Report to Members SuperTrace Eligible Rollover Fund. 30 June 2013

Transcription

1 Report to Members SuperTrace Eligible Rollover Fund 30 June 2013

2 Abbreviations Account AFSL APRA ATO CBA CMLA CMS we, us or our CFSIL CFSPL DHS ERF Member, you PDS Policy RSEL SIS SuperTrace/ the Fund TFN Group A Member s account in SuperTrace Australian Financial Services Licence Australian Prudential Regulation Authority Australian Taxation Office Commonwealth Bank of Australia ABN AFSL The Colonial Mutual Life Assurance Society Limited ABN AFSL Colonial Mutual Superannuation Pty Ltd ABN AFSL Colonial First State Investments Limited ABN AFSL Colonial First State Property Limited ABN Department of Human Services Eligible Rollover Fund A person with an Account Product Disclosure Statement The investment policy issued by CMLA Registrable Superannuation Entity Licence Superannuation Industry (Supervision) Act 1993 and the Regulations SuperTrace Eligible Rollover Fund ABN Tax File Number Commonwealth Bank of Australia and its subsidiaries This Report To Members is issued by Colonial Mutual Superannuation Pty Ltd ABN AFSL , trustee of SuperTrace Eligible Rollover Fund ABN CMS, CMLA, CFSIL and CFSPL are wholly owned subsidiaries of CBA. The Group (except to the extent expressly stated otherwise in this Report) do not guarantee, or in any way stand behind, the performance of SuperTrace or the repayment of capital or interest by SuperTrace. Investments in SuperTrace are not deposits or other liabilities of CBA (other than CMLA or CMS) and investment type products are subject to investment risk including possible delays in payment of benefits and loss of principal invested. Returns from SuperTrace will vary over time depending on the asset allocation and performance of different asset classes in which the assets of SuperTrace are invested. The performance of SuperTrace is not guaranteed and future returns may differ from past returns. The information in this Report has been prepared without taking into account your objectives, financial situation or needs. You should, before acting on this information, consider its appropriateness to your circumstances. You should speak to your tax adviser in relation to taxation issues and consider talking to a financial adviser before making an investment decision. i

3 Contents Abbreviations i Introduction 2 Reuniting Members with their lost super 3 SuperTrace maintains strong ratings 5 About SuperTrace 6 How we invested your money 8 Fees and charges 14 Super news 16 Other important information 20 Abridged financial statements 27 Privacy of your personal information 30 Accepting and processing transaction requests 31 How to transact or make changes 32 Consents 33 Directory 34 Neither Heron or SuperRatings issue, sell, guarantee or underwrite this product. Go to for details of its rating criteria. 1

4 Introduction Dear Member, We are pleased to issue the SuperTrace Report to Members ( Report ) for the year ended 30 June The Report provides you with an update on superannuation (super) laws and general information about the management of SuperTrace. Phone If you have any questions relating to matters in the Report or your investment in SuperTrace, please contact us on between 8.30am and 6pm (Sydney time), Monday to Friday or if calling from outside Australia. 2

5 Reuniting Members with their lost super We work hard to reunite Members with their lost super and we re always looking for ways to improve this. Here are the ways that we are helping Members and other people find their super: SuperTrace website our website allows people to complete a search for lost super possibly held for them in SuperTrace We leverage off our unique position of being part of the Group, to regularly cross-reference lost Members against the Group customer database, which is one of the largest customer databases in Australia. We use this to find up to date contact details for our lost Members Australia Post Address Matching Approval System SuperSeeker if you don t have any luck finding lost super in SuperTrace, our website provides a link direct to the ATO s SuperSeeker website Lost Member Register regular reporting to the ATO s Lost Member Register Matching Lost members against the ATO s database to locate current address details Use of external data management warehouses using the services of an external data management company to help us find up to date contact details for our lost Members Online advertising campaign regular campaigns that target individuals who are actively looking to find any lost super that may exist in their name. By looking for lost super via the Google search engine, searchers are redirected to SuperTrace s live search engine on our website to help them locate any lost super within SuperTrace. More details are at 3

6 Reuniting Members with their lost super The results speak for themselves We have reunited thousands of Members with millions of dollars of super they otherwise may not have known about. In 2012/2013 Since inception* Number of Members who have been reunited with their super Value of benefits paid out in ($ s) 36, , mil 1, mil One of our main areas of focus has been to promote our reunification efforts. These efforts are on-going. * SuperTrace was established in

7 SuperTrace maintains strong ratings We re not the only ones who think we re doing a great job for our Members. SuperTrace was rated ERF of the Year for 2013 by SuperRatings (an independent super rating agency). In addition to this, SuperTrace continues to cement its market leading position after securing: the 5 star rating from The Heron Partnership for the sixth consecutive year, and a Platinum rating from SuperRatings for the fourth consecutive year. SuperTrace continues to find new, innovative and successful ways to reach lost members. Their passion to continued activity related to contacting Lost Members is outstanding and continues to deliver positive results. The Heron Partnership 2012 SuperTrace continues to focus on member services, with extensive use of third party databases, a comprehensive member website and the ongoing commitment to customer service by reuniting lost members with their super. SuperTrace s website is informative and simplifies the process for members searching for their superannuation benefits and continues to be amongst the best in the industry. SuperRatings 2012 Report 5

8 About SuperTrace The Trustee CMS is the trustee of SuperTrace. CMS holds a RSEL under SIS and has been granted authority to continue to operate as an ERF from 1 January The role of CMS is to ensure that the Fund is administered in accordance with the trust deed, superannuation law, and in the best interests of Members. The Trust Deed The SuperTrace trust deed outlines the rights and obligations of CMS and Members. The trust deed can be changed at any time, although any change that may adversely affect your Account can generally only be made if: it is expressly permitted by SIS or all affected Members agree to the change or APRA agrees. For the period to 30 June 2013 the only amendment to the trust deed was to reflect the new SIS requirements authorising ERFs to continue to operate from 1 January The amendment does not adversely affect the services or benefits provided to Members. We will let you know if a change is made to the trust deed that affects you as required by law. If you would like a copy of SuperTrace s trust deed and/or Risk Management Plan please contact us. Policy variation The terms of the Policy may be varied from time to time. You will be notified of any variation that affects you. 6

9 About SuperTrace Indemnity insurance CMS as a member of the Group is covered under the Group s Directors & Officers indemnity and professional indemnity insurance policies. Complying status of SuperTrace SuperTrace is a complying super fund and as such is eligible for concessional tax treatment. The complying status of SuperTrace can only be revoked in exceptional circumstances. It is the intention of CMS to ensure that SuperTrace continues as a complying super fund. Relationship between CMS and some service providers to SuperTrace The following associates of CMS are service providers of SuperTrace: Administrator: Investment Management: CMLA CMLA. CFSIL and CFSPL provide investment management services to CMLA. Commercial service level agreements on arms-length terms are in place between CMS and CMLA, CMLA and CFSIL, and CMLA and CFSPL. 7

10 How we invested your money The investment objectives and strategy of SuperTrace are outlined below: Investment objective of SuperTrace Investment strategy of SuperTrace Type of investor From 1 July 2012 to 26 September 2013 To provide medium term moderate real rates of return while aiming to minimise the occurrence of negative shorter term returns. To invest in policies of life insurance issued by CMLA (the Policy). From 27 September 2013 To provide a reasonably high level of security and consistent returns. To invest in a broad range of assets with a majority in defensive assets. The strategy aims for consistent real rates of growth while at the same time protecting against short term volatility. Investors with a low risk tolerance or for trustees who don t know the risk/return profile/tolerance of their members. All assets of SuperTrace are invested in the Policy issued to CMS by CMLA. The Policy is currently invested solely in the Capital Stable Fund in the CMLA No. 2L Statutory Fund. The Capital Stable Fund and the CMLA No. 2L Statutory Fund invest in assets that can fluctuate in value. As SuperTrace offers only one investment option, the Capital Stable Fund, Members are not able to choose or switch to a different investment option. The likely investment return is the Performance Target listed on page 9. 8

11 How we invested your money SuperTrace Capital Stable Fund Asset class Benchmark allocation as at 30 June August 2013 Min-Max allocation range (%)* Australian shares International shares^ Listed property Alternatives** Fixed interest Cash Performance Target Minimum suggested timeframe Consumer Price Index (CPI) + 2.5% each year. 3 years Likelihood of negative returns over a 20 year period Risk band 1.1 times over a 20 year period Low Medium * Benchmark asset allocations and minimum/maximum asset allocation ranges are indicative only. Asset allocations may move outside these ranges temporarily depending on movements in the value of financial markets and may change over time. Benchmark asset allocations and ranges may change over time. ^ Currency hedging target of 50%. May include Australian and international listed property trusts. ** These are investments in non-traditional sectors, such as private equity and infrastructure, and unlisted property trusts. Both Australian and international bonds. 9

12 How we invested your money Standard Risk Measure The risk objective for an investment option quantifies the variable returns over a defined investment horizon, and is quantified by the probability of the number of negative years of return in a 20-year period. Risk is disclosed by using different risk bands and risk labels. Below is a table that outlines the Standard Risk Measure. Risk band Risk label Estimated number of negative annual returns over any 20-year period 1 Very low Less than Low 0.5 to less than 1 3 Low to Medium 1 to less than 2 4 Medium 2 to less than 3 5 Medium to High 3 to less than 4 6 High 4 to less than 6 7 Very high 6 or greater Recent changes to the investment strategy From 12 August 2013 changes have been made to the benchmark allocation of the Capital Stable Fund which will reduce the allocation for Listed property to zero. Labour standards, environmental, social and ethical considerations CMS, CMLA, CFSIL and CFSPL do not have a predetermined approach for considering labour standards or environmental, social or ethical considerations when making investment decisions for SuperTrace. However, should sustainability of earnings of those companies we invest in be adversely affected due to poor labour standards or activities considered environmentally, socially or ethically unacceptable, we may divest ourselves of the investment. Hence, these factors may sometimes be considered when investment decisions are made. 10

13 How we invested your money Responsible investing CMLA aims to be a responsible investor. To help achieve this CMLA has become a signatory to the United Nations Principles for Responsible Investment (UN PRI). The UN PRI provides a framework for responsible investing, including the consideration of environmental, social and corporate governance (ESG) factors into the investment process. Responsible investing is only concerned with the financial impact of ESG factors on investment decisions. CMLA believes that the consideration of ESG factors in investment decisions enhances a portfolio s long term performance. Therefore, CMLA encourages managers to take ESG factors into consideration in their investment processes and collaborates with investment managers, and other industry participants, to advance the UN PRI and responsible investing. Valuation of unlisted assets The Fund has exposure to a variety of unlisted assets. CMLA has a policy in place to ensure the valuation of investment assets and associated liabilities is appropriate. This includes the valuation of real property and other investments (including infrastructure) which are not valued on a daily basis. CMS policy towards use of derivatives In managing investments, the investment managers may use financial derivatives such as futures, options and forward rate agreements. The investment managers may not use derivatives to create net short positions, or gear the investment option s position. The investment managers are also bound by CMLA s Derivatives Risk Statement. 11

14 How we invested your money Investment performance Super is a long-term investment and results should be considered over longer periods of time. SuperTrace s investment returns (crediting rates) for the last 10 years are as follows: Year ended 30 June 2013 Year ended 30 June 2012 Year ended 30 June 2011 Year ended 30 June 2010 Year ended 30 June 2009 Year ended 30 June 2008 Year ended 30 June 2007 Year ended 30 June 2006 Year ended 30 June 2005 Year ended 30 June year compound crediting rate to 30 June year compound crediting rate to 30 June % p.a. 4.03% p.a. 6.22% p.a. 7.03% p.a % p.a % p.a. 7.73% p.a. 7.66% p.a. 7.48% p.a. 6.57% p.a. 3.90% p.a. 4.67% p.a. Crediting rates reflect actual performance of the underlying assets held by SuperTrace and are net of management costs and tax on investment earnings. The rates in the table above are the actual rates that would have applied to your investment if you were a Member for the entire respective period. If you joined SuperTrace part way through a period, or made an additional investment to SuperTrace during a period, your personal return for that period would differ from the rate above. Please note that past performance is not indicative of future performance. 12

15 How we invested your money How investment returns are passed onto you Investment returns are credited to your Account as an annual crediting rate effective 30 June. An interim crediting rate applies if you withdraw your full entitlement from SuperTrace. If you withdraw your full balance from SuperTrace between 30 June and the date that the annual crediting rate is declared you will receive an interim crediting rate at the time your payment is processed. In certain circumstances where we consider it to be in Members interests we may suspend processing of withdrawals. If this happens, we apply the interim crediting rate determined after the suspension is lifted to any withdrawal requests affected by the suspension period. The crediting rate is not guaranteed and the rate applied may be negative. When this occurs, the value of your benefit entitlement will be reduced. The annual crediting rate is calculated so as to pass on all investment earnings to Members; however a small residual remains as a part of the crediting rate process. This residual is carried forward and applied to the following year s crediting rate. 13

16 Fees and charges Management costs Management costs comprise the management fee and other costs e.g. custody costs, that are deducted from the underlying trusts through which investments are made by the Capital Stable Fund. These costs are deducted from the total assets before the crediting rate is declared and interest crediting to your Account. SuperTrace changed the management cost effective 1 February The table below shows the management costs that were applicable for the financial year. Period Fee net of tax Fee gross of tax 1 Up to 30 January % 1.82% 1 February 2013 onwards 1.95% 2.29% Transactional and operational costs Under the current investment arrangements, CMS is the owner of the Policy through which SuperTrace invests. The value of the Policy takes into account, among other things, transaction and operational costs. These may include brokerage, settlement and clearing costs and stamp duty associated with actual asset transactions and buying and selling investments. CMS is entitled to recover any costs from SuperTrace assets for liabilities incurred while acting as trustee. CMS has decided not to recover these costs at this time. You will be notified if CMS recovers these costs in the future. Member benefit protection Until 30 June 2013 SuperTrace was required to treat all Members as protected members, which meant that administration fees could not be charged in excess of investment earnings regardless of your Account balance. Member benefit protection only applied to those fees which were deducted directly from your Account. During the reporting period and subsequently SuperTrace did not charge any direct fees to Members. 1 Shown for comparative purposes. Actual management fee deducted from the Member s account is the Fee net of tax of total Fund assets. 14

17 Fees and charges Member benefit protection does not apply to your management costs as this fee is deducted from the total assets of SuperTrace before the crediting rate is declared and credited to your Account. From 1 July 2013 SuperTrace is no longer required to treat Members as protected members. However, we have decided that we will continue to provide member benefit protection for our members. We will communicate any changes to this position. Increase or alterations to fees and charges In accordance with the governing rules of SuperTrace, CMLA may vary the amounts of any fees and charges. SuperTrace will give Members at least 30 days prior notice of any increase. 15

18 Super news These changes are legislated and depending on your individual circumstance may have an impact on your savings and retirement plans. Superannuation supervisory levy In 2013 the Government announced higher annual financial industry superannuation supervisory levies. These levies are used to recover operational costs of APRA and certain costs of some other Commonwealth departments and agencies. For each year of the period from 2012/13 until 2017/18 inclusive, there will be a temporary increase in the levy to cover the costs associated with the implementation of the SuperStream measures which were announced as part of the Government s Stronger Super reforms. The amount of the levy is determined by the Government each year. Payment of the increased levy from the Fund s assets will flow through as a reduction in your Account balance at the time the levy is applied and will be included as part of your Management costs. Intra-fund consolidation The ATO has often reported about super members who hold more than one super account and has decided to address this issue through a process called intra-fund consolidation. Funds holding more than one account for the same member will have to consolidate those accounts where it is practicable to do so. A first round of intra-fund consolidation must be undertaken by 30 June As SuperTrace does not charge any direct fees to members, we will not be automatically consolidating accounts where it is identified that there is more than one account for the same member. If you do have two or more accounts and would like to consolidate them, please let us know and we will be happy to do this. 16

19 Super news Data and e-commerce standards New data standards have been introduced as part of the Government s SuperStream Reform package. These standards will provide a consistent, reliable electronic method of transacting linked data and payments for superannuation. The goal is to improve the efficiency of the superannuation system, to improve the timeliness of processing of rollovers and contributions, and to reduce the number of lost accounts and unclaimed monies. Electronic transactions The SuperStream reforms will affect superannuation funds and employers and will require contributions and rollovers to be sent using the new data and e-commerce standards. Mandated use of the new standards will be progressively introduced: trustees and retirement savings account ( RSA ) providers will be required to use the standard for processing fund rollovers from 1 July From July 2014, all large and medium employers will be required to send contributions in the new format, and all super funds, including self-managed super funds ( SMSF ), will be required to receive contributions in the new format. Medicare Levy increase From 1 July 2014, the Government will increase the Medicare Levy from 1.5% to 2% of taxable income to provide funding for DisabilityCare Australia, the national disability insurance scheme. The current exemptions from the Medicare Levy will remain in place. Changes relating to use of your TFN The Government has made changes to the way in which your TFN is used from 1 July These changes include: the ability of trustees, employers and RSA providers to validate your TFN by means of an electronic validation service provided by the ATO, for the purposes of ensuring your information we have kept on our record is accurate and up to date, 17

20 Super news the ability of the ATO to give your TFN to a trustee or RSA provider if: you have not quoted your TFN to that trustee or RSA provider but you have provided your TFN to other providers previously, or the TFN you provide to a trustee or RSA provider does not match the records the ATO holds for you. Where this occurs, we are required to update the record we hold for you unless you have instructed us not to record your TFN. requirements for your TFN to be communicated to the other fund when you request a roll over, unless you have provided your written instruction to the contrary. Changes for Temporary Residents On 1 December 2012, Australian Customs stopped automatically providing Port and Date stamps in the passports of people departing Australia. Temporary visa holders exiting Australia from this date will only have their passport stamped if they specifically request it at the time they depart Australia. If you are a temporary resident, and plan to leave Australia and subsequently plan to claim your super benefit as a Departing Australian Superannuation Payment, please ensure you request for your passport to be stamped. Superannuation Legislation Amendment (NZ Arrangement) Act 2012 KiwiSaver From 1 July 2013, the Trans-Tasman Retirement Portability Scheme legislation took effect. The scheme allows for the transfer of super balances for members between Australia and New Zealand. Under the scheme, it is voluntary for super providers to accept rollovers containing a KiwiSaver component. The trustee has assessed the requirements and has made a decision not to accept rollovers with KiwiSaver components at this time. 18

21 Super news If you would like to enquire on the transfer of your investment to a KiwiSaver scheme, or want more information, please contact us on between 8.30am and 6pm (Sydney time), Monday to Friday. Changes to unclaimed super and reporting for small and insoluble lost accounts In December 2012, the Government amended the Superannuation (Unclaimed Money and Lost Members) Act 1999: increasing the account balance threshold for inactive accounts, and accounts where members cannot be contacted, for transfer to the ATO, from $200 to $2,000, decreasing the period of inactivity for unidentifiable (insoluble) accounts which need to be transferred to the ATO from five years to 12 months, and requiring the ATO to pay interest on unclaimed super money reclaimed from the ATO from 1 July As part of these changes the Government also announced a change in the lost member definition. You will be treated as lost if you are uncontactable, meaning that: we have never had an address for you, or two written communications to your last known address have been returned unclaimed, and we have not received a contribution or rollover for you in the last 12 months. If you are lost at any time, we will report this to the ATO. The ATO maintains a Lost Member Register. We will also need to tell the ATO if you are subsequently found, or if you are subsequently transferred to another super provider. The Government has since announced that the balance threshold for lost member accounts will increase in stages from $2,000 to $4,000 on 30 June 2014 and then to $6,000 on 30 June It is not known if or when this announcement will be legislated. 19

22 Other important information Restriction on when you can get access to your benefits Your Account may include preserved benefits, restricted non-preserved benefits and unrestricted non-preserved benefits. Preserved benefits are benefits that must be retained in the super system, until you satisfy a condition of release. Refer below for the conditions of release. Restricted non-preserved benefits are benefits which are not preserved but which cannot be cashed until you satisfy a condition of release. Unrestricted non-preserved benefits are benefits that do not need to be preserved, usually because a condition of release has been met. Accordingly, such benefits are payable at any time on request. All earnings are preserved until a condition of release is met. The conditions of release that apply to you depend on whether you are or were a temporary resident. The conditions of release that apply if you are not or were never a temporary resident include: you have permanently retired after reaching your preservation age The preservation age is determined according to a Member s date of birth as follows: Date of birth Preservation age Before 1 July July 1960 to 30 June July 1961 to 30 June July 1962 to 30 June July 1963 to 30 June July 1964 or after 60 20

23 Other important information you have reached age 65 you have reached age 60 and an arrangement under which you were gainfully employed has come to an end and you will never again be gainfully employed either full time or part time (i.e. for 10 hours or more a week) you have reached age 55 and have elected to purchase a transition to retirement or non-commutable income stream you have become permanently incapacitated you die we believe that you satisfy the severe financial hardship criteria (after meeting a number of regulatory requirements) DHS approves payment on specified compassionate grounds you have previously been classified as a lost member under super legislation and your total benefit in SuperTrace is under $200 CMS is given a release authority from the ATO relating to withdrawal of money to meet your liability for excess contributions tax We are instructed to release monies to comply with a forfeiture order made under Commonwealth, State or Territory proceeds of crime legislation or you suffer a terminal medical condition. 21

24 Other important information Conditions of release for temporary residents If you are or were a temporary resident, the conditions of release that apply to you in SuperTrace are: you were a temporary resident who has departed from Australia and your visa has expired you die you have become permanently incapacitated you suffer a terminal medical condition we have to pay your benefit to the ATO as unclaimed money we are given a release authority from the ATO relating to a withdrawal of money to meet your liability for excess contributions tax. Temporary residents You are entitled to a DASP (Departing Australia Superannuation Payment) benefit equal to your Account balance (less applicable tax) if: you were a temporary resident (i.e. not an Australian or New Zealand citizen, not a permanent resident of Australia or did not hold a 405 investor retirement visa or a 410 retirement visa) and you have left Australia and your visa has ceased to have effect and your benefit in SuperTrace is $5,000 or more and the Department of Immigration and Citizenship (DIAC) provides us with a Certification of immigration status as written evidence of these facts or your benefit in SuperTrace is less than $5,000 (you must give us evidence that your temporary visa has expired and a copy of your passport showing your departure from Australia). 22

25 Other important information You should contact the DIAC and ask them to send us Certification of Immigration status. The DIAC can be contacted by: Post Certification of Immigration Status Department of Immigration and Citizenship GPO Box 1496 HOBART TAS 7001 Phone Website Alternatively, you can download a Certification of Immigration Status application form from the DIAC website at Transfer of former temporary resident benefits to the ATO If you have not requested a DASP benefit within six months of the later of your temporary resident visa expiring and you leaving Australia, we may be required to pay your Account balance to the ATO. In these circumstances you will no longer be a Member. You may claim your benefit from the ATO by completing a DASP application form available: Website DASPmail@ato.gov.au Phone or if calling from outside Australia. 23

26 Other important information Death benefits nomination of dependant(s) You can nominate one or more of your dependants and/ or your legal personal representative (i.e. the representative of the estate) in any proportions to receive your benefits on your death. We will consider your nomination but we are not bound by it and we have sole discretion to determine to whom the benefit is paid. A dependant means: your spouse (legal or de facto spouse, including same sex) and a person with whom you are in a relationship registered under State and Territory law, including same sex a child (includes an adopted child, step-child or an ex-nuptial child, a child of your spouse and your child within the meaning of the Family Law Act 1975) of any age any person with whom you have an interdependency relationship or any person financially dependent on you at the date of your death. Super legislation sets out a number of circumstances CMS should take into account for the purposes of identifying whether an interdependency relationship exists, as well as some examples of specific interdependency relationships. You can make a nomination by completing the Nomination of dependant(s) form. If you wish to change your nomination, you should also complete this form. This form can be found on our website at Please note that you should review your nomination if your circumstances change, e.g. if you marry or divorce. We suggest that you consult your financial adviser as this area is complex and involves different taxation implications. 24

27 Other important information Superannuation contributions surcharge The superannuation contributions surcharge ceased to have effect from 1 July Please note however the ATO will continue to issue surcharge assessments for prior financial years. The ATO will contact you directly about any surcharge obligations. Any surcharge payable will be debited from your Account solely on instructions to us from the ATO. Super contribution surcharge objections If you are dissatisfied with your surcharge assessment you can lodge an objection direct with the ATO in your capital city. In the course of lodging an objection, you will need to include the specific grounds for your objection. Note: We recommend that you contact your taxation adviser or accountant to discuss your personal tax position. Family law Family law legislation allows the super of married and de facto couples (including same-sex), who have separated or divorced, as the case may be, to be divided. Please note that splitting of super for de facto couples does not apply in Western Australia. For full details regarding the Family Law processes which can occur on your Account, you can contact your financial adviser or simply call between 8:30am and 5pm (Sydney time), Monday to Friday. 25

28 Other important information Unit pricing adjustment and error compensation policy Under the current investment arrangement CMS, as owner of the Policy through which SuperTrace invests, is allocated units in the Capital Stable Fund in CMLA s No. 2L Statutory Fund. The investment earnings are passed on to Members via annual crediting rates or interim crediting rates for Members who have left before the date the annual crediting rate is declared. Sometimes, errors may be made in the unit price or crediting rate calculation process, resulting in an incorrect Account balance. In that case an adjustment to your Account may be required. CMLA has established a compensation policy to deal with these events and return Members to a financial position that is materially the same as if the error had not occurred. If the error is material, you may be entitled to compensation which may be paid: by crediting your Account with the amount due or where your Account is closed, if the amount of the adjustment is greater than a payment threshold of $20 (depending on the circumstances), by sending you a payment by cheque or electronic funds transfer. Note: if you have not met a condition of release, compensation will be paid to a new account in SuperTrace The tolerance levels we use are in line with industry standards and regulatory practice guidelines. 26

29 Abridged financial statements Abridged financial statements Set out on the following page are the audited abridged financial statements for the Fund for the 12 months ending 30 June We will make copies of the audited Fund financial statements and related audit report for SuperTrace available to you free of charge once each year on request. You can also request certain other information relevant to SuperTrace or your entitlements. However, in some cases a fee may be charged. To request a copy of the audited Fund financial statements, write to: Post SuperTrace Locked Bag 5429 Parramatta NSW

30 Abridged financial statements For the year ended 30 June 2013 Audited 30 June 2013 $ 000 Audited 30 June 2012 $ 000 Revenue Changes in net market value of investments 123,945 88,369 Employer contributions Transfers from other funds 41,102 38,569 Total Revenue 165, ,412 Expenses Administration and investment management fees Superannuation contributions surcharge 28,086 24, Income tax expense APRA levies Total Expenses 28,672 25,014 Increase in members funds 137, ,399 Balance brought forward 1,631,842 1,632,162 Less: benefits paid and payable 213, ,719 Members Funds 1,555,111 1,631,842 28

31 Abridged financial statements As at 30 June 2013 Audited 30 June 2013 $ 000 Audited 30 June 2012 $ 000 Assets Contributions and transfers from other funds receivable Insurance policies 1,554,501 1,630,876 Total Assets 1,555,284 1,631,833 Liabilities Current tax liabilities 24 (9) Other payable Total Liabilities 179 (9) Net assets available to pay benefits Members funds allocated 1,555,111 1,631,842 1,554,774 1,631,576 Not yet allocated Liability for accrued benefits 1,555,111 1,631,842 29

32 Privacy of your personal information The protection of your personal information is something we take very seriously. We protect your personal information in accordance with the National Privacy Principles* and relevant industry privacy codes. The Group s Privacy Policy Statement provides information on our privacy and information handling practices. If you have any questions or would like further information about our privacy and information handling practices, please refer to a copy of the latest SuperTrace PDS and Incorporation by Reference document available online at com.au, or alternatively contact us by: CustomerRelations@cba.com.au Phone # between 8.30am to 5pm (Sydney time), Monday to Friday # A free call unless made from a mobile phone, which will be charged at the applicable mobile rate. Post Customer Relations Commonwealth Bank Reply Paid 41 Sydney NSW 2001 * Will change to the Australian Privacy Principles from 12 March

33 Accepting and processing transaction requests All transaction requests (SG shortfall vouchers, transfers, rollovers and withdrawals) have to be accepted by us before they can be processed. A transaction request is deemed to be accepted on the day our documentation, duly completed and funds (where applicable) are received by us at our processing centre (via our locked bag address, or address for electronic transfer data) or principle office of administration. We reserve the right to reject any transaction request for any reason. If rejected, any monies will be returned to the payer without interest. Where a transaction request is incomplete and/or where issues relating to the lodgement remain unresolved, it will not be deemed to be accepted by us (see above) until all requirements are met. On occasion, we may not be able to transact with you or other persons and this may include delaying, blocking, freezing or refusing to process a transaction. Monies received into SuperTrace The effective date for processing SG shortfall vouchers, transfers and rollovers into SuperTrace is the date the funds and all necessary completed documentation are deemed to be accepted by us (see above). Changes to acceptance of shortfall vouchers Due to changes in legislation for ERFs, from 1 January 2014 we will no longer be accepting vouchers from the ATO. Monies paid from SuperTrace The effective date for processing withdrawals from SuperTrace is the date the transaction is processed by us (and not the date the completed documentation is deemed accepted by us at our principal office of administration). Benefit payments will only be made directly to you as a Member or to a complying super fund. Please note: Withdrawal requests received by fax will not be accepted. Portability Portability rules allow super balances to be moved from one fund to another. Where a request has been received, we will comply with the relevant timeframes for processing payment requests as prescribed by the Data and Payment Standards and in accordance with SIS. 31

34 How to transact or make changes To update your membership details or to request a withdrawal or rollover of your benefit, all you need to do is complete one of the following forms. Name of form Change of details Nomination of dependant(s) Use this form to advise changes to your personal details to nominate or advise changes to your nominated dependant(s) Tax File Number notification Benefit payment request to advise us of your TFN To rollover part or all of your benefit into another fund, to receive any unrestricted non-preserved benefit in cash, or to pay your total benefit. Please take note of the proof of identity requirements that may need to be fulfilled prior to SuperTrace processing your benefit. Website You can download any of these forms from the SuperTrace website at Alternatively, these forms are available by contacting one of our customer service representatives on: Phone between 8.30am and 6pm (Sydney time), Monday to Friday or if calling from outside Australia. Post SuperTrace Locked Bag 5429 Parramatta NSW 2124 Form requests received by fax will not be accepted. 32

35 Consents The following parties have consented to be named in this Report and have not revoked their consent: The Heron Partnership SuperRatings No third party (other than CMLA) has caused the issue of this Report and is not responsible for any statements within it. 33

36 Directory Trustee Colonial Mutual Superannuation Pty Ltd Registered Office Ground Floor, Tower Sussex Street Sydney, NSW 2000 Administrator The Colonial Mutual Life Assurance Society Limited Locked Bag 5429 Parramatta NSW 2124 Principal office of administration Level 1, 11 Harbour Street Sydney NSW 2000 Customer service representatives Postal address Website address Telephone number (in Australia): between 8.30am to 6pm (Sydney time) Monday to Friday Telephone number (Overseas): between 8.30am to 6pm (Sydney time) Monday to Friday Facsimile number (in Australia): Facsimile number (Overseas): address: SuperTrace.Member@cba.com.au SuperTrace Eligible Rollover Fund Locked Bag 5429 Parramatta NSW

37 Notes 35

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40 CIL Phone Post SuperTrace Locked Bag 5429 Parramatta NSW 2124 Website