Workforce Superannuation

Transcription

1 Workforce Superannuation Product Disclosure Statement (PDS) Issued 31 December 2013 Inside this PDS How to contact us: 1. About Workforce Superannuation 2. How super works 3. Benefits of investing with Workforce 4. Risks of super 5. How we invest your money 6. Fees and costs 7. How super is taxed 8. Insurance in your super 9. How to open an www Customer Service Centre GPO Box 1576 Sydney NSW super@asteronlife.com.au asteronlife.com.au This PDS was prepared on 31 December 2013 and summarises important information about investing in Workforce Superannuation (Workforce). It contains references to important information about Workforce, which is available in the Product Guide and any other material incorporated by reference. The Product Guide, and any other material incorporated by reference, forms part of the PDS and contains important information which should be read and considered before making a decision to invest in Workforce. The information contained in this PDS, the Product Guide, and any other material incorporated by reference, is of a general nature only and doesn t constitute financial advice. It has been prepared without taking into account your particular objectives, financial situation or needs. Before deciding to open an account or continuing to hold an interest, you should consider how the information contained in this PDS relates to your own situation. We recommend that you speak to an adviser who will be able to help you with your investment and insurance decisions. Suncorp Portfolio Services Limited (Trustee) (ABN , AFSL , RSE Licence No L ) is the Trustee of Workforce and the issuer of this PDS and the Product Guide and takes responsibility for its contents. Workforce is part of the Suncorp Master Trust (Fund) (ABN , RSE Fund Registration No. R ). The Trustee, Suncorp Life & Superannuation Limited (SLSL) (Insurer) (ABN , AFSL ) and Suncorp-Metway Limited (ABN , AFSL ), are related bodies corporate of Suncorp Group Limited (Suncorp Group) (ABN ). Insurance cover offered through Workforce is provided by SLSL in a non-participating policy issued to the Trustee. Various products and services are provided by different entities of the Suncorp Group. The different entities of the Suncorp Group are not responsible for, or liable in respect of, products or services provided by other entities of the Suncorp Group. The obligations of the Trustee and the Insurer aren t guaranteed by any other company within the Suncorp Group. Except as otherwise stated, the Suncorp Group and its subsidiaries and related bodies corporate don t guarantee the repayment of capital invested in or the investment performance of this product. This product is not a bank deposit or other liability and is subject to investment risk including possible delays in repayment and loss of the interest and principal invested. The information in this PDS may change or be updated by us from time to time. If we update the information in the PDS, you can view it on our website at asteronlife.com.au If you d like a free, printed copy of the updated information you can request it by calling us on

2 1. About Workforce Superannuation Workforce Superannuation (Workforce) is part of the Suncorp Master Trust. Your employer has chosen Workforce as your superannuation fund to help you invest and save for your retirement. Workforce includes a simple and cost effective super product called MySuper. The Suncorp Lifestage Fund is the default investment option for Workforce and is an authorised MySuper product. We re proud to have been chosen as your superannuation provider. So first of all, we d like to welcome you and invite you to get to know your super account. After all, one day your super s going to play a big role in your family s financial security. About superannuation (or super ) Did you know your super is likely to be the second largest asset you build in your lifetime, after the family home? Your super can help you reach your financial goals and achieve the retirement lifestyle you want. The Government provides significant tax concessions and other benefits such as the Government co-contribution scheme, generally making it one of the best ways to save for your retirement. About us We are Suncorp Portfolio Services Limited (SPSL), the Trustee of Workforce. We offer superannuation and retirement solutions. We re a wholly owned subsidiary of the Suncorp Group, with six directors, four of whom are non-executive, ensuring our independence. SPSL has been a specialist trustee company for more than a decade and is currently trustee for over 210,000 superannuation members. What you can expect from us We take the responsibility for your investment very seriously. That s why we ll do all we can to support you and help you make the most of your super account. How will we do this? We ll keep things simple. If you re unsure about where your super should be invested, we ll help you with information about how to match your attitude to risk with your investment choice. We ll help you protect what s important with insurance within your super. We ll make it easy for you to manage your account, by giving you a range of contact options from online, telephone, fax or post. With Workforce, you re on the way to a better future for you and your family. 2. How super works Your super, which is in part compulsory, is a means of saving for your retirement. For many, if not most of us, the current level of 9.25% our employer contributes is unlikely to be enough to give us a big enough income, for as long as we need it, when we retire. But there are plenty of other ways to make the most of your super, and several tax advantages and incentives provided by the Federal Government to encourage you to invest in super and save more for your retirement. The choice is yours Where you invest your super is your choice. Super Choice is legislation that allows you (if you re eligible) to choose where you want your compulsory employer contributions paid. If your compulsory employer contributions are currently being paid into another account and you d like them to be paid into your Workforce account, fill in a Standard Choice form, available from our website. For more information about Super Choice, visit the Australian Taxation Office s (ATO) website at ato.gov.au/super Contribution types There are different types of contributions you can make into your super account. These fit into one of two categories: Concessional contributions (from pre-tax dollars) or Non-concessional contributions (from after-tax dollars) In both categories there are caps on the amount you can contribute to super in a financial year (from 1 July to 30 June), without incurring additional tax. Employer contributions Unless you are an exempt employee, your employer must make superannuation guarantee (SG) contributions to your account on a quarterly basis. The SG amount is currently equal to 9.25% of most employees salary. This will gradually increase to 12%. Voluntary contributions Voluntary contributions include amounts you deposit into your super account in addition to any compulsory contributions made by your employer. Voluntary contributions can be made as a personal, after-tax contribution or from your pre-tax salary. Government co-contribution If you make a personal contribution from after-tax dollars, you may be eligible to receive an additional contribution into your account from the Government. This is known as the Government co-contribution scheme. If you earn $33,516 a year or less (in the 2013/14 financial year) and make a personal, after-tax contribution of $1,000 into your super account, the Government may pay $500 (the maximum co-contribution amount) into your super account. The co-contribution amount decreases for those on higher incomes, but you can still benefit from the scheme if you earn less than $48,516 a year. 2 Asteron Life

3 Rollovers If you ve had a few jobs, you ve probably got a few different super funds. One of the easiest ways to simplify your finances, and potentially boost the amount of money you ll have when you retire, is to combine multiple super funds into one. Consolidating your funds is easy, and we can help you. You can even do most of it online using our Super Rollover Wizard visit asteronsuperrollover.com.au to get started. Before consolidating, we recommend you contact your other super funds to find out if any exit fees are payable and how your insurance arrangements may be affected. How super works before making a decision. Go to Contributions in the Product Guide. The material relating to Contributions may change between the time when you read this PDS and the day you join Workforce. Accessing your benefits Super is a long-term investment designed to help you save for your retirement. Legislation determines when you can access your super benefits. To give your super time to grow, it s preserved throughout your working life and access is generally restricted until you at least reach your preservation age. However, you can transfer (rollover) to another complying super fund at any time. You should read the important information about Accessing your benefits before making a decision. Go to Accessing your benefits in the Product Guide. The material relating to Accessing your benefits may change between the time when you read this PDS and the day you join Workforce. 3. Benefits of investing with Workforce Workforce is a super fund that helps you invest and save for your retirement. It provides you with: Access to the Suncorp Lifestage Fund, an investment option that changes as you get older. A choice of five investment options to suit a variety of investment needs and risk profiles. Insurance provided by Suncorp Life one of the highest rated, and most award-winning insurers in Australia. Online access to your account whenever you feel like it, allowing you to view and manage your account how you want to, when you want to. Benefits of investing with Workforce before making a decision. Go to the Product Summary in the Product Guide. The material relating to Benefits of investing with Workforce may change between the time when you read this PDS and the day you join Workforce. 4. Risks of super All types of investment, including super, carry risk. The level of risk tolerance varies for each person depending on things like their age, how long they plan to keep their investment for, and what other investments they ve got. That s why it s important to speak to your adviser before making any investment decisions. Most importantly, you should understand that: The overall risk with super is that you may not end up with enough money to provide you with an adequate lifestyle when you stop working. As a general rule, riskier investments will provide a higher potential long-term return. By the same token, the smaller the risk an investment poses, the lower the potential return it will provide. The value of your investments (and thus your super account balance) may go up or down. Unless specified, investment performance is not guaranteed, which means you could lose some or all of your money. Investment returns will vary. Just because an investment or asset class has done well in the past doesn t necessarily mean it will do well in the future. Laws affecting super (such as superannuation, taxation and social security laws) change. Super is generally preserved until you retire or meet another condition of release. It s a good idea for you to consider what these risks might mean for you. If you re not sure how you feel about risk, you ll find tools and calculators on our website or give us a call and we can help you. Standard Risk Measure The Standard Risk Measure (SRM) is a calculation we do to help make it easier for you to compare the riskiness of investment options. It tells you how many negative annual returns an investment option can be expected to deliver over any 20 year period. The SRM doesn t assess all forms of risk so it s important you read the Understanding Investment Risk flyer, available on our website. Straightforward, easy to understand communications to assist you in understanding your super and investing. Choice of binding or non-binding death benefit nominations. Workforce Superannuation PDS 3

4 4. Risks of super (continued) the Risks of super before making a decision. Go to How we invest your money in the Product Guide and the Understanding Investment Risk flyer. The material relating to the Risks of super and the Understanding Investment Risk flyer may change between the time when you read this PDS and the day you join Workforce. 5. How we invest your money Our investment menu The Workforce investment menu makes it simple for you to choose an investment option that s right for you. You can build your own investment portfolio from our three diversified and two single sector options. You can change your investments at any time by completing an Investment change form available on our website. Before making a choice, you should consider the possible return and risk of the investment options and how long you plan to keep them. Refer to the Product Guide for more information on the Workforce investment options. Default investment strategy If you don t choose your own investment strategy, you will be invested into the default Suncorp Lifestage Fund. This means you will be invested in the Suncorp Lifestage Fund for your year of birth. For example if you were born in 1982, you will be invested in the Suncorp Lifestage Fund For an illustration on how your investment mix changes as you get older, please refer to the next page of this PDS. Fund profile for the Suncorp Lifestage Fund Investment objective Investment strategy The Suncorp Lifestage Fund aims to maximise capital growth, real capital preservation and income returns from a diversified mix of investments. The emphasis changes from capital growth to capital preservation and income as you get older. The Suncorp Lifestage Fund holds a diversified mix of growth and income investments, with an increased allocation to income investments as you get older. Each Suncorp Lifestage Fund is tailored to suit the investment needs and risk profile of investors within the specified age group. How we invest your money in the Suncorp Lifestage Fund Year of birth Standard Risk Measure Recommended minimum time to keep the investment Strategic Asset Allocation (This shows the percentage of money that we put into each type of investment. They add up to 100%.) Income investments (%) Growth investments (%) Cash Aus fixed interest Intl fixed interest Infrastructure Total income Property Aus shares Intl shares Total growth High 10 years High 10 years High 10 years High 10 years High 10 years High 10 years High 10 years Med 10 years to high Med 10 years Med 10 years Low 7 years Low 5 years Low 5 years Low 5 years and earlier 3 Low 5 years These percentages can vary to allow our investment manager to maintain the long-term objective of each Suncorp Lifestage Fund. To keep things simple, we ve rounded these numbers up or down to the nearest full one per cent, and where the resulting totals haven t added up to 100 per cent, we ve adjusted cash. 4 Asteron Life

5 Proportion of growth investments 100% 80% 60% 40% 20% 0% How we invest your money with the Suncorp Lifestage Fund More growth investments, such as shares and property We change your investment mix as you get older Fewer growth investments (and more income investments like fixed interest and cash) Your age Illustrative only 100% 80% 60% 40% 20% 0% Changes to investment options The Workforce investment menu may change from time to time, including the fees and costs relating to the investment options. It s important to check our website regularly for any changes to your investment options, including the fees and costs relating to the investment options. How we invest your money before making a decision. Go to How we invest your money in the Product Guide. The material relating to How we invest your money may change between the time when you read this PDS and the day you join Workforce. 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. Your employer may be able to negotiate to pay lower administration fees. Ask the fund or your financial adviser. 1 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 (moneysmart.gov.au) has a superannuation fee calculator to help you compare different fee options. 1 We re required by law to include this paragraph. Sorry, but our fees aren t negotiable. Fees for Workforce This PDS shows fees and other costs that you may be charged. These fees and other costs may be deducted from your money, from the returns on your investment or from the assets of the superannuation entity as a whole. Other fees, such as activity fees, advice fees for personal advice and insurance fees, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you. Taxes, insurance fees and other costs relating to insurance are set out in the Product Guide. You should read all the information about fees and other costs because it is important to understand their impact on your investment. Fees and costs associated with any investment in the Suncorp Lifestage Fund (as outlined on the next page) will be separate from your other investment options. For fees and costs applied to your other investments, please refer to the Fees and costs section of the Product Guide. Workforce Superannuation PDS 5

6 6. Fees and costs (continued) Suncorp Lifestage Fund Type of fee Amount How and when paid Investment fee 0.20% pa This fee is included in the daily unit price calculation Administration fee 0.65% pa This fee is included in the daily unit price calculation $1.50 per week This is charged as a monthly fee of $6.50 and is deducted by withdrawing units from your account on or around the 28th of the month Buy-sell spread Switching fee Exit fee Advice fees relating to all members investing in the Suncorp Lifestage Fund Other fees and costs Indirect cost ratio Please refer to the Additional explanation of fees and costs section for more information Changing investment options Changing your future investment strategy (or switching your investment) from the Suncorp Lifestage Fund to other investment options may mean: A change to the fees and costs you pay, including investment, administration and advice fees. Please see Fees and costs in the Product Guide for more information. Investment fees in other investment options range from 2.80% 3.00%. Additional explanation of fees and costs Personal advice fees You can authorise us to pay a fee for personal advice to your financial adviser (agreed by us) and have the fee charged to the Suncorp Lifestage Fund. It can only be a one-off fee and may be either a dollar or percentage amount. You can also direct us to deduct this fee from your other investment options. You should refer to your adviser s Statement of Advice for details of this fee. Other important information For insurance fees on your super account, please refer to the Insurance in your super section of this PDS. All fees in this PDS are quoted after the effect of income tax and inclusive of GST (less any available reduced input tax credit). This means the fees you see are the fees you ll actually pay. We can also introduce certain new fees or change the level of fees you pay at any time without your consent. But if we need to do this, we ll always let you know by writing to you at least 30 days before any adverse change. Example of annual fees and costs for a Workforce member in the Suncorp Lifestage Fund The following table gives you an example of how the fees and costs for the Suncorp Lifestage Fund (MySuper product) in Workforce affect your superannuation investment over a one year period. You should use this table to compare this product with other super products. Example Suncorp Lifestage Fund Balance of $50,000 Investment fees 0.20% For every $50,000 you have invested in the Suncorp Lifestage Fund you will be charged $100 each year PLUS Administration fees $78 pa ($6.50 per month) plus 0.65% pa And, you will be charged $403 in administration fees PLUS Indirect costs for the Suncorp Lifestage Fund EQUALS cost of product And, indirect costs of $0 each year will be deducted from your investment If your balance was $50,000, then for that year you will be charged fees of $503 for the Suncorp Lifestage Fund 6 Asteron Life

7 Fees and costs and How we invest your money before making a decision. Go to Fees and costs in the Product Guide. The material relating to Fees and costs may change between the time when you read this PDS and the day you join Workforce. 7. How super is taxed There are a number of ways that your super account is taxed: On contributions received On your investment earnings On withdrawals 0% on non-concessional contributions 15% on concessional contributions 1 45% 2, 3 on excess amounts over the nonconcessional contribution cap Your marginal tax rate 2 plus an excess concessional contributions charge on excess amounts over the concessional contribution cap 45% 2 on concessional contributions where a TFN is not held by the super fund 15% if your transfer contains any untaxed components 4 Up to 15% on investment earnings For lump sum withdrawals 0% if you re age 60 or over 15% 2 on taxable components over $180,000 5 if received when you re between your preservation age and age 59 20% 2 on taxable components if you re under your preservation age For death benefits paid as a lump sum withdrawal 0% if paid to a tax dependant 15% 2 on taxable (taxed) component paid to a non-tax dependant 30% 2 on taxable (untaxed) component paid to a non-tax dependant 1 If income exceeds $300,000 per annum, contributions tax of 30% will apply. 2 Plus Medicare levy. 3 If your non-concessional contribution exceeds the nonconcessional contribution cap the contribution will be rejected. 4 Any excess over your untaxed plan cap amount (which is up to $1,315,000 for the 2013/14 financial year) is taxed at 45% plus Medicare Levy. 5 For the 2013/14 financial year. Tax File Numbers While you don t have to give us your tax file number (TFN), there are disadvantages in not doing so. You may be taxed more and we may not be able to accept certain contributions. For more information on this, please see the Tax file numbers (TFN) section in the Product Guide. Other important information about tax Taxes, duties and levies incurred by us are recovered directly from the assets of the investment options (where the expenses are investment costs) before determining unit prices, or from your account. You should be aware that if your super contributions exceed the caps, there may be tax consequences. You may pay additional tax or the contributions may be rejected. The Trustee will deduct any applicable tax from your account for contributions and withdrawals. Taxation information before making a decision. Go to Taxation information in the Product Guide. The material relating to Taxation information may change between the time when you read this PDS and the day you join Workforce. 8. Insurance in your super Workforce offers Death only insurance or Death & Total and Permanent Disablement (TPD) insurance. Your insurance in Workforce What insurance cover are you provided with when you join Workforce? The type of cover you will automatically receive as a corporate member of Workforce is selected by your employer. If your employer has not arranged insurance through Workforce, you will receive Basic Death and TPD cover. This cover is subject to you being under age 60, employed for more than 15 hours per week and being At Work on the day you join. Your employer also needs to provide us with contributions and certain information within 130 days of you commencing employment. See the Product Guide for full details about the eligibility requirements. There are 3 levels of insurance that your employer can choose: Level of cover Basic cover 2 x basic cover 3 x basic cover Type of insurance Weekly insurance fee insurance $1.00 insurance $2.00 insurance $3.00 Sum insured Varies based on your age Varies based on your age Varies based on your age The insurance that you receive will be detailed in your welcome pack. Workforce Superannuation PDS 7

8 8. Insurance in your super (continued) Automatic cover If your employer has not arranged any insurance cover for you through Workforce, and you satisfy the requirements set out above, the Trustee will automatically give you its Trustee Minimum Cover cover for Death and TPD. How do you apply for additional or member selected cover? If you d like to apply for additional or member selected cover, simply fill out an Insurance application form, available on our website and return it to us. The insurance cover provided through Workforce is subject to you meeting certain eligibility criteria or underwriting requirements. These may affect your insurance cover, or the circumstances in which an insurance benefit may be payable under the Policy. The maximum level of insurance you can apply for is 3 x Basic cover. How much does it cost? There are costs associated with insurance. The insurance fees could be as little as $0.60 a week 1 for Death only insurance, or up to $3.00 a week 2 for insurance depending on your circumstances. Your insurance fees are calculated based on a number of factors which include the type and amount of insurance cover. 1 For a member with basic cover for Death only insurance. 2 For a member with 3 x basic cover for insurance. 9. How to open an account If you re employed by an employer who has their corporate super plan with Workforce they will notify us of your details. We ll open an account for you so there s no need for you to complete an application form. You should read the PDS and Product Guide, which provides details on the features and benefits of Workforce and how it operates. Privacy We appreciate that privacy is important to you. Before making a decision, you should read our Privacy Statement in the Product Guide and Suncorp Group Privacy Policy to ensure that you understand how our companies may collect, use and disclose your personal information. For more information please refer to the Product Guide. Complaints If you have any feedback, we d like to hear from you. You can find details on how to contact us on the front cover of this PDS. This also includes any issues or complaints you may have. We make every effort to ensure your complaints are resolved satisfactorily and quickly. How to open an account and Complaints before making a decision. Go to Other things you need to know in the Product Guide for more information. The material relating to How to open an account and Complaints may change between the time when you read this PDS and the day you join Workforce. Who pays for your insurance cover? Unless you have an alternative arrangement with your employer, your insurance fees will be deducted monthly from your super account. What if you don t want insurance? If you don t want insurance cover, you can cancel your insurance cover at any time by writing to us. If you cancel or reduce your cover within 30 days of receiving your confirmation of membership, we ll refund all insurance fees. What happens when you leave your employer? Provided your account balance isn t zero, your Death and TPD cover (if applicable) will continue automatically and insurance fees for your insurance will remain the same. Insurance in your super before making a decision. Go to Insurance in the Product Guide for more information. The material relating to Insurance may change between the time when you read this PDS and the day you join Workforce. MYSUPER AUTHORISATION NUMBER Asteron Life AS /01/14 A