Bankwest Staff Superannuation Plan

Transcription

1 Bankwest Staff Superannuation Plan Employees and Retained Benefit members Product Disclosure Statement dated 1 July Contents 1. About the Bankwest Staff Superannuation Plan Page 1 2. How super works Page 1 3. Benefits of investing with the Bankwest Staff Superannuation Plan Page 2 4. Risks of super Page 2 5. How we invest your money Page 3 6. Fees and costs Page 4 7. How super is taxed Page 5 8. Insurance in your super Page 5 9. How to open an account Page 7 This Product Disclosure Statement ( PDS or Statement ), is a summary of the main features of the Employees section and the Retained Benefit section of the Bankwest Staff Superannuation Plan. It contains a number of references to important information which is contained in the Member Information Booklet and forms part of this PDS. You should consider the information in this PDS and that in the Member Information Booklet before making a decision about the Bankwest Staff Superannuation Plan. The information provided in this PDS is general information only and does not take into account your individual objectives, financial situation or needs. Because of this, before acting on the information you should consider its appropriateness, having regard to your objectives, financial situation and needs. You should obtain financial advice tailored to your personal circumstances. You can get a copy of this PDS and the important information at superfacts.com or by calling the Helpline on from 8am to 7pm AEST Monday to Friday. The information contained in this PDS and the important information may change from time to time. If there is a material change we will tell you as required by law. For all other changes, you can get up to date information at superfacts.com or by calling the Helpline for a copy of that information free of charge. If you have any questions about your super, contact us at: Mercer Superannuation (Australia) Limited ABN GPO Box 4303 Melbourne VIC 3001 Helpline Or visit superfacts.com 1 About the Bankwest Staff Superannuation Plan The Bankwest Staff Superannuation Plan ( the Plan ) is a registered superannuation fund. It is made up of a number of sections including: the Employees section the Retained Benefit section, the Pension section, and the Spouse section. If you are an Employee, your employer provides superannuation (super) and insurance benefits through the Plan. Your employer means Commonwealth Bank of Australia and any associated employer. The Plan also provides the Retained Benefit section for Employees who stop working for the employer or exercise choice (see below for details). The Plan operates under Government legislation and the Trust Deed which sets out the governing rules for the Plan. Mercer Superannuation (Australia) Limited (MSAL) is the Trustee of the Bankwest Staff Superannuation Plan and issues this PDS and the important information that is part of this PDS. In this PDS, MSAL is called Trustee, we or us. 2 - How super works Super is a means of saving for retirement which is, in part, compulsory and is supported by tax savings that are provided by the Government. For most employees, employers are required to pay an additional tax if they fail to contribute at least 9% of the employee s ordinary time earnings to a superannuation fund. These contributions are called Superannuation Guarantee (SG) contributions. Under choice of fund legislation, most employees can choose a fund for their employer s SG contributions (this is called exercising choice ). But if the employee doesn t make this choice, their SG contributions are paid to the employer s default fund. The Plan is your employer s default fund. Different types of contributions can be made to the Plan including: employer contributions including SG contributions, contributions from your before-tax pay (salary sacrifice) or your after-tax pay, spouse contributions, and Government contributions including cocontributions. If you are an Employee, your employer pays at least SG contributions to the Plan for you. You can put extra money into your super from your pay call HR Connect on to find out how to do this. If you are a Retained Benefit Member, the Plan can accept contributions on behalf of you from any person that employs you. There are rules about, and limitations on, contributions to superannuation and when you can be paid your benefit. You can find more information at This PDS is only applicable to Employees and Retained Benefit Members of the Bankwest Staff Superannuation Plan (the Plan) ABN and is issued by Mercer Superannuation (Australia) Limited ABN , Australian Financial Services Licence # as Trustee of the Bankwest Staff Superannuation Plan ABN The Bankwest logo is a trademark of Bank of Western Australia Ltd ABN which is not responsible for the issue of this PDS nor does it make any recommendation regarding the Plan or guarantee the investment performance, earnings or the return of any capital invested in it.

2 contributions and the payment of benefits in the How super works section of the Member Information Booklet before making a decision. The material relating to contributions in the Plan may change between the time when you read this Statement and the day when you acquire this product. 3 Benefits of investing with the Bankwest Staff Superannuation Plan As a member of the Bankwest Staff Superannuation Plan you can enjoy benefits like: competitive fees on-line access to your super details access to interactive planning tools at superfacts.com newsletters (including investment updates), and a helpline to answer many of your questions about your super. As well, there are eight investment options to help you to reach your wealth goals in a tax effective superannuation environment. the significant features and benefits of the Plan in the Benefits of investing with the Bankwest Staff Superannuation Plan section of the Member Information Booklet before making a decision. The material relating to how the Plan works may change between the time you read this Statement and the day when you acquire this product. Receiving your benefits The amount of your benefit is your account balance. And if you have insurance cover, your insured amount will also be paid if you become totally and permanently disabled or on your death. When you exercise choice or leave your employer then you need to tell the Trustee where you would like your super paid. If your account balance is at least $15,000, you may elect to join the Retained Benefit section of the Plan or another approved superannuation arrangement. If you don t give the Trustee any instructions in 60 days, then your super will be transferred to the Retained Benefit section of the Plan and you will become a Retained Benefit member. This means you will continue to enjoy the benefits of being a member of the Plan. If your account balance is less than $15,000 and you don t give the Trustee any instructions in 90 days, then your super will be transferred to the Plan s Eligible Rollover Fund. Retained Benefit members may request that their super account be transferred to another super fund at anytime and close their account in the Plan. receiving your benefits and the Retained Benefit section of the Plan in the Benefits of investing with the Bankwest Staff Superannuation Plan section of the Member Information Booklet before making a decision. The material relating to how the Plan works may change between the time you read this Statement and the day when you acquire this product. 4 Risks of super There are a number of general risks to be aware of including the risk that superannuation laws may change in the future which may affect when you can be paid your super or the tax effectiveness of your super the amount of your future superannuation savings (including contributions and returns) may not be enough to provide adequately for your retirement needs your employer may decide to vary its contribution to the Plan, amend your plan or even close it at some point in the future fees, charges and premiums may increase from time to time which may affect your account balance your insurance cover may stop if you do not have enough money in your account to meet the monthly premium All investments, including super, carry some level of risk. Different investment options may carry different levels of risk depending on the assets that make up that investment option. Assets with the highest long term return may also carry the highest level of short term risk. You should be aware that: the value of investments in the investment options will vary (i.e. rise and fall) the level of returns for each investment option will vary and future returns may be different to past returns investment returns are not guaranteed and you may lose some of the money you have invested, and the level of risk that is acceptable to you may vary depending on a range of factors such as your age, your investment time frame, where other parts of your wealth are invested and your risk tolerance. The investment options in the Plan have specific investment risks. These may include: market risk of major movements across a particular asset class inflation risk that your money fails to maintain its purchasing power due to inflation timing risk, timing issues may result in you making or liquidating an investment at an unfavourable price investment manager risk that a particular investment manager will underperform 2

3 currency risk that overseas investments gain or lose value as a result of a falling or rising Australian dollar. individual asset risk attributable to individual assets within a particular asset class. investment risks in the About risk sub-section of the How we invest your money section of the Member Information Booklet before making a decision. The material relating to understanding investment risk may change between the time when you read this Statement and the day when you acquire this product. 5 - How we invest your money Your can choose from any one or a combination of the following investment options: Option A Option B Option C Option D Option E Australian Shares Option International Shares Option Shares Option By selecting one or more of the eight investment options, you are investing your super in a set mix of shares, property, fixed interest, cash and other types of assets. The mix of assets in the option that you choose will determine the level of risk and earnings that you could expect in your super. The How we invest your money section of the Member Information Booklet tells you all about these investment options. Warning: When choosing an investment option, you must consider the likely return of the investment option, the risks of the investment option and your investment timeframe. If you are an Employee and you don t make a choice, your super will be automatically invested in Option C, the default investment option for the Plan. If you are a Retained Benefit member, your super will continue to be invested in the same investment options that applied while you were an Employee or a Spouse member (as applicable). About Option C... Description This option invests in both growth assets (predominantly made up of Australian shares with some exposure to Overseas shares and Property) and defensive assets (predominantly made up of fixed interest investments). It is designed for members who can tolerate a low to medium level of risk over 4 years. Objective The broad investment aim is to maximise longterm investment returns, subject to constraints aimed at containing fluctuations in returns to moderate levels on a year-to-year basis. Option C aims to earn returns after tax and fees that exceed inflation increases (as measured by the change in the CPI) by at least 2% pa over rolling five year periods. Option C aims to outperform on an after-tax and fees basis, the notional return on the benchmark portfolio over rolling one, three and five year periods. Investment strategy Asset Class Range % Benchmark % Australian Shares Overseas Shares (a) Property Growth Alternatives Total Growth Assets Defensive Alternatives Diversified Fixed Interest (b) Cash Total Defensive Assets (a) May include hedging of foreign currency to Australian dollars (b) Foreign currency normally hedged to Australian dollars The range indicates the minimum and maximum amounts allowed for each asset class. The benchmark is the expected long-term asset allocation for the option. Minimum suggested timeframe 4 years Standard risk measure Low to Medium means that between 1 and 2 annual negative returns are expected over any 20 year period. investments in the How we invest your money section of the Member Information Booklet before making a decision. This tells you about: the Plan s the investment options; how to change your investment options (called switching investment options); how we can change the investment options; the extent to which labour standards or environmental, social or ethical considerations are taken into account The material relating to how we invest your money may change between the time when you read this Statement and the day when you acquire this product. 3

4 6 Fees and costs DID YOU KNOW? Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser. TO FIND OUT MORE If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website ( has a superannuation fee calculator to help you check out different fee options. The table below shows the fees and costs that you may be charged in the Plan for the Option C investment option, the default investment option for the Plan. These fees and costs may be deducted from your super account balance, from the returns on your investment or from the Plan as a whole. The information in the table can be used to compare costs between different superannuation products. Fees when your money moves in or out of the Plan Establishment fee Contribution fee Withdrawal fee Termination fee Nil. Nil. $ for your final payout and $69.57 for any partial payout. For executive members, any withdrawal fee in respect of your final payout, any partial payouts or due to a contribution split is currently reimbursed by your employer. Nil. Management Costs The fees and costs for managing your investment An estimated administration fee of $210 pa^, together with an estimated investment management fee range of between 0.47% % pa and an estimated performance fee range of between 0.00% % pa of your account balance. Service Fees Switch fee Nil. A Family Law fee and a No-TFN tax refund fee may also apply. See the Fees and costs section of the Member Information Booklet for further details. Example of annual fees and costs for the Option C investment option This table gives an example of how the fees and costs in the Option C investment option in the Plan can affect your superannuation investment over a 1 year period. You should use this table to compare this product with other superannuation products. Example the Option C Investment Option Balance of $50,000 with total contributions of $5,000 during year Contribution Fees* 0% For every $5,000 you put in, you will be charged $0. PLUS Management Costs Between 0.47% to 0.72% * plus $210^ And, for every $50,000 you have in the fund you will be charged between $235 and $360 each year plus $210 ^ each year as an estimated administration fee regardless of your balance. EQUALS Cost of fund If you put in $5,000 during a year and your balance is $50,000, then for that year you will be charged fees of: Between $445 and $570 What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser. * If you leave the Plan, you will also be charged a withdrawal fee of up to $ ^ This is the estimated administration fee - the final fee is expected to be in the range of $190 to $240 per annum. For executive members, this fee is currently reimbursed to your super account by your employer. You may wish to use the calculator provided by ASIC on its moneysmart website ( to calculate the effect of the fees and costs on your super account balance. 4

5 Fee changes The indexed fees as at 1 January 2012 are set out in this document. The next indexation will occur on 1 January The Trustee also has the right to change fees at any time, without your consent. We will give you at least 30 days written notice of any such increase in fees except in the case of the administration fee see Fee increases in the Fees and costs section of the Member Information Booklet for more fees and costs including information about the fees and costs of each investment option in the Plan in the Fees and Costs section of the Member Information Booklet before making a decision. The material relating to the fees and costs may change between the time when you read this Statement and the day when you acquire this product. 7 How super is taxed Superannuation is generally taxed at three stages: Contributions paid into a super fund Tax on contributions is deducted from your super account. Employer contributions (including SG employer contributions) and salary sacrifice contributions are generally taxed at 15%*. The tax is paid on your net contributions after deducting relevant fees and the relevant part of insurance premiums. After-tax contributions are generally tax free. There are limits on the amount of contributions that are concessionally taxed or tax free. The Trustee pays the 15% contribution tax to the Australian Tax Office. * The Government has announced that an additional tax will apply to contributions for higher income earners from 1 July Super payouts from a super fund Super payouts from the Plan may be taxed if your age is less than 60. Once you turn 60, generally no tax applies to super payouts (although tax may be payable on some death payouts). Any tax payable is deducted from your super payout before it is paid to you. Different rules may apply if you are not an Australian or New Zealand citizen or permanent resident. The Trustee pays any tax it deducts from super payouts to the Australian Tax Office. Investment income of a super fund Investment earnings are generally taxed at 15% and this tax is deducted from investment earnings before the unit price is determined. The Trustee pays the tax on investment income directly to the Australian Tax Office. Warning: Limits apply to the amount of contributions that are concessionally taxed or tax free in any financial year. These limits are called contribution caps. It is important to be aware that additional tax may be payable if these contributions caps are exceeded in a financial year. Warning: It is important that you provide the Trustee with your Tax File Number (TFN) when you join the Plan. If the Trustee does not have your TFN: the Trustee will only be able to accept employer contributions (including salary sacrifice contributions) made for you. No other contributions can be accepted including non-concessional and Government co-contributions; you will pay higher tax on employer contributions (including salary sacrifice) made for you; and you may pay more tax than you need to on your super payout. tax and super in the How super is taxed section of the Member Information Booklet before making a decision. The material relating to tax and super may change between the time when you read this Statement and the day when you acquire this product. 8 Insurance in your super If eligible, the insurance cover generally available under the Plan is: death (including terminal illness) and total and permanent disablement (TPD) cover. On joining the Plan, Employees can choose their amount of death and TPD cover by completing Step 4 of the Application Form for You can change your level of cover at anytime by completing and returning the Adjusting your insurance cover form available from the Plan s website: superfacts.com or by calling the Helpline on All Employees and Retained Benefit members can cancel their insurance cover (basic or voluntary) at anytime by making this request in writing and sending it to the Trustee at: The Plan Administrator Bankwest Staff Superannuation Plan GPO BOX 4303 MELBOURNE VIC 3001 The Trustee will then forward this request to the insurer on behalf of you and you will receive written confirmation from the Trustee once your insurance cover is cancelled. Insurance premiums will also stop being deducted from your super account from the same date. 5

6 Permanent Employees working 10 hours or more a week Permanent Employees working 10 hours or more a week are eligible to choose any dollar amount of basic death cover. Permanent Employees working 15 hours or more a week may also choose basic TPD equal to their chosen basic death cover (subject to the Plan s maximum TPD limit of $2 million). However on and from age 56, your TPD cover reduces by 10% each year to nil at age 65. Please note that the insurer may require satisfactory evidence of good health, salary details and other evidence before providing full basic insurance cover. If you don t make a valid choice when you join the Plan, you will be provided with the default level of death cover according to the age table below and where applicable TPD cover equal to this (with the reduction from age 56 continuing to apply). Age on joining the Plan Default Death cover Under 55 $400,000 Between 55 and 60 $250,000 From 60 to 64 $100,000 On and from 65 $0 The cost of basic death and TPD cover depends on your age and the amount of your insurance and ranges from $0.28 and $9.14 for every $1,000 worth of insurance cover you have. The cost of basic insurance cover is deducted monthly from your super account. Permanent Employees working less than 10 hours a week and Casual Employees Permanent Employees working less than 10 hours a week and Casual Employees are not eligible for basic death or basic TPD cover (and have no default cover under the Plan) but can apply for voluntary death insurance cover. The amount applied for must be a multiple of $50,000 and is subject to a maximum of $300,000. The cost this cover depends on your age and the amount of insurance cover you are applying for, it ranges from $0.29 and $3.42 for every $1,000 worth of insurance cover. The cost of this cover is deducted monthly from your super account. Retained Benefit members Retained Benefit members are not eligible for basic death or basic TPD cover. However, if you have become a member of the Retained Benefit section as a result of stopping work with your employer, then any death insurance cover you had as an Employee will automatically continue in Retained Benefit section. If you were declined for death cover, or had no death cover immediately prior to becoming a Retained Benefit member, you will not be provided with any death cover on joining the Retained Benefit section of the Plan. You can apply for death cover in the Retained Benefit section at anytime. The amount applied for must be a multiple of $50,000 and is subject to a maximum of $300,000. The cost this cover depends on your age and the amount of insurance cover you have or are applying for (as applicable), it ranges from $0.29 and $3.42 for every $1,000 worth of insurance cover. The cost of this cover is deducted monthly from your super account. Warning: The insurance premiums for the default death and TPD cover for Employees and any death cover automatically continued on transfer to the Retained Benefit section will be deducted from your super account until your application to cancel this cover is accepted by the Trustee (as described earlier in this section). Please note that the insurer will require satisfactory evidence of good health, salary details and other evidence before providing voluntary death insurance cover. Warning: The important information about: your eligibility for insurance cover in the Plan; and the terms, conditions and exclusions applicable to the insurance cover in the Plan, may affect your entitlement to insurance cover and should be read before deciding whether the insurance cover available in the Plan is appropriate for you. insurance in the Insurance in your super section of the Member Information Booklet including: are you eligible for insurance cover? the amount and cost of your insurance cover key insurance terms, conditions and exclusions before making a decision. Go to: superfacts.com for more The material relating to your insurance cover may change between the time when you read this Statement and the day when you acquire this product. 6

7 9 How to open an account Opening an account in the Plan is simple. Make sure you read all the information in this PDS and the important information referred to in the PDS. Then following the steps below, complete the Application Form for Employees (which accompanies this PDS) and return it to your employer at: Bankwest HR Connect Head Office: Level 13 D Bankwest Place 306 Murray Street Perth WA 6000 Postal Address: GPO Box E237 Perth WA 6841 Phone: Fax: (08) Note Retained Benefit members do not need to complete an application for membership form. If you wish to alter your contact details, switch investment options or apply for or change any insurance cover, should call the Helpline on Employees, here s what you need to do... Step 1 Provide your personal details Complete Step 1 of the Application Form for Step 2 Do you want to contribute to your super? You can make additional contributions at any time. Those contributions can be made out of your after-tax pay or from your before tax pay (with prior employer approval). You can also make lump sum contributions and transfer money from other super funds to the Plan. Decide if you want to contribute to your super, then complete Step 2 of the Application Form for Step 3 - Choose your investment options As a Plan member, you can choose from one or a combination of the eight different investment options available through the Plan. Decide which investment option(s) you want to invest your super in, then complete Step 3 of the Application Form for Step 4 Insurance cover As a Plan member, you may be eligible for basic insurance cover or you may be eligible to apply for insurance cover. Decide the type and how much insurance cover you d like then complete Step 4 of the Application Form for Step 5 Nominate your beneficiaries If you die while a member of the Plan, to whom would you like your super to go? Decide if you want to make a nomination of beneficiaries, then complete Step 5 of the Application Form for Remember that any nomination you make is not binding on the Trustee. Step 6 Provide your tax file number Complete Step 6 of the Application Form for Step 7 - Once you ve made your decisions, you can complete and sign your Application Form for If you don t fill out the Application Form for Employees It s important that if you have decided to join the Plan, you read this PDS and the Member Information Booklet. Take the time to follow the steps above, complete and sign the Application Form for Employees and return it to your employer: If you don t complete, or incorrectly complete, Step 3 of the Application Form for Employees, the Trustee won t know which investment option you d like your account invested in. This means your account balance will be invested in the default option which is Option C. You can change this at anytime, by completing and returning a Changing your investment options in the Bankwest Staff Superannuation Plan form. This form is available from the Plan s website: superfacts.com or by calling the Helpline on to obtain a copy. The Helpline can also assist if you need more information about changing your investment options after joining the Plan, If you don t complete, or incorrectly complete, Step 4 of the Application Form for Employees, you will be provided with the default level of basic insurance cover (if you are permanent employee working 10 hours or more a week) or you will not be provided with any insurance cover (if you are a permanent employee working less than 10 hours a week or a casual employee). If you don t complete, or incorrectly complete, Step 5 of the Application Form for Employees, the Trustee won t know which of your dependants you would like your super to go to if you die while a member of the Plan. In this case, the Trustee will determine who will receive your death benefit without consideration of your wishes. If you don t complete, or incorrectly complete, Step 6 of the Application Form for Employees, you may pay more tax than you need to and some contributions cannot be accepted into the Plan. Please note that if you do not return a completed Application Form for Employees or advise your employer of another superannuation fund to which you would like your SG contributions paid, you will automatically become a member of the Plan. 7

8 Enquiries and Complaints The Trustee has a process in place for dealing with any enquiries or complaints you may have. If you have any enquiries or complaints you can: call the Helpline on or write to the Plan s Enquiries and Complaints Officer Bankwest Staff Superannuation Plan c/o Mercer Superannuation (Australia) Limited GPO Box 4303 Melbourne VIC 3001 While you can expect a reply to your enquiry within 28 days, a period of up to 90 days can be experienced for complaints. If you have a complaint and you re not satisfied with the response, you can request that the Complaints Officer pass on your complaint to the Trustee s Complaints Committee for a formal reconsideration. While you can expect a decision from the Complaints Committee within a further 45 days, again sometimes the maximum period of 90 days is experienced. The Trustee always seeks to resolve any complaints to the satisfaction of all concerned and in the best interests of all the members of the Plan. However, if you have made a complaint and, after at least 90 days, are not satisfied with the outcome, you may take your complaint to the Superannuation Complaints Tribunal. The Tribunal is an external dispute resolution system that covers complaints by members of super funds. Any complaints must be lodged with the Tribunal within certain time limits. For more information about requirements and time limits, you can contact the Superannuation Complaints Tribunal at: Locked Bag 3060 GPO Melbourne VIC 3001 or phone them on or fax them on (03) or them at info@sct.gov.au or visit their website at If the Tribunal accepts your complaint, it will try and help you and the trustee reach a mutual agreement through conciliation. If conciliation is unsuccessful, the complaint is referred to the Tribunal for a determination. 8