KINETIC SUPER SUNSUPER

Transcription

1 KINETIC SUPER SUNSUPER ARE MERGING Significant Event Notice for accumulation members

2 Contents We re merging with Sunsuper 1 Why we re merging 2 When we re merging 3 What s happening to my account? 4 What s happening to my insurance? 5 Changes to fees and costs 6 What s happening to my investments? 8 What else you need to know about insurance 9 What else you need to know about investments 11 What the limited service period means for you 23 What s changing and what you may need to do 24 Special circumstances 29 Checklist 31 Where you can find out more 32 Issued 5 March 2018 by annuation Ltd (KSL) (ABN AFSL RSE L ) as the Trustee of annuation Fund () (ABN RSE R ) which includes Kinetic Smart Pension (KSP). This information is of a general nature only and does not take into account your personal objectives, financial situation or needs. Before making a decision about or Kinetic Smart Pension you should obta in and consider the relevant Product Disclosure Statement (PDS) for these products, and any Incorporated Information, and also consider your personal circumstances. For a copy of the current PDS, call us on or visit the website, kineticsuper.com.au

3 WE RE MERGING WITH SUNSUPER From 12 May 2018, will merge with Sunsuper one of Australia s largest and fastest growing profit-for-members super funds. has a 25-year history of looking after our members super needs. During that time, we ve put looking after the best interests of our members at the forefront of everything we do and our decision to merge with Sunsuper has been driven by the same guiding principle. Sunsuper share our values and have the scale to provide more choice and expanded services, now and into the future. That s why we ve chosen Sunsuper to look after the super needs of our members. Find out more about Sunsuper at sunsuper.com.au/about-us Access to financial planners Member rewards program Solid Investment Performance^ An awardwinning fund * More investment choice Competitive fees ^Past performance is not a reliable indicator of future performance. *Ratings are only one factor to consider when choosing a super fund. and Sunsuper are merging 1

4 Why we re merging We re merging with Sunsuper because we believe it s the right thing to do for our members. Our decision has been informed by a comprehensive legal review. Successor Fund Transfer Our Trustee has made a decision We ll continue looking after you We ll let you know if anything changes This type of transfer is known as a Successor Fund Transfer, referred to in this document as a merger. To transfer all members and assets of Kinetic Super to Sunsuper. We are confident Sunsuper will confer equivalent rights on transferred members in respect of transferred benefits. A Kinetic Advisory Committee which includes directors of the current Board will be established by Sunsuper after the merger, to ensure the needs of former members continue to be met well into the future. The merger is subject to the completion of final stages of due diligence and if for any reason it does not proceed, you will be notified. Acting in the best interest of members The decision to merge with Sunsuper Superannuation Fund ABN (Sunsuper), has been subject to a comprehensive due diligence process and independent legal review, to ensure Sunsuper confers equivalent rights in respect of transferred benefits and the merger is in the best interests of members. The merger will involve the transfer of members and their benefits immediately before 12 May 2018 from to Sunsuper without the consent of members. To transfer without members consent, both the Trustee (annuation Ltd ABN AFSL RSE L ) and Sunsuper Trustee (Sunsuper Pty Ltd ABN AFSL RSE L ) have to be satisfied that Sunsuper gives members rights that are equivalent to the rights that members have in in relation to transferred benefits (as assessed immediately prior to the merger). We re are committed to protecting your privacy We are committed to protecting your privacy and the security of your personal information. You can access the Privacy Policy from our website at kineticsuper.com.au/privacy Sunsuper s Privacy Policy can also be found on their website at sunsuper.com.au/privacy-policy 2

5 When we re merging The expected date of the merger is 12 May All the information in this notice is based on 12 May 2018 being the actual date of the transfer of s assets to Sunsuper. If the effective date of the merger (12 May 2018) is significantly delayed, you will be notified. The actual transfer of your account balance occurs in stages commencing on 12 May So that member records can be transferred effectively, there is a limited service period in both and also in Sunsuper (refer to page 23). Members will be able to access their Sunsuper account information through Sunsuper s Member Online after 28 May After the merger, members can call Sunsuper on to access information and enquire about what transactions can occur and the timing of those transactions. Once the merger (including the transfer of your account balance) is completed, you ll receive Welcome information from Sunsuper with details of your new accumulation account. Your new account will be established in Sunsuper for life, with effect from 12 May 2018, unless you have an existing accumulation account in Sunsuper (existing Sunsuper account), in which case special circumstances apply. You ll also receive a Member Exit Statement from us with the details of your closed Kinetic Super account. March 2018 Receive Kinetic Super Significant Event Notice. 27 April 2018 to 11 May 2018 limited service period. 12 May 2018 to 28 May 2018* Sunsuper limited service period. June 2018 Receive Kinetic Super Member Exit Statement. April 2018 Some members will receive Sunsuper transition information.^ 12 May 2018 account balances transferred to Sunsuper. June 2018 Receive Sunsuper Welcome information. ^ Members with special circumstances, such as those with an existing Sunsuper account, will generally receive separate correspondence from Sunsuper in April. * Should the amount of withdrawal requests received by Sunsuper exceed anticipated volumes, processing of these requests may take longer than normally expected. It is anticipated by Sunsuper that normal processing for withdrawal requests will resume by 15 June There will be a limited service period To prepare for the transfer of account balances to Sunsuper, transactions will be limited for a period of time. This limited service period will begin 27 April Further important information about the limited service period, including what you may need to do, can be found on pages There will also be a limited service period in Sunsuper from 12 May 2018, which will affect access to your account. Things you may need to do It s important you read this document to understand what the merger means for you. There are some situations where you may need to take action before or after the merger. For example, if you have binding beneficiary nominations or third-party authorities on your account, they will lapse and you will need to complete additional paperwork after 12 May The checklist on page 31 details some of the situations where you may need to take an action. and Sunsuper are merging 3

6 What s happening to my account? Members won t have to do anything for their account balance including transaction history to be transferred across to Sunsuper. and Sunsuper will look after the transfer. Generally, your new account will be established in Sunsuper for life, however special circumstances apply if you have an existing Sunsuper account immediately before 12 May As part of your new Sunsuper for life account, you will have access to an Income account, which you can activate when you re ready to retire provided you have a minimum balance of $60,000 and meet other eligibility criteria. The Income account can be activated through Sunsuper Member Online or by completing and returning an Income account request form to Sunsuper along with the required supporting documentation. For more information about the Sunsuper for life Income account, see the Sunsuper for life guide available at sunsuper.com.au/pds. A Retirement Bonus of up to $4,800 may also be available to eligible members. For more information on this bonus see sunsuper.com.au/retirementbonus member without an existing Sunsuper account. Your account will close and your account balance will be transferred to your new Sunsuper account on 12 May Special insurance arrangements apply to some members as outlined on pages 9 and 10. You will receive your new member number with Welcome information from Sunsuper. member with an existing Sunsuper for life account Your account will close and your account balance will be transferred into your existing Sunsuper account on 12 May member with an existing Sunsuper for life Corporate or Business account Your account will close and your account balance will be transferred to a new Sunsuper for life account on 12 May Your existing Sunsuper member number will remain unchanged and apply to all your Sunsuper accounts. These Sunsuper accounts will incur separate fees and costs. Other special circumstances apply. See pages 29 and 30 for details. You will receive further information, generally in April 2018, from Sunsuper detailing how this impacts you. What happens to employer and personal contribution arrangements Any contribution arrangements you have in place with your employer will carry over to your new Sunsuper account. This includes your employer Super Guarantee (SG) contributions, salary sacrifice arrangements and member voluntary contributions made via your employer. If you make voluntary contributions to your account via BPAY or Direct Debit, you will need to re-direct these payments to your new Sunsuper account. Refer to page 25 for what you need to do. 4

7 What s happening to my insurance? members with existing insurance cover will have their cover transferred to their new Sunsuper for life account, unless special circumstances apply. Once the merger takes place, some insurance terms and conditions will change. You can find more information on pages 9 and 10 about these changes. The insurance arrangements for members who do not have an existing Sunsuper account immediately before 12 May 2018 are outlined below: I have a Kinetic Super account with insurance. You ll keep your existing insurance cover, premium rates (which are determined in accordance with your occupational category), exclusions and loadings (if any) subject to the changes listed on pages 9 and 10. The Insurance policy terms and conditions that currently apply to your account will remain, except for those changes summarised on pages 9 and 10. For some members, these changes include their insurance cover immediately before 12 May 2018 becoming fixed cover. You ll be subject to the insurance policy s terms and conditions as detailed in the Sunsuper for life Product Disclosure Statement (PDS) for former members and Insurance guide. I have a Kinetic Super account without insurance. You will not have any insurance cover when your account balance is transferred. Any insurance cover you apply for after the merger will be subject to the Insurance policy terms and conditions applicable to Sunsuper for life members. This is a different Insurance policy, with a different insurer to the one that currently applies to members. If you have both a and Sunsuper account If you have a and a Sunsuper account immediately before 12 May 2018, special circumstances will apply. See pages 29 and 30 for details. and Sunsuper are merging 5

8 Changes to fees and costs Sunsuper s fees and costs are different to s fees and costs. Some of the fees and costs for your new Sunsuper for life account will be higher, and others will be lower than your account. The tables on pages 6 and 7 provide a summary of the significant fees and costs (other than insurance costs which are dealt with elsewhere in this notice). Where a range of fees and costs is shown, the applicable fee or cost depends on the investment option and is set out in the investment tables on pages Fees and costs can be paid directly from your account or deducted from your investment returns. Other fees and costs may also apply, such as activity fees. Any tax deductions that each Fund may receive in respect of fees and costs charged in the current financial year are not reflected in the following tables (fees are shown gross of tax). In, the benefit of tax deductions is not passed on directly to members in the year in which the fees and costs (to which the deductions relate) are incurred, and consequently, the contributions tax on concessional contributions (usually deducted from member accounts, where applicable, at the rate of 15%) is not reduced. The benefit of tax deductions received by is retained in s reserves. From time to time, some expenses may also be paid from s reserves and are not included in the fees and costs shown within the following tables. Sunsuper passes on the benefit of tax deductions relating to fees and costs (where applicable) directly to members as a reduction to any contributions tax payable on concessional contributions. The following tables show how s fees and costs compare to the fees and costs for a new Sunsuper account. If you have an existing Sunsuper for life Business or Corporate account, special circumstances apply, see pages 29 and 30. s fees and costs Type of fee Amount How and when paid Investment fee Nil Not applicable, however indirect investment costs, included in the Indirect cost ratios apply. Administration fee $80.60 p.a. ($1.55 per week) % of assets p.a. (capped at $500 p.a.) Buy-sell spread Buy spread: From 0.00% to 0.25% Sell spread: From 0.00% to 0.25% Deducted from your account monthly or on the date your account is closed (on a pro-rata basis). Deducted before unit prices are declared (usually weekly). Switching fee Nil Not applicable. Exit fee $50 Deducted from your account for each withdrawal or if your account is closed. Advice fees relating to all members investing in a particular MySuper product or investment option Other fees and costs Nil Depends on the activity or insurance relevant to your account. Not applicable, however fees relating to the provision of financial product advice on your account are included in the Administration fees. Deducted from your account, where applicable. For details about insurance costs, refer to the PDS and Incorporated Information. Indirect cost ratio Estimated 0.05% to 0.87% of assets p.a. Deducted before gross earnings of the option are received by the Fund and taken into account in the calculation of unit prices. See the current PDS and Incorporated Information at kineticsuper.com.au/pds for full details of s fees and costs. 6

9 Sunsuper for life fees and costs Type of fee Amount How and when paid Investment fee Administration fee Estimated base fee of 0.06% p.a. to 0.33% p.a. plus performance-related fee of 0.00% to 0.05% p.a. of your account balance. $1.50 per week plus 0.10% p.a. of the first $800,000 of your account balance only. The $800,000 threshold does not apply to balances aggregated across multiple accounts if members have multiple Sunsuper accounts. Deducted daily from the investment option(s) as part of the calculation of daily unit prices Generally deducted from your account balance weekly Buy-sell spread Nil Not applicable currently but this may change Switching fee Nil Not applicable Exit fee $47 Net amount of $40 deducted when the transaction is processed Advice fees relating to all members investing in Sunsuper for life investment options. Nil, for general advice and limited personal advice Not applicable. The cost of general advice and limited personal advice over the phone is included in the Administration fee, however additional fees apply to other or more comprehensive personal advice. Other fees and costs Refer to Additional explanation of fees and costs in the Sunsuper for life guide. Indirect cost ratio Estimated 0.00% p.a. to 1.89% p.a. Not charged by Sunsuper, but instead incurred within underlying investments and deducted from investment returns prior to the calculation of daily unit prices. See the Sunsuper for life PDS for former members and guides available at sunsuper.com.au/kinetic-super for full details of fees and costs. Considering your fees and costs When considering the fees and costs you pay for your super, insurance and investments, it s important to weigh them against the value of the benefits and other product features of the super fund. and Sunsuper are merging 7

10 What s happening to my investments? Sunsuper has different investment options to. If you don t have an existing Sunsuper account at the date of the merger, your new Sunsuper for life account balance and future contributions will be invested proportionately in the Sunsuper investment options that most closely match (in terms of objective, strategy and risk) your investment options in immediately before 12 May This is outlined in the Investment option mapping table below. If you have an existing Sunsuper account, special circumstances apply. See pages The fees and costs of Sunsuper investment options are different. See pages 11 to 19 for detailed information. Any amount you have invested in s Growth (MySuper) option, will be invested in Sunsuper s MySuper option from 12 May s Growth (MySuper) option is a single (diversified) investment strategy which means your investment option remains the same as you age. Sunsuper s MySuper option is a Lifecycle (diversified) Investment Strategy, where the investment strategy changes after age 55. Sunsuper s Lifecycle Investment Strategy is explained in detail on pages 11 and 12. Investment option mapping investment option Growth (MySuper) Aggressive Moderate Australian Shares Overseas Shares Property Cash Bonds Investment option in Sunsuper Lifecycle Investment Strategy (MySuper) Growth Retirement Australian Shares Index 70% International Shares Index (unhedged) & 30% International Shares Index (hedged) Property Cash Diversified Bonds Investments are not identical While your investments will be transferred to the investment options that most closely match your existing investment options, investments in Sunsuper aren t identical. Investment objectives, asset allocations and risk profiles differ so it s important to review your investment options in Sunsuper. For a detailed comparison of investment options, see pages

11 What else you need to know about insurance Changes to insurance terms and conditions* From 12 May 2018 there will be some changes to the Insurance policy terms and conditions applicable to transferred members. These changes only impact members who have insurance cover in place immediately before 12 May All other terms and conditions under the current Insurance policy remain the same. Special circumstances apply to members who have an existing Sunsuper account at the date of the merger, see pages 29 and 30 for details. Insurance feature Before 12 May 2018 Changes from 12 May 2018 Additional Death and Total & Permanent Disablement (TPD) cover in Kinetic Super (that has been identified as underwritten) Maintain your existing Death and TPD cover Increasing your Death and/or TPD cover as a result of a life event Termination/ceasing of insurance cover Members can have Default (standard) and/or additional Death and/or TPD insurance cover that is unitised. With unitised cover, the level (amount) of cover changes with age. For the purposes of the merger, any insurance cover that we consider you have obtained through full underwriting or which is subject to individual loadings, limitations, restrictions or exclusions will be treated as additional cover. Any insurance cover that has not been fully underwritten or is not subject to individual loadings, limitations, restrictions or exclusions, will be treated as Default (standard) cover. You can call us to find out if you have any standard and/or additional cover. Eligible members who have previously been fully underwritten for additional cover or transferred insurance cover from another super fund to, can apply (before their next birthday) to purchase extra cover to maintain an equivalent level of cover that may have otherwise decreased due to age without full underwriting. Members can apply to increase their Death and/or TPD insurance cover within 120 days of a life event up to 100% of their existing amount of Death and/or TPD insurance cover at the time of application or a maximum of $150,000. Insurance cover is switched off if you re an Employersponsored member when your account balance is below $6,000 and we haven t received a contribution via your employer in 10 months or more. Any member who has Default (standard) cover, will continue to have this cover unitised on 12 May If we identify that you have been underwritten for any additional Death and/or TPD insurance cover, this cover will be fixed on 12 May This means the level of cover remains the same each year, however premiums may change. Any loadings, limitations, restrictions and exclusions will continue to apply. Sunsuper refer to this as Personalised cover. You will receive further information relating to your insurance cover in your Welcome information from Sunsuper. Members who wish to maintain (fix) their level of cover (which may otherwise decrease due to age) will need to go through full underwriting. Members can apply to increase their Death and/or TPD insurance cover (that has not been underwritten and remains unitised) within 180 days of a life event by up to 1 unit of their existing level of Death and/or TPD cover at the time of application. Other existing terms and conditions relating to increasing cover as a result of a life event continue to apply. If you have Personalised (fixed) cover at Sunsuper you will not be able to apply for Life events. This will apply to you if you have insurance that was fixed and became Personalised on transfer to Sunsuper as noted above. Insurance cover will be switched off if you re an Employersponsored member when your account balance is below $6,000 and we haven t received an eligible contribution or rollover in 10 months or more (including membership).** *Insurance is available to members through the Colonial Mutual Life Assurance Society Limited ABN AFSL No (CMLA), trading as CommInsure. All cover provided to transferred members (with no existing insurance in Sunsuper immediately before 12 May 2018) is under the insurance policies between the Trustee of and the insurer. These insurance policies are referred to as the Insurance policy. From 12 May 2018 these insurance policies will be transferred to the Trustee of Sunsuper and will continue in force, subject to some amendments as agreed between the Trustee of Sunsuper and CommInsure. The Insurance policy may be amended or terminated by Sunsuper s Trustee. Insurance premiums are subject to change. As is the case in, insurance cover provided to transferred members in Sunsuper will cease in certain circumstances. Also, there may be reduction in insured benefits where the Insurer declines a claim or refuses cover. **An eligible contribution is defined as a contribution made via your employer, or a personal contribution. and Sunsuper are merging 9

12 What else you need to know about insurance Insurance feature Before 12 May 2018 Changes from 12 May 2018 Reinstatement of cover Income Protection Limited Default Death and TPD cover Members can apply in writing to the Insurer if their cover has lapsed due to insufficient funds. Cover can be declined or approved subject to individual conditions, exclusions, restrictions or premium loadings, at the Insurer s discretion. Cover is not reinstated on receipt of a SG contribution for the member or any other type of contribution. Members with Income Protection cover who are unemployed at the date of disability are not eligible to claim their Income Protection benefit. If a contribution is received from an employer more than 180 days from the date the member joined the employer, the member will have limited Default Death and TPD cover for the remainder of their membership, which means cover is restricted to illness or injury occurring after a contribution is received and insurance cover has commenced. When insurance cover lapses: due to insufficient funds, but the account remains open; or because your account balance is below $6,000 and has not received an eligible contribution in 10 months or more (including membership) your insurance cover will be reinstated on receipt of an eligible contribution.** Employer-sponsored members will have their cover reinstated as per their age and the approved level of default cover (Starter or Booster Pack based on their current balance) at the time cover is reinstated. Personal members will have their cover reinstated to the Booster Pack (6 units of Death and 6 units of TPD cover). Income Protection cover will not be reinstated. This is subject to a limited cover clause which means reinstated cover will be restricted to illness or injury occurring after the reinstatement date, for 30 consecutive days. Members with Income Protection cover in Sunsuper will be able to be unemployed for up to 90 days and remain eligible to apply to claim their Income Protection benefit. If a contribution is received from an employer more than 180 days from the date the member joined the employer, the insurance cover will be limited for 24 months from the date the contribution is received and then for 30 consecutive days of active employment after the 24 month period has expired. For more details about insurance terms and conditions applicable from 12 May 2018 refer to the Sunsuper for life PDS for former members and Insurance guide. ** An eligible contribution is defined as a contribution made via your employer, or a personal contribution. 10

13 What else you need to know about investments Sunsuper Lifecycle Investment Strategy If immediately before 12 May 2018 any of your super is invested in the Growth (MySuper) investment option, this amount will be transferred to the Sunsuper Lifecycle Investment Strategy (MySuper), unless special circumstances apply because you have an existing Sunsuper account, see pages 29 and 30. The investment objective, asset allocation and risk profile of Sunsuper s MySuper product is different from s MySuper product. Sunsuper s MySuper product changes after age 55, s MySuper investment option does not change based on your age. This means that if you are a MySuper member aged over 55, your investment in Sunsuper s MySuper product will be lower risk and have a lower return objective than your investment in s MySuper product. The Lifecycle Investment Strategy is designed for members who want to generate wealth over the long term and gradually transition to lower-risk investments as they approach age 65. An example of how it works is shown below.* Balanced Pool Retirement Pool Cash Pool Up to age 55 age 60 age 65 Expected risk and return over time You are invested 100% in the Balanced Pool * Indicative transition concept. Then your investment begins to transition to the Retirement and Cash Pool Until age 65, when the transition is complete. The Lifecycle Strategy is designed so that 100% of your balance is invested in the Balanced Pool until age 55. This allows you to benefit from investments in growth assets, like shares, when most people have plenty of time left until they need to use their super to live on. Once you turn 55 your balance will begin to transition to the Retirement Pool and Cash Pool, as shown above. By your 65th birthday, most of your balance will be invested in the Retirement Pool, which still invests in some growth assets, but is expected to have fewer ups and downs than the Balanced Pool. There will also be some money in the Cash Pool. If you re over age 55 when you first invest in the Lifecycle Investment Strategy your transition will take place over a shorter period of time. The transition between Pools will start once you have turned 55, and happens in two ways: 1. Generally each month, on or around your day of birth, a portion of your account balance is transferred out of the Balanced Pool. 90% of the monthly portion transferred goes into the Retirement Pool and 10% into the Cash Pool. 2. Your future contributions, including any rollovers from other super funds, will be allocated across the three investment pools, with an increasing proportion going to the Retirement Pool and Cash Pool as you get older. Don t want to be invested in the Lifecycle Investment Strategy? Once you re with Sunsuper, if you d prefer to be invested in a different investment option(s) rather than a lifecycle strategy, you can always switch your investments after the merger. Sunsuper has lots of investment options to choose from. You can check them out on page 20. and Sunsuper are merging 11

14 What else you need to know about investments The following tables provide a comparison of investment options alongside the mapped Sunsuper investment options. Kinetic and Sunsuper MySuper investment options Sunsuper Lifecycle Investment Strategy Investment option Growth (MySuper) Balanced Retirement Cash Investment objective To achieve a return (net of fees and taxes) of at least 3% per year above the Consumer Price Index over rolling 5-year periods. Beat inflation over 10 years by 3.5% p.a. after investment fees and costs and where applicable investment taxes. Beat inflation over 10 years by 2.75% p.a after investment fees and costs and where applicable investment taxes. Match or exceed the returns of the performance benchmark (Bloomberg AusBond Bank Bill Index) before investment tax, but after investment fees and costs. Strategic asset allocation in pool (%) Strategic asset allocation (ranges) This may include both overseas and Australian assets. 12 Shares 55.0% Private capital 8.0% Property 13.0% Bonds 24.0% Cash and cash-like assets 0.0% Shares 35% to 75% Private capital 0% to 18% Property 3% to 23% Bonds 14% to 34% Cash and cash-like assets 0% to 10% Australian Shares 22.5% International Shares 27.5% Private capital 7.0% Property 11.0% Diversified Strategies 5.0% Infrastructure 8.0% Fixed interest 8.0% Hedge funds 5.0% Cash 6.0% Australian Shares 0% to 50% International Shares 0% to 70% Private capital 0% to 15% Property 0% to 30% Diversified Strategies 0% to 15% Infrastructure 0% to 20% Fixed interest 0% to 30% Hedge funds 0% to 25% Cash 0% to 25% Australian Shares 17.5% International Shares 15.5% Private capital 5.0% Property 10.0% Diversified Strategies 5.0% Infrastructure 7.0% Fixed interest 22.0% Hedge funds 6.0% Cash 12.0% Australian Shares 0% to 50% International Shares 0% to 55% Private capital 0% to 15% Property 0% to 30% Diversified Strategies 0% to 15% Infrastructure 0% to 20% Fixed interest 0% to 50% Hedge funds 0% to 15% Cash 0% to 25% Minimum suggested 5 years 5 years 5 years 5 years investment time frame Risk band Risk level High Medium to high Medium Very low Estimated number of 4 to less than 6 3 to less than 4 2 to less than 3 Less than 0.5 negative annual returns over any 20-year period Estimated Indirect Cost Ratio (ICR) p.a. 0.40% 0.62% Estimated Investment Fee p.a. Buy-sell Spread Buy: 0.11% Sell: 0.11% Nil Base: 0.23% Performance related: 0.03% Nil N/A Cash 100.0% Actual amounts may differ from estimates. For further information about the investment options including explanations of terms used in the tables, refer to the PDS and Incorporated Investments information and the Sunsuper for life Investment guide.

15 Diversified investment options Investment option Investment objective Aggressive To achieve a return (net of fees and taxes) of at least 4.0% a year above the Consumer Price Index over rolling 8-year periods. Sunsuper Growth Beat inflation over 10 years by 4.0% p.a. after investment fees and costs and where applicable investment taxes. Strategic asset allocation (SAA) Strategic asset allocation (ranges) This may include both overseas and Australian assets. Shares 75.0% Private capital 10.0% Property 15.0% Bonds 0.0% Cash and cash-like assets 0.0% Shares 55% to 95% Private capital 0% to 20% Property 5% to 25% Bonds 0% to 10% Cash and cash-like assets 0% to 10% Minimum suggested 8 years 7 years investment time frame Risk band 6 6 Risk level High High Estimated number of 4 to less than 6 4 to less than 6 negative annual returns over any 20-year period Estimated Indirect Cost Ratio (ICR) p.a. 0.46% 0.69% Estimated Investment Fee p.a. Buy-sell Spread Buy: 0.12% Sell: 0.12% Australian Shares 28.5% International Shares 35.5% Private capital 10.0% Property 8.0% Diversified Strategies 5.0% Infrastructure 8.0% Fixed interest 0.0% Hedge funds 5.0% Cash 0.0% Australian Shares 0% to 50% International Shares 0% to 70% Private Capital 0% to 20% Property 0% to 30% Diversified Strategies 0% to 15% Infrastructure 0% to 20% Fixed interest 0% to 20% Hedge funds 0% to 20% Cash 0% to 20% Nil Base: 0.23% Performance related: 0.03% Actual amounts may differ from estimates. For further information about the investment options including explanations of terms used in the tables, refer to the PDS and Incorporated Investments information and the Sunsuper for life Investment guide. Nil and Sunsuper are merging 13

16 What else you need to know about investments Diversified investment options Investment option Investment objective Moderate To achieve a return (net of fees and taxes) of at least 2.5% a year above the Consumer Price Index over rolling 4-year periods. Sunsuper Retirement Beat inflation over 10 years by 2.75% p.a. after investment fees and costs and where applicable investment taxes. Strategic asset allocation (SAA) Shares 35.0% Property 13.0% Private capital 0.0% Bonds 35.0% Cash and cash-like assets 17.0% Australian Shares 17.5% International Shares 15.5% Private capital 5.0% Property 10.0% Diversified Strategies 5.0% Infrastructure 7.0% Fixed interest 22.0% Hedge funds 6.0% Cash 12.0% Strategic asset allocation (ranges) This may include both overseas and Australian assets. Minimum suggested investment time frame Shares 15% to 55% Property 3% to 23% Private capital 0% to 10% Bonds 25% to 45% Cash and cash-like assets 7% to 27% 4 years 5 years Risk band 5 4 Risk level Medium to high Medium Estimated number of negative annual returns over any 20-year period Estimated Indirect Cost Ratio (ICR) p.a. Estimated Investment Fee p.a. Buy-sell Spread Buy: 0.09% Sell: 0.09% 3 to less than 4 2 to less than % 0.56% Australian Shares 0% to 50% International Shares 0% to 55% Private Capital 0% to 15% Property 0% to 30% Diversified Strategies 0% to 15% Infrastructure 0% to 20% Fixed interest 0% to 50% Hedge funds 0% to 15% Cash 0% to 25% Nil Base: 0.23% Performance related: 0.03% Actual amounts may differ from estimates. For further information about the investment options including explanations of terms used in the tables, refer to the PDS and Incorporated Investments information and the Sunsuper for life Investment guide. Nil 14

17 Single asset class options Investment option Investment objective Strategic asset allocation (SAA) Australian Shares To achieve a return (net of fees and taxes) that exceeds the Benchmark (weighted average of Australian sharemarket indices as outlined below) over rolling 1-year periods. Performance benchmark: 50% S&P/ASX 200 Accumulation Index + 50% S&P/ASX 300 Accumulation Index. Sunsuper Australian Shares Index Closely match the return of the performance benchmark, before investment tax and investment fees and costs. Performance benchmark: S&P/ASX 300 Accumulation Index. Australian Shares 100.0% Australian Shares Index 100.0% Minimum suggested investment time frame 8 years 7 years Risk band 7 7 Risk level Very high Very high Estimated number of negative annual returns over any 20-year period Estimated Indirect Cost Ratio (ICR) p.a. 6 or greater 6 or greater 0.32% Nil Estimated Investment Fee p.a. Buy-sell Spread Buy: 0.15% Sell: 0.15% Nil Base: 0.09% Performance related: N/A Actual amounts may differ from estimates. For further information about the investment options including explanations of terms used in the tables, refer to the PDS and Incorporated Investments information and the Sunsuper for life Investment guide. Nil and Sunsuper are merging 15

18 What else you need to know about investments Single asset class options Sunsuper Investment option Investment objective Strategic asset allocation (SAA) Overseas Shares To achieve a return (net of fees and taxes) that exceeds the Benchmark (weighted average of overseas sharemarket indices as outlined below) over rolling 1-year periods. Performance benchmark: 60% MSCI World (ex-aust) Index with net dividends reinvested ($A Unhedged) + 30% MSCI World (ex-aust) Index with net dividends reinvested ($A Hedged) + 10% MSCI Emerging Markets Index with net dividends reinvested ($A Unhedged). 70% International Shares Index (unhedged) & 30% International Shares Index (hedged) Hedged Closely match the return of the performance benchmark, before investment tax and investment fees and costs. Performance benchmark: MSCI World ex-australia Investable Market Index (IMI) in $A (hedged) Unhedged Closely match the return of the performance benchmark, before investment tax and investment fees and costs. Performance benchmark: MSCI World ex-australia Investable Market Index (IMI) in $A (unhedged) Minimum suggested investment time frame Overseas Shares 100.0% International Shares Index (unhedged) 70.0% International Shares Index (hedged) 30.0% 8 years International Shares Index (unhedged): 7 years International Shares Index (hedged): 7 years Risk band 6 International Shares Index (unhedged): 6 International Shares Index (hedged): 7 Risk level High International Shares Index (unhedged): High International Shares Index (hedged): Very high Estimated number of negative annual returns over any 20-year period Estimated Indirect Cost Ratio (ICR) p.a. Estimated Investment Fee p.a. Buy-sell Spread Buy: 0.14% Sell: 0.14% 4 to less than 6 International Shares Index (unhedged): 4 to less than 6 International Shares Index (hedged): 6 or greater 0.29% International Shares Index (unhedged): 0.01% International Shares Index (hedged): 0.01% Nil Base (unhedged): 0.09% Base (hedged): 0.09% Performance (hedged and unhedged): N/A Actual amounts may differ from estimates. For further information about the investment options including explanations of terms used in the tables, refer to the PDS and Incorporated Investments information and the Sunsuper for life Investment guide. Nil 16

19 Single asset class options Investment option Investment objective Strategic asset allocation (SAA) Property To achieve a return (net of fees and taxes) that exceeds the Benchmark (weighted average of Australian and overseas property market indices as outlined below) over rolling 1-year periods. Performance benchmark: 80% Mercer/IPD Australian Pooled Property Fund Index + 20% FTSE EPRA/NAREIT Developed Index Hedged to AUD (Net of Withholding Tax). Sunsuper Property Beat the performance benchmark before investment tax, but after investment fees and costs over rolling 5-year periods. Performance benchmark: 25% FTSE EPRA/NAREIT Global REIT hedged to $A and 75% Mercer/IPD Australia Monthly Property Fund Index Core Wholesale. Property 100.0% Property 100.0% Minimum suggested investment time frame 4 years 7 years Risk band 6 5 Risk level High Medium to high Estimated number of negative annual returns over any 20-year period Estimated Indirect Cost Ratio (ICR) p.a. 4 to less than 6 3 to less than % 1.10% Estimated Investment Fee p.a. Buy-sell Spread Buy: 0.25% Sell: 0.25% Nil Base: 0.16% Performance related: Nil Actual amounts may differ from estimates. For further information about the investment options including explanations of terms used in the tables, refer to the PDS and Incorporated Investments information and the Sunsuper for life Investment guide. Nil and Sunsuper are merging 17

20 What else you need to know about investments Single asset class options Investment option Investment objective Strategic asset allocation (SAA) Bonds To achieve a return (net of fees and taxes) that exceeds the Benchmark (weighted average of Australian and overseas bond market indices as outlined below) over rolling 1-year periods. Performance benchmark: 45% Bloomberg AusBond Composite Index + 30% Bloomberg Barclays Global Aggregate Index ($A Hedged) + 25% Bloomberg AusBond Inflation Government Index. Sunsuper Diversified Bonds Beat the performance benchmark by 0.5% p.a. before investment tax, but after investment fees and costs over rolling 3-year periods. Performance benchmark: 50% Citigroup World Broad Investment Grade Index in $A (hedged) and 50% Bloomberg AusBond Composite 0+Yr Index. Bonds 100.0% Fixed Interest 100.0% Minimum suggested investment time frame 2 years 3 years Risk band 4 4 Risk level Medium Medium Estimated number of negative annual returns over any 20-year period Estimated Indirect Cost Ratio (ICR) p.a. 2 to less than 3 2 to less than % 0.10% Estimated Investment Fee p.a. Buy-sell Spread Buy: 0.11% Sell: 0.11% Nil Base: 0.33% Performance related: 0.03% Actual amounts may differ from estimates. For further information about the investment options including explanations of terms used in the tables, refer to the PDS and Incorporated Investments information and the Sunsuper for life Investment guide. Nil 18

21 Single asset class options Investment option Investment objective Strategic asset allocation (SAA) Cash To achieve a return (net of fees and taxes) that exceeds the benchmark (the Bloomberg Ausbond Bank Bill Index) over rolling 1-year periods. Performance benchmark: Bloomberg AusBond Bank Bill Index. Sunsuper Cash Match or exceed the returns of the performance benchmark before investment tax, but after investment fees and costs. Performance benchmark: Bloomberg AusBond Bank Bill Index. Cash and cash-like assets 100.0% Cash 100.0% Minimum suggested investment time frame 2 years 1 year Risk band 1 1 Risk level Very low Very low Estimated number of negative annual returns over any 20-year period Estimated Indirect Cost Ratio (ICR) p.a. Less than 0.5 Less than % Nil Estimated Investment Fee p.a. Buy-sell Spread Buy: 0.00% Sell: 0.00% Nil Base: 0.06% Performance related: N/A Actual amounts may differ from estimates. For further information about the investment options including explanations of terms used in the tables, refer to the PDS and Incorporated Investments information and the Sunsuper for life Investment guide. Nil and Sunsuper are merging 19

22 What else you need to know about investments More choice with Sunsuper With Sunsuper you ll have access to 20 investment options, including diversified and single asset class investment options and a Socially Conscious Balanced and Capital Guaranteed option. The full range of Sunsuper investment options are listed below: Actively Managed Index (Passively Managed) Multi-asset Diversified options Single-asset Shares Lifecycle Investment Strategy (Super-savings account only) Growth Balanced Socially Conscious Balanced Diversified Alternatives Retirement Conservative Shares Australian Shares Balanced Index Australian Shares Index International Shares Index (hedged) International Shares Index (unhedged) Emerging Markets Shares Property Property Australian Property Index Fixed Interest and Cash Diversified Bonds Cash Capital Guaranteed Diversified Bonds Index Find out more Visit sunsuper.com.au/pds and review the Sunsuper for life guide for more information on Sunsuper s investment options and associated fees and costs and benefits. 20

23 Other things you need to know about investments Unit pricing calculates unit prices for its investment options on a weekly basis and publishes them at kineticsuper.com.au each Wednesday. Unit prices for investment options will not be published after 9 May Once your account balance is transferred to Sunsuper, you will receive a Member Exit Statement from detailing the total value of your investments immediately before 12 May Sunsuper generally calculates unit prices for its investment options each business day, based on the latest available value of net assets in each option at the applicable close of business in all relevant domestic and international markets for that day. The unit price for a specific business day is normally calculated on the next business day. Visit sunsuper.com.au/unitprices for historical and current unit prices. Buy-sell spreads charges a buy-sell spread in the unit price of each investment option. These buy-sell spreads are the difference between the purchase (buy) and sale (sell) unit price of an investment in an investment option, when transactions on your account (including closure of your account) occur. Sunsuper does not currently charge a buy-sell spread for any of their investment options. However, Sunsuper reserves the right to apply a buy-sell spread in future. Calculating your account balance when your benefit is transferred to Sunsuper will set a final sell unit price for all investment options effective for 11 May 2018 in accordance with Kinetic Super s unit pricing methodology. * s sell unit prices (including any sell spread) will be used to calculate your closing balance on this date. The usual exit fee of $50 will not apply. Once is fully wound up and relevant expenses have been determined (expected to be by the end of 2018 and, in any case within 12 months of 12 May 2018), members transferred from to Sunsuper, who remain with Sunsuper, may receive an additional amount from the Sunsuper Trustee through a special distribution from a general reserve (see page 22 for more information about the general reserve). The and Sunsuper investment option prices are not the same, so the number of units you will receive from Sunsuper will be different, however your final exit value (i.e. benefit in dollars) from will be the same as the entry value (i.e. benefit in dollars) into Sunsuper. If you are allocated units across more than one investment option, these will not be re-balanced by Sunsuper in the future to maintain these percentages. You will be need to re-balance them via an investment switch if you wish to maintain the percentages. Investment changes on notification of death If Sunsuper receive a formal notification of death, the assets of the deceased person s account, including any eligible insurance benefit is transferred to Sunsuper s Cash investment option within 5 working days and remains there until the Sunsuper Trustee finalises payment of the death benefit. *This final unit price will include a provision for the final estimated tax payable by. and Sunsuper are merging 21

24 What else you need to know about investments What happens to s reserves? On 12 May 2018, any unallocated amount of s assets will be transferred to Sunsuper and will be managed in accordance with Sunsuper s Reserve Policy. s reserves include a general (administration) reserve which may be used to pay some expenses. On transfer of this general reserve to Sunsuper, an amount from the general reserve will be allocated to the Sunsuper s reserves. The remaining amount in the general reserve will be available to meet any costs, charges and expenses associated with the merger, including expenses relating to the wind up of and its Trustee and taxes or other expenses and liabilities of prior to termination of the Fund (incurred or estimated) that have not been paid prior to the merger. If there is any amount remaining in the general reserve after the payment of expenses, tax and other liabilities, and the allocation to Sunsuper s reserves, this will be distributed by Sunsuper, as outlined on the previous page. and Sunsuper also maintain an Operational Risk Financial Requirement (ORFR) Reserve. The Kinetic Super ORFR will also be transferred to Sunsuper and will be combined with the Sunsuper ORFR. This reserve is maintained to cover losses arising from operational risks that may affect business operations and is not part of any potential future distribution to members. You should know If you request a rollover to another super fund before the merger or leave Sunsuper after your benefit is transferred to Sunsuper, but before the Sunsuper Trustee makes any special distribution, you will not be eligible for this additional distribution. 22

25 What the limited service period means for you To facilitate the transfer of member benefits to Sunsuper, transactions in will be limited from 27 April 2018 until the merger. During this limited service period, there will be limited processing of the following changes or transactions by : General account updates, including changes to name and contact details, nomination of beneficiaries or the nomination of a third-party authority; Insurance changes; Investment switches; Employer contributions, contributions received from you or on your behalf (personal contributions) including spouse contributions; Contribution splits; Full and partial withdrawals, whether in cash or by way of transfer to another superannuation fund (including transfers to a self-managed superannuation fund, Trans-Tasman transfers, or other super transfers); and Rollovers into your account in. Contributions during the limited service period Any contributions we accept during the limited service period that can t be allocated will be forwarded to Sunsuper for processing. Sunsuper expects contributions processing will commence from 14 May Withdrawals during the limited service period Any withdrawal requests we receive during the limited service period that can t be processed will be forwarded to Sunsuper for processing. Sunsuper expects withdrawal request processing will commence from 28 May Should the amount of withdrawal requests received by Sunsuper exceed anticipated volumes, processing of these requests may take longer than normally expected. It is anticipated by Sunsuper that normal processing for withdrawal requests will resume by 15 June Access to your account online through s Member Online Services Your Member Online Services account will be read-only from 4 May After 4 May 2018 you will not be able to make any changes via your online account, or download any information stored within your Member Online Services account. Find out more Please refer to the What s changing and what you may need to do section on page 24 for more information. and Sunsuper are merging 23

26 What s changing and what you may need to do Depending on your circumstances, there may be some actions you need to take as a result of the merger. Please read through this section carefully to ensure you re aware of any important changes and actions you may need to take before or after the merger, subject to any special circumstances that apply as per pages 29 and 30. Situation in What to do Further information Communication arrangements You haven t provided, or need to update your contact details. You have access to your Member Online Services account (including through the App). You have opted out of receiving communications electronically. Investment switches You want to switch your Investment option(s) Update your details: By logging into Member Online Services and updating your details before 4 May 2018; or Calling us on to update your details before 10 May 2018, or Completing and returning the Update your Personal Details form (available at kineticsuper.com.au) and ensuring we RECEIVE it before 10 May Send your form to: Locked Bag 5091 Parramatta NSW 2124 You need to: register for Sunsuper s Member Online after 28 May Sunsuper will provide you with your account details and instructions to register for Member Online in your Welcome information. You need to: let Sunsuper know your communication preferences after 12 May Let Sunsuper know via: Sunsuper Member Online Calling Switch your investments: By logging into Member Online Services and switching your investments before 4 May 2018; or Completing and returning the Investment Choice form (available at kineticsuper.com.au) and ensuring we RECEIVE it before 4 May Send your form to: Locked Bag 5091 Parramatta NSW 2124 Generally, your personal details, including your address, address and mobile number, will be transferred to Sunsuper on 12 May Sunsuper may communicate with you via your address or mobile number, unless you instruct them not to. You ll receive further information from Sunsuper about this in your Welcome information. What happens if I don t update my details: Sunsuper may not be able to communicate important information to you about your account. Changes RECEIVED after 10 May 2018: Will be forwarded to Sunsuper for processing. Your online account will be read-only from 4 May 2018 and deactivated on 11 May What happens if I don t register: You won t have online access to your Sunsuper account. If you ve opted out of receiving your communications electronically, your opt out will not carry over to your Sunsuper account (this includes marketing communications). What happens if I don t let Sunsuper know: Sunsuper will send communications, including marketing communications electronically, wherever possible. If you want to opt out, you will need to let Sunsuper know after 12 May What happens if I miss the 4 May 2018 deadline? Your investment switch will not be processed. As the Sunsuper investment options are different, you ll need to contact Sunsuper to make an investment switch. You can make a switch from 14 May 2018 by contacting Sunsuper on

27 Situation in What to do Further information Tax You haven t provided your Tax File Number (TFN). You want to claim a tax deduction for your personal super contributions. Contribution arrangements You make personal or voluntary contributions via direct debit or BPAY. Your spouse will be making a contribution on your behalf. Provide your TFN: By logging into Member Online Services and providing your TFN before 4 May 2018; or Calling us on before 10 May You need to: 1. Download the Notice of Intent to Claim or Vary a Deduction for Personal Contributions form at ato.gov.au 2. Complete and return this form and ensure we RECEIVE it before 8 May Send your form to: Locked Bag 5091 Parramatta NSW 2124 For BPAY you need to: cancel any personal or voluntary contributions you have in place with your banking institution via BPAY before 8 May For Direct Debit agreements you need to: SUBMIT a new direct debit request with Sunsuper by completing the Direct debit request form available at sunsuper.com.au Further instruction will be provided: Sunsuper will provide direct debit and BPAY instructions in your Welcome information. You need to: complete and return the Spouse Contribution form and cheque to (available at kineticsuper.com.au) and ensure we RECEIVE it before 7 May Send your form and cheque to: Locked Bag 5091 Parramatta NSW 2124 What happens if I don t provide my TFN? If we don t have your Tax File Number (TFN), any concessional contributions (employer SG and salary sacrifice contributions) made to your Kinetic Super account will incur extra tax of up to 34% of contributions ( No TFN tax ) and you will not be able to make non-concessional contributions to your Sunsuper account. If we don t RECEIVE your TFN before 10 May 2018, we won t be able to process a refund of any additional tax you ve paid in as a result of the No-TFN tax. Sunsuper cannot process No-TFN tax refunds for any contributions made prior to 12 May Tax deductions for any personal super contributions to your or new Sunsuper account can be claimed on up to 100% of eligible contributions in the period between 1 July 2017 to 30 June You should obtain your own taxation advice about making tax deductible contributions. We encourage you to complete and return the Notice of Intent to Claim form (in relation to any personal contributions to your account) to Kinetic Super and ensure we RECEIVE it by 8 May Refer to ato.gov.au for information about eligibility for claiming a tax deduction. Please note from 1 July 2017, tax deductions can be claimed for eligible contributions by employees (not just self-employed or substantially self-employed persons). What happens if I do not cancel my direct BPAY arrangements with my banking institution by 8 May 2018? Your BPAY payment will bounce. Your banking institution may charge a fee for bounced or redirected payments, so it is important to make sure you update your arrangements in time. What happens if I have a direct debit request agreement in place with? After 8 May 2018 we will no longer be debiting your nominated bank account on your behalf. To retain insurance cover after 12 May 2018, you need to ensure you have a minimum balance of $6,000 in your new Sunsuper account. If not, you may be at risk of having insufficient funds in your super account to maintain your insurance cover or keep your account open. What happens if doesn t RECEIVE my form in time? Any requests RECEIVED after 7 May 2018 will be forwarded to Sunsuper for processing using the unit price(s) applicable to your Sunsuper investment option(s) determined by Sunsuper at the time of processing. and Sunsuper are merging 25

28 What s changing and what you may need to do Situation in What to do Further information Contribution arrangements (continued) You want to split eligible contributions to your account during the 2017/18 financial year with your spouse. You need to: complete and return the Contribution Splitting form (available at kineticsuper.com.au) and ensure we RECEIVE it by 8 May Send your completed form to: Locked Bag 5091 Parramatta NSW 2124 If you intend on splitting your eligible contributions with your spouse for the period 1 July 2017 to 11 May 2018, will need to RECEIVE your completed Contribution Splitting form by 8 May For more information, refer to the Contribution Splitting factsheet at kineticsuper.com.au What happens if doesn t RECEIVE my request in time? Any contribution split requests RECEIVED after 8 May 2018 will not be accepted for this period. Spouse contributions splitting after 11 May 2018: From 12 May 2018, you will only be able to request a split of eligible contributions paid to Sunsuper in the financial year that follows the financial year in which they were made. You will be able to split eligible contributions paid to Sunsuper for the period 12 May 2018 to 30 June 2018 after 1 July Rollovers, withdrawals & consolidations You plan to rollover or consolidate super from another account into. You want to roll your super over from to another super fund. You ve met a condition of release and want to access (withdraw) part or all of your super from. You need to: complete the Request to Transfer form available at kineticsuper.com.au The form must be RECEIVED by before 4 May You can also: do this online at kineticsuper.com.au/findmysuper You will need to SUBMIT your online request by 4 May You need to: complete and return the form (available on request by calling ) and ensure we RECEIVE your rollover request before 4 May Send your completed application form and supporting documentation to: Locked Bag 5091 Parramatta NSW 2124 You need to: 1. Call us on to obtain a Request for Benefit Payment form. 2. Complete the form and attach supporting documentation. 3. Send your completed application form and supporting documentation, ensuring we RECEIVE it before 4 May 2018, to: Locked Bag 5091 Parramatta NSW 2124 Find out more: To find out more about the conditions of release, see the Transferring & Withdrawing your Benefit factsheet available at kineticsuper.com.au What happens if doesn t RECEIVE my request in time? Any requests RECEIVED after 4 May 2018 (paper or online) will not be accepted and you will need to make a new request with Sunsuper using the form available at sunsuper.com.au Important: Before making a decision to transfer your super to another fund, it s important to compare the features, benefits and costs of both the super funds, including any insurance cover and investments they offer. You may wish to obtain financial advice from a licensed financial adviser that takes into account your personal situation. What if doesn t RECEIVE my rollover request in time? Any requests RECEIVED after 4 May 2018 will be processed by Sunsuper using the unit price(s) applicable to your Sunsuper investment option(s) determined by Sunsuper at the time of processing. Important: will cease issuing cheques from 27 April Any completed requests RECEIVED after 27 April 2018, will not be eligible for a cheque payment. All payments will be made via EFT to an Australian bank account. What if doesn t RECEIVE my withdrawal request in time? Any requests RECEIVED after 4 May 2018 will be processed by Sunsuper using the relevant unit price applicable to your Sunsuper investment option(s) determined by Sunsuper at the time of processing. 26

29 Situation in What to do Further information Financial hardship & other claims (including insurance) You want to claim your super under financial hardship. You already have a financial hardship claim in progress. You want to access benefits less than $200 on terminating gainful employment. You have a complaint, litigated claim, insurance application, insurance claim or family law matter in progress. You need to: 1. Call us: on to check if you re eligible to claim. 2. If you re eligible: complete the application form and return it to us with your supporting documentation and ensure we RECEIVE it before 13 April Send your completed application form and supporting documentation to: Locked Bag 5091 Parramatta NSW You need to: ensure all relevant supporting documentation has been provided so that the claim can be finalised prior to 11 May Send your supporting documentation to: Locked Bag 5091 Parramatta NSW You need to: complete and return the Request for Benefit Payment form (available on request by calling ) and ensure we RECEIVE it before 4 May Send your completed form and supporting documentation to: Locked Bag 5091 Parramatta NSW You don t have to do anything: we will endeavour to finalise such matters prior to 11 May Any insurance applications and claims in progress on 11 May 2018 will continue to be assessed by the relevant Insurer. Financial hardship claims: If you need to lodge a financial hardship claim, you ll need to do so before 13 April Any new financial hardship claim requests RECEIVED after 13 April 2018 will not be accepted. Sunsuper don t offer financial hardship payments. All financial hardship claims must be finalised and paid by 11 May 2018, otherwise they will be rejected and won t be processed. Important: will cease issuing cheques from 27 April Any completed qualifying requests RECEIVED after 27 April 2018 who have elected payment via cheque, will be made via EFT provided we RECEIVE EFT details before 4 May Financial hardship claims: Sunsuper don t offer financial hardship payments. All financial hardship claims must be finalised and paid by 11 May 2018, otherwise they will be rejected and won t be processed. Important: will cease issuing cheques from 27 April Any completed qualifying requests RECEIVED after 27 April 2018 who have elected payment via cheque, will be made via EFT, provided we RECEIVE EFT details before 4 May Accessing benefits less than $200 on terminating gainful employment won t be available with Sunsuper. If you intend on claiming your super as you have left your employer and have less than $200 in your Kinetic Super account, we must RECEIVE your completed application, including the relevant supporting documents by 4 May Important: will cease issuing cheques from 27 April Any completed requests RECEIVED after 27 April 2018 who have elected payment via cheque, will be made via EFT, provided we RECEIVE EFT details before 4 May What happens if doesn t receive my request in time? Any requests RECEIVED after 4 May 2018 will not be accepted. Sunsuper does not accept claims for withdrawal of preserved cash balances under $200 in the event of ceasing employment. Any matters still in progress on 11 May 2018 will be handled by the Trustee of Sunsuper. The Trustee of Sunsuper will become responsible for finalising any insurance claims and paying any insured benefits accepted by the Insurer after 11 May and Sunsuper are merging 27

30 What s changing and what you may need to do Situation in What to do Further information Third-party authorities You have a third-party authority in place (i.e. Power of Attorney, or authority for a third party to access information on your account). Beneficiaries You have a binding beneficiary nomination. You have a non-binding beneficiary nomination. You need to: SUBMIT a new third-party authority to Sunsuper after 12 May 2018, using the form available at sunsuper.com.au Further instruction will be provided: Sunsuper will provide information on nominating a third-party authority in your Welcome information. You will need to: complete and SUBMIT a new Binding beneficiary nomination form, available at sunsuper.com.au to Sunsuper after 12 May If you already have an existing Sunsuper account, special circumstances apply. See page 30. You don t need to do anything unless you have an existing Sunsuper account, in which case special circumstances will apply, see page 30. If you would like to update your non-binding nomination before 11 May 2018: You can update your non-binding beneficiary nomination online via Member Online Services before 4 May 2018, or Ensure your completed Beneficiary Nomination form (available at kineticsuper.com.au) is RECEIVED before 10 May We are legally unable to transfer a third-party authority across to another super fund. Any third-party authority, including to allow a financial planner to access your account information or for a power of attorney to give account instructions to, will lapse after 11 May Binding beneficiary nominations cannot legally be transferred between super funds. If you have a binding beneficiary nomination, it will be treated by Sunsuper as a preferred beneficiary nomination on your new Sunsuper account.* Your binding beneficiary nomination in will lapse after 11 May Your beneficiary nomination will be carried across to your new Sunsuper account as a preferred beneficiary nomination.* *A preferred beneficiary nomination will be used as a guide by the Sunsuper Trustee to determine who will receive your benefit (subject to super law). You should review your beneficiary nomination arrangements after 11 May 2018 to ensure they are appropriate for you. 28

31 Special circumstances We will identify duplicate members who have both a and Sunsuper account. These members will receive a separate communication as detailed below. I have a account and a Sunsuper account (other than a Sunsuper for life Corporate or Business account) The following applies to members who have an existing Sunsuper account (other than a Sunsuper for life Corporate or Business account) as at 12 May 2018: Insurance If you have insurance in both your and Sunsuper account, the following will apply from 12 May 2018: Your account balance and your insurance cover will be combined into your existing Sunsuper account. The amount of Death and/or TPD insurance cover you have within both accounts will be combined and any exclusions, limitations, restrictions and loadings (if any) will continue to apply. Your total combined cover will be provided as Personalised (fixed) cover (the level of cover remains the same each year, however premiums may change). Generally, your occupational category will not carry over and your existing Sunsuper occupational category will apply. If you have Income Protection cover, the benefit amount will be indexed each year and premiums will vary as a result. If you have Income Protection cover in both your accounts, the higher benefit, with the shortest waiting period and longest benefit payment period will be applied. Any insurance cover you hold will be subject to the terms and conditions, including insurance costs, under the Insurance policy applicable to Sunsuper for life members. The Insurance policy won t apply. For further details of the terms and conditions, including insurance costs, refer to the Sunsuper for life PDS and Insurance Guide. You will have an opportunity to opt out of merging your accounts and insurance. Sunsuper will write to you in April 2018 to provide further details specific to your circumstances, if you are identified as a duplicate member as at 28 February If you have a account with no insurance and a Sunsuper account with insurance, the following will apply from 12 May 2018: Your account balance will be combined into your existing Sunsuper account. You will keep your existing Sunsuper insurance cover and continue to be subject to the terms and conditions under the Insurance policy applicable to Sunsuper for life members. Sunsuper will write to you in April 2018 to provide further details specific to your circumstances, if you are identified as a duplicate member as at 28 February If you have a account with insurance and a Sunsuper account with no insurance, the following will apply from 12 May 2018: Your account balance will be combined into your existing Sunsuper account. You ll keep your existing insurance cover, premium rates (which is determined in accordance with your occupational category), exclusions, restrictions, limitations and loadings (if any). The insurance provisions currently applicable to you in will remain, except for those changes summarised on pages 9 and 10. Any insurance you hold will be subject to the terms and conditions, as outlined in the Sunsuper for life PDS for former members and Insurance Guide. Sunsuper will write to you in April 2018 to provide further details specific to your circumstances, if you are identified as a duplicate member as at 28 February You should review your insurance arrangements after the merger to ensure they are appropriate for you. Contact details Only the contact details (residential address, postal address, contact numbers and address) that have not been previously provided to Sunsuper will be carried over to your existing Sunsuper account. Otherwise your Sunsuper account contact details will remain unchanged. Fees and costs The fees and costs summarised on page 7 will apply to your existing Sunsuper account, into which your account balance will be transferred. and Sunsuper are merging 29

32 Special circumstances Investments Your account balance will be transferred into your existing Sunsuper account and will be invested in the Sunsuper investment options mapped to your existing investment options as outlined on page 8. Contributions (additions) to your Sunsuper account, processed from 12 May 2018, will be invested as per your existing Sunsuper investment choice for future contributions at or after that date. Your existing Sunsuper account balance immediately before 12 May 2018 will remain invested in your existing Sunsuper investment options. Beneficiary nominations Your beneficiary nomination (binding or nonbinding) will only carry over as a non-binding (preferred) beneficiary nomination to your existing Sunsuper account if your existing Sunsuper account does not have a valid beneficiary nomination(s) recorded at 12 May Otherwise your existing Sunsuper account beneficiary nomination(s) will apply. I have a account and a Sunsuper for life Corporate or Business account The following applies to members who have an existing Sunsuper for life Corporate or Business account as at 12 May 2018: Insurance Your account balance and insurance (if any) will be transferred to a new Sunsuper account and remain separate from your existing Sunsuper for life Corporate or Business account, meaning you will have multiple accounts in Sunsuper from 12 May Your insurance (if any) will remain unchanged and be subject to the terms and conditions outlined in the Sunsuper for life PDS for former members PDS and Insurance Guide, which includes the changes summarised on pages 9 and 10, from 12 May Your Sunsuper for life Corporate or Business account insurance (if any) will remain unchanged and be subject to the terms and conditions applicable to your Sunsuper for life Corporate or Business account. You should review your insurance arrangements after the merger to ensure they are appropriate for you. Contact details Only the contact details (residential address, postal address, contact numbers and address) that have not been previously provided to Sunsuper will be carried over to your Sunsuper accounts from 12 May Otherwise your Sunsuper contact details will remain unchanged. Fees and costs The fees and costs summarised on page 7 will apply to the new Sunsuper account from 12 May The fees and costs applicable to your (separate) existing Sunsuper for life Corporate or Business account will remain the same. It is important to note, the $800,000 account balance threshold (see page 7) does not apply to balances aggregated across multiple accounts in Sunsuper. Investments Your new Sunsuper account will be invested in the Sunsuper investment options mapped to your existing investment options as outlined on page 8. The investments applicable to your Sunsuper for life Corporate or Business account will remain unchanged. Beneficiary nominations Your beneficiary nomination (binding or nonbinding) will carry over as a non-binding (preferred) beneficiary nomination to your new Sunsuper account. Your beneficiary nominations for your Sunsuper for life Business or Corporate account (if valid and effective) will remain unchanged and continue to apply to that account. You need to know Any members who become duplicate members after 28 February 2018, will be communicated to by Sunsuper in June 2018 after the merger is complete. 30

33 Checklist The below checklist outlines the key situations where you may need to take some actions before or after the merger, depending on your circumstances. Special circumstances may apply in some situations, see pages 29 and 30. Situation Yes No You need to: I have a binding beneficiary nomination. See page 28 I want to switch my Investment option(s). See page 24 I haven t provided my Tax File Number (TFN). See page 25 I want to claim a tax deduction for personal super contributions. See page 25 I want to claim some of my super under financial hardship. See page 27 I want to split eligible contributions with my spouse. See page 26 I make personal or voluntary co-contributions via direct debit or BPAY. See page 25 I have a third-party authority in place for a third party to access my account information. See page 28 I haven t provided / need to update my details. See page 24 I ve opted out of receiving communications electronically. See page 24 I want to access benefits less than $200 on terminating gainful employment. See page 27 and Sunsuper are merging 31

34 Where you can find out more Member Online Services Member Online Services is the quickest and easiest way to view your current account details, switch your investments, update your contact details and provide your TFN before we merge. Log in or register for Member Online Services at kineticsuper.com.au Transition information Members with special circumstances will generally receive transition information in April 2018 from Sunsuper. Welcome information In June 2018 you ll receive your Welcome information from Sunsuper, which provides full details about your new Sunsuper account and the benefits you can access as a Sunsuper member. Website We ve prepared a dedicated website for the merger to help keep you up-to-date and informed every step of the way. Check it out at sunsuper.com.au/kinetic-super Contact centre If you ve got any questions about the merger, or simply feel more comfortable making updates and changes over the phone, you can always give us a call on Don t want to move to Sunsuper? We re confident merging with Sunsuper is the right thing to do for our members. But we understand not everyone will be comfortable with the changes. If you don t want your benefit transferred to Sunsuper, you ll need to roll your super out of to a new super fund of your choice or claim your benefit (if eligible). If you choose to roll out or withdraw your super from, you need to ensure we RECEIVE your completed request and required paperwork before 4 May If you need more information call us on

35

36