as You Go (PAYG) tax. The tax will be deducted from the benefit before it is paid to you, and remitted to the Australian Taxation Office. After 6 months back at work, any Total or Partial Disability will be treated as a new claim and normal waiting periods apply. 40
Other things you should know about Insurance cover with Catholic Super What types of cover may I have? You can choose to have: Death only cover Death and TPD cover Death only cover plus Income Protection cover Death and TPD cover plus Income Protection cover, or Income protection Cover only. How much insurance cover will you have and what will it cost? The amount of benefit and associated cost depends on your age and the amount and types of cover you have. Refer to the relevant scales on pages 52 53. The cost is deducted from your Catholic Super account each month. Your annual member statement will clearly show the amount of cover you have and any insurance premiums deducted throughout the year. You can also check these details online at any time by using Member Access, our internet facility for members, or by calling us on 1300 655 002. Selecting the right level of cover and applying for more cover Having the right level of cover is important. You should review your level of cover periodically to ensure it is sufficient to meet your needs. You can apply for additional cover at any time. If you are not sure how much cover you might need, check out the insurance calculator on our website www.csf.com.au. To apply for cover, you will be required to complete the Application for Insurance Cover form from the forms section of this PDS and may be asked for other evidence of health. Your cover will commence once the insurer has assessed and accepted your application for cover and we have confirmed acceptance in writing to you. Converting Death and TPD units into fixed cover Members may convert their unitised (Basic) Death and TPD cover to fixed cover (what we call Build Your Own Cover) at any time. With unitised cover, as your age increases your level of benefits decreases. The amount of fixed cover allocated to you does not change over time. Premium costs for both options change at each birthday. Build Your Own (fixed) cover is available in increments of $1000 and the premium rates are determined by the sum insured and your age. Refer to the Build Your Own Cover scale on page 52 for premium costs. Once you exercise the option to convert your units into fixed cover you cannot return to unitised cover. Combinations of unitised and fixed cover are not available with Catholic Super. Can I cancel my cover? You can write to us at any time to cancel or reduce your insurance cover with Catholic Super. If you cancel your cover, you will not be entitled to Basic Cover again even if you are employed by a Catholic Super employer in the future. To reinstate cover with Catholic Super, you will have to complete an Application for Insurance Cover form and cover will not recommence until our insurer accepts your application and we have confirmed acceptance in writing to you. Before deciding to decrease or cancel your insurance cover, we strongly recommend you seek professional advice regarding the possible implications of such a decision. Can Spouse Members apply for insurance cover? If you are joining Catholic Super as a Spouse Member, you may apply for Death Only, Death & TPD and/or Income Protection cover under the Personal Plan insurance option. This allows you to apply for a fixed level of Death and TPD cover in multiples of $1,000 and unitised Income Protection cover. See page 52 for age-based premium costs. Your Insurance cover will not commence until the Insurer has assessed and accepted your application for cover and Catholic Super confirms this in writing. Maximum cover Members may have up to $5 million of Death cover and TPD cover up to a maximum of $2.5 million. Members can have different levels of Death and TPD cover but TPD cover cannot exceed Death cover. Income protection cover is capped at the lesser of 85 of earned income or $25,000 benefit per month. 41
Other things you should know about Insurance cover with Catholic Super cont. Interim Accident Cover While your application for additional cover is being assessed, you will be provided with Interim Death, TPD and Income Protection cover. This will provide you with cover in the event of an accident occurring while your application is being assessed. Accident means an unforeseen violent, external and visible event that occurs accidentally during the period of cover. Interim Accident cover commences from the date Catholic Super receives your application for cover. The amount of cover will be the lesser of: a) the excess of the proposed cover above the Automatic Acceptance Level, or b) the excess of the proposed cover above the insured person s existing cover. If you think you qualify for the Interim Accident benefit, please contact us on 1300 655 002. Parental Leave/Leave without Pay Death, TPD and IP cover will continue for members on parental leave or leave without pay subject to the ongoing payment of premiums. Employment or travel overseas Members who are Australian residents are not required to advise Catholic Super or the insurer before they commence employment overseas but cover will be subject to premiums continuing to be paid. Temporary residents will be covered overseas for up to 3 months. Temporary residents employed overseas may be covered for longer than a period of 3 months subject to prior approval by the insurer. Members submitting a claim, or currently claiming, from outside Australia may be required to return to Australia for further assessment of the claim 6 months after the date of commencement of the disability. Confirming how much cover you have Your annual member statement will show the amount of cover you have and any insurance premiums deducted from your account throughout the year. You can also check these details online at any time by using Member Online, our internet facility for members, or by calling us on 1300 655 002. Cover is conditional upon the member s employer holding appropriate leave records for the member s leave including: the date the leave commences, and the expected return to work date for the member. In the event of total or partial disablement while on leave without pay, the earned income definition for nonpermanent employees will be used to determine any benefit payable. In relation to payment of IP benefits, the waiting period will commence on the date of disablement with benefits commencing upon the expiry of the waiting period. Any paid parental leave will be offset against any IP benefit payment the member is eligible to receive during the parental leave period. 42
Staying in touch Throughout the year, we will provide you with information about your account and Catholic Super. In the interests of saving the earth s resources and to keep costs down, we encourage you to supply your email address so you can receive our communications electronically. It is important that you stay up to date with developments in super and changes to Catholic Super. If you change any of your contact details, please make sure you notify us. Remember that you can obtain information at any time by logging onto our website, www.csf.com.au, or by calling us on 1300 655 002. While you are a member of Catholic Super, we will provide you with the following information: When you join a welcome letter with your Catholic Super membership account number and details of how to access our latest Annual Report, which includes financial and investment information for the last financial year. After the end of each financial year your annual member statement for the financial year, showing opening and closing balances, all transactions in and out of your account during the year, your personal details, your chosen investment options, investment earnings, level of insurance cover, and any fees, taxes and insurance premiums that have been deducted from your account and details of how to access our Annual Report containing details of the financial performance and operation of Catholic Super for the financial year. The member statement is usually distributed in September each year, and the Annual Report in November as it takes several months to obtain all the necessary financial and investment reports from various investment managers and to complete a preliminary audit of the fund s financial statements. Member statements are available electronically for those who wish to receive them that way. Three or four times a year Our member newsletter. You choose whether to receive it by email or post. Most months Newsletter for Employers, choice of e-version or print copy. When you leave an exit statement showing your closing balance and all transactions since your last annual member statement You can request additional information at any time The following information is available to you on written request to the fund office: Trust Deed auditor s report and audited accounts of the fund privacy policy investment policy dispute resolution procedures risk management framework derivatives risk statement Director appointment and removal procedures any further information that you may reasonably require to make an informed assessment of the management, financial condition and investment performance of Catholic Super. The Trustee reserves the right to charge a fee for supplying some information. The Trustee Directors do not hold a General Meeting for members. Keep track of your account online Member Online is our secure internet facility that lets you view your account history and personal details online. You can view your account balance, your recent contributions history, your investment choice and personal account details. You can receive your annual statement online. You can make an investment switch online. Once you have registered, go to our website, www.csf.com.au and log in through Member Online. Employer Online is a secure online means of carrying out your superannuation transactions. To register for Member Online or Employer Online go to www.csf.com.au and follow the simple instructions. Before you register you can see a demonstration of how they work. 43
Financial and retirement planning advice Catholic Super offers financial and retirement planning services to all members via Catholic Financial Services, a corporate authorised representative of Catholic Super (AFSL 246664). The staff of Catholic Financial Services are licensed to advise and recommend on an extensive range of products including superannuation, savings plans, managed funds, all types of pensions (including the Catholic Super Pension and Pre-Retirement Pension), and insurance. Why do you need a financial planner? Today s financial markets are complex and ever changing. Frequent changes to the legislation governing super and retirement income streams can make it difficult to keep up to date, particularly in relation to tax implications and the ways in which you can access your benefits. To make sure you are not disadvantaged, it is important to receive professional advice prior to purchasing a product or making an investment. Our financial planners are trained professionals who can provide knowledgeable advice, recommendations on tax effective investments, retirement planning, advice on matters specific to your financial situation, ongoing portfolio review and management and a Statement of Advice that meets your specific requirements. Our financial planning team You can arrange to meet one of our financial planners by calling 1300 655 002. All staff of Catholic Financial Services are salaried staff and are not personally entitled to any commissions or bonuses that result from recommendations they make. This means that our financial planners are free to recommend strategies that are the most appropriate for you, not them. As a member of Catholic Super, you can pay Catholic Financial Services directly from your super account for superannuation related advice and planning as long as there are sufficient funds in your account. Member education services Our member services team regularly hold seminars on issues relating to retirement, investment, changes to superannuation and general financial planning issues. We will contact you when a seminar is scheduled in your area and details are readily available on our website www.csf.com.au. We can also visit your workplace on request, with the consent of your employer. For more information about seminars and worksite visits, please call us on 1300 655 002. Home loans and other banking products All Catholic Super members have access to home loans and banking products provided by ME Bank. These products and services are not offered directly by Catholic Super. ME Bank (ABN 56 070 887 679, AFSL 229500) has a number of products available: home loans low cost credit cards everyday bank account personal loans To find out more about ME Bank and its range of products, call 1300 654 990 or visit their website at www.mebank.com.au. The Trustee advises members to consider a range of mortgage and finance options and seek independent advice if necessary. 44
Don t lose track of your super It is very important that you keep us up-to-date with your personal details, in particular when you change your address. If we don t have your current details, we can t provide you with information and most importantly, we can t pay your benefit when it becomes due. Catholic Super makes every effort to ensure our information reaches you, but we need your help to keep our records up-to-date. If you change your address, please advise us as quickly as possible. If we do not have your accurate address details you will be classified as a lost member and your details will be reported to the Lost Members Register (LMR) which is maintained by the ATO. The LMR can be contacted on 13 10 20. Eligible rollover fund (ERF) If your super account balance falls below $1,000 and you no longer work for a Catholic Super participating employer, then you may: ask your new employer to send your contributions to your Catholic Super account, make a contribution or roll over benefits from other super funds to Catholic Super, in order to maintain a balance of more than $1,000, or roll your benefit out of Catholic Super into another fund. If none of these events occurs within 6 months of the most recent contribution being paid into Catholic Super on your behalf, or you become a lost member and your account balance is less than $9,500, any insurance cover you have will stop, and your super account balance will be transferred to: AUSfund Australia s Unclaimed Super Fund PO Box 2468 Kent Town SA 5071 Phone: 1300 361 798 Fax: 1300 366 233 International phone: +61 8 8205 4953 International fax: +61 8 8205 4990 Email: admin@ausfund.net.au Internet: www.ausfund.net.au These transfers are processed by Catholic Super on a quarterly basis. If your account is transferred to AUSfund you will cease to be a member of Catholic Super and any insurance cover you have with Catholic Super will cease. AUSfund has a low fee structure designed to protect members with small balances. All members balances are member protected, which means that administration charges will generally not be more than investment returns. Most members will continue to accumulate investment returns in AUSfund. AUSfund does not offer insurance cover and has a different investment strategy to that of Catholic Super. We encourage you to obtain a Product Disclosure Statement (PDS) from AUSfund. Unclaimed monies If you have reached age 65 and you are eligible to claim your super but we cannot locate you (and we have not transferred your benefit to the ERF above), we are required by law to pay your superannuation benefit to the ATO. If your benefit is paid to the ATO, you will no longer be a member of Catholic Super and will not be entitled to any Catholic Super benefits. This means that your insurance cover with Catholic Super will cease. You can then seek payment of your benefit from the ATO. You can enquire about unclaimed benefits by contacting the ATO on 13 10 20 or by visiting www.ato.gov.au/super. To avoid falling into this situation, please ensure you keep us informed of your current contact details. Supermatch Catholic Super is registered with the ATO s matching service called Supermatch. The service enables Catholic Super and the ATO to conduct database searches and identify matches using Tax File Numbers. It enables us to reunite members with any of their lost or unclaimed money held by the ATO. For members who have provided their TFN and consented to such transfers and amalgamations into their super account, this will happen automatically. If you believe that you may have some lost money, please contact the ATO Superannuation Infoline on 13 10 20 or check out the lost member section of the ATO website www.ato.gov.au 45
Maintaining an income in retirement What are your options? There are a number of different options and products that you can select to provide you with an income stream in retirement. The option you choose can have a significant impact on things such as taxation and your financial situation in retirement. It is a good idea to seek professional financial advice, to make sure you choose the right option for your particular circumstances. Our salaried financial planners can help you. You may also wish to contact Centrelink in relation to eligibility for the Age Pension. Since 10 May 2006, you no longer have to cash in your super when you reduce your working hours or retire. Keeping your money in super indefinitely means you pay only 15 tax on the investment returns. If you decide to purchase a superannuation pension (income stream), those returns are completely tax free. As a member of Catholic Super you can invest in one of our pension products. A pension is like your super in reverse. During your working life, regular contributions to your super build up your account balance. In retirement, your balance is invested in a pension plan and continues to receive investment returns, while you receive regular payments from your account. Catholic Super Pension This pension enables you to invest your lump sum in the Catholic Super investment option of your choice, and convert it into a regular income stream subject to age based minimum payment conditions. You can change the amount of income payments if you wish, and can also withdraw lump sum payments from time to time. Upon your death, the pension can continue to be paid to your spouse or it.can be paid as a lump sum to your estate. For more detailed information please refer to the Catholic Super Pensions Product Disclosure Statement, which can be obtained by calling Catholic Super on 1300 655 002 or by downloading a copy from our website www.csf.com.au. Catholic Super Pre-Retirement Pension If you have reached your preservation age between 55 and 60 years (see preservation table on page 10), you may access your super benefits through a pre-retirement pension (conditions apply) while continuing to work either full-time or part-time. For example, you may finish full-time work but continue working part-time and use some of your super to supplement your income. Alternatively, you may set up a pre-retirement pension using some of your accumulated super, make salary sacrifice arrangements and build your super by utilising the tax efficiencies of those arrangements. For more detailed information, please refer to the Catholic Super Pensions Product Disclosure Statement, which can be obtained by downloading a copy from our website, www.csf.com.au or by calling us on 1300 655 002. Cooling-off period If you choose to purchase a pension, you have 14 days from the date your application is accepted to decide if this is the right choice for you. During this time, called the cooling-off period, you can choose instead to retain your benefit in Catholic Super, roll it over to another superannuation fund or, subject to the preservation requirements detailed on page 10, take your benefit in cash. Want more information? If you are nearing retirement, it is very important to obtain professional advice to ensure you make the right decisions for your particular circumstances. For more information please call us on 1300 655 002, download a copy of the Catholic Super Pensions Product Disclosure Statement, or to make an appointment with one of our salaried financial planners. 46
Enquiries and complaints Enquiries Most enquiries can be dealt with over the telephone. For general superannuation enquiries call us on 1300 655 002 or if your enquiry is related to a Catholic Super Pension please call our Pension Service Centre on 1300 730 327. Make sure you have your membership number ready. Complaint and dispute resolution Catholic Super makes every effort to ensure that our level of service meets your expectations. However, problems sometimes occur. The Trustee has established a formal procedure to respond to member dissatisfaction so that your issue is dealt with as quickly and efficiently as possible. We may ask you to provide details of your complaint in writing. Once we have received your written complaint we have by law, up to 90 days to respond. Generally we try to respond much earlier, usually within 30 days. If necessary, your complaint may be taken to the Trustee Board, a process which may affect the response time. Within 90 days of the receipt of your complaint, you will receive a reply with a decision about the complaint or a request for additional information to help us resolve your complaint. If you are not satisfied with the handling of your complaint or the Trustee s decision, you may then contact the Superannuation Complaints Tribunal (SCT). The SCT is an independent body set up by the Federal Government to assist members and beneficiaries to resolve certain types of complaints with fund trustees. The SCT may be able to assist you to resolve your complaint, but only if you are not satisfied with the response received from the Trustee s handling of your complaint. If the SCT accepts your complaint, it will attempt to resolve the matter through conciliation, which involves assisting you and the fund to come to a mutual agreement. If conciliation is unsuccessful, the complaint is referred to the SCT for a determination. To find out whether the SCT can handle your complaint and the type of information you will be required to provide, you can contact it as follows: Superannuation Complaints Tribunal Locked Bag 3060 GPO Melbourne VIC 3001 Phone: 1300 780 808 Fax: 03 8635 5588 Website: www.sct.gov.au There is no time limit for complaints to the SCT about most Trustee decisions. However, time limits do apply to making certain complaints to the SCT in relation to Death and Total & Permanent Disablement (TPD) benefits. The SCT can only deal with a complaint relating to a denial of a TPD benefit if: you claim a TPD benefit from Catholic Super within two years of permanently ceasing employment (the date your employment is formally terminated rather than the last day you are able to work), and you lodge a complaint with the SCT within two years of the Trustee s original decision to deny your claim. Even if the Trustee is still reviewing your claim and considering new evidence, you must complain to the SCT within two years of the original decision. The SCT can only deal with a complaint relating to the payment of a death benefit if you object within 28 days to the Trustee s initial proposal and you lodge your complaint with the SCT within the 28 days after the Trustee has considered your objection. 47
Your rights to privacy The Trustee Directors know and understand the importance of protecting your right to privacy, particularly any personal details our contracted administrators, Catholic Church Insurances (CCI) may hold about you. CCI is the company that administers Catholic Super. The Privacy Act contains ten national privacy principles that regulate, among other things, how organisations collect, store and protect the quality of personal and sensitive information, including health details. It also sets out how organisations should use and share such information with other organisations. The national privacy principles form part of all our procedures and policies and we have received certification from CCI that they will take all necessary steps to ensure that they comply with these principles when dealing with your personal information. What personal information will Catholic Super collect and keep about me? We collect personal information about our members to enable CCI to establish and administer member accounts. CCI may also collect personal information about our members on our behalf. The type of personal information they will collect about you includes your name, address, date of birth, gender, telephone number and tax file number. We may also request original and/or certified documentation to verify your personal information. Catholic Super collects personal information when you lodge forms, such as a membership application or change of personal details form, or when you send us documents containing personal information. There may also be circumstances when your employer may send personal details directly to Catholic Super or CCI on your behalf. Why does CCI need my personal information? The personal information Catholic Super collects, and the personal information CCI collects on our behalf, is used by CCI to establish your Catholic Super membership account, process contributions to your account, implement your investment and insurance choices, correspond with you and provide you with superannuation benefits and options from Catholic Super. There are also specific circumstances where we will ask for additional information such as personal health and income information if you are applying for insurance cover, your bank account details if you are requesting a direct debit to your superannuation account, and your dependants details for the purpose of paying benefits in the event of your death. Your personal details may also be used so that Catholic Super can send you relevant information on the products and services to which your membership gives you access. There are other organisations connected to the administration services CCI provides to you which may have access to your personal information. They include: mailing companies organisations contracted to do all mailing for CCI archiving companies organisations contracted to ensure that all documents are stored in a secure environment auditors and regulators organisations that ensure CCI and Catholic Super are complying with regulatory and contractual obligations insurers and insurance underwriters organisations which assist Catholic Super in assessing a member s eligibility for an insured benefit. Other types of organisations to which we may disclose your personal information include: CSF Financial Services Pty Limited which may provide financial advice to members any fund to which your benefit is to be transfered or rolled over (including the administrator of that fund) in the event of your death, your legal personal representative, or any other person who may be entitled to receive the death benefit, or any person contracted to assist us to process that benefit your spouse or former spouse, to the extent required by law Government agencies for tax-related purposes our professional advisors. Catholic Super is required, under the national privacy principles, to obtain your consent to collect your personal information. Catholic Super seeks your consent on the Member Application Form. Can I see the personal information Catholic Super and CCI have about me? You have a right to know what information Catholic Super and CCI hold about you, and you are entitled to see this information to ensure it is correct. To do this, please contact CCI on 1300 655 002 to ask them for your personal details. The Privacy Act provides limited circumstances in which some or all access to such information may be denied. If this applies to you, CCI will explain why. For more information If you want further information on how Catholic Super and CCI handle personal and sensitive information, or if you want to complain about a possible breach of privacy, please contact the Trustee office on 1300 655 002. If you are not satisfied with the resolution of any complaints, you can refer the matter to the Privacy Commissioner by calling 1300 363 992. 48
Financial Services Guide (FSG) About us The Catholic Superannuation Fund (ABN 50 237 896 957) is managed and controlled by CSF Pty Limited (ABN 30 006 169 286). As the trustee company, CSF Pty Limited has been issued with an Australian Financial Services (AFS) Licence (AFSL 246664), which authorises us to provide you with general and personal advice about superannuation products. In this Financial Services Guide (FSG), CSF Pty Limited and the Catholic Superannuation Fund are together referred to as Catholic Super, we, our or us. Catholic Super issued this FSG in March 2010. It has been prepared to comply with the licensing requirements of the Corporations Act 2001 and includes information to help you decide whether to use the financial services available through Catholic Super, such as the types of financial products and services we are authorised to provide to you, our fees and charges, how our representatives are remunerated, and your rights if you have a complaint. What financial services are available to you? Catholic Super is authorised to provide general and personal advice to members about Catholic Super s financial products and related group life, disability and income protection insurance. We are not authorised to provide advice about financial products offered by any other superannuation fund. Personal advice Authorised Catholic Super representatives, known as Super Advice Consultants, are able to provide you with personal advice which takes into account your particular financial situation, needs and objectives, in relation to your existing account with Catholic Super but restricted to: Salary sacrifice Personal contributions Investment choice Income protection insurance Financial hardship claims If you want advice in areas not listed above or advice on products other than Catholic Super, then you will be referred to an adviser from Catholic Financial Services, Catholic Super s wholly owned financial planning company. Documents that you may receive Statement of Advice Whenever we provide you with personal advice, we will give you a Statement of Advice. The Statement of Advice (commonly referred to as a financial plan) contains the personal advice/recommendations, the basis on which it has been given, the risks associated with the advice, and information about fees and costs. Product Disclosure Statement A Product Disclosure Statement (PDS) contains important information about the features, risks, benefits, terms and conditions, and costs of the investment or policy we have recommended within the Statement of Advice. When investing in a product or taking out an insurance policy, it is important you read the PDS to help you make an informed decision prior to completing the application form contained within the relevant PDS. General advice We also offer a range of general advice and educational services through our Super Advice Consultants, and our Employer & Member Services and Education teams. These services give members an opportunity to receive general advice about the Fund, issues relating to superannuation, investment options, retirement options, and other related matters such as social security and estate planning. We also provide factual information in relation to members accounts and in response to queries members may have from time to time. These services are offered through seminars and online tools and calculators, as well as over the phone or face-to-face. It is important to note that these services do not provide tailored recommendations which take into account your needs and objectives, nor do they consider what may be best for your individual circumstances. In using these services, you should consider the appropriateness of the advice, with regard to your objectives, financial situation or needs, before acting on the advice. Please refer to the FSG of Catholic Financial Services for more information on the financial services they offer. 49
Financial Services Guide (FSG) cont. Who will be responsible for the advice given to you? Authorised Catholic Super representatives, known as Super Advice Consultants, are able to provide personal advice, which takes into account your particular financial situation, needs and objectives, in relation to your existing account with Catholic Super. Members of our Employer & Member Services and Education teams can provide general information and advice to you about the financial products and services offered through Catholic Super, and will refer you to a Super Advice Consultant if personal advice is required. When providing you with our services, all our representatives are at all times acting on behalf of Catholic Super. Our AFS Licence does not cover staff of participating employers and Catholic Super is not responsible for services or advice provided by these people. Our fees and charges You will not incur a direct fee for using either our general advice or personal advice services. The cost of providing these services is included in the fees charged for membership of Catholic Super. We do not charge any additional fees or obtain any commissions for the advice provided. Additional fees may be incurred for comprehensive advice provided by Catholic Financial Services. Please refer to the FSG of Catholic Financial Services for more information. How are our representatives paid? Our representatives are salaried employees of Catholic Super. No commissions, fees or volume related bonuses are paid to our representatives for the services provided to you on behalf of Catholic Super. Does Catholic Super have any relationships or associations that could influence the provision of our advisory services? CSF Pty Limited, in its capacity as Trustee of Catholic Super, may hold arms length investments in other companies such as banks and insurance companies which issue financial products. CSF Pty Limited is also the sole shareholder of CSF Financial Services Pty Limited (ABN 38 100 468 200) ( Catholic Financial Services ), a financial planning and services company which operates as a Corporate Authorised Representative under CSF Pty Limited s AFS Licence. CSF Pty Limited does not have any other relationships or associations with any other product issuers or service providers which could be expected to influence the provision of financial services provided under its AFS Licence. What Professional Indemnity insurance arrangements are in place? Catholic Super has in place adequate arrangements, including professional indemnity insurance, to compensate members or their beneficiaries for loss or damage arising as a result of the breach or breaches of any relevant legislative obligations by Catholic Super or its representatives. Our policy covers the actions of directors, officers and representatives of Catholic Super, including the actions of former employees and representatives who, subsequent to these actions, have ceased to be employed by, or act for us, as well as the comprehensive advisory services offered by Catholic Financial Services. Respecting your privacy The privacy of your personal information is important to us. We collect and maintain your personal information to ensure that we are able to provide you with advice on products and services most appropriate to your needs. We also maintain a record of any recommendations made to you for a period of no less than seven years. In order to best service your needs, our representatives may need to disclose your personal information to other parties, such as product issuers and life companies. As part of our continuing commitment to client services and the maintenance of client confidentiality, we have adopted the National Privacy Principles as set out in Schedule 3 of the Privacy Act 1988. If you require more details, please read our Privacy Statement which you can download from our website, or contact us to request a copy of our full Privacy Policy. 50
If you have a complaint We want to give you the best possible advice and service. If you have a complaint about the service provided to you, please contact: The Complaints Officer Catholic Super PO Box 333 Collins Street West, VIC 8007 Phone: (03) 9648 4700 Email: info@csf.com.au Advisory Services Complaints Where your complaint relates to our advisory services and you are not satisfied with the way your complaint is handled, or with its resolution, or you have not received a response from us within 45 days, you can contact the Financial Ombudsman Service (FOS) and request that they investigate the complaint on your behalf. This service is available to you free of charge but may only be used once you have made use of Catholic Super s own complaint handling process. To find out whether FOS can handle your complaint and the type of information you need to provide, you can contact it as follows: Financial Ombudsman Service GPO Box 3 Melbourne, VIC 3001 Phone: 1300 780 808 Email: info@fos.org.au Website: www.fos.org.au Super Accounts Complaints Where your complaint relates to your super account (with Catholic Super) and, if after 90 days, you are not satisfied with the way your complaint is handled, or with its resolution, you may be able to take your complaint to the Superannuation Complaints Tribunal (SCT). The SCT is an independent body set up by the Federal Government to assist members or their beneficiaries to resolve certain superannuation complaints. The SCT may be able to assist you to resolve your complaint but will only become involved after you have made use of Catholic Super s own complaint handling process. The service is free of charge and in cases where the SCT is required to make a determination, it will be binding on Catholic Super. To find out whether the SCT can handle your complaint and the type of information you need to provide, you can contact it as follows: Superannuation Complaints Tribunal Locked Bag 3060 GPO Melbourne, VIC 3001 Phone: 1300 780 808 Email: info@sct.gov.au Website: www.sct.gov.au Privacy Complaints Where your complaint relates to the handling of your personal information, you may be able to take your complaint to the Office of the Privacy Commissioner (OPC). To find out whether the OPC can handle your complaint and the type of information you need to provide, you can contact it as follows: Office of the Privacy Commissioner GPO Box 5218 Sydney NSW 2001 Phone: 1300 363 992 Email: privacy@privacy.gov.au Website: www.privacy.gov.au 51
Appendix 1: Insurance scales Standard Benefit Scale Build Your Own Cover Scale (Annual cost per $1,000 cover) 70 $5,600 $47.32 N/A 70 $11.06 N/A Age next birthday Benefit (1 unit) Death only (annual cost) Death & TPD (annual cost) 16 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $100,500 $86,100 $86,100 $86,100 $86,100 $86,100 $64,600 $64,600 $64,600 $64,600 $64,600 $43,100 $43,100 $43,100 $43,100 $43,100 $28,700 $28,700 $28,700 $28,700 $28,700 $28,700 $28,700 $21,500 $21,500 $21,500 $14,400 $14,400 $14,400 $7,200 $7,200 $5,600 $5,600 $5,600 $5,600 $14.04 $17.68 $22.88 $27.56 $29.12 $28.08 $25.48 $23.40 $21.84 $19.76 $21.32 $21.32 $21.32 $22.88 $23.40 $24.96 $25.48 $26.00 $27.56 $30.16 $27.56 $29.64 $32.24 $33.80 $37.44 $31.20 $33.80 $36.92 $41.08 $45.76 $33.80 $38.48 $42.64 $48.36 $54.08 $41.08 $45.76 $52.00 $58.24 $66.04 $73.32 $82.16 $67.60 $75.40 $83.72 $61.88 $68.12 $75.92 $42.64 $47.32 $47.32 $47.32 $47,32 $47.32 $18.72 $23.40 $30.68 $36.40 $36.92 $36.92 $34.32 $30.68 $27.56 $26.00 $26.00 $26.52 $26.52 $28.60 $30.16 $32.24 $34.32 $36.40 $38.48 $42.12 $39.00 $42.64 $47.84 $51.48 $57.20 $48.36 $54.60 $61.36 $69.68 $78.52 $59.28 $67.60 $76.96 $88.92 $100.88 $78.00 $88.92 $101.92 $115.96 $132.60 $150.80 $172.64 $146.64 $167.44 $189.80 $144.04 $164.32 $187.72 $108.16 $124.28 N/A N/A N/A N/A 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 Age next birthday Death Only Death & TPD 16 $0.16 $0.19 $0.25 $0.30 $0.32 $0.30 $0.28 $0.25 $0.24 $0.22 $0.23 $0.22 $0.23 $0.25 $0.25 $0.27 $0.28 $0.28 $0.30 $0.33 $0.35 $0.38 $0.41 $0.43 $0.48 $0.54 $0.58 $0.63 $0.70 $0.78 $0.86 $0.98 $1.09 $1.24 $1.39 $1.58 $1.75 $2.00 $2.24 $2.53 $2.80 $3.15 $3.45 $3.85 $4.27 $4.74 $5.22 $5.82 $6.53 $7.26 $7.90 $8.59 $9.35 $10.16 $0.20 $0.25 $0.34 $0.40 $0.41 $0.41 $0.38 $0.34 $0.30 $0.28 $0.28 $0.29 $0.29 $0.32 $0.33 $0.36 $0.38 $0.40 $0.42 $0.46 $0.49 $0.55 $0.61 $0.66 $0.74 $0.83 $0.93 $1.04 $1.19 $1.33 $1.51 $1.73 $1.96 $2.27 $2.58 $2.99 $3.41 $3.91 $4.44 $5.08 $5.78 $6.62 $7.50 $8.56 $9.70 $11.05 $12.60 $14.39 $16.55 $19.06 N/A N/A N/A N/A 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 66 67 68 69 52
Income Protection Scale cost per unit per week 30 day waiting period 60 day waiting period ANB 5 year benefit To age 65 benefit ANB 5 year benefit To age 65 benefit 16 $0.33 $0.54 16 $0.21 $0.31 17 $0.33 $0.54 17 $0.21 $0.31 18 $0.33 $0.54 18 $0.21 $0.31 19 $0.33 $0.54 19 $0.21 $0.31 20 $0.33 $0.54 20 $0.21 $0.31 21 $0.33 $0.54 21 $0.21 $0.31 22 $0.34 $0.55 22 $0.21 $0.31 23 $0.34 $0.56 23 $0.21 $0.32 24 $0.35 $0.57 24 $0.21 $0.32 25 $0.35 $0.58 25 $0.21 $0.33 26 $0.35 $0.60 26 $0.21 $0.33 27 $0.33 $0.57 27 $0.20 $0.32 28 $0.32 $0.55 28 $0.19 $0.31 29 $0.32 $0.56 29 $0.19 $0.32 30 $0.31 $0.55 30 $0.18 $0.31 31 $0.32 $0.58 31 $0.19 $0.32 32 $0.33 $0.61 32 $0.19 $0.33 33 $0.37 $0.68 33 $0.21 $0.36 34 $0.38 $0.71 34 $0.21 $0.37 35 $0.41 $0.79 35 $0.23 $0.41 36 $0.45 $0.87 36 $0.25 $0.45 37 $0.50 $1.00 37 $0.28 $0.51 38 $0.54 $1.07 38 $0.29 $0.55 39 $0.59 $1.20 39 $0.32 $0.61 40 $0.64 $1.32 40 $0.35 $0.67 41 $0.69 $1.43 41 $0.38 $0.74 42 $0.76 $1.59 42 $0.42 $0.83 43 $0.85 $1.78 43 $0.48 $0.95 44 $0.90 $1.91 44 $0.52 $1.03 45 $1.01 $2.13 45 $0.59 $1.17 46 $1.08 $2.28 46 $0.65 $1.28 47 $1.19 $2.51 47 $0.73 $1.43 48 $1.29 $2.71 48 $0.81 $1.58 49 $1.41 $2.94 49 $0.90 $1.75 50 $1.55 $3.18 50 $1.01 $1.94 51 $1.70 $3.43 51 $1.13 $2.13 52 $1.86 $3.68 52 $1.27 $2.36 53 $2.06 $3.98 53 $1.43 $2.65 54 $2.26 $4.23 54 $1.59 $2.92 55 $2.49 $4.52 55 $1.79 $3.23 56 $2.75 $4.82 56 $2.00 $3.55 57 $3.06 $5.13 57 $2.25 $3.86 58 $3.41 $5.41 58 $2.53 $4.14 59 $3.81 $5.67 59 $2.84 $4.36 60 $4.26 $5.86 60 $3.19 $4.48 61 $4.53 $5.99 61 $3.39 $4.51 62 $4.50 $5.96 62 $3.36 $4.35 63 $3.62 $4.79 63 $2.69 $3.43 64 $2.08 $2.76 64 $1.44 $1.80 65 $0.75 $1.00 65 $0.41 $0.51 53
Forms to complete Before you join Catholic Super, please read this Product Disclosure Statement carefully. The following forms are included for you: Member application forms You must complete one of these forms to become a member of Catholic Super. To save time you can join online. Simply go to www.csf.com.au and click on Join online now. 1. Employer sponsored 2. Personal plan Make sure we always have your correct address and other personal details? Please advise us of any change to your home address or other personal details as soon as possible. We rely on you to tell us! Participating Employer application form To save time you can join online. Simply go to www.csf.com.au and click on Join online now. Application for insurance cover form. Personal Plan members should use this form to apply for insurance cover. Employer sponsored members should use this form to apply for additional insurance cover i.e. if you require more than what is automatically allocated. Please complete, sign and date the forms that are relevant to you, and return to: Catholic Super GPO Box 180 Melbourne VIC 3001 54
CATHOLIC SUPER Employer Sponsored Member Application Save time and paper! Join online. Go to www.csf.com.au and click on Join Online. The questions are the same but once you fill in your answers and hit Submit, you re done. Address: GPO Box 180 Melbourne VIC 3001 Phone: 1300 655 002 Fax: (03) 9934 3465 Email: info@csf.com.au Internet: www.csf.com.au Please use BLOCK letters and black ink when completing this form. This notification will be invalid if the reverse side of this form is not signed and dated by the applicant. Note: You should complete this form if your employer makes super contributions for you. Section 1: Personal details Mr/Mrs/Ms/Miss/Dr/Rev Surname Given Names Residential Address Street Number Street Name Suburb / Town State Postcode Postal Address (if different to residential address) Street Number / PO Box Street Name Suburb / Town State Postcode Date of Birth (dd/mm/yyyy) Sex Telephone (Home) Telephone (Work) Mobile Email My Online Member Profile (Tick all that apply) Catholic Super would like to keep you advised of opportunities, news and services from time to time. Do you consent to Catholic Super sending information to your nominated email address? YES NO I want online access to my account via Member Online. Member Online is Catholic Super s secure online account facility where you can manage and monitor your super account - switch investments, update your details, view your statements and more. We will register you for Member Online and provide you with a default password. We will send you an email advising your default password. When you first log on you will have to change it. (Make sure you ve filled in your email address.) I want to receive my statement online (You must be registered for Member Online, see above) I understand my statement will not be mailed and that it will be stored and accessible from the secure online facility, Member Online. I want to receive Catholic Super s Annual Report online. (Make sure you ve filled In your email address above.) Page 1 of 3... continued over the page CSF Pty Limited ABN 30 006 169 286, trustee of the Catholic Superannuation Fund ABN 50 237 896 957 RSE L0000307 RSE R1000597 AFSL 246664
Section 2: Employment details Full Name of your school / employer Suburb / Town Employer number Date you commenced service (dd/mm/yyyy) Your occupation Section 3: Tax File Number (TFN) Catholic Super is prohibited by Government legislation from accepting any voluntary contributions from you unless we have your TFN. If you wish to make voluntary contributions, please ensure you provide your TFN below. I agree to provide my Tax File Number (TFN) for the purposes outlined in the taxation section of this booklet. I advise that my Tax File Number is Section 4: Your insurance cover Catholic Super offers a range of affordable insurance cover options to members. Members who are eligible for insurance cover will automatically receive our default cover which is 2 units of Death and Total & Permanent Disablement (TPD) cover and up to 17 units of Income Protection cover based on salary. Refer to tables on pages 52 and 53. Have you ever been paid or been eligible to be paid a TPD benefit under a superannuation arrangement or life insurance policy, or are you presently applying or entitled to apply for a TPD benefit? YES* NO *If you answered YES, you are not eligible for TPD or IP cover but will be allocated 2 units of Death Only cover. Income Protection (IP) We will allocate the number of units equivalent to 85 of your salary. If your salary is more than $140,400 per annum, you will have to apply for IP cover in excess of 17 units and that excess will be subject to assessment and acceptance. Refer to page 53 for relevant scale showing units and costs. Your salary* $,. *If you do not tell us your salary, we will allocate 5 units of Income Protection cover. Are you currently employed and are you able to attend work and perform your normal duties without restriction due to illness, accident or injury? YES NO* *If you answered NO, limited cover will apply. See page 32 for details. With your automatic Income Protection cover, we will allocate a waiting period of 60 days and a benefit payment period of 5 years unless you select one of the following alternative options. Please note the following options will cost more. Refer to tables on page 53. If you want a different IP option, please tick the appropriate box. 30 day waiting period, 5 year benefit payment period 60 day waiting period, benefit payment period up to age 65 30 day waiting period, benefit payment period up to age 65 Increase Your Insurance Cover If you wish to increase your insurance cover please complete in full, the form entitled Application for Insurance Cover in this booklet or download a copy from our website, www.csf.com.au. Conditions apply. Other Variations to your Insurance Cover You can decrease or cancel your insurance cover with Catholic Super at any time by informing us in writing. Page 2 of 3
Section 5: Investment Choice Your super will automatically be invested in the Balanced investment option UNLESS you tell us you want a different type or combination of investments. (Refer to pages 16 20 for details of Catholic Super s investment options.) CONTRIBUTIONS I wish to invest all contributions as shown below effective from the date my application is received by Catholic Super. ROLLOVER OR ONE-OFF PAYMENT I wish to invest my rollover or one-off payment as shown below effective from the date that payment is received by Catholic Super. Managed Choice Options Aggressive Moderately Aggressive Balanced Moderately Conservative Conservative Build Your Own Options Australian Shares Overseas Shares Property Diversified Fixed Interest Cash TOTAL (must add up to 100) 100 100 Section 6: Acknowledgement and signature This form must be signed and dated. I hereby: apply for membership of Catholic Super; acknowledge that I shall be bound by the Trust Deed governing the fund; acknowledge that I have received and read the accompanying Product Disclosure Statement which provides details of the benefits provided by the fund and the related conditions; acknowledge having read and understood the privacy statement within the Product Disclosure Statement and consent to my personal information being collected and used in accordance with this statement; declare that I have read and carefully considered all questions, and the answers that I have provided are all true and correct; Signature of applicant Date (dd/mm/yyyy) Return the completed, signed and dated application to: Catholic Super GPO Box 180 Melbourne VIC 3001 Page 3 of 3
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CATHOLIC SUPER Personal Plan Member Application Save time and paper! Join online. Go to www.csf.com.au and click on Join Online. The questions are the same but once you fill in your answers and hit Submit, you re done. Address: GPO Box 180 Melbourne VIC 3001 Phone: 1300 655 002 Fax: (03) 9934 3465 Email: info@csf.com.au Internet: www.csf.com.au Please use BLOCK letters and black ink when completing this form. This notification will be invalid if the reverse side of this form is not signed and dated by the applicant. Note: You should complete this form if you do not have superannuation contributions made by an employer or if you are joining as a Spouse Member. A minimum contribution of $200 is required to open your account. Section 1: Personal details Mr/Mrs/Ms/Miss/Dr/Rev Surname Given Names Residential Address Street Number Street Name Suburb / Town State Postcode Postal Address (if different to residential address) Street Number / PO Box Street Name Suburb / Town State Postcode Date of Birth (dd/mm/yyyy) Sex Telephone (Home) Telephone (Work) Mobile Email My Online Member Profile (Tick all that apply) Catholic Super would like to keep you advised of opportunities, news and services from time to time. Do you consent to Catholic Super sending information to your nominated email address? YES NO I want online access to my account via Member Online. Member Online is Catholic Super s secure online account facility where you can manage and monitor your super account - switch investments, update your details, view your statements and more. We will register you for Member Online and provide you with a default password. We will send you an email advising your default password. When you first log on you will have to change it. (Make sure you ve filled in your email address.) I want to receive my statement online (You must be registered for Member Online, see above) I understand my statement will not be mailed and that it will be stored and accessible from the secure online facility, Member Online. I want to receive Catholic Super s Annual Report online. (Make sure you ve filled In your email address above.) Page 1 of 2... continued over the page CSF Pty Limited ABN 30 006 169 286, trustee of the Catholic Superannuation Fund ABN 50 237 896 957 RSE L0000307 RSE R1000597 AFSL 246664
Section 2: Tax File Number (TFN) Catholic Super is prohibited by Government legislation from accepting any voluntary contributions from you unless we have your TFN. If you wish to make voluntary contributions, please ensure you provide your TFN below. I agree to provide my Tax File Number (TFN) for the purposes outlined in the taxation section of this booklet. I advise that my Tax File Number is Section 3: Your insurance cover You may apply for Death only cover or Death and Total & Permanent Disablement (TPD) cover. If you are employed, you may be eligible to apply for Income Protection cover. The cost of premiums will vary each year according to your age and the level of cover you choose. Refer to Insurance tables on pages 52-53. If you wish to apply for insurance cover, please complete the Application for Insurance Cover form, inside this booklet. Your cover will be subject to acceptance by the Insurer and confirmation in writing from Catholic Super. Section 4: Investment Choice Your super will automatically be invested in the Balanced investment option UNLESS you tell us you want a different type or combination of investments. (Refer to pages 16 20 for details of Catholic Super s investment options.) CONTRIBUTIONS ROLLOVER OR ONE-OFF PAYMENT Managed Choice Options I wish to invest all contributions as shown below effective from the date my application is received by Catholic Super. I wish to invest my rollover or one-off payment as shown below effective from the date that payment is received by Catholic Super. Aggressive Moderately Aggressive Balanced Moderately Conservative Conservative Build Your Own Options Australian Shares Overseas Shares Property Diversified Fixed Interest Cash TOTAL (must add up to 100) 100 100 Section 5: Acknowledgement and signature This form must be signed and dated. I hereby: apply for membership of Catholic Super Personal Plan; acknowledge that I shall be bound by the Trust Deed governing the fund; acknowledge that I have received and read the accompanying Product Disclosure Statement which provides details of the benefits provided by the fund and the related conditions; acknowledge having read and understood the privacy statement within the Product Disclosure Statement and consent to my personal information being collected and used in accordance with this statement; declare that I have read and carefully considered all questions, and the answers that I have provided are all true and correct; Signature of applicant Return the completed, signed and dated application to: Catholic Super Personal Plan GPO Box 180 Melbourne VIC 3001 Page 2 of 2 Date (dd/mm/yyyy)
CATHOLIC SUPER Employer Application Form Save time and paper! Join online. Go to www.csf.com.au and click on Join Online. The questions are the same but once you fill in your answers and hit Submit, you re done. Address: GPO Box 180 Melbourne VIC 3001 Phone: 1300 655 002 Fax: (03) 9934 3465 Email: info@csf.com.au Internet: www.csf.com.au Please use BLOCK letters and black ink when completing this form. This notification will be invalid if the reverse side of this form is not signed and dated by the applicant. To the Trustee, Catholic Super. The employer hereby makes an application to become a participating employer of the Fund in accordance with the Trust Deed If accepted as a participating employer of the Fund, the participating employer agrees to be bound by the terms and conditions of the Trust Deed The employer acknowledges the receipt of the Catholic Super Product Disclosure Statement issued 1 April 2010. Section 1: Employer details Employer Name Trading Name Address for correspondence Street Number / PO Box Street Name Suburb / Town State Postcode ABN Nature of Business Section 2: Employer contact details Office Contact Name Office Contact Email Address Office Contact Telephone Office Contact Fax Email Section 3: Managing and making payments Employers can register for Employer Online to make payments, add new members and notify changes online in a secure environment, and whenever it is most convenient. There are a number of methods to make a payment and to provide the details. You can upload a payroll file or simply enter the details online if you only have a few employees to pay for. You can send the money via BPAY, Direct Debit or if you d prefer by cheque. Make sure you provide an email address as we send monthly reminders! Would you like to register for Employer Online? Yes (complete all of this section) No, I want to receive a paper contribution form (complete the Payment Method only) Page 1 of 2 CSF Pty Limited ABN 30 006 169 286, trustee of the Catholic Superannuation Fund ABN 50 237 896 957 RSE L0000307 RSE R1000597 AFSL 246664... continued over the page
Section 3: Managing and making payments (cont) Password Your password will be set up as your Employer number. When you first log on you will have to change it. Data Method Payroll File (Our experienced ebusiness staff will contact you to help set up your first file) eform (You enter amounts on an online form. This is suitable for less than 20 employees) Payment Method BPAY You will receive BPAY details at the time you make your first contribution online Direct Debit (please provide your bank details) BSB Account Number - Cheque Section 4: Your Employees Number of employees for whom you will be contributing to Catholic Super (You can supply details in section 5 if they are existing Catholic Super members) Total number of employees you have Section 5: Existing Catholic Super Member Details (if applicable) 1. Member Name Existing Catholic Super Membership Number 2. Member Name Existing Catholic Super Membership Number 3. Member Name Existing Catholic Super Membership Number If you have more than 3 members, please list their details separately and attach to this application form. Section 6: Privacy When your employer details are provided to Catholic Super they are securely stored and are accessible only to authorised personnel for the purposes of maintaining your account. If you wish to view Catholic Super s Privacy Statement please check the Fund s website: www.csf.com.au or to obtain a copy, please contact us on 1300 655 002. Section 7: Employer acknowledgement Signature of applicant Date (dd/mm/yyyy) Return the completed, signed and dated application to: Catholic Super GPO Box 180 Melbourne VIC 3001 Page 2 of 2
CATHOLIC SUPER Application for Insurance Cover Address: GPO Box 180 Melbourne VIC 3001 Phone: 1300 655 002 Fax: (03) 9934 3465 Email: info@csf.com.au Internet: www.csf.com.au Please use BLOCK letters and black ink when completing this form. This notification will be invalid if the reverse side of this form is not signed and dated by the applicant. I am an Employer Sponsored member who wants to apply for increased insurance cover. I am a Personal Plan member who wants to apply for insurance cover. Your Duty of Disclosure Before you enter into a contract of life insurance with an insurer, you have a duty, under the Insurance Contracts Act 1984, to disclose to the insurer every matter that you know, or could reasonably to expected to know, is relevant to the insurer s decision whether to accept the risk of insurance and, if so, on what terms. You have the same duty to disclose to the insurer before you extend, vary or reinstate a contract of life insurance. Your duty however, does not require disclosure of a matter: that diminishes the risk to be undertaken by the insurer; that is common knowledge; that your insurer knows, or in the ordinary course of business, ought to know; or disclosure of which is waived by the insurer The duty of disclosure applies even after this Application is completed until TOWER advises acceptance of insurance. Non Disclosure If you fail to comply with your duty of disclosure and the insurer would not have entered in the contract on any terms if the failure had not occurred, the insurer may avoid the contract within three years of entering into it. If your non-disclosure is fraudulent, the insurer may avoid the contract at any time. An insurer who is entitled to avoid a contract of life insurance may, within three years of entering into it, elect not to avoid it but to reduce the sum you have been insured for, in accordance with a formula that takes into account the premium that would have been payable if you had disclosed all relevant matters to the insurer. All questions on this Application for Insurance Cover are relevant as to whether or not TOWER accepts the risk and, if so, on what terms. Consequently, all questions must be answered correctly and completely. Block letters should be used. A dot or dash is not acceptable. Section 1: Personal details Catholic Super Member Number Date of Birth (dd/mm/yyyy) Mr/Mrs/Ms/Miss Surname Given Names Telephone (Business hours) (Mobile) If any of your answers are unclear, we would like to clarify them over the telephone, as this can save unnecessary delays. Section 2: Occupation details 2.1 Self employed OR Employee Full Time OR Part Time hours p/week weeks p/year 2.2 Your Occupation Industry 2.3 Duties Performed 2.4 Annual Salary $,. (includes packaged items but excludes Bonuses/Commission) Page 1 of 6 CSF Pty Limited ABN 30 006 169 286, trustee of the Catholic Superannuation Fund ABN 50 237 896 957 RSE L0000307 RSE R1000597 AFSL 246664
Section 3: Insurance application Death Sum Insured TPD Sum Insured $,,. $,,. Income Protection Benefit Number of units required Waiting Period 30 days 60 days Benefit Payment Period 5 years Up to age 65 declined, postponed, premium increased or modified, or had a current policy cancelled or renewal refused? Compensation or Motor Vehicle Third Party? 3.1 Is this an increase? 3.2 Have you ever held or applied for any life, disability, accident and sickness or trauma insurance, that was 3.3 Have you claimed on any type of disability, trauma, accident and sickness or such benefits as Workers 3.4 Do you have, or are you applying for, any other life or disability cover? If YES to 3.2, 3.3 and or 3.4, please provide full details below. Name of Company Cover Type Sum Insured Date of Application Accepted/Loaded Exclusion/Declined NO To be Replaced? NO YES YES / / / / / / Section 4: Habits and Activities 4.1 Do you drink alcohol? If YES, state type and daily quantity NO YES 4.2 Have you smoked in the past 12 months? If YES, state form and daily quantity 4.3 Have you ever used or injected yourself with any drug not prescribed by a doctor, or received counselling or treatment for the use of alcohol or drugs? If YES, please provide full details. 4.4 Do you currently, or do you intend to engage in any hazardous pastime and/or sporting activity such as aviation (other than as a fare paying passenger travelling over recognised routes), motor racing, diving, football, parachuting, hang-gliding or any other extreme sport? If YES, we will send you a Sports and Pastimes Statement to be completed. Page 2 of 6
4.5 Do you intend travelling outside Australia within the next 2 years? If YES, please provide details below (where, when, duration and reason) 4.6 Are you an Australian or New Zealand Citizen? 4.7 Do you hold an Australian Permanent Resident s Visa? If NO to 4.6 and 4.7, please provide details. NO YES Section 5: Personal Statement 5.1 Please state your: Height (cm) Weight (kg) 5.2.Name and Address of your usual Doctor 5.3 Details of last medical consultation with your usual doctor. Date (dd/mm/yyyy) Reason Outcome/Results 5.4 If you have attended that Doctor for less than 12 months, name and address of previous Doctor 5.5 NO YES (a) Within the LAST THREE YEARS have you consulted, been examined, treated by, or received advice from any doctor, psychologist, psychiatrist, counsellor, chiropractor, physiotherapist or any other health care professional (naturopath, etc) or been in a hospital or been advised to have an operation or taken any medication, drugs, stimulants, sedatives or tranquilisers? (b) Have you EVER had an ECG, X-ray, transfusion, mammogram, surgery or any other investigation? (c) Have you EVER had any blood tests which revealed an abnormality eg. raised blood sugar, liver function, renal function results, or anaemia etc? (d) Do you contemplate seeking any medical examination, advice, treatment or surgery, in the future? Please provide full details for all 5.5 YES answers. Question Dates (From/To) Name/Address of Doctor, Hospital or clinic Condition, Medications, Treatment & Time off work Recovery Page 3 of 6
Section 6: Personal Statement (continued) 6.1 Have you ever had, been advised that you had, or received advice or treatment for any of the following: NO YES (a) High blood pressure, raised cholesterol, chest pain, heart attack, rheumatic fever, stroke or circulatory disorder? (b) Bowel, stomach or intestinal problem, gallbladder or liver disease? (c) Epilepsy, stroke, paralysis, multiple sclerosis, fainting attacks? (d) Depression, anxiety, panic attacks, stress, chronic fatigue or any mental or nervous condition? (e) Diabetes, sugar in urine, pancreatic or thyroid problem? (f) Cancer, tumour, melanoma, sunspots, mole or growth of any kind? (g) Disease, injury or disorder of joints, neck, back or bones, gout, arthritis or a repetitive strain injury or tendonitis? (h) Impairment of sight, hearing or speech? (i) (j) Asthma, bronchitis, any lung complaint? Leukaemia, haemochromatosis, any blood problems? (k) Kidney, bladder problems? (l) Psoriasis, eczema, any skin problem? (m) Any other disability, congenital abnormality, deformity or symptoms of ill health, illness of injury? (n) To the best of your knowledge, do you, or any of your current or past sexual partners, have HIV/AIDS, or are you experiencing any unexplained night sweats or unintentional weight loss, or do you/have you engaged in any activitiy/ies reasonably accepted as having an increased risk of exposure to the virus? FEMALES ONLY (o) Have you ever had any gynaecological conditions (eg endometriosis, abnormal pap smear, etc.)? (p) Have you have had any complications of pregnancy or childbirth? (q) Are you currently pregnant? If YES what is the expected delivery date Date (dd/mm/yyyy) (r) Have you ever had a breast lump (even if you have not seen a doctor about it)? 6.2 Family History (Please give details of your family medical history) Relative Living relatives Deceased relatives Current Age Specify current state of health Age at Death Specify cause of death Mother Father Sisters Brothers 6.3 Have any of your immediate family (living or deceased) suffered from diabetes, heart disease, cancer, kidney disease, high blood pressure, mental problems or breakdown, haemophilia, Huntington s Chorea or any hereditary disease? If YES, please provide full details. Page 4 of 6
Section 7: General Medical Questionnaire Please provide details for all YES answers in 6.1 a to r. Please complete on a separate sheet if required. Question No. Q. Q. Q. Q. Specific Condition (a) Date symptoms first started and description of symptoms? (b) What was the condition and which part and side of the body was affected? (c) What was the medical diagnosis including results of x-rays and investigations? (d) What was the frequency (daily, weekly, etc) of attacks or symptoms? (e) What was the severity (mild/moderate/severe) and duration of attacks or symptoms? (f) How long were you unable to work or perform your normal duties/activities? (g) If a hospital visit was required, please provide date and duration of your stay. (h) What advice/treatment did you receive? (i) Are you still receiving treatment? If so, please advise nature and frequency or treatment? (j) Date treatment/medication ceased. (k) When did you last suffer from any symptoms? (l) Degree of recovery () (m) Please supply the name and address of all doctors, hospitals or other practitioners consulted. Page 5 of 6
Section 8: Privacy statement Privacy laws protect your privacy. The way in which we collect, use, disclose and handle your information is described in the TOWER Privacy Statement. Please be aware that the duty of disclosure explained above applies to the information you have submitted. If you fail to comply with this duty you may be in breach of it. The consequences of this are explained on page 1. We may collect and use or disclose your personal information (including health and sensitvie information) to assess, verify and process your application. We may collect or disclose information relating to you or your application to or from a range of services including: reinsurers, superannuation trustees, past or present medical practitioners, health professionals, hospitals, government department(s) which retain health records or as part of our regulatory requirements, personal accountants or current or former employers or lawyers. You have a right of access to any personal information held about you unless we are legally entitled to deny access. If you want to know more about our approach to privacy please telephone (02) 9448 9416. Section 9: Declaration I acknowledge that I have read the notice of my duty of disclosure above and understand that this duty also applies until formal notification of acceptance. I have read and checked any answers not completed in my handwriting and to the best of my knowledge and belief all the answers to the question in this application and any supplementary application or personal statement which relate to me are true and correct and no information material to the assessment of this insurance has been withheld. I, the Member, authorise and direct any medical or other practitioner to divulge at any time to TOWER Australia Limited or to any lawfully constituted tribunal any and all information concerning my state of health and medical history, acquired in the course of professional attendance or consultation. A photocopy of this authority is as valid as the original. To this extent, all professional confidence and privilege is waived. I consent to my personal information (including health and sensitive information) being collected, used or disclosed by TOWER Australia Limited or its external service providers/contractors as contemplated in this form, including collecting it from or disclosing it to any medical practitioner or third party as required to assess, verify or process my application. This consent applies to any health and sensitive information TOWER Australia Limited collects on this form or future forms in relation to this insurance. Full name of member Signature of member Section 10: Medical Authority Date (dd/mm/yyyy) I agree that any Medical Practitioner or any other person who has been or may hereafter be consulted by me whether named by me or not will be hereby authorised and directed by me to divulge to TOWER Australia Limited or any legal tribunal all medical or surgical information he/she may have acquired with regard to myself. A copy of this authorisation shall be considered as effective and valid as the original. Full name of member Signature of member Date (dd/mm/yyyy) Return the completed, signed and dated application to: Catholic Super GPO Box 180 Melbourne VIC 3001 Page 6 of 6
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Call 1300 655 002 or join online www.csf.com.au