PRODUCT DISCLOSURE STATEMENT

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1 PRODUCT DISCLOSURE STATEMENT Munich Holdings of Australasia Pty Ltd Superannuation Scheme Inside About the Munich Holdings of Australasia Pty Ltd Superannuation Scheme (the Scheme) How super works 2 Benefits of investing with the Scheme 3 Risks of super 4 How we invest your money 5 Fees and costs 6 How super is taxed 7 Insurance in your super 7 How to open an account 2 Back cover Important information This Product Disclosure Statement (PDS) is a summary of significant information and contains a number of references to important information (each of which forms part of the PDS). You should consider that information before making a decision about the product. Information in the PDS is general information only and does not take account of your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances. Information contained in this document that is not materially adverse is subject to change to time to time may be updated if it changes. Updated information can be found on the website or obtained free of charge on request, by contacting the Scheme Administrator on Accumulation members, 27 August 2018 Issued by Towers Watson Superannuation Pty Ltd (ABN , AFSL ), as the Trustee of the Munich Holdings of Australasia Pty Ltd Superannuation Scheme (ABN ).

2 Contact us The Scheme Administrator Munich Holdings of Australasia Pty Ltd Superannuation Scheme PO Box 1442 Parramatta NSW 2124 Phone: Website: The HR Department Munich Holdings of Australasia Pty Ltd PO Box H35 Australia Square Sydney NSW 1215 Phone: (02) Fax: (02) About the Munich Holdings of Australasia Pty Ltd Superannuation Scheme The Munich Holdings of Australasia Pty Ltd Superannuation Scheme (the Scheme) provides superannuation benefits for employees of Munich Holdings of Australasia Pty Ltd (MHA) with the aim of providing you with a degree of financial security in the future. Being a member is a valuable part of your remuneration. Benefits may be paid if you leave your employer, die or become totally and permanently disabled or terminally ill. The Scheme gives you the flexibility to determine the level of your retirement savings provided the Government s Superannuation Guarantee (SG) requirements are met. Information about the Trustee, including executive remuneration and any other documents that must be disclosed under the superannuation legislation, are on the website at on the Publications tab under Trustee Information. 2 How super works Superannuation is a means of saving for retirement that is, in part, compulsory. Various contributions go into an account in your name which is invested and earns investment returns. Positive returns are added to your account and negative returns are deducted from it. Taxes and any insurance or other fees, and any amounts paid or transferred out, are deducted from your account. The Government provides tax savings, so the money contributed to your super account is usually taxed less than the tax you pay on your salary. This helps your super to grow. The Scheme provides you with a Member Statement each year showing your account details. There are three categories of membership in the Scheme: Category A: If your salary is below $99,260*; Category B: If your salary is $99,260* or above; and Category C: For directors and non-employee members. * Current at 22 February Figures are indexed in line with changes in Average Weekly Ordinary Time Earnings over the year to 30 November, which is typically available in February. Contributions There are different types of contributions available to you: Your salary is your Ordinary Time Earnings, which includes base salary, incentives, allowances and bonuses but not overtime. Your base salary is your salary, excluding bonuses, allowances, fringe benefits, overtime payments or other special payments. Company contributions, which depend on your category of membership and the amount you choose, as shown below; Your voluntary contributions, which are any personal contributions you choose to make from either your before-tax or after-tax salary; and Any co-contribution payments the Government makes for you. You can also roll in amounts from other super funds. Category Percentage of base salary Minimum amount Maximum amount Category A 9.5% 12% Category B 9.5% 16% 2 Munich Holdings of Australasia Pty Ltd Superannuation Scheme

3 SG contributions at 9.5% will be deducted from any additional salary arising from you choosing less than the maximum MHA contribution and paid to your super account. In addition, SG contributions at 9.5% will be deducted from any incentives, allowances or bonuses (but not overtime) and paid to your super account. SG contributions are not required in respect of any part of your salary greater than the maximum contribution base, equal to $216,120 for the 2018/19 year and indexed annually. For Category A and B members, MHA will contribute at the maximum level unless you state otherwise on your Application for Membership. For Category C members, MHA will contribute 9.5% of Ordinary Time Earnings or such higher amount as is required to meet the SG requirements. The Government has limits on how much you can contribute before extra tax applies. There are also preservation rules which mean you generally cannot access amounts in your account until you reach your preservation age (between age 55 and 60) or satisfy another condition of release. Choice of Fund By law, you can choose which super fund you belong to. When you join MHA, you must choose a superannuation fund. As an MHA employee, you can choose to join the MHA Scheme. If you do not join the MHA Scheme when first eligible, you will not automatically receive any basic insurance cover. If you choose another fund for your future SG contributions or choose to transfer some of your super to another fund at a later time, any existing insurance cover you have with the Scheme will continue, provided there are sufficient funds in your accounts to cover the cost of insurance. If you transfer all of your account balance out of the Scheme, you will no longer be a member and there will be no insurance coverage for you in the Scheme. Important information You should read the important information about how super works before making a decision. Go to the section How super works in the Super Guide, available from the Publications page on the website at or contact the Scheme Administrator for a hard copy. The material relating to how super works may change between the time when you read this Statement and the day when you acquire the product. 3 Benefits of investing with the Munich Holdings of Australasia Pty Ltd Superannuation Scheme The Scheme provides the following benefits to Accumulation members: Flexibility to save more for the future If you are a Category A or B member, you may have the flexibility to choose the level of Company contributions you wish to receive provided the Government s SG minimum is satisfied. You can choose to make personal contributions to the Scheme if you wish. Fees are subsidised MHA generously meets the cost of administration for the Scheme. This frees up your money to work harder for your retirement. Some fees do apply. Insurance protection for you and your family The Scheme provides basic death, terminal illness and total and permanent disablement cover for eligible Category A and B members, with the cost deducted from your account. You can boost your basic cover by buying additional voluntary insurance. You can apply to continue your death insurance cover via a personal insurance policy when you leave MHA without the need to provide evidence of good health (eligibility conditions apply). Investment flexibility You can choose from five different investment options, allowing you to make a choice that meets your needs. You must choose an option when you join the Scheme. You can change your investment option in any month. The first switch each calendar year is free; after that a fee applies. Other ways to save You can roll over super from other funds into the Scheme and consolidate your super from multiple funds, potentially saving on administration fees. Super for your spouse You can split some of your super contributions with your spouse once each financial year into their account in another complying super fund. Paying death benefits To provide you with greater security around who receives your super in the event of your death, you have the choice of making either a binding or non-binding nomination. To nominate your preferred beneficiaries, please complete a Beneficiaries form. Important information You should read the important information about your benefits before making a decision. Go to the section Your super benefits in the Super Guide, available from the Publications page on the website at or contact the Scheme Administrator for a hard copy. The material relating to your benefits may change between the time when you read this Statement and the day when you acquire the product. Scheme Administrator

4 4 Risks of super As with any investment, there is always risk in investing with a superannuation fund. Investment risk The Scheme offers you a choice of five investment options, each with different strategies and different levels of risk and expected return. The level of risk depends on the option s assets. Generally, the higher an investment s potential return, the greater the risk associated with that investment. Historically, investment in shares has provided the highest average returns over the long term but has also demonstrated the greatest volatility in the short term. Over the longer term, lower risk investments, such as cash or fixed interest, generally provide lower returns, but are less volatile than shares. The value of your accounts in the Scheme will vary and may rise or fall depending on the performance of the investment markets in which your money is invested. You should remember that past performance is not necessarily a reliable indicator of future performance. Returns from the Scheme may be positive or negative and are not guaranteed. When you leave the Scheme, you may get less than the amount of contributions paid in by you and your employer because of taxes, fees and low or negative investment returns. Your level of risk will vary depending on your age, investment time frame, other investments and risk tolerance. Other risks Being a member of the Scheme does not automatically mean that you will have enough money to live on in your retirement. Your future superannuation savings and investment earnings may not be sufficient to adequately provide for your retirement. MHA may decide to cease or vary its contributions to the Scheme, the Scheme s Trust Deed may be amended, or the Scheme may close in the future. If that were to happen, the Trust Deed sets out how the Trustee must act as well as your rights on termination of the Scheme. There is also the risk that the Scheme will lose its complying status and therefore lose its tax concessions. The Trustee manages this risk by ensuring that the Scheme operates according to the requirements of the Trust Deed and law. The Scheme may also be exposed to other risks such as changes in the economic and political climate, fraud or other criminal activities (including identity theft). Not all of these risks can be controlled by the Trustee. A change in the laws that govern superannuation may impact on your ability to access your money in the future or affect the tax effectiveness of your super savings. We will keep you informed about any material changes that may affect your super. Important information You should read the important information about risks before making a decision. For investment risks, see the Investment Guide and for insurance risks, see the Insurance Guide. Go to both guides from the Publications page on the website at or contact the Scheme Administrator for a hard copy. The material relating to risks may change between the time when you read this Statement and the day when you acquire the product. 4 Munich Holdings of Australasia Pty Ltd Superannuation Scheme

5 5 How we invest your money You can choose to invest your super in one of five investment options Diversified Shares, High Growth, Balanced, Conservative or Cash. You must choose one of the options on joining the Scheme or your application for membership cannot be processed. Each option has potentially a different investment outcome and carries a different level of risk. The options also vary in the asset classes they invest in and in the recommended investment time frame. Your account receives the investment earnings, whether positive or negative, of your chosen investment option. You can change your investment choice any time by making a switch. Switches can be made online or by completing a Member Investment Choice form which is available on the website and from the Scheme Administrator or HR. The first switch each calendar year is free; after that a fee applies. Warning! Deciding how you invest your super is an important decision. You should consider: The likely investment return what level of return are you seeking from your super? The risk how much variation in the value of your super or the returns you receive are you willing to accept? Your investment time frame how long before you expect to need your super? A financial adviser can assist you to make a choice that is most appropriate for your needs. Below is information on the Scheme s most popular option, the Balanced option. About the Balanced option Overview* This is a diversified option which invests across the major asset classes, but with a significant weighting towards growth assets. This option may be suitable for members who expect to invest their super for more than five years. Investors in this option may be seeking a diversified portfolio which aims to achieve moderate to high capital growth over the medium to long term with a high level of investment volatility (which may include periods of negative returns). Investment objectives To achieve a return (net of taxes and investment fees) that exceeds the increase in CPI by at least 3.0% p.a. over moving 10-year periods. To limit the probability of achieving a negative return over moving one-year periods to approximately five years in 20. Investment strategy Invest approximately 73% in shares and diversifying assets, with the balance in fixed interest assets and cash. Benchmark asset allocation 2.0% Australian shares Listed property 10.0% 12.0% International shares (hedged) Alternative risk premia 15.0% 10.0% 5.0% Minimum suggested investment period At least five years Likelihood of a negative return in any 20-year period*** Approximately three years in 20 Volatility level*** Medium to High *Note that the information about suitability of particular options is general in nature and is included as required by law. It is not intended to be a recommendation or statement of opinion in relation to any particular option. Members are encouraged to seek their own advice if they are uncertain as to which option might be most appropriate for them. ***The volatility level shown is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. It is based on the Standard Risk Measure developed by the industry and is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the range of risks and potential losses and gains associated with their chosen investment options. Important information 9.5% 9.5% 7.0% 20.0% International shares (unhedged) Multi asset funds Funds of hedge funds Australian fixed interest** Australian inflation-linked bonds ** Includes some exposure to international fixed interest. Further detail about investments, including information about the Scheme s other investment options, investment risks and how to change options, is contained in the Investment Guide. You should read the important information about investments before making a decision. Go to the Investment Guide on the Publications page on the website at or call the Scheme Administrator for a hard copy. The material relating to investments may change between the time when you read this Statement and the day when you acquire the product. Cash Scheme Administrator

6 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 or your employer, as applicable, may be able to negotiate to pay lower fees. 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. *This statement is required by legislation. However, please note that the Trustee has already negotiated the fees and costs of the Scheme on your behalf. There is no scope to negotiate lower fees and costs on an individual basis. For definitions of various fees, refer to towerswatson.com/mha/ Media/docs/FeeDefinitions.pdf. This section shows fees and costs you may be charged for the Scheme s Balanced option. Information in this section can be used to compare costs of the Scheme with other similar superannuation funds. These fees and costs may be deducted from your Scheme account or from the returns on your investment. Other fees, such as activity fees and insurance fees, may also be charged, but these will depend on the nature of the activity or insurance chosen by you. Refer to page 7 for details of the insurance fees. Fees shown include GST and stamp duty if applicable. ASIC s superannuation calculator at can be used to check the effect of fees and costs on your account balance. Munich Holdings of Australasia Pty Ltd Superannuation Scheme Balanced option Type of fee Amount How and when paid Investment fee Balanced option: 0.95% p.a. to 1.00% p.a. ($9.50 to $10.00 per $1,000) This fee is deducted from investment returns before the returns are applied to your account in the Scheme. Administration fee Nil Not applicable. Buy-sell spread Nil Not applicable. Switching fee First switch in any calendar year is free. For each additional switch per calendar year: $90 This fee is deducted from your account at the time of switching. Exit fee $135 This fee is deducted from your account when you withdraw or transfer money out of the Scheme. Advice fees relating Nil Not applicable. relating to all members investing in a particular MySuper product or investment option Other fees and costs 1 Other fees may also apply Indirect cost ratio Nil Not applicable. 1 Insurance fees and fees for certain activities you request may apply (see the Insurance Guide and the Fees and other costs section in the Super Guide for details). Example of annual fees and costs This table gives an example of how the fees and costs in the Balanced option for this superannuation product can affect your superannuation investment over a 1 year period. You should use this table to compare this superannuation product with other superannuation products. EXAMPLE Balanced option BALANCE OF $50,000 Investment fees 1.00% For every $50,000 you have in the superannuation product you will be charged $500 each year* PLUS Administration fees Nil And, for every $50,000 you have in the superannuation product you will be charged Nil each year in administration fees. PLUS Indirect costs for the superannuation product EQUALS Cost of product Nil And, indirect costs of Nil each year will be deducted from your investment If your balance was $50,000, then for that year you will be charged fees of $500 for the superannuation product. * The fee shown is the maximum investment fee applicable, on a gross of tax basis. Note: Additional fees may apply. And if you leave the superannuation fund, you may also be charged an exit fee of $135 and a buy-sell spread. The buy-sell spread for exiting is 0% (this will equal to $0 for every $50,000 you withdraw). Important information Further details about fees, including those applying to the Scheme s other investment options and definitions of various fees, are contained in the Super Guide. You should read the important information about fees before making a decision. Go to the section Fees and other costs in the Super Guide on the Publications page on the website at com/mha, or call the Scheme Administrator for a hard copy. The material relating to fees may change between the time when you read this Statement and the day when you acquire the product. Fee changes Some of the fees may be indexed annually (e.g. in line with increases in Average Weekly Ordinary Time Earnings); others depend on the services provided to the Scheme each year. The Trustee reserves the right to increase the fees without your consent if necessary in order to manage the Scheme. We may also introduce new fees. You generally will be given at least 30 days notice of any fee increases. The fees charged may depend on your employment status or category of membership in the Scheme. If you change categories, you will be advised of any changes to the fees that apply to you. 6 Munich Holdings of Australasia Pty Limited Superannuation Scheme

7 7 How super is taxed All taxes are paid to the Australian Taxation Office when required. The following taxes apply to super: Generally 15% contributions tax is deducted from concessional contributions (such as the Company s and your salary sacrifice contributions) when received by the Scheme. This tax does not apply to any after-tax contributions. If your relevant income is over $250,000, you may receive an additional tax assessment from the ATO. Tax at up to 15% is deducted from the Scheme s investment earnings before they are applied to your accounts. Lump sum payments made from the Scheme after age 60 are generally tax free. Tax may apply before age 60 and will be deducted before your benefit is paid to you. The Government has set limits or caps on the amount that can be contributed to super each year before extra tax applies. Warning! If you exceed the caps, you could pay up to 47% tax on the excess contributions. Warning! You should provide your Tax File Number (TFN) to the Scheme. This may save you tax. Normally the Company will provide your TFN to the Scheme when you start work. If you don t provide your TFN, higher tax can apply to certain payments and some types of contributions cannot be accepted. Important information Further details about tax are contained in the Super Guide. You should read the important information about tax before making a decision. Go to the section How super is taxed in the Super Guide on the Publications page on the website at or call the Scheme Administrator for a hard copy. The material relating to tax may change between the time when you read this Statement and the day when you acquire the product. 8 Insurance in your super An important feature of the Scheme is the amount of insurance that may be payable in addition to the balance of your accounts if you die, become totally and permanently disabled (TPD) or terminally ill. You can also apply for additional voluntary insurance if you wish to increase the amount of your cover. Eligibility conditions apply. Like any forms of insurance, certain conditions (and exclusions) apply to the granting or payment of your death and disability cover. Warning! These terms and conditions may affect your entitlement to insurance cover. Your death or total and permanent disablement benefit or terminal illness benefit = Your super accounts Your insurance basic + benefit + Any additional insurance you have What is my basic death, TPD and terminal illness cover? Your insurance is calculated according to your category of membership, base salary and the number of years (and complete months) remaining from your age at your last birthday prior to the date of your death, TPD or diagnosis of a terminal illness, to age 65. So, if you become totally and permanently disabled at age 45, the number of years used in the calculation is 20 i.e. from age 45 to 65. Basic insurance is compulsory for Category A and B members and you are unable to change or opt out of this insurance cover. Category A: 9% of base salary for each year (and complete months) to age 65 subject to a maximum of twice your base salary. Category B: 16% of base salary for each year (and complete months) to age 65 subject to a maximum of six times your base salary. Category C members do not have basic insurance but are able to apply to buy additional voluntary cover. Additional insurance Eligible members can top up your basic insurance cover by applying to buy additional voluntary insurance cover up to a certain limit. Cost of cover Warning! The cost of any insurance cover is deducted from your Company account. The annual fees are calculated as a rate per $1,000 of insurance cover and vary depending on your age. Insurance cover costs from 16 cents per $1,000 at age 15 to $11.80 per $1,000 at age 64). These rates are the standard fee rates. If you are requested to provide evidence of good health, the insurer may impose a loading on the fee in respect of the cover being assessed. Scheme Administrator

8 How to apply Generally your basic cover (if any) starts automatically on the day you join the Scheme if you join the Scheme when first eligible and you are actively at work performing your normal duties on that day. To apply for or change your additional voluntary insurance cover, you will need to complete an Application for Additional Death and Total and Permanent Disablement Insurance. Copies are available on the website and from the Scheme Administrator or HR; see page 2 for contact details. Guaranteed extra insurance option Under some circumstances, you may, without evidence of insurability, increase your additional voluntary insurance. Some conditions apply. For further details, see the Insurance Guide on the Publications page on the website at or call the Scheme Administrator. Important information Further details about insurance, including when cover does not start automatically, the amount of cover, fees, risks and important conditions and exclusions are contained in the Insurance Guide. These may affect your entitlement to insurance cover. You should read the important information about insurance before making a decision, including whether the cover is appropriate for you. Go to the Insurance Guide on the Publications page on the website at or call the Scheme Administrator for a hard copy. The material relating to insurance may change between the time when you read this Statement and the day when you acquire the product. 9 How to open an account To join the Scheme, you need to make a number of choices and complete some forms as listed below. Copies of the forms are available on the website and from the Scheme Administrator or HR (see page 2 for contact details). Application for Membership Select the level of Company contributions; Decide if you want to make voluntary contributions to your super; and Choose how to invest your super. You must choose an investment option or your application cannot be processed. Rollover form If you want to roll over your super from other funds. Beneficiaries form Make a binding or non-binding nomination for any death benefit. Application for Additional Death and Total and Permanent Disablement Insurance If you want additional voluntary insurance cover. Important information Further details on how to open an account are contained in the Super Guide. You should read the important information about opening an account before making a decision. Go to How to open an account in the Super Guide on the Publications page on the website at or call the Scheme Administrator for a hard copy. The material relating to opening an account may change between the time when you read this Statement and the day when you acquire the product. If you have a complaint The Scheme has a process for dealing with enquiries and complaints. Any complaints should be directed to: The HR Department Munich Holdings of Australasia Pty Ltd PO Box H35 Australia Square Sydney NSW 1215 Phone: (02) Fax: (02) Your privacy The Trustee believes your privacy is important and so has developed a privacy policy to protect your personal information. The policy outlines how we handle members personal information. You can download a copy from the Member Information page under the Publications tab on the website at or contact the Scheme Administrator for a hard copy. Accumulation PDS Version 10, 27 August 2018

9 INVESTMENT GUIDE Munich Holdings of Australasia Pty Ltd Superannuation Scheme Inside Your Scheme s investments 2 Understanding the basics of investing 2 Making your investment choice 4 Your investment options at a glance 5 Your questions answered 10 Investment terms explained 10 Additional investment information 10 Investment risks 11 Important information The information in this document forms part of the Product Disclosure Statement (PDS) dated 27 August 2018 for Accumulation members of the Scheme. It should be read in conjunction with the other documents which form part of the PDS. Information in the PDS is general information only and does not take account of your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances before making a decision about the product. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. Investment returns can be positive or negative and are not guaranteed by the Trustee or the Company. Information on tax and superannuation legislation is current as at 1 July 2018 unless otherwise noted. The Trustee reserves the right to correct any errors or omissions. Information contained in this document that is not materially adverse is subject to change from time to time and may be updated if it changes. Updated information can be found on the website or obtained free of charge on request, by contacting the Scheme Administrator on Contact us The Scheme Administrator Munich Holdings of Australasia Pty Ltd Superannuation Scheme PO Box 1442 Parramatta NSW 2124 Phone: munichsuperadmin@linksuper.com Website: The HR Department Munich Holdings of Australasia Pty Ltd PO Box H35 Australia Square Sydney NSW 1215 Phone: (02) Fax: (02) Accumulation members, 27 August 2018 Issued by Towers Watson Superannuation Pty Ltd (ABN , AFSL ), as the Trustee of the Munich Holdings of Australasia Pty Ltd Superannuation Scheme (ABN ).

10 2 Your Scheme s investments One of the most important choices you have to make is how to invest your super. The Scheme offers five investment options for you to choose from. You must choose one of the options on joining the Scheme or else your application for membership cannot be processed. This section explains the basics of investing and your investment options in the Scheme. The Scheme allows you to choose how to invest your accounts. Each investment option has its own investment objectives and strategy. Investment objectives are broad goals set by the Trustee for managing the Scheme s assets. The investment objectives are neither forecasts nor a guarantee of future investment returns. The Trustee s general investment objectives are to: Invest the assets as permitted by the Trust Deed and by superannuation law, and to exercise those investment powers prudently. Ensure the assets are adequately diversified and have an adequate level of liquidity. Ensure there are sufficient assets to meet benefit payments when they are due. Ensure that investment managers appointed by the Scheme exercise integrity, prudence and professional skill in fulfilling the investment tasks delegated to them, and are fully accountable. The specific investment objectives for each option are set out on pages 5 to 9. The investment strategy for each option is the plan that the Trustee follows to achieve the investment objectives of that option. The Scheme s investment managers are named in the Annual Report. The Trustee may change the managers or products from time to time without prior notice to, or consent from, members. There is no guarantee that the Scheme will always invest in any particular manager or product. The Trustee may also alter or close investment options or introduce new options. You will be advised in advance if a significant change to an option is made. The Scheme has five investment options. You can choose to invest your Accumulation accounts in any one of these options. You can change your investment choice in any month, and once each calendar year free of charge. Your change will be effective from the first day of the following month provided your request is received at least five business days before the month s end. Understanding the basics of investing To help you make the right investment choice, it s important you understand some investment basics. Asset classes Most investments can be broadly grouped into five investment types: shares, property, fixed interest, cash and alternative assets (see page 3). Each of the Scheme s investment options invests in one or more different asset classes. The five asset classes can be grouped into two main categories: Growth assets include shares, alternative assets and global listed property. These assets generally offer higher returns over the long term than other types of assets. They also usually have a higher risk in the short term because returns can vary (or fluctuate) widely from year to year. Growth assets may also experience periods of negative returns on occasions. Munich Holdings of Australasia Pty Limited Superannuation Scheme Income assets include cash and fixed interest, such as Australian and international government bonds, inflation-linked bonds and corporate debt. They are generally regarded as lower-risk investments and offer lower expected returns over the long term compared with growth assets. They also have a lower likelihood of negative annual returns. Understanding the two Rs risk and return In the short term, risk generally refers to the potential for your super to fluctuate in value. Return is the amount of money earned by your super investment. This amount may be positive or negative. Risk and return go hand in hand when you re investing. The higher the long-term return you re aiming for, the greater the risk that your money will fluctuate in value in the short term. That s because, to achieve a high long-term return, you need to invest in a greater proportion of growth investments, which tend to be more volatile than income assets. Year-by-year earnings from growth assets vary a lot more than earnings from income assets. So there s a much greater risk that growth assets will have a negative return in any one year. In the long term, risk can mean: Failing to have enough money in retirement. Choosing an investment option with less risk of fluctuations may mean you earn a lower return on your super. Over a long period, even a small difference in your investment earnings can make a big difference to your final benefit. This is mainly due to the principle of compounded earnings. You may also fail to save enough for retirement in a higher-risk investment option if you retire at a time when asset values are depressed. It is also possible that a more aggressive investment option could produce a large negative return in one year from which it takes many years to recover compared to an investment in a more conservative option. Your investment does not keep pace with inflation (CPI). If you choose an investment option that doesn t have much growth potential, your super may not keep up with CPI over the long term. Over time, prices for goods and services usually increase. If your retirement is some way off, your money won t buy as much by the time you retire as it does today. For more information about investment risks, please refer to page 11. Short term v long term Generally, the following definitions apply to super investments: Short term an investment period of up to three years. Medium term an investment period from three to seven years. Long term an investment period of seven years or more.

11 Level of expected risk and return HIGH Shares When you buy shares, you re buying part ownership of a company listed on a share market. This means that the value of your investment changes in line with the company s share price. Of all the asset types, shares have generally earned the highest return in the long term. However, on the downside, the value of shares will fluctuate more than any other main asset type. Shares also have the highest probability of negative earnings in the short term. The Scheme invests in a diversified portfolio of Australian and international shares. To help minimise the impact of currency movements, the Scheme invests in a combination of hedged and unhedged international shares. Diversifying assets This is a broad category of investments and investment strategies that sit outside the traditional asset classes of shares, fixed interest and cash. Diversifying assets will typically perform differently to traditional asset classes. This means that investors often use these assets to help diversify their investment portfolios. On their own, diversifying assets can produce high returns, but with the risk of high short-term volatility. However, when combined with traditional asset classes, their unique risk and return characteristics can help smooth longer-term returns and reduce volatility. The Scheme invests in funds of hedge funds, multi asset funds and an alternative risk premia fund. Property is another example of a diversifying asset. Investing in property means investing in industrial or commercial real estate. The value of your investment changes when rent is paid and through the increase or decrease in the property value. In general, property provides long-term returns in excess of inflation. Earnings have historically been less volatile over the long term than those produced by shares, and have been higher than those provided by cash or fixed interest. Property investments are either direct or indirect. A direct property investment is where property (real estate) is purchased by a company to be held on behalf of investors. Indirect property refers to an investment in property that is made by purchasing units in a property trust or listed property securities. The Scheme also invests in a portfolio of indirect or listed global property assets, in both Australia and overseas. Fixed interest Fixed interest investments (or bonds ) are issued by Australian and overseas governments, semi-government authorities and companies in return for cash. Interest is paid to investors over the life of the investment at either a fixed or variable rate (e.g. at a rate linked to inflation). The value of your investment changes when interest is paid and when the value of the bond increases or decreases (with interest rate changes). Over the long term, interest-bearing investments have tended to provide higher returns than cash, but lower returns than shares and property. As their value can fluctuate, this asset class is more volatile than cash, but generally less volatile than shares or property. The Scheme invests in a wide range of fixed interest assets, including Australian and international fixed interest, and the more specialised sector of inflation-linked bonds. Cash Investing in cash is similar to putting your money into a bank account. You re investing in short-term fixed interest assets such as bank bills. Interest is paid on the amount you have invested. It s very unlikely that you ll lose money on a cash investment over a short period of time. However, cash investments may not always keep up with inflation. LOW Scheme Administrator

12 Making your investment choice Your investment choice is a personal decision. Before you choose an option, ask yourself three questions: 1. How much super do I need? 2. How much time do I have before I will need my super? 3. How much risk am I comfortable with? 1. How much super do I need? Your answer will depend on your personal circumstances. As a starting point, consider the following questions and how they relate to your situation. How much will I need each year in retirement? Financial experts say that to maintain your lifestyle in retirement, you ll need an annual income of around 60-65%* of what you are earning before tax at the time you retire. This includes income from all sources, not just super. So if you have other investments, you can factor those in. How long will I need an income for after I retire? On average, women live another 24 years # after retiring at age 65. Men live another 22 years #. Of course, you may retire earlier or live longer. It s a long time to support yourself without a regular income. What about inflation? Time makes a big difference to the value of money as shown in the graphic below. In very simple terms, $2,000 in 1975 would have bought you around four times more than in To maintain the real value of your savings, your investments need to achieve a return that is higher than inflation. 2. How much time do I have before I will need my super? It s important to work out your investment time horizon the length of time your super will be invested before you need or can access it. How much time you have before you can access your super may determine how much risk you are prepared to take when you invest. For people with a long investment time horizon, ups and downs in short-term earnings are usually less of a concern than for those who will need their super soon. 3. How much risk am I comfortable with? Remember the two Rs risk and return (see page 2). The level of risk you feel comfortable with will probably change throughout your working life. If you have a longer time to invest you may be more comfortable choosing an investment option with greater exposure to growth assets. Or with less time, you may feel that investing in more income assets is best. * Source: Australian Senate Select Committee on Superannuation, Inquiry into Superannuation and Standards of Living in Retirement. December # Source: Australian Government Actuary, Australian Life Tables , adjusted for 25 year mortality improvement factors (available from The impact of inflation over time What do things cost? Munich Holdings of Australasia Pty Limited Superannuation Scheme

13 Your investment options at a glance Diversified Shares Overview* This is an aggressive option which invests in Australian and international shares. This option may be suitable for members who expect to invest their super for more than seven years. Investors in this option may be seeking a diversified exposure to shares and may be comfortable accepting a very high level of investment volatility in the short term (including periods of negative returns) in order to achieve better capital growth over the long term. The level of currency hedging on international shares will also influence the returns from this option. This option may also be suitable for investors seeking exposure to shares. Investment objectives To achieve a return (net of taxes and investment fees) that exceeds the increase in CPI by at least 4.0% p.a. over moving 10-year periods. To limit the probability of achieving a negative return over moving one-year periods to approximately seven years in 20. Investment strategy Invest 100% in shares, with approximately 30% in Australian shares and 70% in international shares. Benchmark asset allocation Australian shares International shares (hedged) International shares (unhedged) Multi asset funds 52.5% 30.0% 17.5% Minimum suggested investment period At least seven years Likelihood of a negative return in any 20-year period** Approximately six years in 20 Volatility level** High * Note that the information about suitability of particular options is general in nature and is included as required by law. It is not intended to be a recommendation or statement of opinion in relation to any particular option. Members are encouraged to seek their own advice if they are uncertain as to which option might be most appropriate for them. ** The volatility level shown is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. It is based on the Standard Risk Measure developed by the industry and is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the range of risks and potential losses and gains associated with their chosen investment options. The investment mix of an option will determine how much its returns vary in the short term (say one year). Over the long term, returns from an option will vary, possibly quite widely. Scheme Administrator

14 High Growth Overview* This is a diversified option which has a high weighting to growth assets. This option may be suitable for members who expect to invest their super for more than seven years. Investors in this option may be seeking higher capital growth over the long term. They may be comfortable with a relatively high level of short-term investment volatility, which will include periods of negative returns. Investment objectives To achieve a return (net of taxes and investment fees) that exceeds the increase in CPI by at least 3.5% p.a. over moving 10-year periods. To limit the probability of achieving a negative return over moving one-year periods to approximately six years in 20. Investment strategy Invest entirely in growth assets, with approximately 60% in shares with the balance in diversifying assets. Benchmark asset allocation Australian shares International shares (hedged) International shares (unhedged) Multi asset funds Funds of hedge funds Listed property Alternative risk premia Australian fixed interest** Australian inflation-linked bonds Cash 10.0% 7.5% 18.0% 12.5% 10.5% 10.0% 31.5% Minimum suggested investment period At least seven years Likelihood of a negative return in any 20-year period** Approximately five years in 20 Volatility level** High * Note that the information about suitability of particular options is general in nature and is included as required by law. It is not intended to be a recommendation or statement of opinion in relation to any particular option. Members are encouraged to seek their own advice if they are uncertain as to which option might be most appropriate for them. ** The volatility level shown is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. It is based on the Standard Risk Measure developed by the industry and is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the range of risks and potential losses and gains associated with their chosen investment options. The investment mix of an option will determine how much its returns vary in the short term (say one year). Over the long term, returns from an option will vary, possibly quite widely. 6 Munich Holdings of Australasia Pty Limited Superannuation Scheme

15 Balanced Overview* This is a diversified option which invests across the major asset classes, but with a significant weighting towards growth assets. This option may be suitable for members who expect to invest their super for more than five years. Investors in this option may be seeking a diversified portfolio which aims to achieve moderate to high capital growth over the medium to long term with a high level of investment volatility (which may include periods of negative returns). Investment objectives To achieve a return (net of taxes and investment fees) that exceeds the increase in CPI by at least 3.0% p.a. over moving 10-year periods. To limit the probability of achieving a negative return over moving one-year periods to approximately five years in 20. Investment strategy Invest approximately 73% in shares and diversifying assets, with the balance in fixed interest assets and cash. Benchmark asset allocation 2.0% Australian shares Listed property International shares (hedged) Alternative risk premia International shares (unhedged) Australian fixed interest** Multi asset funds Australian inflation-linked bonds Funds of hedge funds Cash ** Includes some exposure to international fixed interest. Minimum suggested investment period At least five years Likelihood of a negative return in any 20-year period*** Approximately three years in 20 Volatility level*** Medium to High 10.0% 15.0% 10.0% 9.5% 5.0% 12.0% 7.0% 20.0% 9.5% * Note that the information about suitability of particular options is general in nature and is included as required by law. It is not intended to be a recommendation or statement of opinion in relation to any particular option. Members are encouraged to seek their own advice if they are uncertain as to which option might be most appropriate for them. *** The volatility level shown is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. It is based on the Standard Risk Measure developed by the industry and is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the range of risks and potential losses and gains associated with their chosen investment options. The investment mix of an option will determine how much its returns vary in the short term (say one year). Over the long term, returns from an option will vary, possibly quite widely. Scheme Administrator

16 Conservative Overview* This is a diversified option which invests mainly in defensive assets. This option may be suitable for members who expect to invest their super for more than three years. Investors in this option may place a higher priority on reducing investment volatility and may be less concerned about higher levels of growth over the longer term. Although this is a more conservative option, there will be periods of low returns and it is possible that investors in this option may experience negative returns from time to time. Investment objectives To achieve a return (net of taxes and investment fees) that exceeds the increase in CPI by at least 1.5% p.a. over moving 10-year periods. To limit the probability of achieving a negative return over moving one-year periods to approximately three years in 20. Investment strategy Invest largely in fixed interest assets and cash with approximately 37% invested in shares and diversifying assets. Benchmark asset allocation Australian shares Listed property International shares (hedged) Alternative risk premia International shares (unhedged) Australian fixed interest** Multi asset funds Australian inflation-linked bonds Funds of hedge funds Cash ** Includes some exposure to international fixed interest. 5.0% 3.0% 18.0% 9.0% 7.5% 15.0% 5.0% 2.5% 30.0% 5.0% Minimum suggested investment period At least three years Likelihood of a negative return in any 20-year period*** Approximately two years in 20 Volatility level*** Low to Medium * Note that the information about suitability of particular options is general in nature and is included as required by law. It is not intended to be a recommendation or statement of opinion in relation to any particular option. Members are encouraged to seek their own advice if they are uncertain as to which option might be most appropriate for them. *** The volatility level shown is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. It is based on the Standard Risk Measure developed by the industry and is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the range of risks and potential losses and gains associated with their chosen investment options. The investment mix of an option will determine how much its returns vary in the short term (say one year). Over the long term, returns from an option will vary, possibly quite widely. 8 Munich Holdings of Australasia Pty Limited Superannuation Scheme

17 Cash Overview* This option invests solely in cash and similar assets. This option may be suitable for members who may be planning to access their super in the short term and whose priority is capital protection. Note that returns and capital are not guaranteed. Investment objectives To achieve a return (net of taxes and investment fees) that exceeds the increase in CPI by at least 0.5% p.a. over moving 10-year periods. To minimise negative returns over moving one-year periods to approximately zero years in 20. Investment strategy Invest only in short-term interest-bearing assets (i.e. cash). Benchmark asset allocation Cash 100.0% Minimum suggested investment period Up to three years Likelihood of a negative return in any 20-year period** Approximately zero in 20 Volatility level** Very low * Note that the information about suitability of particular options is general in nature and is included as required by law. It is not intended to be a recommendation or statement of opinion in relation to any particular option. Members are encouraged to seek their own advice if they are uncertain as to which option might be most appropriate for them. ** The volatility level shown is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. It is based on the Standard Risk Measure developed by the industry and is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the range of risks and potential losses and gains associated with their chosen investment options. The investment mix of an option will determine how much its returns vary in the short term (say one year). Over the long term, returns from an option will vary, possibly quite widely. Scheme Administrator

18 Your questions answered How do I make or change my investment choice? To make or change your investment choice, you must complete the Member Investment Choice form, which is available from the Scheme Administrator and the HR Department (see cover page for contact details). You can change your investment option once each calendar year free of charge. A fee applies to any subsequent switches. See the Super Guide for details. Switches can be made at any time and will apply from the start of the following month if received by the Scheme Administrator at least five business days before the end of the month. Can I choose more than one option? You cannot choose more than one investment option at a time. Your existing accounts and all future contributions will be invested in the investment option you have selected. How do I know how my investment option is performing? Each year, the Scheme prepares an Annual Report, which outlines the performance of each investment option, as well as your Member Statement, which shows the balance of your super and how it has performed. Monthly updates on the performance of each option are also available on the website. You can also contact the Scheme Administrator (see cover page for contact details) during the year to find out how your investment option is performing. Investment terms explained To help you better understand the Scheme and the basics of investing, we have defined some investment terms used in this guide. Funds of hedge funds invest in a diverse range of hedge fund managers through the one investment. Hedge funds aim to achieve positive returns regardless of investment market conditions. They do this by using special financial instruments, including derivatives and a variety of other strategies, such as short selling. In isolation, hedge funds can be a volatile investment over the short term, but a fund of hedge funds can help diversify this risk by investing in a wide range of hedge fund managers, which means the Scheme is less likely to be unduly exposed to any one hedge fund manager. Hedging is a strategy to protect against, or at least reduce, a risk. For the Scheme s international share assets, it specifically refers to currency risk. The hedged portion of the Scheme s international share assets are protected from foreign exchange movements while the unhedged portion is not protected. Multi-asset funds invest in a variety of asset classes, such as shares and fixed interest. They are structured in such a way that they are expected to be affected by ongoing economic conditions to a lesser extent than single asset classes. The Scheme uses multi-asset funds to help diversify its investments. Alternative risk premia assets are a special type of diversifying investments which invest in non-traditional assets and use a number of lower cost strategies to generate investment returns. Additional investment information Derivatives A portion of the Scheme s assets is invested in funds of hedge funds and alternative risk premia assets (see to the left for details). The underlying managers for these investments may make use of derivatives to help achieve their objectives. The Scheme s other investment managers only use derivatives for risk- control purposes or to more efficiently shift asset allocations. Investment managers are required to have risk management processes in place in relation to the use of derivatives and the purposes for which they are used. Socially responsible investments The Trustee does not take into account social, ethical or environmental considerations or labour standards for the purpose of selecting, retaining or realising the Scheme s investments. When the Scheme s investment managers are selected, the Trustee does not consider whether the managers take these factors into account. Investment returns Investment earnings are applied to your accounts that reflect the investment returns earned by the investment option you have chosen for your super (net of tax and investment fees). Positive earnings increase the amount in your accounts, while the amount in your accounts will be reduced if the investment earnings are negative. For more information on the taxes and fees deducted from investment earnings, see the Super Guide. Cash flows during the year, including contributions and rollovers, earn investment returns from the date they occur. Reserves The Trustee does not maintain any investment reserves. All net investment earnings are distributed to members. However, it does maintain an operational risk reserve as described below. Operational Risk Financial Requirement (ORFR) reserve Super funds are now required to set aside financial resources to address the fund s operational risks. The Trustee has established an ORFR reserve in the Scheme for this purpose. The Trustee updates members on the status of the reserve in the Annual Report. Members do not currently pay for the funding of this reserve. The Trustee has decided that the ORFR is invested in the same way as the Scheme s Defined Benefit assets. 10 Munich Holdings of Australasia Pty Limited Superannuation Scheme

19 Investment risks Different asset classes perform differently at different times and you should be aware that investment returns can be volatile and the value of your investments may increase or decrease over time. Further, you should not rely on past performance as an indicator of the future performance of any investments. We recommend that you speak to a licensed financial adviser before making any investment decisions. Rises and falls in the value of your benefit can occur for a variety of reasons. The main investment risks that might have an impact on your investment in the Scheme are: Inflation risk The rate of inflation may exceed the rate of return achieved on your investment and hence your investment would not retain its purchasing power. Individual investment risk Individual investments can (and do) fall in value. This risk affects mainly investments in shares and property, although it can also affect investments in fixed interest. Market risk Changes in the investment markets resulting from changes in economic, political and legal conditions, or market sentiment, can affect investment values. This risk affects investments in all asset classes and can therefore be considered a risk (to varying degrees) for all options. Interest rate risk Changes in interest rates can have a positive or negative impact directly or indirectly on investment values or returns. This risk affects all investments and can therefore be considered a relevant risk for all options. Liquidity risk Liquid assets are assets that can be readily converted to cash. Liquidity risk is the risk that some assets may not be able to be converted to cash when needed to pay benefits or process investment switches. This can be considered a risk for the Conservative, Balanced and High Growth options. Currency risk Investments are made in other countries. If their currencies change in value relative to the Australian dollar, the value of the investment can change. This can be considered a risk for the Conservative, Balanced, High Growth and Diversified Shares options. Derivatives risk There are a number of risks associated with investing in derivatives contracts, which include the value of the derivative failing to move in line with the underlying asset, potential illiquidity of the derivative, the Scheme potentially being unable to meet payment obligations as they arise, and counterparty risk (where the counterparty to the derivative contract cannot meet its obligations under the contract). This can be considered a risk for the Conservative, Balanced and High Growth options. Scheme Administrator

20 Accumulation members, 27 August 2018

21 SUPER GUIDE Munich Holdings of Australasia Pty Ltd Superannuation Scheme Inside How super works 2 Your super benefits 5 Fees and other costs 7 How super is taxed 11 You and your Scheme 12 How to open an account 13 Important information The information in this document forms part of the Product Disclosure Statement (PDS) dated 27 August 2018 for Accumulation members of the Scheme. It should be read in conjunction with the other documents which form part of the PDS. Information in the PDS is general information only and does not take account of your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances before making a decision about the product. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. Information on tax and superannuation legislation is current as at 1 July 2018 unless otherwise noted. The Trustee reserves the right to correct any errors or omissions. Information contained in this document that is not materially adverse is subject to change from time to time and may be updated if it changes. Updated information can be found on the website or obtained free of charge on request, by contacting the Scheme Administrator on Contact us The Scheme Administrator Munich Holdings of Australasia Pty Ltd Superannuation Scheme PO Box 1442 Parramatta NSW 2124 Phone: munichsuperadmin@linksuper.com Website: The HR Department Munich Holdings of Australasia Pty Ltd PO Box H35 Australia Square Sydney NSW 1215 Phone: (02) Fax: (02) Accumulation members, 27 August 2018 Issued by Towers Watson Superannuation Pty Ltd (ABN , AFSL ), as the Trustee of the Munich Holdings of Australasia Pty Ltd Superannuation Scheme (ABN ).

22 How super works Overview Your super grows through Company contributions, and any additional voluntary contributions and rollovers you decide to make to your accounts. You choose how to invest your contributions and these savings grow over time. How much they grow is determined by how you choose to invest your super. The returns on your super investment option can be positive, increasing the value of your super, or negative, decreasing the value of your super. The return applied to your accounts will be the return of your chosen investment option, after deductions for investment fees and tax. During the year, applicable taxes and fees will be deducted from your accounts. Categories of membership The Scheme has three membership categories for Accumulation members: Category A for members with a salary below $99,260*. Category B for members with a salary of $99,260* or above. Category C for directors and non-employee members. *These figures are correct at 22 February They are indexed each year based on changes in Average Weekly Ordinary Time Earnings over the year to 30 November, which is typically available in February. Your salary is defined as your Ordinary Time Earnings, which includes base salary, incentives, allowances and bonuses but not overtime. Your base salary is used for insurance purposes and is your salary, excluding bonuses, allowances, fringe benefits, overtime payments or other special payments. Your category of membership affects how much is contributed to your super and also your insurance cover if you die or become disabled. For more details on your insurance benefits, refer to the Insurance Guide. Your accounts in the Scheme Your different types of contributions are kept in different accounts. Investment earnings are applied to your accounts based on your chosen investment option. The administration expenses of running the Scheme are paid by Munich Holdings of Australasia Pty Ltd (MHA). Some fees do apply. Company account for contributions paid by MHA. Member account for your own voluntary contributions to the Scheme. Rollover account for amounts you have transferred from previous superannuation funds. Your annual Member Statement shows the value of your accounts in the Scheme. Contributions to your super Company contributions You can choose how much MHA will contribute within the limits shown to the right. You can vary this level at 1 January each year by contacting the HR Department (see cover page for contact details). Category Percentage of base salary Minimum Maximum Category A 9.5% 12% Category B 9.5% 16% The difference between the level you choose and the maximum level (if any) will be paid to you as additional salary. However, the additional salary will not form part of your base salary for other benefit purposes. SG contributions of 9.5% will also be deducted from any additional salary arising from you choosing less than the maximum MHA contribution. Please note that before contributing less to your super, you should seek financial advice on the long-term implications. SG contributions of 9.5% will also be deducted from any incentives, allowances or bonuses (but not overtime) and paid to your super account. SG contributions are not required in respect of any part of your salary greater than the maximum contribution base, equal to $216,120 for the 2018/19 year indexed annually. For Category A and B members, MHA will contribute at the maximum level unless you state otherwise on your Application for Membership. For Category C members, MHA contributes to the Scheme to meet the Superannuation Guarantee (SG) requirement of 9.5% of Ordinary Time Earnings. No insurance cover is provided automatically for Category C members; however, they can apply to purchase additional voluntary cover (see the Insurance Guide). Let s see how this works Kim is a Category B member with a base salary of $100,000. Kim chose a level of contributions from MHA of 10% of salary. The difference between this and the maximum level of 16% is 6%. Kim s additional salary would be 6% of $100,000 which is $6,000 a year. SG contributions of $570 (9.5%) would be deducted from this amount and paid to the Scheme. Voluntary contributions You do not have to make contributions to the Scheme. However, you can make voluntary contributions to your super from your: Before-tax salary (via salary sacrifice), known as concessional contributions ; or After-tax salary, known as non-concessional contributions. You cannot make deductible personal contributions to the Scheme. Limits apply to the amount you can contribute at concessional tax rates. See page 11 for details on these limits. You can arrange voluntary contributions on the Application for Membership. You can change or stop your contributions at any time contact the HR Department or the Scheme Administrator (see cover page for contact details). Super terms You should become familiar with the following terms to help you better understand your super and the choices available to you. Concessional contributions include employer and before-tax contributions to super. Non-concessional contributions include after-tax contributions to your super along with certain contributions from other non-salary sources (e.g. contributions made for you by your spouse, some overseas transfers and excess concessional contributions not refunded to you). 2 Munich Holdings of Australasia Pty Limited Superannuation Scheme

23 Transferring your previous super You can transfer money from a previous superannuation fund into the Scheme. This is called a rollover. There are no fees for rolling your super into the Scheme. There may be exit fees from your previous fund. You should also check whether you may lose any valuable benefits such as insurance if you leave your previous fund. To find out how to roll over your super into the Scheme, contact the HR Department (see cover page for contact details). If you have difficulties tracing a previous super benefit you can use the Australian Taxation Office s (ATO) online services by creating a MyGov account and linking to the ATO. Your rollover is placed in a Rollover account in your name. It will be allocated with the net investment return of your chosen investment option. Splitting your super contributions You can split some of your super contributions with your spouse once each financial year into your spouse s account with another complying super fund. After 1 July each year, you can apply to the Trustee to split up to 85% of your concessional contributions (i.e. Company and personal voluntary before-tax contributions) made during the previous financial year. If you are leaving the Scheme, you may apply at the time of exiting. Any concessional contributions you split will count towards your concessional contributions cap, rather than your spouse s cap. See page 11 for further details. If you have made a Portability transfer, or in certain other circumstances, there may be additional limits on the amount that can be split with your spouse in any year. You will be advised if this affects you. Contribution splitting does not apply to after-tax contributions, rollovers from Australian funds or transfers from overseas funds. To split your super contributions you need to complete a Contribution splitting form, which is available from the Scheme Administrator or from the HR Department (see cover page for contact details). When you split your super contributions with your spouse, these contributions must be paid into an account with another complying super fund. A contribution splitting fee of $135 will be charged against your account balance for every contribution split. Any contributions you split with your spouse must be preserved in the superannuation system until your spouse reaches their preservation age or satisfies certain other conditions (for example, financial hardship or compassionate grounds). See page 4 for more information on preservation age. If you are thinking of splitting some of your super contributions with your spouse, you should first speak to a licensed financial adviser as there may be disadvantages to splitting in certain circumstances. Any contributions split with your spouse become the property of your spouse and this may impact on your own benefits. About the co-contribution payment Some Scheme members may take advantage of the Government s co-contribution payment by making contributions into the Scheme from their after-tax salary. The co-contribution applies to members on annual incomes up to $52,697 per year for the 2018/19 year. For those on incomes of $37,697 per year or less, the Government will contribute up to $0.50 for every dollar of after-tax contributions you make up to a maximum of $500 per year. The co-contribution gradually reduces as your income level rises and phases out altogether when your income reaches $52,697 per year. To determine your eligibility for the co-contribution, income is defined as total assessable income plus any reportable fringe benefits. It also includes your salary sacrifice contributions and Company contributions above the minimum amount set out on the previous page. Other eligibility conditions also apply. The Government automatically determines eligibility for a co- contribution and pays contributions directly to the Scheme on the member s behalf. If you are in the relevant income bracket and wish to take advantage of the co-contribution, the Trustee recommends that you speak to a licensed financial adviser. If you wish to make or increase your after-tax contributions, contact the Scheme Administrator (see cover page for contact details). Choice of Fund, Portability and your super Choice of Fund (COF) and Portability legislation allows most working Australians to choose the superannuation fund they wish to belong to. COF allows you to choose a super fund other than this Scheme for future Superannuation Guarantee (SG) contributions which MHA makes to super on your behalf. Portability gives you the opportunity to transfer some or all of your existing account balances in the Scheme to another super fund once every 12 months. It is important to keep in mind that COF and Portability are optional and can be done separately. If you are new to MHA you must choose a superannuation fund. You can choose to join the Scheme or another eligible fund of your choice. The choice is entirely yours. If you decide to choose another fund for your super, please keep the following things in mind: Insurance If you do not join the Scheme when first eligible you will need to provide evidence of good health that is acceptable to the insurer before any cover will commence if you choose to join the Scheme at a later date. If you choose another eligible fund for your future SG contributions or choose to transfer some super out of the Scheme, any existing insurance cover you have with the Scheme will continue, provided you maintain a balance in your accounts and therefore remain a Scheme member. Insurance fees will continue to be deducted as long as there are sufficient funds in your accounts to cover the cost of insurance (see the Insurance Guide for details on insurance fees). If the balance of your accounts goes below the amount of the insurance fee, your insurance coverage will cease. If your insurance cover stops as a result of insufficient funds, you will need to provide evidence of good health that is acceptable to the insurer before any further insurance cover is provided to you. Currently, the Trustee has not set any other minimum balance to be retained in your accounts. This may change at a later date. Scheme Administrator

24 If your funds are fully transferred out of the Scheme, you will no longer be a member and there will be no insurance coverage for you in the Scheme. Fees and charges The administration fees of this Scheme are paid by MHA. However, there is a fee for transferring some of your super to another fund, see page 8 for details. You may find that you are subject to administration fees in other funds. Accessing your super The Government has preservation laws which require that part or all of your super must be preserved (i.e. stay in the super system) until you retire or satisfy other special conditions. Generally, after you have left MHA you can only withdraw your money from the superannuation system if: You have reached age 60 and either retired from work with your employer after reaching that age or the Trustee is satisfied that you intend never again to be gainfully employed on a full-time basis (i.e. work more than 10 hours per week); or You have reached your preservation age (see to the right) and the Trustee is satisfied that you intend never again to be gainfully employed on a full-time basis (i.e. work more than 10 hours per week); or You have reached age 65; or You satisfy special conditions and are allowed to have your preserved benefits released earlier, for example, in the event of total and permanent disability, suffering a terminal medical condition, severe financial hardship or on compassionate grounds; or You leave Australia permanently if you are a temporary resident (excluding New Zealand residents) and satisfy certain conditions. Your preservation age depends on when you were born (see the table see to the right). The Scheme will inform you if you can take any of your super in cash when you leave. Benefits that have to be preserved must be rolled over to an approved fund such as: A complying superannuation fund; A rollover fund (i.e. approved deposit fund or deferred annuity); or An immediate annuity. At the time of your leaving service, you will be asked to advise the Trustee how you would like your benefit to be paid and to nominate a rollover fund for payment of your preserved benefit. If you do not inform the Scheme Administrator within 28 days about where you wish your super to go, it will be rolled into an Eligible Rollover Fund (see page 5). Date of birth Before 1 July July 1960 to 30 June July 1961 to 30 June July 1962 to 30 June July 1963 to 30 June After 30 June Preservation age Super and housing First Home Super Saver Scheme This scheme allows first home buyers to make voluntary concessional or non-concessional contributions to superannuation and later access some of the funds for a home deposit. Contributions made after 1 July 2017 qualify and withdrawals can be made from 1 July The maximum that can be withdrawn is $15,000 per year (plus related earnings) for up to two years. This means an individual could access a total of $30,000 plus earnings and a couple could access $60,000 plus earnings. Only one withdrawal is permitted. For more information, please contact the Scheme Administrator on Contributing money from home sale to super Homeowners aged 65 and over are allowed to contribute some of the proceeds of the sale of their principal home into super. This is designed to encourage older people to downsize their homes. If you have lived in the home for at least 10 years you can make a downsizer contribution of up to $300,000 into your superannuation fund. Couples are able to transfer up to $600,000 into super. The contract of sale must have been exchanged on or after 1 July Eligible downsizer contributions will not count towards your annual non-concessional contribution cap and can be made even if you do not meet the work test*. However, they will count towards the $1.6 million cap on the amount that can be held in pensions where earnings are exempt from tax. If the ATO determines that you were ineligible to make downsizer contributions or you exceed the $300,000 cap, your contributions will count as personal contributions, which may result in you exceeding your non-concessional contribution cap. The contributions also count towards your total superannuation balance, which may affect whether you can make non-concessional contributions in future years. Other conditions also apply. To make downsizer contributions you need to complete a Downsizer contribution into superannuation form available on the website. For more information, please contact the Scheme Administrator on * If you are over age 65 there is usually a work test applied before you are able to make personal contributions to super. You need to be gainfully employed at least 40 hours in any period of 30 consecutive days in the financial year to which the contribution relates. 4 Munich Holdings of Australasia Pty Limited Superannuation Scheme

25 Your super benefits If you leave If you are leaving the Scheme for any reason other than death, terminal illness or total and permanent disablement, you are entitled to the balance in your super accounts. MHA will inform the Scheme Administrator that you have left employment. The Administrator will let you know how much super you have in the Scheme and ask what you would like to do with your super benefit. Your super benefit will be invested in your chosen investment option until it is paid from the Scheme. Your benefit will therefore increase with positive investment returns and decrease with negative investment returns between the date you leave MHA and the date your benefit is paid from the Scheme. Reduction of benefits on divorce It is possible to split your superannuation as part of a property settlement in the event of your divorce or separation from your spouse or de facto partner (including same-sex couples). The Trustee will be required to split your benefit if it receives a Court Order or following agreement between a couple after obtaining legal advice. If your super benefit is split, your benefits will be adjusted for the amount paid to your spouse. If you, or your spouse, require information on your benefit in relation to a Family Law matter, a fee will be levied to provide the details of your benefits as specified under the law. A further fee is payable to perform the actual split and payment. Details of the applicable fees are on page 9. Eligible Rollover Fund An Eligible Rollover Fund (ERF) is a special type of superannuation fund that has been established for the purpose of accepting the benefits of members of a fund who have become lost (i.e. uncontactable), or leave employment and do not advise the Trustee how their benefits should be paid. When you leave the Scheme, you will be contacted by the Scheme Administrator and asked how you want to receive your benefits. If you fail to nominate where you want your benefit to be paid, the Trustee may, after providing you with 28 days notice, transfer your benefit to an ERF. The ERF chosen by the Trustee is: SuperTrace Locked Bag 5429 Parramatta NSW 2124 Telephone: Facsimile: Contact: The Administrator If your benefit is transferred to the ERF, you will no longer be a member of, nor have any rights under, the Scheme. You will need to contact the ERF directly in relation to your benefit, as you will be a member of the ERF and be subject to its governing rules. The Scheme will notify the ERF of your last known address and the ERF will write to you and supply you with their current PDS, which explains how your benefits are determined in the fund, including full details of the investment policy and fees which may apply. The ERF does not offer insured benefits in the event of death or disablement. The ERF is unable to accept contributions from members or their employers. However, rollovers from other superannuation funds are permitted. Investment returns in the ERF are not guaranteed and may be negative. You should seek advice from a licensed financial adviser as to whether the ERF is a suitable investment vehicle for your purposes. The fees charged to your benefits in the ERF will be different to those applied to your benefits in the Scheme. If you retire You will receive the balance in your super accounts. There are many options for how to use your super in retirement and you should consult a licensed financial adviser. If you die If you die while employed by MHA, your dependants or your estate may be eligible to receive an amount of insurance in addition to the balance in your super accounts. The total benefit comprises: See the Insurance Guide for more details on insurance cover. Who will receive my death benefit? Under superannuation law and the Trust Deed, your death benefit must be paid to your dependants and/or your estate. A member s dependants are defined as: your account balances + basic insurance cover + additional voluntary insurance cover A spouse; A child; A person who in the opinion of the Trustee is wholly or partially dependent on the member at the date of death, or had at that date a legally enforceable right to look to that member for support; or Any other person who is a dependant under the Superannuation Industry (Supervision) (SIS) Act In the Trust Deed, spouse includes a spouse of any sex (bona fide de facto or otherwise recognised at law) at the date of death, or any other person whom the Trustee may, in exercising its absolute discretion, determine to be the member s spouse (including, if appropriate, a former spouse). Generally a child includes a member s child, adopted child, step-child, child of the member s spouse, ex-nuptial child and a posthumous child, who, in all cases, is under the age of 21 years, or at the absolute discretion of the Trustee, a child who is a fulltime student who has not reached the age of 25 years, or any other child whom the Trustee may, in exercising its absolute discretion, determine to be dependent either wholly or in part on that member. Scheme Administrator

26 Under the SIS Act, a dependant includes any person with whom the member has an interdependency relationship, which is where: 1. They have a close personal relationship; 2. They live together; 3. One or each of them provides the other with financial support; and 4. One or each of them provides the other with domestic support and personal care. However, if two people have a close personal relationship and either one or both people suffer from a physical, intellectual or psychiatric disability then they are still considered to have an interdependency relationship for the purposes of the law and are not required to fulfil the other three criteria. The law includes details of various matters that the Trustee must consider in deciding whether two people have an interdependency relationship. Your parents, brothers or sisters are unlikely to be dependants under the law. To be dependants, they would have to rely on you for financial support or be in an interdependency relationship with you. If you don t have any dependants, you may wish to consider nominating your estate. If your benefit is paid to your estate, it will be distributed according to your Will, so it is important that your Will is always up to date. See to the right for more information on nominating beneficiaries. If you are totally and permanently disabled (TPD) or terminally ill The benefit available is calculated in the same way as your death benefit, as shown on page 5. If your claim is not accepted by the Trustee and the insurer, the balance of your super accounts will be paid when you leave the Scheme. The Terminal Illness Benefit is calculated in the same way as the Death Benefit. A portion of the benefit is insured (in the same way as a portion of the death benefit is insured). Refer to the Insurance Guide for the definitions of total and permanent disablement and terminal illness. Nominating your beneficiaries The Scheme offers you a choice of two ways to nominate your beneficiaries to receive your death benefit. You can make a: Non-binding nomination, which ultimately allows the Trustee to determine who should receive your benefit, if you die. To make this decision, the Trustee will be guided (but not bound) by the person(s) you have nominated on your Beneficiaries form; or Binding nomination, which binds the Trustee to your nomination if it is valid at the time of your death. To make a binding nomination, you need to complete the Beneficiaries form and follow the instructions outlined below. Please keep in mind that it is important to complete a new Beneficiaries form if your personal circumstances change at any time during your membership (for example, if you marry, divorce or have children). The Beneficiaries form is available on the website or from the HR Department or the Scheme Administrator. See cover page for contact details. Non-binding nominations If you make a non-binding nomination, the Trustee will use your form as a guide to your wishes but will also consider other factors that are relevant to your situation at the time of your death. The Trustee will have the final discretion in determining who should receive your death benefit. It is the Trustee s responsibility to act in your best interests and the best interests of your dependants. Binding nominations You can nominate your dependants and/ or your estate and bind the Trustee to that nomination. The Trustee will no longer be responsible for deciding who gets your benefit if you die. If you make your nomination binding, you accept the responsibility to ensure that your nomination is always current. If you die and your nomination is valid and hasn t expired, the Trustee will be bound by your decision, even if your circumstances have changed. The Trustee will not have the discretion to make a different distribution in line with your circumstances at the time of your death. To make your nomination binding, you need to have your nomination witnessed by two people. Your witnesses must be at least 18 years old and must not be beneficiaries of your death benefit. You must ensure that you allocate your total benefit; that is, the percentages you specify for each beneficiary must add up to 100% or your nomination will be invalid. Your nomination will not be valid if: You nominate someone other than a dependant or your estate; You don t follow the procedures outlined on the form; or You don t update your nomination within three years. If your nomination is not valid or has expired then the Trustee will determine who receives your death benefit. 6 Munich Holdings of Australasia Pty Limited Superannuation Scheme

27 Bankruptcy Any personal contributions to super made on or after 27 July 2006 (excluding your employer s Superannuation Guarantee contributions) may be recoverable by creditors in the event of your bankruptcy if these contributions are demonstrated to have been made with the specific intention of defeating creditors. You will be advised if this affects you. Keeping you informed You can stay informed about your super investment and the Scheme through the following correspondence: Your Member Statement This statement shows the value of your benefits at 31 December each year. Annual Report Each year, the Scheme prepares an Annual Report to members. It explains how your money is being managed and by whom, and the net investment returns credited to your accounts during the year. Newsletters The Scheme will also provide member newsletters from time to time, which detail any changes in legislation that may affect you and provide quick tips on your super. Website The Scheme website at provides access to your account information, PDSs, forms and other Scheme documents and regular investment updates. Other information There are also a number of Fund documents available on the website at including the Trust Deed and various Trustee policies. Fees and other 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 or your employer, as applicable, may be able to negotiate to pay lower administration fees. 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. * This statement is required by legislation. However, please note that the Trustee has already negotiated the fees and costs of the Scheme on your behalf. There is no scope to negotiate lower fees and costs on an individual basis. This section 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 Scheme as a whole. Other fees, such as activity fees and insurance fees, may also be charged, but these will depend on the nature of the activity or insurance chosen by you. Taxes and insurance fees are set out in other parts of this PDS. You should read all the information about fees and other costs because it is important to understand their impact on your investment. Scheme Administrator

28 Munich Holdings of Australasia Pty Ltd Superannuation Scheme Type of fee Amount How and when paid Investment fee Investment options: Diversified Shares: 0.20% p.a. to 0.25% p.a. ($2.00 to $2.50 per $1,000) High Growth: 1.05% p.a. to 1.10% p.a. ($10.50 to $11.00 per $1,000) Balanced: 0.95% p.a. to 1.00% p.a. ($9.50 to $10.00 per $1,000) Conservative: 0.65% p.a. to 0.70% p.a. ($6.50 to $7.00 per $1,000) Cash: 0.10% p.a. to 0.15% p.a. ($1.00 to $1.50 per $1,000) Administration Nil fee Buy-sell Nil spread Switching fee First switch in any calendar year is free. For each additional switch per calendar year: $90 This fee is deducted from investment returns before the returns are applied to your account in the Scheme. Not applicable. Not applicable. This fee is deducted from your account at the time of switching. Exit fee $135 This fee is deducted from your account when you withdraw or transfer money out of the Scheme. Advice fees Nil Not applicable. relating to all members investing in a particular MySuper product or investment option Other fees Other fees may also apply and costs 1 Indirect cost ratio Nil Not applicable. 1 Insurance fees and fees for certain activities you request may apply (see page 9). Example of annual fees and costs This table gives an example of how the fees and costs in the Balanced option for this superannuation product can affect your superannuation investment over a 1 year period. You should use this table to compare this superannuation product with other superannuation products. EXAMPLE Balanced option BALANCE OF $50,000 Investment fees 1.00% For every $50,000 you have in the superannuation product you will be charged $500 each year* PLUS Administration fees PLUS Indirect costs for the superannuation product EQUALS Cost of product Nil Nil And, for every $50,000 you have in the superannuation product you will be charged Nil each year in administration fees. And, indirect costs of Nil each year will be deducted from your investment If your balance was $50,000, then for that year you will be charged fees of $500 for the superannuation product. * The fee shown is the maximum investment fee applicable, on a gross of tax basis. Note: Additional fees may apply. And if you leave the superannuation fund, you may also be charged an exit fee of $135 and a buy-sell spread. The buy-sell spread for exiting is 0% (this will equal to $0 for every $50,000 you withdraw). Additional explanation of fees and costs 1. Buy-sell spread A buy-sell spread may be charged by a fund to reflect costs incurred by the fund or charged by the investment managers when you make contributions, roll money into the fund, or change investment options. The Scheme does not currently charge a separate buy-sell spread; instead, these costs are included in transactional and operational costs. However, the Trustee reserves the right to charge a buy-sell spread in the future. See below for more information. Any buy-sell spread is in addition to the switching fee which also applies when you change investment options (excluding the first switch in any calendar year). 2. Administration fees These fees include administration, consulting, audit, legal and other fees incurred by the Scheme. The Scheme does not currently charge members an administration fee. These fees are paid for by MHA. 3. Investment fees The investment fee ranges that apply to the Scheme s investment options are shown in the table to the left. 8 Munich Holdings of Australasia Pty Limited Superannuation Scheme

29 4. Taxes and insurance fees The following taxes and insurance fees are deducted from your accounts in the Scheme: The fee for your insurance cover, generally based on an age-based scale and the level of cover you have chosen. For details, refer to the Insurance Guide on the Publications page of the website at super. towerswatson.com/mha, or call the Scheme Administrator for a hard copy. Contributions tax generally at the rate of 15% from Company contributions and any salary sacrifice contributions to your accounts. Any deductions available to the Scheme, such as for expenses and insurance fees, reduce the amount of tax deducted. Excess contributions tax in certain circumstances if your contributions exceed caps set by the Government (see pages 11 to 12). No-TFN tax on your concessional (employer and before-tax) contributions if you have not provided the Scheme with your TFN. Any surcharge tax assessed by the ATO as being applicable to you. The tax is deducted from your benefits when the assessment is received by the Scheme. The surcharge was abolished with effect from 1 July 2005, but the Scheme may still receive assessments for you in respect of earlier years. More information on tax can be found on page Transactional and operational costs These costs are incurred by the Scheme and its investment managers, and may include brokerage, settlement and custody costs, the difference between the acquisition and disposal prices paid by the managers for the Scheme s investments, clearing costs, costs associated with currency hedging and stamp duty on investment transactions. They may also include additional fees charged by some of the Scheme s investment managers if they outperform their specified objective. These additional fees are only charged on the portion of the assets of the relevant investment option held by the manager. Transactional and operational costs related to explicit transaction costs are included in the investment fee based on the amount of these costs incurred by the Scheme or its investment managers during the financial year prior to the date of this PDS. Implicit transaction costs (e.g. bid/ ask spreads) are also included in the total transaction costs shown in the table below. They therefore represent a cost to you. To the extent that some of these costs are in respect of the Scheme s Defined Benefit assets, they are paid for by MHA with no deduction from members defined benefits. The transactional and operational costs incurred over the 2017 calendar year with adjustments to reflect the additional transition costs (ranging from 0.02% for Conservative to 0.12% for Diversified Shares) incurred by the Scheme in July 2018 are outlined in the following table: Investment option Transactional and operational costs Included in investment fee Not included in investment fee Total Cash 0.00% 0.00% 0.00% Conservative 0.31% 0.04% 0.35% Balanced 0.50% 0.02% 0.52% High Growth 0.58% 0.00% 0.58% Diversified Shares 0.12% 0.00% 0.12% These amounts are estimates. To the extent they are part of the investment fee, these costs are deducted from the investment earnings of each investment option before those earnings are applied to your accounts. 6. Borrowing costs These costs may be incurred by the Scheme s investment managers and relate to the use of credit facilities that are not derivatives by the managers. Borrowing costs are calculated based on the amount of those costs incurred in the previous financial year and represent an additional cost to you. For the most recent calendar year these costs for each investment option are outlined in the following table: Investment option Cash Borrowing costs Nil Conservative 0.004% Balanced 0.007% High Growth 0.007% Diversified Shares Nil These amounts are estimates. These costs are deducted from the investment earnings of each investment option before those earnings are applied to your accounts. 7. Operational risk financial requirement reserve Super funds are required to set aside financial resources to address their operational risks. The Trustee has built up an operational risk financial requirement reserve (ORFR reserve) in the Scheme equal to 0.32% of the aggregate of members net assets funded by setting aside a small portion of the Scheme s Defined Benefit assets. The reserve is invested the same way as the Scheme s Defined Benefit assets. The Trustee periodically monitors the reserve to ensure that it remains close to its target level. Should the reserve fall below a predetermined shortfall limit, the Trustee will enact a plan for its replenishment. The Trustee will update members at least annually on the status of the reserve. 8. Activity fees A contribution splitting fee of $135 is charged each time a splitting application is processed by the Scheme Administrator on your behalf. If you or your spouse require information on your benefit in relation to a Family Law matter, a fee of $343 will be charged for each date at which information is required. You, or your spouse, are required to pay this fee at the time of any request for information it is not deducted from your accounts. In addition, if your super is split under a Family law agreement or court order, fees will apply for the splitting of your super and the payment of an amount to your former spouse. These fees are normally shared evenly between you and your former spouse, unless your agreement or court order provides otherwise. The fees may be paid by you and/ or your spouse by cheque, or otherwise will be deducted from the applicable benefit. The fee for establishing an entitlement to your spouse is $274. All fees include GST where applicable. Scheme Administrator

30 9. Fee changes Some of the fees are dependent on the fees charged by the Scheme s service providers. Some of these fees may be indexed annually (e.g. in line with increases in Average Weekly Ordinary Time Earnings); others depend on the services provided to the Scheme each year. The Trustee reserves the right to increase the fees without your consent if necessary in order to manage the Scheme. We may also introduce new fees. You will generally be given at least 30 days notice of any fee increases. The fees shown are current at 27 August 2018, unless otherwise stated. Further details of the fees, costs and taxes paid by the Scheme can be found in the Scheme s Financial Statements. A summary is included in Munich Holdings of Australasia Pty Ltd Superannuation Scheme s Annual Report which is issued after 31 December each year. 10 Fee definitions Activity fees A fee is an activity fee if: (a) the fee relates to costs incurred by the trustee of a superannuation fund that are directly related to an activity of the trustee: (i) that is engaged in at the request, or with the consent, of a member; or (ii) that relates to a member and is required by law; and (b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee. Administration fees An administration fee is a fee that relates to the administration or operation of the superannuation fund and includes costs that relate to that administration or operation, other than: (a) borrowing costs; and (b) indirect costs that are not paid out of the superannuation fund that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the fund or in an interposed vehicle or derivative financial product; and (c) costs that are otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Advice fees A fee is an advice fee if: (a) the fee relates directly to costs incurred by the trustee of a superannuation fund because of the provision of financial product advice to a member by: (i) a trustee of the fund; or (ii) another person acting as an employee of, or under an arrangement with, a trustee of the fund; and (b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee. Munich Holdings of Australasia Pty Limited Superannuation Scheme Buy-sell spreads A buy-sell spread is a fee to recover transaction costs incurred by the trustee of a superannuation fund in relation to the sale and purchase of assets of the fund. Exit fees An exit fee is a fee to recover the costs of disposing of all or part of members interests in the superannuation fund. Indirect cost ratio The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation fund, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation fund attributed to the MySuper product or investment option. Investment fees An investment fee is a fee that relates to the investment of the assets of a superannuation fund and includes: (a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and (b) costs that relate to the investment of assets of the fund, other than: (i) borrowing costs; and (ii) indirect costs that are not paid out of the superannuation fund that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the fund or in an interposed vehicle or derivative financial product; and (iii) costs that are otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Insurance fees A fee is an insurance fee if: (a) the fee relates directly to either or both of the following: (i) insurance premiums paid by the trustee of a superannuation fund in relation to a member or members of the fund; (ii) costs incurred by the trustee of a superannuation fund in relation to the provision of insurance for a member or members of the fund; and (b) the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and (c) the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee. Switching fees A switching fee for superannuation products other than a MySuper product, is a fee to recover the costs of switching all or part of a member s interest in the superannuation fund from one investment option or product in the fund to another.

31 How super is taxed A number of taxes may apply to your super. All taxes deducted are paid to the Australian Taxation Office (ATO) when required. These are: 1. Contributions tax generally at the rate of 15% is deducted from all concessional contributions (i.e. employer contributions and any contributions you make from your before-tax salary by salary sacrifice). If your relevant income is over $250,000, you may receive an additional tax assessment from the ATO. If you have not provided your Tax File Number (TFN) to the Scheme, the rate of tax that applies to your concessional contributions increases substantially to 47% (including Medicare Levy). 2. Tax on investment earnings is generally at the rate of 15% less any applicable deductions and imputation credits that may be available to the Scheme s investment managers. This tax is deducted from the Scheme s investment earnings before these earnings are applied to your accounts. 3. Excess contributions tax may apply if your contributions exceed certain caps set by the Government. See to the right for more information. 4. Tax on benefits paid in cash. The amount of tax payable depends on a number of factors including: What type of benefit is paid (retirement, disability or death); Who receives the benefit; Whether you were an Australian citizen or permanent resident when the benefit was paid. Former holders of certain temporary resident visas may pay more tax on their benefits; How you receive the benefit (e.g. lump sum amount or pension); and Your age when you receive the benefit. If you are age 60 or over, generally all lump sum payments and pensions paid to you from a taxed super fund (such as the Scheme) will be tax free. If you are less than age 60, any lump sum amounts paid to you will consist of only two tax components: a tax-free component and a taxable component. 5. The superannuation surcharge an additional tax of up to 15% was levied against employer and before-tax contributions of high-income earners. The surcharge was abolished from 1 July 2005; however, the Scheme may still receive assessments from the ATO for members affected by the surcharge in prior years. If so, any surcharge amounts will be deducted from your accounts in the Scheme. For more information about the surcharge, contact the Scheme Administrator (see cover page for contact details.) Contribution caps The Government sets limits or caps that affect how super contributions and benefits are taxed. What are concessional contributions? Concessional contributions include: Company contributions; Amounts paid by MHA towards your insurance and administration fees (if any); Personal salary sacrifice contributions; and Personal contributions for which you have claimed a tax deduction. What are non-concessional contributions? Non-concessional contributions include: After-tax contributions for which you have not claimed a tax deduction; Excess concessional contributions not withdrawn from superannuation; and Certain other contributions from non-salary sources (e.g. certain overseas transfers). They do not include rollovers or co-contributions. Note that you cannot make deductible personal contributions to this Scheme. What are the caps on contributions? These are the Government s limits or caps on how much can be contributed to super each year before extra tax applies. What is the annual cap? What tax applies if my contributions are within the cap? Concessional contributions $25,000 regardless of your age. Generally 15% contributions tax.*^ Non-concessional contributions # $100,000, however, if your total super balance on 30 June 2018 was more than $1.6 million, any non-concessional contributions you make in the following financial year will be excessive. Nil #If you are under age 65 and you want to make larger non-concessional contributions to your super fund, you may be able to bring forward up to two years of caps, to make total contributions of up to $300,000 over three years. The maximum you can contribute over three years is $300,000 and further restrictions may apply if your total superannuation balance on 30 June 2018 was greater than $1.4 million. Transitional rules apply if you brought forward contributions in 2016/17. *If your relevant income is over $250,000 per year, you may receive an additional tax assessment from the ATO. ^If you earn less than $37,000 per year you may receive a refund of the 15% contributions tax deducted from your concessional contributions through the low income super tax offset. The refund ranges from $10 to $500 a year. Each year the ATO will determine whether you are eligible, and if so, will pay the refund to your super fund. Scheme Administrator

32 What happens if I exceed the caps? This table shows the extra tax applicable if you exceed the caps: How much tax applies to the excess if I exceed the limit? Concessional contributions Your marginal tax rate less 15% (reflecting tax already paid by the Scheme), plus an interest charge. Non-concessional contributions If you withdraw the excess from super: Nil tax on contributions. Associated earnings taxed at your marginal tax rate. If you leave excess in super: up to 47% If you exceed the concessional contributions cap, you can elect to release up to 85% of the excess contributions from the superannuation system. The amount will be paid by your super fund to the ATO and used to meet any of your outstanding tax liabilities (including the tax on the excess contributions) with the remainder then paid back to you. Amounts that you withdraw will not count towards your non- concessional contributions cap. If you exceed the non-concessional cap, you can elect to release the excess contributions from super, together with an amount of associated earnings. The amount of associated earnings is determined by the ATO and may not reflect the actual earnings on your super contributions. The ATO will send you a form to enable you to make your elections. Providing your Tax File Number (TFN) Providing your TFN to your super fund is not compulsory; however, doing so ensures that you don t pay any more tax on your contributions and benefits than you need to. Significant consequences apply if you have not provided the Scheme with your TFN. These include: Taxing your concessional (employer and before-tax) contributions at up to 47% Taxing the taxable part of your benefit at up to 47%; and Prohibiting the Scheme from accepting any non-concessional contributions from you. Contact the Scheme Administrator to obtain the appropriate form if you have not previously provided your TFN to the Scheme and wish to do so. If you provided your TFN to your employer on commencing employment after 1 July 2007, your employer is obliged to pass on your TFN to your super fund within 14 days. You and your Scheme Your Trustee directors The Trustee of the Scheme is Towers Watson Superannuation Pty Ltd (ABN , AFSL ), a company that has been licensed to act as a trustee of superannuation funds by the prudential regulator of super funds in Australia, the Australian Prudential Regulation Authority (APRA). Towers Watson Superannuation Pty Ltd is a subsidiary of Towers Watson Australia Pty Ltd (ABN , AFSL ), a company that also acts as administrator (via an outsourced arrangement) and consultant to the Scheme. See the Scheme s latest Annual Report for details of the Scheme s specialist advisers. The Trustee is currently covered by a Trustee Professional Indemnity insurance policy that protects the Scheme s assets from a legal liability to the extent permitted by law and the policy conditions. Policy Committee A Policy Committee is responsible for ensuring that the interests of members and MHA are represented in the management of the Scheme. The Committee comprises four members, with half appointed by MHA and half elected periodically by members. See the Scheme s latest Annual Report for the current members of the Policy Committee. Trust Deed The Trust Deed is the legal document that describes the rights and benefits of all the Scheme members, as well as the duties and obligations of the Trustee and the Company, MHA. The Trust Deed and Rules can be changed from time to time jointly by the Trustee and MHA. This PDS summarises parts of the Trust Deed but if there is any disagreement between the Trust Deed and this PDS, the Trust Deed will be the final authority. You can obtain a copy of the Trust Deed by contacting the Scheme Administrator or from the website. Information on tax is current as at 1 July 2018 and may change. 12 Munich Holdings of Australasia Pty Limited Superannuation Scheme

33 How to open an account To join the Scheme, you need to make a number of choices and complete some forms as listed below. Copies of the forms are available from the Scheme Administrator or the HR Department (see below and to the right for contact details). Application for Membership Select the level of Company contributions; Decide if you want to make voluntary contributions to your super; and Choose how to invest your super. You must choose an investment option or your application cannot be processed. Rollover form If you want to roll over your super from other funds. Beneficiaries form Make a binding or non-binding nomination for any death benefit. Application for Additional Death and Total and Permanent Disablement Insurance If you want additional voluntary insurance cover. Enquiries and Complaints The Scheme is committed to resolving any enquiries or problems you have regarding your superannuation. If you have any questions or would like more information about the Scheme, please contact: The Scheme Administrator Munich Holdings of Australasia Pty Ltd Superannuation Scheme PO Box 1442 Parramatta NSW 2124 Phone: Fax: (02) munichsuperadmin@linksuper.com If you are not satisfied with the response, you can take your enquiry to the Trustee by completing a form that is available from the HR Department. The HR Department Munich Holdings of Australasia Pty Ltd PO Box H35 Australia Square Sydney NSW 1215 Phone: (02) Fax: (02) Your form will be sent to the Trustee for consideration. The Trustee will respond within 90 days. In certain circumstances you may be able to request the Trustee s reasons for its decision on your complaint. A copy of the Trustee s Enquiries and Complaints Policy is available on the website at or by calling the Scheme Administrator. If you are not happy with how the Trustee handles your enquiry or complaint, you may contact the relevant independent external dispute resolution body. Up to 31 October 2018, you can lodge your complaint with the Superannuation Complaints Tribunal (SCT) Locked Bag 3060 MELBOURNE VIC 3001 From 1 November 2018, complaints should be lodged with the Australian Financial Complaints Authority (AFCA) GPO Box 3 MELBOURNE VIC info@sct.gov.au info@afca.org.au The SCT will not transfer complaints to AFCA but will continue until it has dealt with all complaints lodged with it. For more information, please contact the Scheme Administrator on Complaints about your privacy that have not been resolved to your satisfaction can be directed to the Office of the Australian Information Commissioner. You can contact the Commissioner on or by to enquiries@oaic.gov.au. Accumulation members, 27 August 2018 Scheme Administrator

34 INSURANCE GUIDE Munich Holdings of Australasia Pty Ltd Superannuation Scheme Inside Your insurance explained 2 What is additional voluntary cover? 3 Cost of insurance 3 Guaranteed insurability option 4 Insurance restrictions 4 Claim procedures 4 Accident cover 5 Continuation option 5 When cover stops and extended cover 5 Changes to terms and rates 5 Insurance risks 5 Important information The information in this document forms part of the Product Disclosure Statement (PDS) dated 27 August 2018 for Accumulation members of the Scheme. It should be read in conjunction with the other documents which form part of the PDS. Information in the PDS is general information only and does not take account of your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances before making a decision about the product. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. Information on tax and superannuation legislation is current as at 1 July 2018 unless otherwise noted. The Trustee reserves the right to correct any errors or omissions. Information contained in this document that is not materially adverse is subject to change from time to time and may be updated if it changes. Updated information can be found on the website or obtained free of charge on request, by contacting the Scheme Administrator on Contact us The Scheme Administrator Munich Holdings of Australasia Pty Ltd Superannuation Scheme PO Box 1442 Parramatta NSW 2124 Phone: munichsuperadmin@linksuper.com Website: The HR Department Munich Holdings of Australasia Pty Ltd PO Box H35 Australia Square Sydney NSW 1215 Phone: (02) Fax: (02) Accumulation members, 27 August 2018 Issued by Towers Watson Superannuation Pty Ltd (ABN , AFSL ), as the Trustee of the Munich Holdings of Australasia Pty Ltd Superannuation Scheme (ABN ).

35 If you die, become terminally ill or totally and permanently disabled (TPD), an amount of insurance may be payable in addition to the balance of your accounts in the Scheme. This document provides more information about the Scheme s insurance benefits including the amount of cover and the cost. It also covers important definitions, restrictions and risks. Your insurance explained Part of your death, disability and terminal illness benefits are covered by an insurance policy. Generally, your basic insurance cover starts automatically on the day you join the Scheme. However, in certain circumstances, for example, if you are not actively at work in your usual occupation (or absent for reasons other than injury or illness) on the day your cover starts, or if your insurance exceeds a certain level called an Automatic Acceptance Limit, you may be required to provide evidence of your good health before the cover or extra cover is provided. The Automatic Acceptance Limit is currently $1 million. Payment of the insurance cover is subject to the insurer s acceptance of your claim. If the insurer declines your claim or does not pay the full amount, the Trustee may reduce your benefit accordingly. See page 5 for information about the potential risks associated with the Scheme s insurance policy. What is my basic death, TPD and terminal illness cover? The insurance cover is calculated according to your category of membership, base salary and the number of years (and complete months) remaining from the date of your death, TPD or diagnosis of a terminal illness to age 65. So, if you become totally and permanently disabled at age 45, the number of years used in the calculation is 20 i.e. from age 45 to 65. You cannot change or opt out of this cover. Category A: 9% of base salary for each year (and complete months) to age 65. The insured benefit is subject to a maximum of twice your base salary. What is total and permanent disablement (TPD)? TPD is defined in the Scheme s insurance policy. In general, being totally and permanently disabled means that you are a permanent employee working at least 15 hours per week, aged 65 or less, and as a result of illness or injury while an insured member: Have been absent from all work for a waiting period of six consecutive months; or You have suffered the total loss (or loss of use) of two limbs or the sight of both eyes, or one limb and the sight of one eye; and at the end of the waiting period (if any) you are permanently incapacitated to the extent that you are unlikely ever to engage in any gainful occupation whether or not for reward, that you can perform on a full or part-time basis, based on the skills and knowledge you have acquired through previous education, training or experience. You should note that this is a summary only. There may be other circumstances in which TPD benefits may be payable and these circumstances may be different if your TPD insurance cover commenced before 1 July You should contact the Scheme Administrator for more information if you think this may apply to you. Category B: 16% of base salary for each year (and complete months) to age 65. The insured benefit is subject to a maximum of six times your base salary. Category C members do not have basic insurance but are able to apply to buy additional voluntary cover. Let s see how this works Joe is a Category A member of the Scheme and has just turned age 45. His current base salary is $80,000 per year. Joe has total account balances of $30,000. Joe s basic death, TPD and terminal illness cover would be: 9% of base salary for each year to age 65 9% of $80,000 x 20 years (65 years 45 years) = $144,000 $144,000 is less than the maximum limit of twice Joe s base salary (i.e. 2 x $80,000 = $160,000). Taking into account Joe s account balances, his death, TPD or terminal illness benefit would be $174,000 (i.e. $30,000 + $144,000). To calculate his annual insurance fee, Joe s age 45 gives a fee rate of $1.17 per $1,000 of insured cover according to the insurance rates on page 3. Therefore, his annual fee would be: $1.17 x ($144,000/$1,000) = $ This fee is deducted from his account proportionately each month. What is terminally ill? You will be considered to be terminally ill if you suffer from an illness which: 1. At least two medical practitioners, one of whom specialises in your type of illness, certifies in writing will lead to your death within 12 months of the date of the certification, despite reasonable medical treatment; and 2. The insurer and the Trustee are satisfied, on medical or other evidence, will, despite reasonable medical treatment, lead to your death within 12 months of the date of the certification referred to above. The illness you suffer from, and the date of the certification, must occur, and take place, while you are covered under the Trustee s insurance policy. What is my Terminal Illness Benefit? The Terminal Illness Benefit is calculated in the same way as the Death Benefit. A portion is insured (in the same way as a portion of the death benefit is insured). 2 Munich Holdings of Australasia Pty Limited Superannuation Scheme

36 What is additional voluntary cover? Eligible members can buy more cover at an additional cost if: You are prepared to contribute to the cost if your account balance cannot support the cost of the extra cover; and The insurer approves your application for cover. The fee for this cover per $1,000 of insured benefit is shown in the table below. Cost of insurance The cost of basic and any additional voluntary insurance is deducted from your Company account. The cost depends on your current age and the amount of cover as reflected in the table below. The fee is calculated as a rate per $1,000 of insured benefit. This fee is deducted from your Company account. Your Member Statement, provided to you annually, will show the actual amount paid and the level of your insured benefit. Annual insurance rates (per $1,000 insured) Your current age Fee rate $ Your current age Fee rate $ These are standard fee rates for death, TPD and terminal illness insurance. If you are requested to provide evidence of good health, the insurer may impose a loading on the fee in respect of the cover being assessed. Rates are subject to change. You will be advised of any changes. To apply for your additional voluntary cover, you should complete an Application for Additional Death and Total and Permanent Disablement Insurance available from the HR Department or Scheme Administrator (see cover page). Scheme Administrator

37 4 Guaranteed insurability option If you: Get married; or Adopt or become a natural parent of a child; or Mortgage your home as security for a loan to purchase that home you may, without evidence of insurability, increase your insured voluntary cover, if any, by up to the lesser of the following amounts: 25% of your insured basic cover as at the relevant date; or The amount of the loan (in the case of a mortgage only); or $100,000. The Trustee can only increase your insured additional voluntary cover under this option by notifying the Scheme s insurer in writing of: The event which triggers the exercise of the option; and The amount by which your insured voluntary cover will be increased (subject to the limits set out above). The Trustee is required to notify the Scheme s insurer within 60 days of the occurrence of the event which triggers the exercise of the option but before the earlier of: Your death or your date of disablement; and The end of your insured additional voluntary cover. The Trustee must give to the Scheme s insurer written notification and proof, satisfactory to the Scheme s insurer, that the event which triggers the exercise of the option has taken place and of the date it took place. Subject to the Trustee validly exercising this option on your behalf, the increase in your insured voluntary cover provided for under this option takes effect from the date the Scheme s insurer receives the Trustee s written notification as outlined above. Upon the increase of your insured voluntary cover under this option, the amount of the fee payable in respect of you will be recalculated to reflect the increase in cover according to the fee rates current at the time. This option can only be exercised once for you and can only be exercised according to the conditions outlined above. If both death and total and permanent disablement cover apply to you, one type of cover cannot be increased under this option without increasing the other type of cover in the same proportion. The amount of your total and permanent disablement cover can never exceed your death cover. An increase in your insured additional voluntary cover under the conditions outlined above is subject to the same exclusions and other special conditions as apply to your insured voluntary cover (if any). If one or more of the life events outlined above is about to occur or has recently occurred in your life, and you would like the Trustee to apply to the Scheme s insurer for this option on your behalf, please contact the HR Department or the Scheme Administrator (see cover page for contact details) as soon as possible for further information. Insurance restrictions Part of the benefits payable on death, TPD or terminal illness are met from insurance policies taken out by the Trustee, and are subject to the terms and conditions of those policies. From time to time, you may be asked to submit evidence of good health to the Trustee or insurer, for example, if you apply for voluntary insurance cover or your cover exceeds the Automatic Acceptance Limit set by the insurer. Munich Holdings of Australasia Pty Limited Superannuation Scheme The insurer will assess the evidence and may apply a loading to your fee rate, or impose restrictions or exclusions on the cover granted. It may even refuse your application for cover. If you elect not to submit this evidence, your benefits will be restricted appropriately. If, for some reason, the insurer does not accept or pay out all or part of the insurance, then the benefit payable to you may be reduced accordingly. You will be advised if this affects you. If you are intending to take leave without pay or are going to work overseas, you may need to apply for your insurance cover to continue before you leave by contacting the HR Department. Your cover during leave without pay may generally be continued for a maximum of 12 months. If you are not a permanent Australian resident, you may need to apply to have your insurance cover continued before any overseas travel commences. You should contact the HR Department for more information a reasonable time before travelling overseas. Benefits provided by insurance will not be paid in the event that your death, illness or injury is: Caused by an act of war (whether declared or not), revolutions, invasions, rebellions or civil unrest; or In the case of death, if your death is caused directly or indirectly by an illness, or any other condition which is directly or indirectly caused by, or related to, the illness in respect of which a pandemic alert, advisory, notification, declaration or other similar publication is issued by the Australian Government (including a relevant Australian Government department, authority, minister or officer) or the World Health Organisation, and your death occurs within 30 days of your insured cover for death starting, restarting or increasing (in the case of an increased benefit, only the increased benefit is not payable). Note: This restriction only commences at least 14 days after the Trustee receives written notification from the Scheme s insurer regarding a pandemic illness. No such notice has been received to date. To qualify for a TPD benefit, you must provide sufficient evidence for the Trustee and the insurer to determine that you meet the requirements of the TPD definition. The process necessary to determine a TPD claim is generally complex and, together with a six- month initial waiting period (where applicable), may mean that a decision as to whether you are entitled to a TPD benefit is not made until up to months after you last worked. In some cases, it may take longer. You should also note that to qualify for a TPD benefit from the Scheme, you generally need to suffer from a severe injury or illness. If you have qualified for a Workers Compensation benefit, a disability benefit from Centrelink, or even TPD payments from another source, it does not automatically mean that you are entitled to a TPD benefit from the Scheme. Claim procedures If you wish to make a disability claim, you should contact the HR Department (see cover page) to obtain the appropriate forms. It is in your interests to lodge your claim as soon as possible. The insurer may require you to undergo one or more medical examinations in order to determine whether you satisfy the relevant definition of disablement. As discussed above, you should note that it can take some time to obtain all the required information or obtain appointments for medical examinations. This means that it may be some time before your claim is finalised and, if it is accepted, for payment to be made. We will keep you informed of the progress of your claim.

38 Accident cover If you have an application for cover being assessed by the insurer, you will be covered against accidental death or TPD for a period not exceeding 120 days from the date your application is received by the insurer. Accident cover will be limited to the cover you applied for, and will cease after 120 days or earlier if your application is accepted, rejected, withdrawn or as advised by the insurer. Continuation option When you leave the Scheme, you may have the opportunity of continuing the death insurance you had as a member without the need to provide evidence of good health, by purchasing a personal insurance policy at your own expense (for an insured amount of not more than your insurance cover under the Scheme) through the Scheme s insurer. The premiums for this policy will be based on the insurer s standard premium rates for an individual policy unless any special terms or fee loadings applied to you while a member of the Scheme. If this is the case, the equivalent special terms or fee loadings will also apply under your personal policy. To be eligible to take advantage of this continuation option, you must satisfy certain conditions, including: You must apply and pay your insurance premium within 60 days of leaving MHA; You must be less than 60 years of age and your insurance fee must not be overdue at the time your cover ends under the Scheme policy; You must no longer be an employee of MHA or a member of the Scheme; You must not have an insurance benefit payable (or due for payment) to you as a member of the Scheme; You must meet the insurer s minimum policy issue and underwriting requirements; You must not have joined any armed forces (other than the Australian Armed Forces Reserve) prior to the date the individual policy is issued; You must have been employed by MHA on a permanent basis for at least 15 hours per week; and If your cover is limited, you must have been insured continuously for two years. If you exercise the continuation option and take out a personal policy with the Scheme s insurer, no evidence of good health will normally be required. However as noted above, any restrictions, loadings or other special terms that applied to your cover while you were a member of the Scheme will continue to apply to the personal policy. For more information on continuing your insurance cover when you leave MHA, contact the HR Department (see cover page for details). When cover stops and extended cover If you are eligible to exercise a continuation option and have not yet done so, your death, TPD and terminal illness insurance cover will stop 60 days after you cease employment with your employer. If you are not eligible to exercise a continuation option and were not a casual employee immediately prior to leaving service, your TPD insurance cover will stop immediately after you cease employment with your employer. Your death and terminal illness cover will stop 60 days later. All cover for casual employees ceases on the day you cease employment. Your cover will stop earlier if you have an insurance claim paid to you, you join any armed forces, reach age 65 or there is insufficient money in your account to pay the fees. Changes to terms and rates The fee rates and insurance terms and conditions applicable to the Scheme may be changed by the Trustee from time to time. The rates and conditions in this document apply from 1 April For information on the rates and conditions which applied prior to this date, please contact the Scheme Administrator (see cover page for contact details). Insurance risks The Trustee uses an insurance policy to meet all or part of the benefit payable on death, disablement or terminal illness. If the insurance company imposes restrictions, special conditions or refuses to pay a claim, the Trustee has the power under the Trust Deed to adjust your benefit accordingly. As a result, there are a number of risks associated with restrictions and special conditions that are imposed by the insurance company. These include the risk that: You may suffer an injury or illness such that you cannot work but are not sufficiently injured or ill to satisfy the Scheme s definition of disablement or terminal illness; Even if your claim is accepted, it may take some time for the payment to be made. For example, it can take some time to obtain all the required information to assess the claim; The insurer may refuse to provide cover in certain circumstances, for example, if you make a claim caused by war; The maximum amount of cover allowable under the policy may be lower than the benefit calculated in accordance with the formula or may be insufficient to meet your needs; The insurance company may decline (or defer) your application for cover, which may also affect your ability to obtain insurance cover in the future; You did not join the Scheme when first eligible or were not actively at work performing normal duties at that time and therefore may need to provide evidence of good health before any cover commences; Any insurance cover in excess of the Scheme s Automatic Acceptance Limit or voluntary cover requested by you (if available) may not have been accepted by the insurer or you may not have been notified in writing of this acceptance; and Your insurance cover may be reduced or unavailable in some circumstances such as a change of benefit category, casual employment, reduced working hours, unpaid leave, overseas employment, travel to certain countries, etc. In the event that your insurance cover is reduced, your insured benefits will reduce accordingly. Scheme Administrator

39 Accumulation members, 27 August 2018