Retirement Benefits Fund Fact sheet. Questions & answers about the State Fire Commission Superannuation Scheme

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1 Retirement Benefits Fund Fact sheet Questions & answers about the State Fire Commission Superannuation Scheme

2 IMPORTANT NOTE: This information is for members of the State Fire Commission Superannuation Scheme (SFCSS) who want further information about their scheme. If this information does not relate to you, contact RBF and request information appropriate for your membership. General questions What are the main differences between SFCSS and TAS? SFCSS is a defined benefit scheme, meaning that it combines elements of defined benefit and accumulation scheme design. Your primary superannuation benefit in SFCSS is calculated using a formula outlined in the SFCSS Trust Deed. Under the SFCSS Trust Deed, it is compulsory for both you and your employer to contribute to your super. The Tasmanian Accumulation Scheme (TAS) is an accumulation scheme. This means that your contributions plus any investment earnings that you accumulate during your working life will become your superannuation benefit. Your employer is required to contribute to your super. You may choose whether to make contributions. Members of TAS may also choose how their money is invested. Members of either scheme have the same choices at retirement. You can take a lump sum, retain savings in your TAS account or start an RBF Allocated Pension to provide income in retirement. Do I have to leave SFCSS? No, you do not have to leave the scheme. Each member can choose whether they wish to remain a member of SFCSS, provided they remain employed by the Tasmanian Fire Service (TFS). You may opt out of SFCSS at any time. What happens is I stay in SFCSS? There will be no change to your current situation. The contributions currently being made by your employer will continue. You will still be required to contribute 5% of your salary to the scheme. Your benefit will continue to accrue under the SFCSS Trust Deed. 2

3 What happens if I transfer to TAS? Your employer will contribute 9% of salary per annum into your TAS account. If you transfer to TAS before 14 December 2009, your employer will also contribute 5% pa productivity contributions to your TAS account. If you transfer to TAS after 14 December 2009, your employer will contribute 3% pa productivity contributions to your TAS account. You can make personal contributions or salary sacrifice into your TAS account. These employer contribution rates are based on information contained in the Deed of Release. 3

4 How do I transfer to TAS? To transfer from SFCSS to TAS under the current proposal you will need to complete and sign the Deed of Release and provide it to the Chief Officer by close of business hours 14 December Information is available to help you choose How should I use my RBF estimates to make my decision? Any benefit estimates provided by RBF are for general information only and have been prepared without taking into account your objectives, financial situation or needs. No matter which scheme you are in, any changes to your contribution strategy, investment earnings, tax legislation etc between now and your retirement will affect your final benefit. Which is better for me in the long term TAS or SFCSS? Thereʼs no simple answer everyoneʼs circumstances are different. Should I see a financial planner? RBF strongly recommends you see a financial planner with an understanding of both schemes and therefore able to provide you with a detailed comparison. By contacting RBF you can request financial advice from RBF Financial Planning. All advisers are licensed authorised representatives of RBF Financial Planning Pty Ltd, hold formal qualifications in financial planning and have extensive experience in superannuation. 4

5 Contributions What contributions are currently being made to my super? Currently, your employer contribution to SFCSS is equal to 11% of salary, with a further 3% productivity payment to your account in TAS. You must contribute 5% to SFCSS (as personal contributions or salary sacrifice). This contribution is compulsory. You may also make additional contributions to your TAS account using either personal contributions or salary sacrifice. What contributions will be made if I transfer to TAS? If you transfer to TAS before 14 December 2009 the employer contribution will increase to 14% of salary. This will be made up of a 9% Superannuation Guarantee contribution and a 5% productivity contribution. You may also make additional contributions to your TAS account using either personal contributions or salary sacrifice. The 5% that you currently contribute to SFCSS will be re-directed to your TAS account. Your contribution method will remain unchanged. This contribution is not compulsory and you can vary the contribution amount at any time. You can make both personal contributions and salary sacrifice into your TAS account. What fees are you paying? What fees do I pay in SFCSS? No fees are payable by the member. The scheme pays all fees. Generally, the level of fees does not affect the benefits paid by the scheme. What fees will I pay in TAS? TAS members pay only two fees an administration fee and an investment management fee. Each investment option has a different investment management fee. Information about the investment management fees is available on the RBF website, or from RBF on request. The administration fee structure is tiered. Members pay 0.45% per annum on the first $150,000 balance in their account with a reduced fee of 0.20% per annum payable on the balance above $150,000. 5

6 More information about TAS Do TAS members have Member Investment Choice (MIC)? All members of TAS have MIC. With MIC you can choose an investment strategy to suit your needs. TAS offers a broad range of investment options with different levels of projected risk and return. You can choose to invest in one investment option or create your own portfolio by choosing a number of options. Different investment options are needed because not all members are best served by a ʻone-size-fits-allʼ approach. If you do not choose an investment option, your account balance will be allocated to the RBF Actively Managed investment option. This is RBFʼs default investment option. You can find out more about each investment option from the RBF website, RBF brochures or by speaking with RBFʼs friendly and helpful staff. If you are unsure which option suits your investment needs, you should consider talking to a financial planner. If you would like financial advice, please call to arrange an appointment with a financial planner from RBF Financial Planning Pty Ltd. Will I get death and disability insurance with TAS? Yes, TAS includes an insurance component that you can vary to suit your needs. Your insurance includes temporary incapacity, permanent incapacity and death cover. Members of TAS are required to pay for their insurance cover. Contact RBF if you require any further information. 6

7 Accessing super savings Can I access the unrestricted non-preserved (UNP) component of my benefit? RBF Membership Statements produced before 30 June 2009 have incorrectly reported an unrestricted non-preserved component. The actual unrestricted non-preserved component available to you as an ongoing TFS employee would have been much lower or even zero. This reporting has led to confusion for some members. The 2009 Membership Statement reports correct components for your benefit as at the date of the statement. Will changing my super scheme make any of my benefit accessible? No. If you have a restricted non-preserved component, this will become accessible if you leave TFS. The remainder of your super is subject to preservation rules. More information about accessing your super can be found on the RBF website,, or on request from RBF. Where can I get more information? When you need to know more about your super, simply phone RBF weʼre here to answer your queries. Only at RBF can you speak with staff trained and up-to-date with RBFʼs superannuation scheme rules. We also understand that sometimes a phone call is not enough. If so, we will arrange an appointment to answer your questions about super, in person. Our specially trained staff are willing to devote time to provide you with the necessary information to help you understand your super before you need to make a decision. Important Information This fact sheet contains general information only. It is not intended to be, and should not be relied upon as legal, financial or other advice. It has been prepared without taking into account your personal objectives, financial situation or needs. You will need to consider whether this information is appropriate to your circumstances. We recommend that you talk to a financial adviser and read any relevant RBF documentation before making a decision. Every care has been taken in providing accurate and up-to-date information in this fact sheet. However, things may have changed since this fact sheet was published and some of the information may no longer be correct. If there are mistakes or omissions in the information, we reserve the right to correct those errors or omissions. The governing rules of RBF will prevail over any misstatement in this fact sheet. Need help? Contact one of our RBF Superannuation Consultants to discuss your personal situation or to arrange an appointment. And if you need advice, they will refer you to a financial planner with RBFʼs financial planning company, RBF Financial Planning Pty Ltd. 7

8 Contacting RBF Visit: Phone: or (if youʼre calling from overseas) Fax: Write: RBF, Reply Paid 446 HOBART TAS 7001 Office: 39 Sandy Bay Road Hobart Level1/87 George Street, Launceston RBF Financial Planning Pty Ltd (ABN , AFS Licence No ) is a wholly owned subsidiary of RBF and operates as a separate legal entity. Issued by Retirement Benefits Fund Board ABN as Trustee for Retirement Benefits Fund (RBF) ABN , SF/S/ (V1-09/09) 8