AustralianSuper Select for Komatsu employees

Transcription

1 AustralianSuper Select for Komatsu employees 28 October 2017 Issued by AustralianSuper Pty Ltd ABN AFSL Trustee of AustralianSuper ABN AustralianSuper MySuper Authorisation /50 Lonsdale St, Melbourne VIC

2 About this booklet This document provides specific information for Komatsu employees and forms part of the Product Disclosure Statement for AustralianSuper Select prepared on 28 October The employer sponsors contributing into AustralianSuper Select are Komatsu Australia, Komatsu Marketing Support Australia and Komatsu Australia Corporate Finance. Fees and costs The table below shows the fees you or your employer may pay. It includes some of the main fees to set up and manage your account based on our Balanced option. Type of fee Admin fee Basic insurance costs Amount Investment fee* 0.75% Exit Fee $35 $1.50 a week, paid by your employer Paid by your employer * The Investment fee for our other investment options is different. This fee is calculated looking back as at 30 June each year. It may change from year to year. Additional fees may apply for specific activities. More information about about fees and costs is included in the Product Disclosure Statement for AustralianSuper Select at australiansuper.com/select If your employer pays for your basic cover and/or administration fee, the payments will count towards your before-tax (concessional) contribution cap. It may affect your ability to make, or the amount you are able to contribute as, additional before-tax contributions. 2

3 About your insurance You must be a Komatsu employee in AustralianSuper Select and meet the eligibility requirements of your employment to be eligible for insurance. Types of cover There are three types of cover available to Komatsu employees: Death cover Total & Permanent Disablement (TPD) cover Income Protection cover Designed to provide your dependants with money to live on or to repay your debts and financial expenses. TPD cover may provide you with a lump sum payout if you become totally and permanently disabled and can no longer work. Provides a monthly income for up to two years to help you get back on your feet. Longer benefit payment periods are available. You re also covered for terminal Illness if you have Death or TPD cover. See our Select Insurance in your super guide for details at australiansuper.com/select Your insurance category The type of insurance cover you re eligible for depends on your age and your insurance category. The insurance category you re in is determined by your employment as shown in the table below. Insurance category Your employment Basic cover provided automatically, based on a Standard work rating Option to apply for extra cover Category 1 Category 2 Category 3 n/a Permanent or fixed-term* employees NOT employed under a Komatsu Enterprise Agreement (EA) working 15 hours or more each week Permanent or fixed-term* employees working less than 15 hours each week Permanent or fixed-term* employees employed under a Komatsu EA working 15 hours or more each week. Income Protection insurance is provided by your employer through your EA. Basic Death, TPD and Income Protection cover, paid by your employer Basic Death cover only, paid by your employer Basic Death and TPD cover, paid by your employer Death, TPD and Income Protection cover, paid by you Death, TPD and Income Protection cover, paid by you Death, TPD and Income Protection paid by you Casual employees are not eligible to join AustralianSuper Select. Speak to your employer. * Fixed-term contracts must be for at least one year. See our Select Insurance in your super guide at australiansuper.com/select for more information about your AustralianSuper insurance. It details the terms and conditions you need to satisfy when applying for or changing your insurance. AustralianSuper Select insurance is provided by our Insurer TAL Life Limited, ABN , AFSL

4 Basic Death, TPD and Income Protection cover When you start working for Komatsu, you ll automatically receive a basic level of insurance cover, paid for by your employer. Your basic cover is salary-based and will depend on your age and the insurance category you re in. Your employer informs us of your salary to calculate your Death, TPD and Income Protection cover. See page 7 for the definition of salary. Basic cover paid for by your employer Category 1 Death TPD Income Protection x salary 4 x salary 75% of your monthly x salary 3 x salary salary* for a two year benefit payment period (after a x salary 2 x salary day waiting period) x salary n/a Category 2 Category 3 Death only Death TPD x salary 4 x salary 4 x salary x salary 3 x salary 3 x salary x salary 2 x salary 2 x salary x salary 2 x salary n/a * If you have basic Income Protection cover and make a claim the maximum benefit payment you may receive is based on 75% of the monthly salary that Komatsu pays you. When your basic cover increases in line with your salary Your basic cover is salary-based. So your basic cover amount may increase or decrease if your salary changes (as provided by your employer). Your basic cover can increase up to the automatic limits shown in the table below and you won t have to provide detailed health information, as long as you re at work and eligible for cover. We ll write to you if your basic cover has reached the automatic limit/s. To increase your basic cover above the automatic limit/s in line with your salary, you ll need to provide detailed health information and be assessed by the Insurer. Automatic limits Death TPD Income Protection $1.1 million $1.1 million $16,000 a month 4

5 Extra Cover Death and TPD cover When you join you get basic Death and/or TPD cover (depending on your insurance category). But you can apply for an extra amount of fixed cover anytime. You pay for the cost of your extra cover, not your employer. We ll deduct the cost of it from your account monthly. Income Protection cover When you join AustralianSuper Select you get basic Income Protection cover depending on the insurance category you re in. For example, if you re in Category 1, AustralianSuper Select provides you with basic Income Protection cover that s paid for by your employer. You can apply to change or increase your Income Protection cover anytime. If you don t have basic Income Protection cover you can apply for the cover. Under these circumstances you ll have to pay for the total cost of your Income Protection cover. This includes changes to your cover amount, waiting period or benefit payment period. We ll deduct the cost of your Income Protection from your account monthly. If you change your Income Protection cover amount or apply for the cover your cover amount becomes a fixed amount. A limit of 85% of your salary applies. See our Select Insurance in your super guide for more details including your waiting period and benefit payment period options. The maximum amount of cover you can apply for is: Maximum amount of cover Death TPD Income Protection Unlimited $3 million $30,000 a month or 85% of your salary (whichever is lower) For new members increase your cover when you join offer If you re eligible for basic cover when you join AustralianSuper, you can apply once, within 120 days of the date on your offer letter, to increase your total amount of cover up to a set limit without the usual health checks. You ll need to complete the New member insurance offer form we send you. See the AustralianSuper Select Product Disclosure Statement for details. 5

6 Your work rating We provide three different work ratings Standard, Low Risk and Professional. The type of work you do can make a difference to how much your cover costs. The higher your work rating, the lower the cost. Your employer arranges your basic insurance cover for you, including your category work rating which is Standard. A Standard work rating covers the riskiest jobs and is the most expensive cover. You can apply to change your individual work rating. This means we ll apply the higher of your category or individual work rating to keep costs as low as possible. And if you leave your employer, you ll keep your insurance with us and your individual work rating too. You can apply to change your individual work rating anytime by completing the Change your individual work rating form for Select available at australiansuper.com/select Waiting period Your waiting period is the time you must wait from when you stopped working because of an illness or injury, to the time you become eligible to receive Income Protection benefit payments. If you receive basic Income Protection your waiting period is 90 days. You can apply to change your waiting period to 60 or 30 days but it will cost more. You ll have to pay for the total cost of your Income Protection cover. The cost of your cover will be deducted from your account monthly. Benefit payment period If you receive basic Income Protection cover your benefit payment period is two years. This means benefits may be paid up to a maximum of two years in total. You can apply to change your benefit payment period to five years or up to age 65, but it will cost more and you ll have to pay for the total cost of your Income Protection cover. The cost of your cover will be deducted from your account monthly. What s the cost of Death, TPD and Income Protection cover? For costs, see Appendix A and Appendix B from pages 8 to 15. Reduce or cancel your cover You can reduce or cancel part or all of your cover anytime. If you do cancel your cover and decide to apply for cover in the future, you must provide detailed health information and your application will be assessed by the Insurer. Your employer pays for your basic cover. 6

7 Useful things you should know Before-tax (concessional) contributions cap From 1 July 2017, your before-tax (concessional) contributions cap is $25,000 a year, regardless of your age. These before-tax contributions count toward the $25,000 cap: super from your employer insurance and account admin fees paid by your employer your salary sacrificed contributions that your employer makes on your behalf, and any other contributions where you ve claimed a tax deduction. This may affect your ability to make, or the amount you are able to contribute as, additional before-tax contributions. Definition of salary Your annual salary which you receive from your employer includes the following amounts: cash salary performance related commission* performance related bonuses* * Averaged over the previous three years, or since you started your current occupation, if less. 7

8 Appendix A Weekly cost for $1,000 of Death and TPD cover The cost of both basic and extra cover is based on your age, gender, the type of cover you have and your applied work rating. Costs shown below are based on a Standard work rating. Male - Standard work rating Death ($) TPD ($) Death ($) TPD ($) n/a n/a n/a n/a n/a Total weekly costs will be rounded to the nearest cent. 8

9 Female - Standard work rating Death ($) TPD ($) Death ($) TPD ($) n/a n/a n/a n/a n/a Total weekly costs will be rounded to the nearest cent. If your applied work rating is Low Risk or Professional, the weekly cost of your cover is lower. To work out the weekly cost of your cover: multiply the weekly cost for Death and/or TPD cover (based on a Standard work rating for your age and gender) by the relevant work rating factor below. Work rating Death and TPD factor Low Risk 0.50 Professional

10 Appendix B Weekly cost for $100 of Income Protection cover The cost of Income Protection is based on your age, gender, waiting period, benefit payment period and your applied work rating. The following costs are based on a Standard work rating. Basic Income Protection for Komatsu is based on a 90 day waiting period, a two year benefit payment period, and a Standard work rating. Male - Standard work rating Benefit payment period - 90 day waiting period Benefit payment period - 90 day waiting period n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Total weekly costs will be rounded to the nearest cent. 10

11 Male - Standard work rating. Benefit payment period - 60 day waiting period Benefit payment period - 60 day waiting period n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Total weekly costs will be rounded to the nearest cent. If your applied work rating is Low Risk or Professional, the weekly cost of your cover is lower. To work out the weekly cost of your cover: multiply the weekly cost for Income Protection (based on a Standard work rating for your age, gender, waiting period and benefit payment period) by the relevant work rating factor below. Work rating Income Protection benefit payment period factor two years five years age 65 Low Risk Professional

12 Appendix B (continued) Weekly cost for $100 of Income Protection cover Male - Standard work rating Benefit payment period - 30 day waiting period Benefit payment period - 30 day waiting period n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Total weekly costs will be rounded to the nearest cent. 12

13 Female - Standard work rating Benefit payment period - 90 day waiting period Benefit payment period - 90 day waiting period n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Total weekly costs will be rounded to the nearest cent. If your applied work rating is Low Risk or Professional, the weekly cost of your cover is lower. To work out the weekly cost of your cover: multiply the weekly cost for Income Protection (based on a Standard work rating for your age, gender, waiting period and benefit payment period) by the relevant work rating factor below. Work rating Income Protection benefit payment period factor two years five years age 65 Low Risk Professional

14 Appendix B (continued) Cost of Income Protection cover Female - Standard work rating Benefit payment period - 60 day waiting period Benefit payment period - 60 day waiting period n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Total weekly costs will be rounded to the nearest cent. 14

15 Female - Standard work rating Benefit payment period - 30 day waiting period Benefit payment period - 30 day waiting period n/a n/a n/a n/a n/a n/a n/a n/a n/a n/a Total weekly costs will be rounded to the nearest cent. If your applied work rating is Low Risk or Professional, the weekly cost of your cover is lower. To work out the weekly cost of your cover: multiply the weekly cost for Income Protection (based on a Standard work rating for your age, gender, waiting period and benefit payment period) by the relevant work rating factor below. Work rating Income Protection benefit payment period factor two years five years age 65 Low Risk Professional

16 We re here to help Just give us a call or send us an am 8pm AEST/AEDT weekdays as.select@australiansuper.com australiansuper.com/select This booklet was issued in October 2017 by AustralianSuper Pty Ltd ABN AFSL , Trustee of AustralianSuper ABN This document is of a general nature and doesn t take into account your personal objectives, situation or needs. Before making a decision about AustralianSuper, consider your financial requirements and read our Product Disclosure Statement, available at australiansuper.com/select or by calling SuperRatings doesn t issue, sell, guarantee or underwrite this product. Go to superratings.com.au for details of its ratings criteria. More information about our awards is available at australiansuper.com/ratings /17 ISS3