Grosvenor Pirie Super Additional Information Booklet 15 September 2016

Transcription

1 Grsvenr Pirie Super Additinal Infrmatin Bklet 15 September 2016 The infrmatin in this Additinal Infrmatin Bklet frms part f the Prduct Disclsure Statement (PDS) fr the Grsvenr Pirie Superannuatin Fund dated 15 September It shuld be read in cnjunctin with the PDS and the Insurance Guide which frms part f the PDS. Yu shuld cnsider the infrmatin in the PDS, the Additinal Infrmatin Bklet and the Insurance Guide befre making a decisin abut this prduct. The infrmatin cntained in this Additinal Infrmatin Bklet is general infrmatin nly and des nt take int accunt yur persnal bjectives, financial situatin and/r needs. Befre yu make any decisin it is recmmended yu btain prfessinal financial advice tailred t yur persnal circumstances, frm yur financial adviser. Infrmatin in this PDS (including incrprated infrmatin) is subject t change frm time t time and may (in the case f infrmatin that is nt materially adverse) be updated via the website. T find ut abut updated infrmatin g t the website r by cntacting the Administratr n r inf@gpml.cm.au Issued by The Diversa Trustees Limited (ABN , AFSL RSE Licence L )) as trustee f The Grsvenr Pirie Master Superannuatin Fund Series 2, ABN (Fund). Grsvenr Pirie Super is a prduct f the Fund. The Fund s cntact details are: Call Telephne (02) inf@gpml.cm.au Facsimile (02) Mail GPO Bx 263, Sydney NSW 2001 The infrmatin in this dcument is f a general nature nly. It des nt take int accunt yur individual bjectives, financial situatin r needs. Therefre yu shuld cnsider whether this infrmatin is apprpriate fr yu having regard t yur wn circumstances befre relying n it. We recmmend yu seek advice frm a licensed financial adviser befre making any decisins abut this prduct. In this dcument, we means Diversa Trustees Limited ABN ( the Trustee ) and Grsvenr Pirie Management Limited ABN ( the Administratr ).

2 CONTENTS: PAGES Sectin 1: Hw super wrks Cntributins 1~ 2 Making Cntributins 2~ 3 Gvernment C-Cntributins 3 ~ 3 Cntributins Splitting 3 ~ 4 Restrictins n when yu may access yur benefits 4 ~ 7 Chice f Superannuatin Fund 8 ~ 8 Transfers t an eligible rllver fund (ERF) 8 ~ 8 Unclaimed mnies 8 ~ 9 Splitting f superannuatin benefits upn relatinship breakdwn 9~ 9 Sectin 2: Benefits f investing with Grsvenr Pirie Super Benefits 10 ~ 10 Reprting 10 ~ 11 Privacy 11 ~ 12 Sectin 3: Risks f super Risks 12 ~14 Sectin 4: Hw we invest yur mney Investments 14 ~ 17 Sectin 5: Fees and csts Fees and ther csts 17 ~ 20 Sectin 6: Hw super is taxed Taxatin 22 ~ 26 Sectin 7: Insurance in yur super Insurance nt defined. ~ Errr! Bkmark nt defined. Errr! Bkmark

3 SECTION 1: HOW SUPER WORKS CONTRIBUTIONS: Prviding yu meet the eligibility cnditins under superannuatin legislatin, the fllwing types f cntributins r ther amunts can be made t a superannuatin (accumulatin) accunt: Yur wn cntributins Cntributins frm yur emplyer Cntributins frm yur spuse (referred t as Spuse cntributins), and Rllvers r transfers frm ther acceptable superannuatin prducts. A mre detailed summary f the types f cntributins r amunts that can be paid int superannuatin and eligibility cnditins (cntributin rules) in superannuatin legislatin is utlined belw. Superannuatin Guarantee Cntributins Mst Australian emplyers are required by Gvernment legislatin t make superannuatin cntributins fr their emplyees called Superannuatin Guarantee (SG) cntributins. SG cntributins are presently 9.5% (fr the financial year) f a persn s rdinary time earnings (subject t a maximum dllar limit). The superannuatin guarantee (SG) cntributin rate will gradually increase t 12% ver time. SG cntributins are required t be paid by an emplyer t a superannuatin fund at least quarterly. SG cntributins are cncessinal cntributins and are subject t cncessinal cntributin limits (refer t sectin 6 Hw super is taxed f this dcument fr infrmatin abut these limits). Fr further general infrmatin abut SG cntributins g t Other types f cntributins Emplyers can make additinal cntributins including under salary sacrifice arrangements. Salary sacrifice arrangements invlve an emplyee deciding (if their emplyer allws) t cntribute t superannuatin frm their befre-tax salary (that is, reducing their take hme pay). This is a vluntary arrangement between emplyer and emplyee. Additinal emplyer cntributins including salary-sacrifice cntributins are als cncessinal cntributins. Additinal emplyer cntributins (in particular, salary sacrifice cntributins) may be regarded as Reprtable Emplyer Superannuatin cntributins. Reprtable Emplyer Superannuatin cntributins are cntributins ver which the member has sme influence and cunt as incme when assessing a persn s eligibility fr a number f Gvernment benefits, including welfare benefits. Fr mre infrmatin abut Reprtable Emplyer Superannuatin cntributins, g t Members can make persnal cntributins r have cntributins made n their behalf by their spuse (called Spuse cntributins). Persnal cntributins and Spuse cntributins made frm after-tax salary are nn-cncessinal cntributins and are subject t nncncessinal cntributin limits (refer t sectin 6 Hw super is taxed f this dcument fr mre infrmatin abut these limits). Fr further general infrmatin abut the types f cntributins that can be made t superannuatin g t r Persnal cntributins can als be made by self-emplyed r substantially self-emplyed persns frm their befre-tax salary, as a deductible superannuatin cntributin (subject t varius cnditins). Deductible persnal cntributins are cncessinal cntributins and are subject t cncessinal cntributin limits (refer t sectin 6 Hw super is taxed f this dcument fr mre infrmatin abut deductibility f persnal cntributins and the cncessinal cntributin limits). 1

4 Other amunts that can be paid int superannuatin There are ther amunts that may be paid int a superannuatin fund such as certain disablement amunts n settlement f a disability claim (utside f superannuatin), prceeds frm the sale f a small business and superannuatin surced frm a freign superannuatin fund. Special rules apply t these amunts. If yu are ging t receive any f these amunts r are cnsidering payment f them int superannuatin, we recmmend yu btain apprpriately qualified advice. G t fr mre infrmatin. Rllvers/transfers int this prduct Yu may at any time rllver r transfer investments in ther superannuatin funds t yur accunt. In rder t d this, yu are required t cmplete the Rllver Frm (Frm N ) and return it t Grsvenr Pirie fr prcessing. If yu have benefits in a number f funds, a separate frm must be cmpleted fr each fund. The frm is available frm r n request by cntacting Grsvenr Pirie n Befre clsing any ther superannuatin accunt that yu may have, yu shuld cnsider what csts yu may incur, what benefits yu may lse r any ther significant implicatins f clsing yur accunt. Fr advice that takes int accunt yur financial situatin, needs r bjectives we recmmend yu cntact an apprpriately qualified financial adviser. Cntributin Rules and the Wrk Test Fr persns under 65 years f age, any type f cntributin can be accepted. A cnnectin with wrk is nt required. Fr members aged 65 t 69, cntributins can nly be accepted fr r n behalf f a member if the member is gainfully emplyed n at least a part time basis during the financial year in which the cntributins are made (referred t as the Wrk Test). A persn is gainfully emplyed n a part time basis during a financial year if the persn has wrked at least 40 hurs in a perid f nt mre than 30 cnsecutive days in that financial year. Mandated emplyer cntributins (fr example, SG cntributins) can als be accepted. Fr members aged 70 and under 75, cntributins can nly be accepted frm a member if the member satisfies the Wrk Test. Mandated emplyer cntributins can als be accepted. Spuse cntributins cannt be made fr a member aged 70 r ver. Fr members wh are 75 and ver, nly mandated emplyer cntributins (fr example, cntributins made in accrdance with superannuatin guarantee requirements an award r ther industrial arrangements) can be accepted. Superannuatin funds cannt accept a single nn-cncessinal cntributin in excess f a member s nn-cncessinal cntributins cap r member cntributins fr a member whse tax file number (TFN) is nt held by the fund. Cntributins made t a fund in cntraventin f the cntributin rules must be rejected r refunded. A refund may be adjusted fr any permissible investment fluctuatins, reasnable csts and insurance premiums fr cver prvided prir t the refund. Fr mre infrmatin abut nncncessinal cntributins, see sectin 6 Hw super is taxed f this dcument. Please Nte. We have als decided nt t accept (r will refund within 30 days) any cncessinal cntributins received fr a member where a TFN is nt held fr that member. This decisin has been made t avid additinal tax (N-TFN tax) that we wuld have t pay (by deductin frm affected member accunts) n cncessinal cntributins where a TFN is nt held. Increase in age limit fr SG cntributins The SG age limit f 70 was remved frm 1 July 2013 and emplyers are required t cntribute t cmplying super funds f eligible mature aged emplyees 70 and lder. MAKING CONTRIBUTIONS: Cntributins can nly be made fr a member wh has cmpleted an Individual Applicatin Frm (Frm N ) If we receive a cntributin fr a persn that has nt cmpleted an Individual Applicatin Frm mnies will be returned. Cntributins can be made by: Cheque Direct transfers frm yur emplyer s payrll system (if yur emplyer permits) Direct depsit int the Grsvenr Pirie Super s bank accunt (see further details f the relevant bank accunt belw). 2

5 Cntributins can be made at any time and there is n minimum cntributin required. Cntributins can be paid weekly, mnthly, quarterly r annually. T make cntributins by cheque, the cheque must be made payable t the Custdian and crssed Nt Negtiable as fllws: Fr the GPML Balanced Grwth ptin, make cheques payable t Grsvenr Pirie Super - Balanced Grwth Fr the GPML Capital Stable ptin, make cheques payable t Grsvenr Pirie Super - Capital Stable Send the cheque t Grsvenr Pirie, GPO Bx 263, Sydney, NSW, T make cntributins by direct depsit, depsit the cntributins directly int the fllwing accunt: Diversa Trustees Limited ATF GPMSF2 Balanced Grwth Macquarie Bank A/C: BSB: Diversa Trustees Limited ATF GPMSF2 Capital Stable Macquarie Bank A/C: BSB: Please cnfirm the amunt f cntributin and the member (s) that the cntributin is fr by sending a message t Grsvenr Pirie Management Limited, Cntributins: inf@gpml.cm.au r by fax (02) GOVERNMENT CO-CONTRIBUTIONS: C-cntributins are payments made by the Gvernment t the superannuatin accunts f eligible lw and middle-incme earners. T qualify fr the Gvernment C-cntributin, the cntributing member must have an assessable incme plus reprtable fringe benefits and reprtable emplyer superannuatin cntributins (eligible incme) belw a specified incme threshld and make persnal cntributins ut f their after tax incme (this des nt include salary sacrifice, SG r spuse cntributins). The Gvernment c-cntributin scheme extends t the self-emplyed, prvided they satisfy eligibility criteria fr the c-cntributin. T be eligible, a self-emplyed persn must be under age 71 at the end f the incme year and: Earn 10% r mre f their eligible incme fr that year frm running a business, eligible emplyment, r a cmbinatin f bth nte that fr this definitin, incme is nt reduced by deductins that result frm running a business; and Earn belw the incme threshld applicable in the incme year this includes assessable incme plus reprtable fringe benefits plus reprtable emplyer superannuatin cntributins less tax deductins fr running a business (nt including emplyee deductins). The amunt f the c-cntributin and the c-cntributin incme threshlds are subject t change. Fr the amunt f ccntributins and incme threshlds applicable frm year t year, full eligibility criteria and ther infrmatin abut the Gvernment c-cntributin, g t If a member wishes t make a persnal nn-deductible (nn-cncessinal) cntributin and receive a Gvernment C-cntributin, please cmplete a Super C-Cntributin Easy payment frm (Frm 660 8) (available frm r n request by cntacting Grsvenr Pirie n ) and return it t Grsvenr Pirie. CONTRIBUTION SPLITTING: Cncessinal cntributins such as SG cntributins, salary sacrifice cntributins and persnal deductible cntributins can be split with yur eligible spuse (including a defact spuse f the same r ppsite sex). It is nt pssible t split nn-cncessinal cntributins. Nt all superannuatin funds ffer cntributins splitting, but we d. T split cntributins, yu must cmplete a Cntributins Splitting applicatin which is available n request by phning

6 Only 85% f cncessinal cntributins made t a fund may be split because 15% f these cntributins are rdinarily deducted fr tax when received. We may make whatever adjustments we cnsider apprpriate t the splittable amunt fr any tax liabilities. Splittable cncessinal cntributins are als subject t a maximum f yur cncessinal cntributins limit. There are certain amunts that may be held in a superannuatin accunt that may nt be split, such as benefits subject t a family law payment split r payment flag, rllvers frm ther funds r emplyer terminatin payments. Generally, nly cntributins made in the financial year prir t the financial year when the cntributins splitting applicatin is ldged with a fund can be split. Yu can als apply t split cntributins made in the financial year in which yu transfer r rllver t anther fund (prvided the applicatin is made befre the transfer r rllver ccurs). Hw des cntributins splitting wrk? We keep recrds f the amunt f cntributins which yu are eligible t split with yur spuse fr a given financial year. Shuld yu wish t make a cntributins split, we will prvide details f thse cntributins when yu request a Cntributins splitting frm (Frm N ). Yur spuse must be either: Aged less than their preservatin age; r Between their preservatin age and 65 and nt permanently retired. If an applicatin is accepted, the cntributins will be split by being paid t the superannuatin accunt f yur spuse within 90 days f receiving the applicatin. RESTRICTIONS ON WHEN YOU MAY ACCESS YOUR BENEFITS: Superannuatin is a lng-term investment. The Gvernment has placed restrictins n when yu can access yur benefits. In general yur benefits are preserved and cannt be paid t yu until yu have reached age 65, r have reached yur preservatin age and have retired, r yu have satisfied sme ther cnditin f release. Yur investment (als referred t as yur benefit ) is the cntributins and rllvers that have been made, plus insurance prceeds (if any) plus r minus investment earnings r lsses, less any fees and csts, insurance premiums, gvernment taxes and withdrawals. Frm 1 July 1999, all cntributins made by r fr a member and all investment earnings are preserved. Preservatin Age If yu were brn befre 1st July 1960, the preservatin age is 55 years and increases by ne year in accrdance with the table belw. The maximum age fr preservatin f benefits is 60. Date f Birth Benefits preserved until yu reach the age f Befre 1 July July 1960 t 30 June July 1961 t 30 June July 1962 t 30 June July 1963 t 30 June July 1964 and after 60 Until yur preservatin age is reached, in mst circumstances, yu are unable t withdraw super even if yu cease t be in the emplyment f yur emplyer. The circumstances in which yur benefit may be released t yu if yu are an Australian citizen, New Zealand citizen r permanent resident include: yu permanently retire frm the wrkfrce at r after yur preservatin age yu reach yur preservatin age and take yur benefit as a nn-cmmutable pensin r annuity yur emplyment terminates at r after age 60; yu are permanently incapacitated; 4

7 yu die; yu suffer a terminal medical cnditin (as defined in superannuatin legislatin); yu attain age 65; severe financial hardship; cmpassinate grunds (if apprved by the relevant gvernment bdy); and any ther circumstances allwed by law, fr example, n presentatin f an Australian Taxatin Office (ATO) Release Authrity. If yu are a temprary resident, the circumstances in which yur benefit may be released t yu are mre limited (eg. death, permanent incapacity). Yu may als access yur benefit if yur visa has expired and yu have departed Australia. Fr mre infrmatin, cntact the Grsvenr Pirie n Prtability While accessing yur benefit in cash is subject t restrictins, yur benefit may be transferred t anther superannuatin prduct that cmplies with relevant superannuatin law if yur emplyment changes r at any ther time. Under prtability arrangements members can rllver r transfer superannuatin accunts int a fund f their chice. Prtability rules mean members can transfer part r all f the accunt balance f their benefit t anther superannuatin fund at least nce every 12 mnths. The prtability rules allw us t refuse a prtability request in sme circumstances; fr example, an amunt f less than $5,000 is left in the accunt. The maximum time perid fr prcessing transfer requests is 30 days frm the date f the initial request and when all relevant infrmatin has been received. If yu request t transfer yur superannuatin accunt t anther fund, we must be satisfied that yu have received r knw that yu can request all the infrmatin yu reasnably need t understand the impact f yur request n yur benefits. Fr example, any insurance cver will cease if yu leave Grsvenr Pirie Super. If yu require any further infrmatin prir t making a prtability request, cntact Grsvenr Pirie n: r alternatively by sending a written request t: GPO Bx 263, Sydney NSW 2001 r inf@gpml.cm.au. Benefit Payment Requirements - General When any benefit is paid frm yur accumulatin accunt, it must cmprise bth tax-free and taxable cmpnents, in the same prprtins as yur ttal accumulatin interest. As a result f Gvernment anti-mney laundering and cunter-terrrism financing legislatin (AML/CTF legislatin), yu may be required t prvide prf f yur identity prir t being able t access yur benefits in cash, called custmer identificatin and verificatin requirements). These requirements may als be applied by us frm time t time in relatin t the administratin f yur superannuatin benefits as required r cnsidered apprpriate under the AML/CTF legislatin. Yu will be ntified f any requirements when applicable. If yu d nt cmply there may be cnsequences, fr example, a delay in the payment f yur benefits. Benefit Payment Requirements On death Generally, benefits must be paid t ne r mre f yur dependants r yur legal persnal representative. Yur dependants include yur spuse (including a qualifying defact spuse f the same r ppsite sex), child (including a child f yur spuse), a persn financially dependent n yu, r smene with whm yu have an interdependency relatinship. Dependants / Interdependency: The superannuatin and tax law definitins f dependant include any persn with whm the member has an interdependency relatinship. Tw peple have an interdependency relatinship if: They have a clse persnal relatinship; They live tgether; One r each f them prvides the ther with financial supprt; and One r each f them prvides the ther with dmestic supprt and persnal care. In determining whether there is an interdependency relatinship varius additinal factrs particularly arund the circumstances f the relatinship are als taken int accunt. In additin, if a clse persnal relatinship exists but the ther requirements abve are 5

8 nt satisfied because f a physical, intellectual r psychiatric disability (e.g. ne persn lives in a psychiatric institutin suffering frm a psychiatric disability), then an interdependency relatinship may still exist. Death Benefit Nminatins Yu can chse t nminate a beneficiary fr payment f a lump sum death benefit, n a nn-binding basis, r n a nn-lapsing binding basis. Nn-Binding Nminatins: A nn-binding death benefit nminatin is a written request made by the member that suggest t the Trustee the beneficiaries that may receive his/her benefit in the event f the member s death. The Trustee has the final say as t wh shuld get death benefits. The Trustee will cnsider the member s nminatin but is nt bund t fllw it. The Trustee has the discretin t pay t any f the member s dependants r legal persnal representative (s) r a cmbinatin f bth. Yu can nminate a beneficiary fr payment f a lump sum death benefit, n a nn-binding basis, by cmpleting a Nminatin f Beneficiaries frm (Frm N 660-7) available frm r n request by cntacting Grsvenr Pirie n Alternatively, send a written request t: GPO Bx 263, Sydney NSW 2001 r inf@gpml.cm.au. Nn-Binding nminated beneficiaries may be changed at any time by written ntice. Nn-lapsing Binding Nminatins: A binding death benefit nminatin is a written directin t the Trustee that sets ut the dependants and/r legal persnal representative, as decided by a member, t receive his/her benefit in the event f the member s death. When yu make a valid binding nminatin, yu decide wh receives yur benefit when yu die, and hw much f the benefit they receive. Nn-lapsing binding nminatins d nt have an expiry date and will remain valid until yu either revke yur nminatin r update yur nminatin. T ensure yu make a valid binding nminatin: each death benefit nminee must be either yur dependant r yur legal persnal representative (as defined in Superannuatin Law) yu must ensure that the prprtin f the benefit that will be paid t yur nminated persn r each f thse nminated persns is certain and ascertainable. If it is nt clear what percentage is t be paid t whm and/r the percentages d nt add up t 100%, yur nminatin will be invalid yur nminatin must be in writing yu must sign and date yur nminatin in the presence f tw witnesses, being persns: - each wh has turned 18 years ld; and - neither f whm is mentined in the nminatin; and yur nminatin must cntain a declaratin signed and dated by the witnesses stating that the nminatin was signed by yu in their presence. If a binding death benefit nminatin is valid and in effect at the date f the member s death, the Trustee must pay yur benefit t the beneficiaries nminated in the prprtins set ut in the member s binding death benefit nminatin. Hwever the Trustee is nt required t cmply with a death benefit nminatin if the Trustee is aware that the payment under the nminatin, r the ldgement f failure t revke the nminatin wuld be a breach f a Curt Order. In the event a persn yu nminate is nt a dependant at the time f yur death, e.g. because they have died befre yu, yur nminatin will n lnger be valid and the Trustee will pay the benefit in its abslute discretin. We recmmend that yu peridically review yur nminatin as it is yur respnsibility t ensure that yur Binding Nminatin cntinues t be apprpriate in accrdance with yur persnal circumstances. Withut a change directed by yu, a nn-lapsing binding nminatin will cntinue n even if yur persnal circumstances change. The Trustee is bund t act upn it if it is valid and in effect at the time f a member s death. 6

9 Yu can make a nn-lapsing binding death nminatin by cmpleting the Grsvenr Pirie Super Nminatin f Beneficiary Frm. Yu can btain a cpy f the Nminatin f Beneficiary Frm by cntacting the Administratr r accessing the GPML website, r speak with yur licenced financial adviser. Yu may revke r update yur nn-lapsing binding nminatin at any time by writing t the Trustee. Wh can I nminate as a beneficiary? Yu can nminate a dependant r yur legal persnal representative. If yu nminate yur Legal Persnal Representative it is imprtant that yu have a valid Will and keep it up-t date, as the Trustee must pay yur death benefit t yur estate. Under superannuatin law, dependants include the fllwing: any spuse (including a same-sex legal r defact partner), any child (including a child f a spuse), any persn in an interdependent relatinship with yu, r any ther persn wh the Trustee cnsiders was dependent n yu fr maintenance r supprt, at the date f yur death. Smene can be in an interdependent relatinship with yu if: yu have a clse persnal relatinship, yu live tgether, ne r each f yu prvides the ther with financial supprt, and ne r each f yu prvides the ther with dmestic supprt and persnal care. Dependency can als arise where tw peple have a clse persnal relatinship but dn t live tgether r prvide each ther with financial supprt r persnal care because f physical, intellectual r psychiatric disability. Fr mre infrmatin n dependants please cntact the Fund Administratr. Hw d I ensure my binding death benefit nminatin is valid? When yu initially fill in yur frm yu must d the fllwing: cmplete all sectins f the frm ensure the beneficiaries are dependants r yur Legal Persnal Representative ensure the benefit allcatin between yur beneficiaries adds up t %, and ensure yu sign and date the frm in frnt f tw witnesses, wh must be ver 18 years f age and nt nminated as beneficiaries. Yur nminatin may becme invalid if: ne f yur beneficiaries dies befre yu d ne f yur nminated dependants is nt a dependant at the time f yur death, r yu are n lnger a member f Grsvenr Pirie Super at the time f yur death. the nminatin was nt made directly by yu (it is the Trustee plicy nt t accept nminatins thrugh Pwer f Attrneys, r frm anyne ther than yu) If yur nminatin is invalid at the time f yur death, the Trustee will treat it as a nn-binding nminatin and Trustee will pay the benefit at its abslute discretin What will the Administratr d? It s imprtant that, like a Will, yu keep yur binding nminatin up-t-date. The Administratr will write t yu and cnfirm any new, amended r cancelled nminatin. Death Benefit Nminatins in Yur Annual Statement We will cnfirm yur binding death benefit nminatin details each year with yur Annual Member statement. It is imprtant that yu take nte f this and review yur binding nminatin t ensure it cntinues t suit yur circumstances especially if this has changed. Yu can update r revke yur nn-lapsing binding nminatin at any time by writing t the Trustee. 7

10 CHOICE OF SUPERANNUATION FUND: Under superannuatin law yu may be able t chse which superannuatin fund yu wish t jin, as lng as the fund cmplies with certain requirements. That is, it is an eligible chice fund. Upn chsing a fund which is different t that nminated by yur emplyer, yu will be required t prvide written details f the fund, and written evidence that it will accept yur emplyer s cntributins. If yu d nt select a fund r yu select a fund that is nt an eligible chice fund, yur cntributins will be paid t the emplyer s default fund. The default fund must ffer minimum death insurance cver. Fr mre infrmatin abut chice f fund, g twww.at.gv.au r cntact yur emplyer. TRANSFERS TO AN ELIGIBLE ROLLOVER FUND (ERF): Superannuatin legislatin allws superannuatin trustees t transfer benefits t an eligible rllver fund (ERF) as determined by the trustee. We have decided that benefits may be transferred t an ERF in ne f the fllwing circumstances: Yu have left emplyment and have nt, within 90 days theref, instructed us t pay yur benefit t yu r t anther superannuatin fund. Yu becme lst. Yu will be cnsidered lst if there have been n cntributins r rllvers n yur behalf fr at least 5 years r n cntributins r rllvers have been received n yur behalf fr at least 12 mnths and ne piece f Fund dcumentatin r crrespndence t yu has been returned unclaimed. If yu becme lst, we are required t advise the ATO Lst Member Register. Yu can search the Lst Member Register by ging t The ERF we have decided t use is called the Super Mney Eligible Rllver Fund ( SMERF ). The cntact details f the ERF are: PO Bx A2499 Sydney Suth NSW 1235 Tel: Fax: smerf@diversa.cm.au Website: Once yur benefit is transferred t SMERF yu becme a member f SMERF and cease t be a member f Grsvenr Pirie Super. Any insurance cver applicable t yu in Grsvenr Pirie Super will als cease. An Exit Fee may apply t the transfer depending n the amunt f yur benefit. SMERF has different investments and fees and csts t Grsvenr Super. It des nt prvide insurance cver. If yu wuld like further infrmatin abut the features f SMERF, cntact the SMERF Fund Administratr fr a cpy f their prduct disclsure statement. UNCLAIMED MONIES: In certain circumstances prescribed under the Superannuatin (Unclaimed Mney and Lst Members) Act 1999, superannuatin benefits must be treated as unclaimed mney and paid t the ATO. These circumstances include: if we lse cntact with yu after yu reach yur pensinable age (65); lst accunts with balances f less than $2,000 (small accunts); and lst accunts which have been inactive fr a perid f 12 mnths where we are satisfied, based n the infrmatin reasnably available t us, that we will never be able t pay the amunt t the accunt hlder (inactive accunts f unidentifiable member); if yu are a frmer temprary resident whse visa has expired, have departed Australia withut claiming yur superannuatin benefits within 6 mnths and the ATO issues a ntice t the Fund requesting payment. 8

11 Unclaimed mnies can be claimed directly frm the ATO. In the case f frmer temprary residents this can ccur at any time after departing Australia, subject t the payment f applicable tax. Unfrtunately, if superannuatin benefits are transferred t the ATO as unclaimed mnies, they will nt retain any assciated insurance cver. The ATO has an unclaimed mnies register that can be checked fr yu. Fr mre infrmatin yu can cntact the ATO n r g t If yu are a frmer temprary resident whse superannuatin benefits is transferred t the ATO as unclaimed mney, yu will nt be ntified f this r receive an exit statement after the transfers ccurs. We will rely n relief prvided by the Australian Securities & Investments Cmmissin (ASIC) Class Order [CO 09/437] which says, in effect, that superannuatin trustees are nt bliged t meet certain disclsure requirements in relatin t nn-residents that have ceased t hld an interest in the Fund as a result f the payment f unclaimed superannuatin t the Cmmissiner f Taxatin. If yu require any further infrmatin, cntact Grsvenr Pirie n SPLITTING OF SUPERANNUATION BENEFITS UPON RELATIONSHIP BREAKDOWN: In the event f a marriage breakdwn, yur superannuatin may be split between yu and yur ex-spuse under Family Law legislatin, including a qualifying defact spuses (f the same r ppsite sex). This can be dne under a superannuatin agreement r a Family Curt rder. A flag can als be impsed n yur superannuatin benefit. This will preclude yu frm cashing, transferring r rlling ver benefits in yur accunt while it is in place. A flag can be remved by agreement with yur ex-spuse r by an rder frm the Family Curt. Splitting f benefits may result in yur ex-spuse being entitled t all r part f yur benefits and the transfer f their entitlements t a new accunt in the Grsvenr Pirie Super r anther superannuatin prduct ver which yu will nt have any rights r be able t make decisins. Where an eligible persn infrms us that they need infrmatin t prperly negtiate a superannuatin agreement r t assist in cnnectin with family law rules, we may be required t prvide the infrmatin and cannt tell yu abut the enquiry. These laws are cmplex and members and their spuses shuld each seek independent legal advice in the event f a marriage r ther relatinship breakdwn. SECTION 2: BENEFITS OF INVESTING WITH GROSVENOR PIRIE SUPER This prduct is designed t prvide a simple and affrdable way fr yu t save fr yur retirement. We aim t generate slid returns fr members ver the medium t lng term, by utilizing the strengths f experienced service prviders and t build a strng financial fundatin fr all members. The prduct als aims t maintain administrative and peratinal systems that will prvide excellence in custmer service and quality t all members. We have delegated the administratin f the Fund t Grsvenr Pirie Management Limited ABN AFSL (Grsvenr Pirie). Grsvenr Pirie receives fees in respect f its administratin services which frm part f the management csts f the Fund and its prducts. The benefits and features f Grsvenr Pirie Super include: The ability t make regular superannuatin cntributins t an accunt which accumulate ver time with any investment earnings (which may be psitive r negative) after taking int accunt any fees, csts, taxes and ther charges. The Fund perates n a unitised basis. This means the value f yur benefit n retirement r in any ther circumstances is based n unit prices calculated fr each f the investment ptins. We expect unit prices t be calculated dailyin the near future.. The investment earnings f each investment ptin are taken int accunt when determining the unit prices fr each f the investment ptins. Flexible insurance ptins at cmpetitive premium rates (refer t the Insurance Guide) The availability f flexible cntributin ptins including cntributin-splitting arrangements (refer t sectin 2 Hw super wrks ). The ability t cnslidate all yur superannuatin savings by letting yu rllver amunts held in ther funds (refer t sectin 2 Hw super wrks ). Access yur superannuatin savings, where permitted by law, by cmmencing a pensin frm the Fund. Refer t Grsvenr Pirie Super Pensin PDS fr details. We recmmend yu seek advice frm an apprpriately qualified financial adviser befre 9

12 making any decisin t acquire a pensin prduct. Pensins are cmplex prducts and have different taxatin and scial security cnsequences. Regular reprting including nline reprting. Privacy f yur persnal infrmatin BENEFITS: When yu becme a member, yu are assigned a member number and accunt which recrds all transactins relating t yur membership including the number f units yu hld. The number f units yu hld depends n the amunt yu invest, with each cntributin r transfer int yur accunt resulting in the purchase f additinal units (depending n the applicable unit price at the time f the cntributin r transfer). When a cntributin is received, we deduct cntributin tax (where applicable) and issue units in the investment ptin yu have selected at the next applicable unit price calculated. Other amunts paid int yur accunt r deducted frm yur accunt result in a decrease in the amunt f units yu hld. The Fund s unit pricing arrangements are summarised in mre detail belw. Allcatin f Earnings Plicy A unitised investment is a pled investment where investrs purchase units, with each unit representing a share f the underlying assets (after taking int accunt relevant fees, csts and taxes). As a member yu d nt have any direct wnership f the underlying assets in the Fund. Over time, the value f yur units will fluctuate as the market value f the assets f yur investment strategy rises r fall. Each unit has a Buy price and Sell price, with the difference between these prices referred t as a buy/sell spread (refer t page 19 fr mre infrmatin abut buy/sell spreads). Unit prices are available n request frm the Administratr. The value f each unit reflects the market value f the underlying assets after taking int accunt relevant liabilities and taxes and adjustments fr buy r sell csts (as applicable). Yur accunt balance is calculated with regard t the net value f the investment ptin(s) in which yu are invested using the Sell price. At least nce a week, the unit price fr each f the investment ptins is struck. The unit price may als be recalculated if there is a market value change f the ptin s assets f +/- 2.5% r mre. We may vary, suspend r delay the calculatin f unit prices where we cnsider it necessary r apprpriate (fr example, in respnse t investment market develpments r issues affecting an underlying investment). Each member is issued a number f Units depending n their investment ptin(s). The value f yur accunt at any time is the number f units held multiplied by the applicable Sell price at the time. The cntributins r ther amunts paid t yur accunt are allcated units at the next Buy price calculated. If yu transfer yur benefits t anther superannuatin prduct at any time, r make a cash withdrawal f benefits which are nt required t be preserved, units will be redeemed frm yur investment t the value f the benefit paid r transferred based n the Sell price. Redemptins and investment switches will be calculated using the next unit price calculated fr an investment ptin. Sme, but nt all, fees and taxes are taken int accunt when calculating unit prices. Fr mre infrmatin abut fees and csts, refer t sectin 5 Fees and csts f this dcument. Fr mre infrmatin abut tax, refer t sectin 6 Hw super is taxed f this dcument. All cntributins, withdrawals and transfers will be prcessed using the next Buy price r Sell price (as applicable) calculated after the date the Administratr receives yur cmpleted request. On Retirement r Withdrawal Yur benefit at any time is equal t the value f yur accunt (that is, the number f units in yur accunt multiplied by the Sell Price), less any applicable fees r taxes. On death and permanent incapacity Yur benefit is equal t the value f yur accunt less any applicable fees r taxes and may include an insured benefit. REPORTING: 10

13 As a member, yu will receive r be given access t the fllwing: Member infrmatin Each year, yu will receive an individual member s statement that utlines yur investment as at 30 th June. The transactins that will appear n yur statement include (where applicable): balance as at previus year, cntributins, rllvers, investments earnings (net f relevant fees, csts and taxes), withdrawals, fees, csts and tax paid directly frm yur accunt and the member balance at the end f the year. All member statements will be sent by pst unless we receive written cnsent t send a statement by electrnic frm. Fund infrmatin Each year, yu will have access t an Annual Reprtthat will prvide yu with infrmatin n the management and the financial psitin f the Fund as at the preceding 30 th June. The Annual Reprt will be available frm r n request by cntacting Grsvenr Pirie n , it will be sent t yu (free f charge) by pst r in electrnic frm. Exit infrmatin When yu cease t be a member r clse an accunt, yu will als receive an individual exit statement, and a Rllver Benefit Statement unless this ccurs as a result f yur superannuatin benefit being paid t the ATO as unclaimed mnies f a frmer temprary resident, at the ATO s request. Other Other relevant infrmatin, such as the rules gverning the Fund and the audited accunts with the auditr s reprt may be supplied upn request. Online reprting Grsvenr Pirie prvides an nline service called INVESTigatr. This is available by ging t which members can access by lgging int the investment lgin sectin. The nline service gives members access t a secure area fr infrmatin abut their accunt balance and transactin histry. PRIVACY: In this sectin, we means The Diversa Trustees Limited ABN ( the trustee ) and Grsvenr Pirie Management Limited ABN ( the administratr ). Why d we cllect yur persnal infrmatin? We cllect yur persnal infrmatin fr the fllwing reasns, t: Administer prducts and services and manage ur relatinship with yu, including t establish and maintain member recrds, and prvide regular statements, reprts and cmmunicatins; Prvide prducts and services t yu; Prcess transactins, applicatins, claims, requests and queries in relatin t ur prducts and services; Identify yu in accrdance with the Anti-Mney Laundering & Cunter Terrrism Financing Act and t prtect against fraud; let yu knw abut ther prducts r services that we may ffer r that the Fund s prmter may ffer; and cmply with applicable laws and regulatins. If we d nt cllect yur persnal infrmatin, we may nt be able t prcess yur applicatins, prvide yu with services relating t the Fund r administer yur interest in the Fund. Wh d we disclse yur persnal infrmatin t? We may disclse yur persnal infrmatin t third parties including: Outsurced service prviders including an administratr, prmter r sub-prmter f the Fund; 11

14 Mail huses and printing cmpanies; Specialist service prviders, such as actuaries, auditrs and lawyers; Custdians and brkers; Insurance prviders; Yur financial adviser, yur attrney appinted under a pwer f attrney, r yur appinted representative; Other cnsultants; and Gvernment authrities as required r desirable in administering and cnducting the business f the Fund, including in cmplying with relevant regulatry r legal requirements. It is pssible that this may als include a Gvernment authrity that is verseas. Persnal infrmatin will nly be disclsed t third parties ther than thse listed abve if yu have cnsented, if yu wuld reasnably expect us t disclse infrmatin f that kind t thse third parties, if we are authrised r required t d s by law r it is necessary t assist with law enfrcement. Are we likely t disclse yur persnal infrmatin t a recipient wh is verseas? In sme circumstances, yur persnal infrmatin may be disclsed t ur service prviders r ther third parties in jurisdictins verseas including United Kingdm. Privacy Plicies The Privacy Plicies f the trustee and the administratr set ut hw yu can access and crrect infrmatin we hld abut yu, hw yu can cmplain abut a breach f yur privacy rights and hw yur cmplaint will be handled. The trustee s privacy plicy can be fund athttp:// The administratr s privacy plicy can be fund at If yu have any queries r cmplaints abut yur privacy please cntact: Privacy Officer, The Diversa Trustees Limited, GPO Bx 3001, Melburne VIC trustees@diversa.cm.au Privacy Officer, Grsvenr Pirie Management Limited, GPO Bx 263, Sydney NSW inf@gpml.cm.au Privacy and the Insurer Yur privacy is als imprtant t the Insurer. The AIA Australia Privacy Plicy sets ut hw yur persnal and sensitive infrmatin is cllected, used, handled and disclsed by the Insurer, and the purpses that yur infrmatin is used fr (including the administering, assessing r prcessing yur insurance r any applicatin r claim). The AIA Australia Privacy Plicy is available at r by calling By seeking cver frm the Insurer, yu cnfirm that yu agree and cnsent t the cllectin, use (including hlding and strage), disclsure and handling f persnal and sensitive infrmatin in the manner described in the Insurer s Privacy Plicy n AIA Australia s website as updated frm time t time, and t the disclsure f yur persnal and sensitive infrmatin t third parties wh may be lcated in Australia, Suth Africa, the US, Eurpe, Asia and ther cuntries. TRUSTEE INDEMNITY INSURANCE GUARANTEE: The Trustee has a prfessinal indemnity insurance plicy t indemnify the Trustee and its Directrs in case f certain lsses due t a claim against the Trustee. Nt all lsses are cvered by the insurance plicy and the extent f any indemnity is subject t the terms f the relevant insurance plicy. SECTION 3: RISKS OF SUPER RISKS: It is imprtant t understand that there are risks inherent in any investment. The purpse f this sectin is t elabrate the types f 12

15 risks that may apply t an investment in Grsvenr Pirie Super. While we are nt able t remve all the risks assciated with an investment in Grsvenr Pirie Super, the Investment Manager emplys a range f investment risk management strategies t identify, evaluate and manage these risks. Investment risk means the value f yur investment culd fall. Rises and falls in investment value ccur fr a variety f reasns. Factrs that can negatively impact n yur investments include: Changes in the ecnmic and plitical climate Changes in gvernment plicies and laws including superannuatin, taxatin and scial security laws Mvement in currency markets (freign currency risk is described in mre detail belw) Changes in interest rates The general state f the Australian and internatinal ecnmies Inadequate diversificatin; and Investment decisins made by the Investment Manager and any external fund managers. The risk f an investment is measured by the likely fluctuatins (that is, rises and falls) in returns. In general, the higher the expected returns, the higher the risk assciated with the investment. Investment risk is influenced by the extent f diversificatin in the investments made. Diversificatin f investments can help manage investment risk. Grsvenr Pirie Super s investment ptins emply different degrees f diversificatin in underlying assets r asset types, depending n the nature f the investment ptin. Risk prfile The risk prfile f an investment will depend n the investment ptin chsen. Investments with a higher prprtin f grwth assets, such as shares and prperty, have histrically prvided better lng-term returns than thse which have a higher expsure t incme prducing assets, such as fixed interest and cash. Hwever, investments with a higher prprtin f grwth assets are als generally subject t a higher risk f a shrt-term lss in value. Investments with a higher prprtin f incme prducing assets are generally subject t a lwer risk f a shrt-term lss in value. Each investment ptin has a different risk prfile based n the nature f the ptin s underlying investments and investment strategy, shwn in terms f the likelihd f negative annual returns ver a specified perid. The Standard Risk Measure is based n industry guidance t allw members t cmpare investment ptins that are expected t deliver a similar number f negative annual returns ver any 20 year perid. The Standard Risk Measure is nt a cmplete assessment f all frms f investment risk, fr instance it des nt detail what the size f a negative return culd be r the ptential fr a psitive return t be less than a member may require t meet their bjectives. Further, it des nt take int accunt the impact f administratin fees and tax n the likelihd f a negative return. Members shuld ensure they are cmfrtable with the risks and ptential lsses assciated with the investment ptin(s) they chse. The Standard Risk Measure is gruped int the fllwing bands: Risk Band Risk Label Estimated number f negative annual returns ver any 20 year perid 1 Very Lw Less than Lw 0.5 t less than 1 3 Lw t medium 1 t less than 2 4 Medium 2 t less than 3 5 Medium t high 3 t less than 4 6 High 4 t less than 6 7 Very high 6 r Greater Members shuld still ensure they are cmfrtable with the risks and ptential lsses assciated with ur investment strategy. Sme specific investment risks assciated with particular investments are described in further detail belw. Hw we manage investment risks 13

16 The investment strategy fr each investment ptin takes int accunt a range f criteria including: the membership prfile the risks invlved in making, hlding and realising investments, and the likely return frm thse investments the cmpsitin f the investments as a whle including the extent t which the investments are diverse r invlve the ptin being expsed t risks frm inadequate diversificatin the liquidity f investments Diversificatin risk We ffer investment ptins with allcatins t particular market sectrs, with different degrees f diversificatin f the underlying assets. The extent f diversificatin may impact the amunt f investment risk assciated with a particular investment ptin. Diversificatin in underlying assets r investments can help mderate the risk f lwer investment returns and a lack f diversificatin can increase investment risk s. Yu can help manage yur investment risk and the vlatility f returns by diversifying yur investments within (and utside) Grsvenr Pirie Super and by giving cnsideratin t and selecting an investment ptin suited t yur persnal circumstances (including yur investment timeframe). Yu can diversify yur investments by nminating mre than ne investment ptin. We recmmend yu cnsult a licensed r authrised financial adviser fr assistance with hw t manage yur investment risk having regard t yur persnal bjectives, situatin r needs. Freign Currency Risk Investment in internatinal equities may give rise t freign currency expsure. This means the value f freign investments may vary as exchange rates change. Fluctuatins in freign currency can have bth a psitive and negative impact n the investments with expsure t internatinal equities, depending n hw the investments are made. Liquidity Risk Investments may becme illiquid due t market develpments r ther factrs (that is, they cannt be readily cnverted t cash, at all r quickly enugh t meet liabilities, in particular benefit payments). We manage, analyse and mnitr the liquidity psitin f Grsvenr Pirie Super and will take such actin as may be required t enable Grsvenr Pirie Super t discharge its liabilities and meet its cash flw requirements in the best interests f members as a whle. Fr example we may alter the transfer, withdrawal r investment switching prcesses; alter Grsvenr Pirie Super s allcatin t cash; freeze withdrawals frm illiquid r impaired assets temprarily r permanently; r cease accepting further investments in illiquid r impaired assets temprarily r permanently. Derivatives Risk Derivatives are generally cntracts that call fr mney t change hands at sme future date, such as cmpany issued ptins r listed exchange traded warrants r freign exchange cntracts. The Trustee des nt permit any investments directly in any futures, ptins r ther derivatives instruments Insurance risk Insurance is btained frm a third party. This invlves the risk that the third party Insurer may nt be able t meet its bligatins under the cntract f insurance. We cannt guarantee the payment f an insured benefit r the perfrmance f the Insurer. Yur investment is nt guaranteed. The value f yur investment can rise r fall. Neither the Trustee, The Diversa Trustees Limited, any related entities r any ther persn referred t in this dcument guarantee the capital invested, yur accunt, underlying investments r the perfrmance f investments. Past perfrmance is nt an indicatr f future perfrmance. SECTION 4: HOW WE INVEST YOUR MONEY INVESTMENTS: 14