RBF Tasmanian Accumulation Scheme

Transcription

1 Member Booklet Retirement Benefits Fund Tasmanian Accumulation Scheme Member Booklet Information in this brochure is current as at 17 December 2012 Melanie (Social Worker), member Contents About the Tasmanian Accumulation Scheme 1 How super works 2 Benefits of investing with Tasmanian Accumulation Scheme 2 Risks of super 3 How we invest your money 3 Fees and costs 4 How super is taxed 5 Insurance in your super 6 How to open an account 7

2 1 Retirement Benefits Fund Member Booklet Important information This Member Booklet is a summary of significant information and contains references to important information in Fact sheets each of which forms part of this Member Booklet marked by the symbol 3. You should read and consider that information before making a decision in relation to the Tasmanian Accumulation Scheme. To obtain copies of this Member Booklet or the Fact sheets (free of charge) visit our website at or call the Enquiry Line on Information in the Member Booklet and Fact sheets is subject to change and may be updated by us from time to time. Where a change is not materially adverse to you they can be obtained by going to our website at The information can also be obtained free of charge by calling the Enquiry Line on for a copy. The information provided in this Member Booklet is general information only and does not take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances. If you would like personal financial advice, you can call to book an appointment with a Financial Planner at Financial Planning Pty Ltd (ABN , AFS Licence No ). Financial Planning Pty Ltd is a wholly owned subsidiary of and operates as a separate legal entity from. The Retirement Benefits Fund Board is not licensed to provide financial advice to members. The Retirement Benefits Fund Board does not accept responsibility for any financial advice or services provided by Financial Planning Pty Ltd because Financial Planning Pty Ltd is solely responsible for any financial advice or financial services it provides. This Member Booklet is issued by the Retirement Benefits Fund Board ABN , the trustee of the Retirement Benefits Fund () ABN About the Tasmanian Accumulation Scheme is Tasmania s public sector superannuation fund and has been providing superannuation benefits to Tasmanian public sector employees since it was established in is a not-for-profit super fund, which means all net investments returns are passed on to our members. The Tasmanian Accumulation Scheme is a scheme within and was established by the Public Sector Superannuation Reform Act 1999 (Tasmania). The Tasmanian Accumulation Scheme is open to persons under the age of 75 who either commenced employment with a Tasmanian public sector employer on or after 15 May 1999 or who satisfy any of the following: a Tasmanian public sector employees who were members of the former Non-Contributory Scheme of and transferred to the Tasmanian Accumulation Scheme as at 25 April 2000; b Investment Account holders and Account Based Pensioners who were transferred to the Tasmanian Accumulation Scheme as at 25 April 2000; c members of any of s defined benefit schemes (the Contributory Scheme, the Parliamentary Superannuation Fund, the Parliamentary Retiring Benefits Fund, the State Fire Commission Superannuation Scheme or the Tasmanian Ambulance Service Superannuation Scheme); d former public sector employees who have retained a financial interest in ; or e the spouse of any of the above persons. The Tasmanian Accumulation Scheme also offers two pension products to eligible members to help fund their retirement: 1 Account Based Pension designed for those members who have retired from the workforce and is an account based pension that provides an income that can be taken as regular pension payments or as one or more lump sums; or 2 an Transition to Retirement Account Based Pension designed for those members who have reached their preservation age but have not fully retired from the workforce (see section Withdrawing from your super for details regarding preservation age). This is an account based pension and allows members to cash all or part of their accrued superannuation as a non-commutable income stream when they reach their preservation age. You should read the important information about pension options in the Tasmanian Accumulation Scheme in our Fact sheet: Pensions before making a decision. Go to or call the Enquiry Line on to obtain a copy. The material relating to pension options may change between the time when you read this Member Booklet and the day when you acquire the product. also have a life pension product which is designed for those eligible members who desire the certainty associated with the payment of a guaranteed indexed life-time pension. However, only certain members and their surviving spouses have a contingent right to transfer all or part of their accrued benefits in the Tasmanian Accumulation Scheme to the Contributory Scheme to purchase an Life Pension. You are eligible to purchase an Life Pension if all of the following are satisfied: 1 you fall into one or more of the following categories: a you are a member or former member of the Contributory Scheme; or b you were a member of the former Non-Contributory Scheme as at 14 May 1999; or c you were an Investment Account holder or Account Based Pensioner as at 14 May 1999; or d you are the spouse or former spouse of a Contributory Scheme member and your spouse (the Contributory Scheme member) established a Spouse Investment Account in your name in accordance with Contributory Scheme governing rules immediately before 2 October 2010; and 2 you have maintained a continuous financial interest in ; and 3 you have attained your preservation age or you have retired from the workforce on the grounds of Terminal Illness or Total and Permanent Disablement. A surviving spouse of a member referred to in 1(a) to 1(d) above who has maintained a continuous financial interest in is also eligible to purchase an Life Pension.

3 Retirement Benefits Fund Member Booklet 2 For more information about how an Life Pension works, please refer to the Fact sheet: Life Pensions which is available on our website or call the Enquiry Line on to obtain a copy. How super works About super Superannuation (super) is a means of saving for your retirement which is, in part, compulsory; and is a long term investment. To encourage Australians to save for their retirement the Commonwealth government makes it compulsory for all employers to provide a minimum level of superannuation support to employees. This requires employers to pay Superannuation Guarantee contributions for and on behalf of their employees. The Commonwealth Government provides tax savings and benefits to superannuation which generally makes super one of the best long term investments for you to save for and fund your future retirement lifestyle. If you are a Tasmanian public sector employee and not a member of any of s closed defined benefit schemes your employer is required to pay compulsory Superannuation Guarantee contributions into a super account. Most people have the right to choose into which fund their employer should pay the Superannuation Guarantee contribution. Contributing to your super If you are a Tasmanian public sector employee, your employer will automatically contribute Superannuation Guarantee contributions (currently 9% of salary) and an additional personal contribution at the rate of 5% of salary from your after tax income unless you specify otherwise. There are different types of contributions that can be made to super including employer Superannuation Guarantee contributions, voluntary employer salary sacrifice contributions, voluntary personal after tax contributions, spouse contributions and Commonwealth Government Super Co-contributions. The tax treatment of contributions varies according to the type of contribution. There are limits on the contributions that can be made which are known as contribution caps. If you exceed the contribution caps additional tax may be payable. See How super is taxed on page 5. Members may at any time contribute additional personal contributions or spouse contributions using BPAY or cheque. Registered to BPAY Pty Ltd ABN All contributions, superannuation rollover benefits and benefit transfers from other superannuation funds or schemes that are paid to the Tasmanian Accumulation Scheme by you or on your behalf will be credited to your super account which is called the Investment Account. Your Investment Account is invested in accordance with your investment choice (refer to page 3 of this booklet) and investment returns (positive or negative) are credited or debited to your account on a weekly basis. Your Investment Account is reduced by administration fees and other costs (See Fees and costs on page 4), insurance premiums (See Insurance in your super on page 6) and taxes (See How your super taxed on page 5). Your Investment Account is also reduced by any capital withdrawals that you make. Withdrawing from your super There are limitations that apply to withdrawals from super because your super benefits are intended to provide for your retirement. Generally, your super is preserved which means you cannot access it until you have turned 65, or retired after reaching what is known as your preservation age (currently between 55 and 60, depending on your date of birth). There are other limited circumstances where you may be able to meet a condition of release under superannuation law and access your super before your preservation age. You should read the important information about how super works in our Fact sheet: How super works before making a decision. Go to or call the Enquiry Line on to obtain a copy. The material relating to how super works may change between the time when you read this Member Booklet and the day when you acquire the product. Benefits of investing with Tasmanian Accumulation Scheme The Tasmanian Accumulation Scheme offers many benefits and services including: solid, long term investment performance (although past performance is not a reliable indicator of future performance); a range of Member Investment Choice options allowing you to choose an investment strategy to suit your needs; flexible insurance cover when you elect to receive your Superannuation Guarantee (SG) contributions; no entry or exit fees; state-wide seminars, workshops and interviews; retirement pension options including: Account Based Pension; and Transition to Retirement Account Based Pension; Spouse Investment Account; access to Superannuation Consultants and Financial Planners from Financial Planning; personalised service; and a commitment to investing in Tasmania.

4 3 Retirement Benefits Fund Member Booklet You should read the important information about the features and benefits of the Tasmanian Accumulation Scheme in our Fact sheet: Benefits of investing with Tasmanian Accumulation Scheme before making a decision. You should read the important information about spouse accounts in our Fact sheet: Spouse Investment Accounts before making a decision. Go to or call the Enquiry Line on to obtain a copy of these Fact sheets. The material relating to these features, benefits and spouse accounts may change between the time when you read this Member Booklet and the day when you acquire the product. Risks of super All investments carry risk. Different investment strategies may carry different levels of risk, depending on the assets that make up the strategy. Generally, assets with the highest longterm returns carry the highest level of short-term risk. s Member Investment Choice offers you a range of investment options. These options vary in terms of their risk profile depending on the underlying mix of assets. When investing through your super, it is important to note that: the value of your investments will vary; the level of returns will vary, and future returns may differ from past returns; returns are not guaranteed, and you may lose some of your money; the amount of your future superannuation savings (including contributions and investment returns) may not be enough to provide adequately for your retirement; and superannuation laws may change in the future. Other significant risks to your super could include: inflation risks; market risk; currency risks; and interest rate risk. The appropriate risk level for each person will vary depending on a number of factors including your age, the investment time frames, where other parts of your wealth are invested and your risk tolerance. We recommend that you obtain financial advice from a financial adviser such as Financial Planning Pty Ltd and review your investments on regular basis. You can call to book an appointment with a Financial Planner from Financial Planning Pty Ltd (ABN , AFS Licence No ). You should read the important information about the risks of super in our Fact sheet: Risks of super before making a decision. Go to or call the Enquiry Line on to obtain a copy. The material relating to the risks of super may change between the time when you read this Member Booklet and the day when you acquire the product. How we invest your money All Tasmanian Accumulation Scheme members have access to a range of diversified investment strategy options, plus specific asset class options as set out below. You are able to select one of these options or a combination of them: Diversified Member Investment Choice options # Long Term Growth Socially Responsible Investments Actively Managed Potential risk and return* High High Medium to high Moderate Growth Medium Conservative Growth Low to medium Risk band* Recommended minimum investment time frame 7 years 5 years 5 years 3 years 3 years Target return over CPI 5.00% 4.00% 4.00% 3.00% 2.00% Investment profile 87% 13% 69% 31% 74% 26% 48% 52% 28% 72% Asset class Member Investment Choice options # Australian Shares International Property Shares Fixed Interest Cash Potential risk and return* High High Medium to Medium Very low high Risk band* Recommended minimum investment time frame 7 years 7 years 5 years 3 years 1 year Target return over CPI 5.50% 5.50% 4.50% 2.00% 0.50% Investment profile 100% 0% 100% 0% 55% 45% 0% 100% 0% 100% If you do not make an investment choice, your super will be invested in our default option, Actively Managed. We describe the Actively Managed option in further detail on the next page. # Past performance is not a reliable indicator of future performance. * The labelling of risk measures and categories outlined above has been adopted from the industry guideline called the Standard Risk Measure. You should read the information regarding the Standard Risk Measure and what it is based on to understand the risk measures. This information can be found in our Fact sheet: How we invest your money. Warning: before you decide on how you want your super to be invested, you must consider the likely investment return, risk and your investment timeframe when choosing an option in which to invest.

5 Retirement Benefits Fund Member Booklet 4 You can change your Member Investment Choice option at any time without incurring a fee (subject to change at any time) by sending us a completed Tasmanian Accumulation Scheme Changing your investment options form which is available on our website or by contacting the Enquiry Line on Default option Actively Managed If you do not select a Member Investment Choice option(s), you will be placed in our default option, Actively Managed. An overview of Actively Managed is contained in the table below: Description Investment return objective Target asset allocation Minimum suggested investment timeframe Estimated number of negative annual returns over any 20 year period* The Actively Managed option is invested in a mix of assets, with a higher weighting towards assets with the potential for medium to long term. The option is intended to be suitable for members who seek a diversified portfolio using a range of investment managers to deliver the option s objective. To provide moderate to high level of capital over the medium to long term. The target return is to exceed inflation by 4% per annum, over rolling 5 year periods. Actively Managed Dynamic asset Range allocation Australian shares 29% 24%-34% International shares 24% 19%-29% Property 12% 7%-17% Infrastructure 10% 5%-15% Absolute return 3% 0%-8% Alternative debt 6% 1%-11% Fixed interest 8% 5%-11% Cash 8% 6%-13% 5 years + Three to less than four years in every 20 years. Risk band* 5 Risk label* Medium to high *The labelling of risk measures and categories outlined above has been adopted from the industry guideline called the Standard Risk Measure. You should read the information regarding the Standard Risk Measure and what it is based on to understand the risk measures. You should read the important information about Member Investment Choice options and how we have measured risk of each option in our Fact sheet: How we invest your money before making a decision. Go to or call the Enquiry Line on to obtain a copy. The material relating to Member Investment Choice options may change between the time when you read this Member Booklet and the day when you acquire the product. Fees and Costs Consumer advisory warning DID YOU KNOW? Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable*. Ask the fund or your financial adviser. TO FIND OUT MORE If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website ( has a superannuation calculator to help you check out different fee options. *To help you compare different superannuation products, all superannuation fund trustees are required by law to include this statement. However, at we do not charge contribution fees and management costs cannot be negotiated. Main fees and costs for the Actively Managed option The table set out below provides in summary form information about the main fees and costs that you may be charged for the Actively Managed option which is our default investment option. These fees and costs can be paid directly from your Investment Account or deducted from investment returns. You can use this table to compare fees and costs with other superannuation products. Type of fee or cost Amount Fees when your money moves in or out of the fund Establishment fee Contribution fee Withdrawal fee Termination fee Management costs The fees and costs for managing your investment Estimated up to 1.06% pa broken up as follows: Administration fee 0.45% pa of account balance up to and including $150,000; plus 0.20% pa of account balance that is in excess of $150,000; plus Investment management fee Investment fee (including performance fee) of 0.61% pa* * This percentage range is an estimate of annual investment management fee based on the fees charged by as at 30 June This percentage range may vary from year to year.

6 5 Retirement Benefits Fund Member Booklet Example of annual fees and costs This table gives an example of how the fees and costs in the Actively Managed investment option can affect your superannuation investment over a one year period. You should use this table to compare this product with other superannuation products. Example Actively Managed Contribution fees PLUS Management costs EQUALS Cost of fund 0.45% Administration fee plus 0.61% Investment management fee Balance of $50,000 with total contributions of $5,000 during year For every $5,000 you put in, you will be charged $0. And, for every $50,000 you have in the fund you will be charged $530 each year if your account balance was less than $150,000. If you put in $5,000 during a year and your balance was $50,000, then for that year you will be charged fees of: $530* What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.** * Additional fees may apply. ** This statement is prescribed by law and s fees are not negotiable. Other fees and costs There are other fees and costs that may apply to your account. Depending on which Member Investment Choice option you choose, different investment management fees will apply. Details of these fees can be found in our Fact sheet: Fees and costs. does not charge any fee for changing investment options. We may change fees and costs at any time but we will give you 30 days notice before any changes in fees and costs. Financial advice If you get personal financial planning advice in relation to your superannuation from Financial Planning Pty Ltd (ABN , AFS Licence No ) you may elect to have all or part of the fee for the cost of the advice deducted from your nominated account in the Tasmanian Accumulation Scheme. The Statement of Advice provided by the adviser will state the fees (if any) that you will pay. You should read the important information about fees and costs in our Fact sheet: Fees and costs before making a decision. Go to or call the Enquiry Line on to obtain a copy. The material relating to fees and costs may change between the time when you read this Member Booklet and the day when you acquire the product. How super is taxed Your super is taxed in a number of ways. The following tax rules generally: How super is Description taxed? Concessional contributions Non-concessional contributions Tax on earnings Tax on withdrawals If you or your employer make beforetax contributions to your super, such as employer Superannuation Guarantee contributions and employer salary sacrifice, these contributions are subject to contribution tax and are taxed at the rate of 15% provided we have your Tax File Number (TFN). There is a cap for concessional contributions. If you exceed the concessional contributions cap, you will be personally liable to pay additional tax on the amount of excess contributions. If you make personal after-tax contributions to your super (including spouse contributions), these contributions are not subject to 15% contributions tax. There is a cap for non-concessional contributions. If you exceed the non-concessional contributions cap, you will be personally liable to pay additional tax at the top marginal rate plus Medicare levy on the amount of excess contributions. This additional tax must be paid from your super. Investment returns are taxed up to a maximum rate of 15% on net earnings and are deducted from weekly investment earnings before the net earnings are credited to your account. Withdrawals from your super may be taxed if you are aged less than 60 years. Once you turn 60, withdrawals from your super are generally tax free. Warning: You should provide your TFN as part of acquiring this product. If you do not provide your TFN, your contributions and withdrawals may be taxed at a higher rate. You should read the important information about tax in our Fact sheet: How super is taxed before making a decision. Go to or call the Enquiry Line on to obtain a copy. The material relating to tax may change between the time when you read this Member Booklet and the day when you acquire the product.

7 Retirement Benefits Fund Member Booklet 6 Insurance in your super The Tasmanian Accumulation Scheme offers insurance cover that can be used to protect you and your family in the event of illness, injury or death. All insurance cover offered through the Tasmanian Accumulation Scheme is provided by CommInsure (The Colonial Mutual Life Assurance Society Limited ABN , AFSL ). Types of insurance cover The following table provides an overview of the types of automatic and voluntary insurance covers available to eligible Tasmanian Accumulation Scheme members. All insurance cover is subject to certain limitations and exclusions. For more information on the insurance options available to you, you should refer to our Fact sheet: Insurance in your super. Type of cover Member eligibility criteria Insured benefits Basic Death and Total and Permanent Disablement cover Provides a lump sum amount in the event of: Death or Terminal Illness Total and Permanent Disablement Basic cover is automatically provided without having to supply any health evidence. Basic Income Protection cover Provides a monthly benefit if you are unable to work because a sickness or injury causes: Total disability; or Partial disability. Basic cover is automatically provided without having to supply any health evidence. You must be less than age 70 and be: an eligible Tasmanian public sector employee and your public sector employer must pay compulsory Superannuation Guarantee contributions to your Investment Account; or an eligible former defined benefit scheme member and you must have transferred the entire amount of your funded defined benefit to your Investment Account. You must be less than age 65 and be an eligible Tasmanian public sector employee and your public sector employer must pay compulsory Superannuation Guarantee contributions to your Investment Account. The insured amount of your basic cover is determined by multiplying the number of units of cover you hold by the value of one unit of cover appropriate to your age next birthday. The number of units of basic cover you receive is determined by your age next birthday as follows: Age next birthday Up to age 30 Age 31 to 40* Age 41 to 70* Number of units of Basic Death and Total and Permanent Disablement cover 3 units 4 units 5 units * The number of units of cover will automatically increase by one unit on your 30th and 40th birthday. The Income Protection monthly benefit is comprised of two components: an income component equal to up to 75% of your predisability income # ; a super contributions component equal to the monthly Superannuation Guarantee contributions that would have been paid had you not been disabled. The monthly benefit is payable for up to two years after the completion of a waiting period of 90 days. # Subject to automatic acceptance limit and maximum monthly benefit. Voluntary Death and Total and Permanent Disablement cover Provides a lump sum amount in the event of: Death or Terminal Illness Total and Permanent Disablement. Voluntary Death only cover Provides for the payment of a lump sum amount in the event of Death or Terminal Illness. Voluntary Income Protection cover Provides monthly benefit if you are unable to work because a sickness or injury causes: Total Disability; or Partial Disability. All eligible Investment Account members who are less than age 70. All Voluntary cover is subject to acceptance of underwriting by the Insurer. All eligible Investment Account members who are less than age 65. All Voluntary cover is subject to acceptance of underwriting by the Insurer. The insured amount is determined by: the number of units of Basic (if any) and Voluntary Death and Total and Permanent Disablement cover you hold; the number of units of Voluntary Death only cover you hold; your age next birthday; and the underlying value of one unit of Death and Total and Permanent Disablement cover for your age next birthday. Or If accepted by the Insurer, a fixed dollar amount (subject to conditions). The Income Protection monthly benefit is comprised of two components: an income component equal to up to 75% of your predisability income # ; a super contributions component equal to the monthly Superannuation Guarantee contributions that would have been paid had you not been disabled. # Subject to automatic acceptance limit and maximum monthly benefit. Adjusting your insurance insurance cover is designed to be flexible. In the case of Life cover, you may, subject to acceptance of underwriting by the Insurer apply to: increase the number of units of Voluntary Death and Total and Permanent Disablement cover and/or Death only cover you hold; or convert all of your unitised cover to a fixed dollar amount.

8 7 Retirement Benefits Fund Member Booklet In the case of Income Protection cover you may, subject to acceptance of underwriting by the Insurer apply to: increase the benefit payment period from two years to five years or to age 65. reduce your waiting period from 90 days to 60 or 30 days. All Income Protection cover and all payments of Income Protection benefits cease on your 65th birthday. You may also cancel or reduce your insurance cover (including any automatic Basic insurance cover). You can use the Tasmanian Accumulation Scheme Insurance Variation form to vary or cancel your insurance cover. Costs of insurance There are costs associated with insurance, in the form of insurance premiums. The premium that you pay will depend on your level of cover and your risk category. You are automatically assigned to the standard risk category however you may be eligible to apply for a lower risk category by completing the Tasmanian Accumulation Scheme Insurance Variation form. If your application is accepted by the Insurer, your premiums will be reduced. The cost for one unit of Death and Total and Permanent Disablement cover is $52pa ($1 per week), when the standard risk category applies to your cover. The annual premium rates for income protection cover varies according to your age next birthday, the benefit payment period and the benefit waiting period. Annual premium rates for a $500 monthly benefit with a benefit payment period of two years and a 90 day waiting period range from $8.14pa to $78.56pa, when the standard risk category applies to your cover. All insurance premiums will be automatically deducted from your Investment Account on a monthly basis. Warning: Unless you cancel your Basic cover, premiums will be automatically deducted from your Investment Account. You can open an Investment Account for your spouse by completing a Tasmanian Accumulation Scheme Application for spouse membership form available at or by contacting us at the Enquiry Line on Complaints At, we strive to ensure our members receive the best possible service at all times, but sometimes our service might not meet your expectations. For this reason, has a comprehensive complaint process to address member concerns. Members who may be unhappy with the way has handled a matter are encouraged to contact the Enquiry Line on and explain their concerns. Where the member s concerns have not been addressed, they can write to: Complaints Officer Retirement Benefits Fund Reply Paid 446 HOBART TAS 7001 If a member is still not satisfied with our response, they can lodge a complaint with the Tasmanian Ombudsman by calling Privacy Contact if you would like additional information or assistance. We hold your personal information securely and use it only for the purposes described in the Privacy Policy, available on the website at If you would like a copy or if you would like to access or update the personal information we hold about you, please contact our Privacy Officer on (03) Our Fact sheet: Insurance in your super contains information about the eligibility, cancellation, costs and details of the terms and conditions including exclusions that apply to the Basic and Voluntary insurance cover provided through the Tasmanian Accumulation Scheme. These matters may affect your entitlement to insurance and you should read our Fact sheet: Insurance in your super before deciding whether insurance is appropriate for you. Contacting Contact if you would like additional information or assistance. Enquiry or Line: (international) Visit: Fax: (03) or (international) How to open an account The Tasmanian Accumulation Scheme is only available to eligible people in Australia. If you are joining the Tasmanian Accumulation Scheme via a Tasmanian public sector employer then your employer will notify us of your membership and open your Investment Account. So there is no need for you to complete an application form. Write:, Reply Paid 446, Hobart TAS 7001 Offices: Ground Floor, 21 Kirksway Place, Hobart Ground Floor, Cimitiere Street, Launceston 15823_PDS_Member_Booklet_0912 AL/B/00105 (V11-12/12) Issued by Retirement Benefits Fund Board ABN as Trustee for Retirement Benefits Fund () ABN