The Executive Superannuation Fund

Transcription

1 The Executive Superannuation Fund WHK ALBURY STAFF SUPERANNUATION PLAN INCORPORATED INFORMATION Issued: 17 September 2012 The issuer and Trustee of The Executive Superannuation Fund (ABN: ) is The Trust Company (Superannuation) Limited ABN: , Australian Financial Services Licence ( AFSL ) , Address: PO Box 361 Collins Street West VIC 8007 Ph (03) Fax (03) The Administrator of The Executive Superannuation Fund is KPMG Superannuation Services Pty Limited, ABN: , AFSL No: , Address: PO Box H67, Australia Square NSW Ph: (02) Fax: (02) Website: address: AU-FMNatSuperAdmin@kpmg.com.au.

2 The information in this document forms part of the Product Disclosure Statement ( PDS ) for The Executive Superannuation Fund s WHK Albury Staff Superannuation Plan, dated 17 September The information provided in the PDS and this Incorporated Information is a summary of the benefits and terms and conditions of the WHK Albury Staff Superannuation Plan, however, the terms of the trust deed governing The Executive Superannuation Fund ( the Fund ) have precedence over anything in the PDS and this Incorporated Information. The WHK Albury Staff Superannuation Plan is referred to as the Plan in the remainder of this Incorporated Information. Staff who have elected to have their superannuation contributions made to another superannuation fund under Choice of fund arrangements are registered as insurance only members of the Plan for the sole purpose of administering the Standard insurance cover provided to them as a result of their employment with WHK Albury. Insurance only members do not pay administration or other fees from their member accounts or have access to all the benefits and features of normal accumulation accounts. Insurance only members should take this into account when considering information in the PDS and this Incorporated Information. The PDS and Incorporated Information provide general advice only and do not take into account your individual financial situation, circumstances or needs. You should take these into account when making decisions about your benefit in this product, and consult a financial adviser where required. All parties named in the PDS and Incorporated Information have consented to being named in the form and context in which they have been named and have not withdrawn their consent prior to printing of the PDS and Incorporated Information. 2

3 Contents Section 1: Super and your Benefits... 4 Part A: Contributions and Rollovers... 4 Section 1: Super and your Benefits... 9 Part B: Withdrawals... 9 Section 1: Super and your Benefits Part C: Other important benefits and features Section 2: Risks of investing in super Section 3: How we invest your money Section 4: Fees and costs Additional Explanation of fees and costs Section 5: How super is taxed Section 6: Insurance in your super Section 7: Other Information Further information and how to contact us

4 Section 1: Super and your Benefits Part A: Contributions and Rollovers This is a summary only based on current laws and is subject to change. Refer to for more information about contributions limits (or caps ) and taxes relating to superannuation Concessional contributions Concessional contributions include selfemployed contributions for which you claim a tax deduction, any Superannuation Guarantee (SG) contributions made by your employer(s) on your behalf, any additional contributions your employer may make and any additional contributions you choose to make from your pretax salary (salary sacrifice contributions). All contributions, net of relevant taxes and expenses, are immediately fully vested and must be preserved (the concept of preservation is discussed in Section 1, Part B. Under superannuation guarantee legislation, WHK Albury is required to pay SG contributions on a quarterly basis, by certain prescribed dates as follows: Quarter July September October December January March Required payment date 28 October 28 January 28 April Contribution types April - June 28 July Superannuation Guarantee contributions WHK Albury as your employer will contribute 9% (increasing to 12% in the future) of your ordinary time earnings to the Plan, up to the prescribed maximum in superannuation guarantee legislation. These contributions are concessional contributions. For permanent WHK Albury employees, WHK Albury as employer will also make an annual contribution to cover the cost of your Standard Death and Total and Permanent Disablement insurance cover within the Plan. The amount contributed to the Plan for each WHK Albury employee depends on the level of Standard insurance cover (see Section 6 for further details of the level of insurance cover applicable to eligible employees). This annual amount is paid into your account in the Plan as a concessional contribution and is advised on your annual member statement from the Plan. For further information about the annual amount contributed by WHK Albury to meet the cost of premiums for any Standard insurance cover you may have within the Plan, you can also contact the Plan (contact details on the back page). Superannuation Guarantee contributions from other employers If you have a second job (e.g. you work in a bar at night or on the weekend), you can request that this employer pay your superannuation contributions into the Plan. To assist your additional employer to make contributions to the Plan, you can obtain a Standard Choice Form with the details regarding the Plan already filled in for you from the Fund website, or by contacting the Fund (contact details on the back page). A guide with further information in relation to how contributions can be made by external employers is also available on the Fund website or by contacting the Fund (contact details on the back page). If you give this information to your additional employer, they will be able to contribute to the Plan on your behalf. Employers that are subject to Choice of Fund legislation are generally required to implement your request. 4

5 Salary sacrifice contributions WHK Albury may agree with you to make additional voluntary superannuation contributions to the Plan on your behalf in lieu of pre-tax remuneration (called salary sacrifice contributions ). These contributions are concessional contributions. To make salary sacrifice contributions to the Plan, contact WHK Albury Payroll. Please note that while salary sacrifice contributions may provide some tax advantages, they will count as income when assessing your eligibility for the Government co-contribution, tax deductibility of personal contributions, spouse contributions rebate and certain welfare benefits. Consider your own personal circumstances and obtain advice from an appropriately qualified adviser about how salary sacrifice contributions may affect you. Contributions as a self-employed person You can make contributions directly to the Plan as a self-employed person, provided that less than 10% of your total assessable income, reportable fringe benefits and reportable employer superannuation contributions (in the financial year in which contributions are made) are attributable to your activities as an employee. Only self-employed contributions for which a deduction is claimed are treated as concessional contributions. Those for which no deduction is claimed are treated as non-concessional contributions (see below). Note: A deduction can be claimed for 100% of eligible self-employed contributions made. There is no limit on the amount of deduction that can be claimed (however limits apply to the amount of concessional contributions that can be made without attracting additional tax). Limits on concessional contributions Concessional contributions (which include your SG, additional employer and salary sacrifice contributions and deductible self-employed contributions) are limited to $25,000 per individual for each financial year (subject to indexation). This limit applies across all superannuation funds to which concessional contributions are made. From 1 July 2012, the $25,000 limit applies regardless of age. Concessional contributions made up to the concessional contributions limit will ordinarily be subject to tax at the concessional rate of 15% deducted by the Plan. (Note: the Government has proposed an increase in the concessional rate of tax for individuals earning over $300,000 per year. For further information go to the ATO website or consult a taxation adviser). Any concessional contributions made in excess of the concessional contribution limit will be subject to tax at the rate of 46.5%. The liability for the excess tax (that is, the tax in excess of the concessional rate which ordinarily applies) will be levied on you personally by the ATO, i.e. you will receive a notice from the ATO requesting payment of the excess tax. However, on receipt of the notice, you can nominate a superannuation fund to release monies to pay the liability. In addition, any excess contributions you make above the limit will be counted towards your non-concessional contribution limit (see below). (Note: Excess concessional contributions up to a certain amount can be returned to a member in limited circumstances. For further information go to the ATO website or consult a taxation adviser). Amounts excluded from the concessional contributions cap Some amounts that can be contributed or transferred to superannuation do not count towards your concessional contribution cap including: Rollovers (including those from an overseas superannuation fund) subject to some special rules for any untaxed amounts; Government co-contributions. Non-concessional contributions Non-concessional contributions are contributions you make to superannuation from your after tax salary. You can make up to $150,000 of nonconcessional contributions to superannuation each financial year. This limit will be maintained at six times the $25,000 (indexed) cap on concessional contributions (see above). 5

6 If you are under the age of 65, you can average this limit over three years. Specifically, you can make contributions of $450,000 in one year, provided you do not make any additional nonconcessional contributions for the following two years. Contributions made up to the $150,000 (or $450,000) limit will not be subject to tax in the Plan. Any contributions in excess of the limit will be taxed at the rate of 46.5%. The liability for this tax will be levied on you personally by the ATO. You must then nominate a superannuation fund to release monies to meet this liability. Any excess contributions you make throughout the year that, in total, are above the limit may remain in the Plan. Where you make a contribution in excess of the 3-year limit (if you are under age 65 on 1 July of the relevant financial year) or, otherwise, the 1-year limit, the amount in excess of the limit will be returned to you, as it cannot be accepted by the Plan. The amount returned may be adjusted for investment fluctuations and reasonable expenses. You can make non-concessional contributions to the Plan on a one off basis at any time, or on a regular basis. You can change your ongoing election to make non-concessional contributions quarterly. To do so, contact the Fund Administrator (contact details on the back page). Other amounts measured against the nonconcessional contributions cap Other amounts that also count towards your nonconcessional contributions cap include: Any concessional contributions you make which are in excess of the concessional contributions cap; The non-taxable portion of any benefit transferred from an overseas superannuation fund; and Contributions made to your account by your spouse. Amounts excluded from the nonconcessional contributions cap Some amounts that can be contributed or transferred to superannuation are not counted towards your non-concessional contribution cap. These include: The taxable portion of a benefit transferred from an overseas superannuation fund. Note the untaxed portion will count towards your non-concessional limit; Government co-contributions; Proceeds from the sale of qualifying small business assets which have been held for 15 years or subject to the CGT retirement exemption (subject to a lifetime limit which varies from year to year); and Settlements for personal injury resulting in permanent disablement made to the Fund within 90 days of receiving the payment. Contributions for your spouse or other family members If your spouse or other family member is a member of the Fund, you can make nonconcessional contributions to their account in the Fund on their behalf. A spouse contribution may attract a tax rebate of up to $540 per year for the contributing spouse depending on the recipient s income. These contributions will count towards the recipient s non-concessional contribution limit. Contribution splitting You can request that up to 85% of your concessional (SG, employer, deductible selfemployed and salary sacrifice) contributions made during the year are split with your spouse, including a de facto spouse. This is subject to a maximum of your concessional contributions cap. The Trustee may also make whatever adjustments to the splittable amount it considers necessary or appropriate (for example, to meet any tax liabilities relating to your benefits). You are unable to split non-concessional contributions, your previously accumulated account balance, previously rolled over amounts or employment termination payments paid into your account with your spouse. In general, you can apply to split contributions made to the Plan during the financial year after the end of each financial year. You can only split your contributions with your spouse once each financial year. Rollovers from within the superannuation system; 6

7 Where you are terminating your membership of the Plan and are rolling over your entire benefit to another superannuation fund, you can request to split the contributions made in the current financial year immediately prior to your exit from the Plan. Your applications to split the contributions made during the year and to rollover your entire benefit to another fund must be made together. The contributions that you split with your spouse can be transferred to your spouse s account within the Plan or to another superannuation fund of which your spouse is a member. Your spouse must be under the age of 65, under their preservation age, or aged between their preservation age and 65 and not permanently retired in order to be able to receive split contributions. If your spouse is between their preservation age and 65, they must submit a declaration to the Plan with your splitting application, stating that that they are still gainfully employed on a full-time or part-time basis and are not permanently retired. Contribution splitting may provide tax-planning opportunities where superannuation benefits are withdrawn prior to age 60, or provide superannuation benefits to a spouse who is not working. You may wish to discuss the advantages of contribution splitting with a licensed or authorised financial adviser to determine whether splitting contributions with your spouse is appropriate for you. To request to split contributions, contact the Fund (contact details on the back page). The Trustee may establish rules or policies in relation to contribution splitting from time to time at its discretion. Impact of making contributions without a TFN Inability to make non-concessional contributions where we do not hold your TFN You or your employer will be unable to make contributions to the Plan if we have not been provided with your TFN. The law does not allow us to accept or retain member contributions if we do not have your TFN, and the Trustee has decided that employer contributions will not permitted if we do not hold your TFN to more effectively manage the Plan s tax liabilities. Any contributions that you or your employer attempt to make to the Plan will be returned within 30 days if you do not provide your TFN to the Plan, after taking into account any allowable adjustments for investment fluctuations and reasonable costs. You can provide your TFN via the Fund website or by contacting the Fund Administrator (contact details on the back page). If you joined the Plan after 30 June 2007, your employer is required to automatically provide your TFN to the Plan, however this may not always occur. You should ensure that the Plan holds your TFN. Eligibility to contribute to superannuation Any person under age 65 may contribute to superannuation, regardless of whether or not they are employed. From the ages of 65 to 69, you must have worked at least 40 hours during a continuous 30- day period during the financial year ( work test ) in order to be able to make a contribution to superannuation. However, mandated employer contributions are not subject to the work test. You cannot make personal contributions to superannuation past the age of 74 (Contributions to your account by a person other than your employer cannot be made past the age of 70). Generally, from age 75 no contributions other than award or compulsory employer contributions can be made to superannuation. Contributions made to the Plan in contravention of these eligibility rules must be rejected or refunded by the Trustee in certain circumstances. A refund may be adjusted for any allowable investment fluctuations and reasonable costs. Government co-contributions Some members of the Plan may be eligible to receive the Government co-contribution. The Government co-contribution applies to nonconcessional contributions made by low and middle-income earners. The Government co-contribution matches eligible personal non-concessional contributions made by qualifying low and middle-income earners, up to a specified amount. 7

8 The Government co-contribution is paid annually to qualifying low and middle-income earners superannuation funds. The Government has announced that the maximum co-contribution for the 2012/2013 financial year is $500 and is available to people earning an assessable income plus reportable fringe benefits and reportable employer superannuation contributions of $31,920 or less. It has also been announced that the maximum co-contribution amount phases out completely for incomes of $46,920. The Government co-contribution (the amount contributed by the Government) does not count towards either your concessional or nonconcessional contribution caps. Refer to to determined eligibility criteria for the Government co-contribution (including income thresholds and the available cocontribution amount) applicable from year to year. How to contribute to the Plan All contributions made to the Plan must generally be made by cheque, payable to The Trust Company (Superannuation) Limited ATF The Executive Superannuation Fund. Cheques should be accompanied by a Contribution Form (available on the Fund website or by contacting the Fund), detailing your membership number and name (or your spouse s if the contribution is for them), and the type of contribution selfemployed, employer SG, member after-tax, spouse contribution etc. Rolling over into the Plan If you have benefits in another superannuation fund, Retirement Savings Account or Approved Deposit Fund, you may choose to transfer these into the Plan. Such amounts will accrue earnings as per your other benefits in the Plan. Advantages of rolling over benefits into the Plan may include: The Plan may have lower administration fees than the current superannuation fund, Retirement Savings Account or Approved Deposit Fund where your benefit is currently located; and You only pay administration fees to one fund as a consequence of consolidating your benefits. To roll over other superannuation benefits that you may have to the Plan, contact your other fund to determine their benefit payment process. You may incur fees or lose benefits (e.g. insurance cover) if you withdraw benefits from your other fund (contact your other fund for more information). UK Pension Transfers The Fund is registered with the UK s HM Revenue and Customs as a Qualifying Recognised Overseas Pension Scheme ( QROPS ) (reference number QROPS/500104). As such, you can elect to transfer any monies you hold in a UK pension fund into the Plan. If you are considering such a transfer, you should be aware that such a transfer is subject to complex rules (including guidance issued by the relevant UK authorities which may change from time to time) and may have significant tax implications depending on your personal circumstances. There may be other taxation implications for any lump sum transferred from an overseas fund depending on your personal circumstances. As such, members should seek appropriate advice prior to considering overseas transfers and in particular, amounts that are in excess of the nonconcessional contribution cap. Up to date information relating to UK pension fund transfers may also be made available on the Fund website or by contacting the Plan (see contact details on the back page). Other payments into the Plan Other payments may also be made into the Plan, for example, disability settlement amounts, foreign sourced superannuation (other than UK Pension Transfers) and the proceeds from the sale of a small business. The rules relating to the transfer of other amounts into the Plan are complex. We recommend you seek advice (including taxation advice) from an appropriately qualified adviser. 8

9 Section 1: Super and your Benefits Part B: Withdrawals Withdrawing benefits from superannuation The preserved component of your superannuation benefit must remain within the Australian superannuation system, generally until your permanent retirement from the workforce after you reach your preservation age. Your preservation age is determined in accordance with the following: Date of birth Preservation Before 1 July July June July June July June July June After 30 June From 1 July 1999, all superannuation contributions (including member contributions) and earnings are preserved. Any component of your benefit that was non-preserved at 1 July 1999 will continue to be non-preserved and can be taken in cash at any time. Your ability to claim preserved benefits other than at retirement (as described above) is restricted, however, the law does allow for the release of benefits where you are an Australian citizen, New Zealand citizen or permanent resident and otherwise satisfy a condition of release, including as follows: When you reach age 60 and cease an employment arrangement; When you reach age 65; When you die; When you suffer from a terminal medical condition as defined in superannuation legislation; When you have ceased gainful employment with your employer and your account balance is less than $200; If in the Trustee's opinion you are "permanently incapacitated" in accordance with superannuation legislation (similar to being declared TPD); If the Trustee approves the early release of preserved benefits on the grounds of severe financial hardship. Should you wish to apply for a benefit on these grounds contact the Fund Administrator (contact details on the back page); If the Department of Human Services ( DHS ) determines preserved benefits should be released on pre-defined specified grounds ( compassionate grounds ), such as to cover palliative care or funeral costs; and, Where the law otherwise permits (for example, to satisfy an ATO Release Authority). Different rules apply to temporary residents. Some, but not all, of the above conditions of release apply to temporary residents (e.g. death, permanent incapacity). The Trustee may release preserved benefits as a Departing Australia Superannuation Payment ( DASP ) to a former temporary resident whose visa has expired and has departed the country. More details are available in the Departing Australia Superannuation Payments Information Guide available on the Fund website or by contacting the Fund (contact details on the back page). The Trustee may also allow the payment of your benefit in the form of a Transition to Retirement Pension, once a member has reached their preservation age, but chooses to continue employment. Transition to Retirement Pensions are available from the Fund s Pension Division. See the Fund s Pension PDS for more information, available by contacting the Fund Administrator (contact details on the back page). Withdrawing benefits from the Plan while employed You can transfer some or all of your benefits to an alternative superannuation fund at any time, so long as any remaining benefit in the Plan is above $2,000 and you have not made a similar withdrawal request in the previous 12 months. 9

10 If a member chooses to utilise this feature, the Trustee must be satisfied that you have received or know you have access to all the information you need about your entitlements. You should be aware that the transfer of your benefit to another fund may have consequences such as the loss of insurance cover under the Plan. A fee applies in respect of each withdrawal from the Plan. Note: if you withdraw part of your benefits you must ensure that your account balance remains sufficient to cover any insurance premiums being deducted from your account, or your insurance cover could lapse. A standard form and standard proof of identity requirements apply when transferring benefits between superannuation funds. Upon receipt of all necessary information, superannuation funds have a maximum of 30 days to transfer benefits, however, a longer period may apply in the case of illiquid investments. Additional information may be required in the case of a request to transfer benefits to a self managed superannuation fund. Any partial payment of superannuation benefits from any superannuation interest in the Plan must be withdrawn from the tax-free and taxable components in proportion (see Section 5 for more information about these components). The Trustee is required to carry out proof of identity procedures before paying a benefit (lump sum or pension payments) or purchasing a superannuation pension. The requirements arise under the Government s Anti Money Laundering and Counter Terrorism Financing ( AML/CTF ) legislation. These requirements may also be applied by the Trustee from time to time in relation to the administration of your superannuation benefits as required or considered appropriate under the Government s legislation. You will be notified of any requirements when applicable. If you do not comply with these requirements there may be consequences for you, for example, a delay in the payment of your benefits. If any further information is required from you to enable a benefit to be made, you will be notified. Cessation of employment with WHK Albury Upon termination of your employment with WHK Albury, you will be automatically transferred to the Personal Division of the Fund. You will retain any insurance cover you may have at the date of transfer (unless it has ceased for some reason, or you cancel your cover). Your investments held within the Fund will not change. You will receive notification from the Plan that this has occurred. When you terminate employment with WHK Albury, if you are transferred to the Fund s Personal Division, WHK Albury will no longer meet insurance costs associated with automatic insurance cover. Former employees of WHK Albury will be provided with a copy of the relevant PDS for the Personal Division. You should refer to this PDS for information about the features of the Personal Division. WHK Albury Staff who are promoted to Principal WHK Albury staff who are promoted to Principal will be automatically transferred from the WHK Albury Staff Superannuation Plan to the WHK Albury Executive Superannuation Plan. You will receive notification that this has occurred together with the relevant PDS. UK Pension Transfer amounts If you transfer benefits from a UK pension fund into the Plan, withdrawal restrictions may apply to satisfy requirements of the relevant UK authorities. For further information, contact the Plan (contact details on the back page). When you die nomination of beneficiaries You can nominate those persons whom you would prefer to receive your benefit in the event of your death. You should notify the Trustee whenever you decide to alter your beneficiary nomination. The Fund offers you two types of beneficiary nominations to allow you to confirm your intentions for the payment of the benefit from the Plan upon your death. 10

11 The two types of nominations are as follows: 1. Binding beneficiary nominations; and 2. Non-binding beneficiary nominations. These nominations apply to lump sum payments only and will apply to any benefits you accrue in any segment of the The Executive Superannuation Fund until such time as the nomination expires, is revoked or replaced with another valid and effective nomination. A summary of each type of beneficiary nomination is outlined below. Please consider each type of nomination and, where appropriate, seek qualified estate planning, financial or taxation advice, prior to choosing the one which is right for you. Binding beneficiary nomination You can elect to make a binding death benefit nomination, which means that upon your death, the Trustee is obliged to pay any remaining account balance to the person(s) you have nominated provided the nomination is valid and effective at the date of death. With a binding death benefit nomination, the nominated individuals must be either a dependant or your legal personal representative. A binding nomination cannot be made on your behalf under a Power of Attorney. To be accepted, your binding nomination must be witnessed by two individuals who are over the age of 18 (and not your nominated beneficiaries). A binding death benefit nomination remains valid for only three years, so you must re-nominate beneficiaries every three years if your nomination is to remain binding on the Trustee. You can also amend or revoke your binding nomination at any time. Any amendment or revocation must also be in writing and signed before two witnesses (as described above). Where a binding nomination is no longer valid, it becomes a non-binding nomination, whereby the decision as to whom your death benefit is paid lies with the Trustee. If there is any other information you reasonably need to understand your right to make a Binding Nomination, please contact the Fund Administrator (contact details on the back page). Non-binding beneficiary nomination By utilising a non-binding beneficiary nomination, you may nominate a dependant and/or legal personal representative to receive your benefit within any segment of The Executive Superannuation Fund upon your death, however, the Trustee has the discretion to pay your benefit to whom it believes is the most appropriate recipient. Whilst full consideration is given to your wishes when utilising a non-binding beneficiary nomination, it is important to realise that, where you have dependants or legal personal representative, the Trustee is required, under the Fund s Trust Deed, to pay the benefit to your dependants or legal personal representative (estate) in such proportions as the Trustee sees fit. General Information about nominations In relation to a member, a dependant includes the spouse of the member, any children of the member or the member s spouse, any person financially dependent on the member and any person with whom the member has an interdependency relationship. A spouse may include person to whom you are legally married or any other person recognised by law and the Fund s trust deed as your spouse. Two people have an interdependency relationship if: They have a close personal relationship; and They live together; and One or each of them provides the other with financial support; and One or each of them provides the other with domestic support and personal care. If two people have a close personal relationship but the other criteria above are not satisfied due to the fact that one person suffers from a physical, intellectual or psychiatric disability, they may still have an interdependency relationship. Note: for taxation purposes, a child aged 18 or more is not a dependant (unless financially dependent on the member or interdependent). In the situation where you do not have any dependants or legal personal representative, the Trustee has the discretion to pay the benefit to a third party who is a non-dependant. 11

12 In making a payment to a non-dependant, the Trustee takes into account your personal circumstances at the time of your death in making its decision, however, the Trustee may distribute the benefit to individuals that you have not nominated. It should be noted that different tax treatment applies to death benefits paid to a nondependant of the deceased. For tax purposes, a non-dependant includes a child aged 18 or more (unless the child is otherwise financially dependent or interdependent). For more information about the taxation of benefits, see the Taxation section of this Incorporated Information Booklet. If you are unsure which nomination is right for you, seek professional advice. Furthermore, it is always advisable to make a will. If you would like to do so, you should consult a solicitor or the office of the Public Trustee. While the Trustee will take your will into consideration as an indication of your intentions, it will not be bound to follow it. You can update your nominated beneficiaries at any time by completing a Nomination of Beneficiary Form. If you would like to make or update a non-binding beneficiary nomination, you can also do so online via the Fund website ( In the case of lump sum death benefits, you may also receive an anti-detriment payment (refer to Section 5 of this document for more information). It is always advisable to make a will. If you would like to do so, you should consult a solicitor or the office of the Public Trustee. Splitting superannuation upon relationship breakdown Superannuation benefits are treated as property when deciding a financial settlement in the event of marriage breakdown or breakdown of other recognised relationships (breakdown). You can enquire about your benefit in the Plan for the purposes of considering a financial settlement in the event of breakdown. Provided certain requirements are met, your spouse can also enquire about your superannuation. Your spouse may request information from the Plan regarding your benefits in the Plan, without your knowledge or consent. The Trustee is restricted by legislation from informing you about such an enquiry from your spouse. As part of a financial settlement in the event of breakdown, your benefit in the Plan can be split between you and your spouse. This must be by instruction to the Trustee via a Superannuation Agreement between you and your spouse or by a court order. Note: as a result of reforms to Federal Government legislation, splitting of superannuation benefits may also occur when defacto relationships (including same sex relationships) breakdown. The rules are complex. For more information, contact the Fund Administrator and seek advice from a legal adviser. Your contact details with the Plan It is important that you keep the contact details that the Plan has for you up to date. If the Plan loses contact with you, your benefit in the Plan may be transferred to the Fund s nominated Eligible Rollover Fund ( ERF ) (see below for further details). You will be considered lost and your benefit transferred from the Plan to the ERF if two items of correspondence are returned to the Plan, due to an incorrect address being held for you on the Plan s systems. To stop this happening, you simply need to keep the Trustee informed if you change address or other contact details. You can update your contact details by contacting the Fund Administrator (contact details on back page). Eligible Rollover Fund The Trustee has selected the Super Safeguard Fund ( SUSA ERF ) as the Fund s nominated ERF. The Trustee of the Plan is also the Trustee of the SUSA ERF and receives remuneration in its capacity as Trustee of the SUSA ERF from the SUSA ERF. An ERF is a fund designated by the Australian Prudential Regulation Authority ("APRA") to receive and invest the entitlements of superannuation members in certain circumstances. 12

13 Subject to any requirement on the Trustee to transfer benefits to the Australian Taxation Office, your benefit may be transferred to the SUSA ERF if you become a lost member as defined in superannuation legislation including, where two pieces of mail are returned to sender, for example, due to an incorrect or no address being held for you in our administration records. Note: if your benefit is transferred to the SUSA ERF or the ATO any insurance cover that you may have will cease as at the date of transfer. Once your benefit has been transferred to the SUSA ERF or the ATO, you will have no entitlement to benefits from the Plan. If you are transferred to the SUSA ERF, you will become a member of the SUSA ERF and be subject to its governing rules. If the Trustee holds your current address or contact details, you will be provided with a PDS from the SUSA ERF upon transfer of your benefit to SUSA. This PDS will outline the operational and membership details of the SUSA ERF. Please contact the Plan for further information (contact details on the back page). The investments, fees and costs in relation to the SUSA ERF will be different from those of the Plan. In addition, SUSA does not offer insurance benefits in the event of death or disablement. As such, apart from the 30 day grace period for Death and TPD cover described in Section 6, any insurance benefits you may have will cease at the time your benefit is transferred to the SUSA ERF. Members wishing to locate their benefit after it has been transferred from the Plan, can contact the ATO on or the SUSA ERF at the following address: Postal address Super Safeguard Fund GPO Box 3426 MELBOURNE VIC 3001 Ph: Fax: member who has reached age 65 and lost members with: Account balances of less than $200; or Accounts which have been inactive for a period of five years and there are insufficient records to ever identify the owner of the account. A former temporary resident s superannuation benefit must also be paid to the Australian Taxation Office as unclaimed money where it has been at least six months since they have departed Australia and their visa has lapsed AND the Australian Taxation Office issues a notice to the Plan requesting the benefit be paid to the Australian Taxation Office. If this happens, you have a right, under the Government s legislation, to claim your super money directly from the Australian Taxation Office (subject to the applicable tax rates). Further information about unclaimed money can be obtained from If you are a former temporary resident whose superannuation benefits are transferred to the Australian Taxation Office as unclaimed money, you may not be notified of this or receive an exit statement after the transfers occurs. The Trustee will rely on relief provided by the Australian Securities & Investments Commission (ASIC) Class Order [CO 09/437] which says, in effect, that the trustee of a superannuation fund is not obliged to meet certain disclosure requirements in relation to non-residents that have ceased to hold an interest in the fund as a result of the payment of unclaimed superannuation to the Commissioner of Taxation. If you require any further information, contact the Fund Administrator. Unclaimed Money Under Federal Government (Unclaimed Money) legislation, there are a number of circumstances in which superannuation must be paid to the Australian Taxation Office as unclaimed money including inactive benefits of an uncontactable 13

14 Section 1: Super and your Benefits Part C: Other important benefits and features Allocation of investment returns to your account The Trustee has adopted a policy of fully allocating the Plan s investment earnings (net of relevant taxes, fees and costs) to members accounts, based on the investment performance of the investment option(s) in which a member participates. As such, it does not hold any investment fluctuation reserves. The net earnings of your chosen investment option(s) are based on the option s actual investment earnings, less relevant taxes, fees and costs, and are equal to the net investment return. For details regarding fees and costs deducted from earnings see Section 4 of this Incorporated Information. Net earnings are allocated to your account on a pro-rata daily basis and are compounded annually each 30 June, when you elect to change investment options or close your account, based on monthly earning or crediting rates declared by the Trustee. The net earnings of the Plan s investment options are subject to normal investment market movements and future investment performance cannot be guaranteed. As a result, the crediting rate, or any interim crediting rate, of any investment option may be positive or negative. If you leave the Plan or withdraw monies from your chosen investment option, you may get back less than the amount of contributions paid into the Plan because of the level of investment returns earned by the investment option(s) in which your account is invested and the deduction of taxation, fees and costs. Past investment performance is not necessarily an indicator of future investment performance. The Trustee does not guarantee that you will earn any specific rate of return on your investment or that your investment will gain or retain its value. Interim Crediting Rate Members who close their account before 30 June, transfer to another category of membership (for example, the Pension Division) switch investment options or make partial withdrawals during the year, may have interim crediting rates applied, calculated in accordance with the Trustee s policy. The interim crediting rates change over time (usually calculated weekly) and reflect the investment experience of the Plan s investment option(s) at the time of the interim rate calculation, less any applicable taxes, fees and costs. Interim crediting rates may be positive or negative. How do I know the value of my account and benefits in the Plan? You will be provided with an Annual Member Statement showing your account and benefit entitlements in the Plan as at the Plan s annual review date of 30 June each year. This information is also available by contacting the Fund Administrator (contact details on the back page). Privacy This privacy statement relates to the collection, use, storage and disclosure of personal information about you in all communications with the Trustee. The Trustee collects personal information about you to: Process your enrolment in the Fund (in accordance with the Superannuation Industry (Supervision) Act 1993); Administer and manage your participation in the Fund and communicate with you about the Fund; Provide you with information about other products or services that may be of assistance to you; and Facilitate our internal business operations, including fulfilment of any legal requirements. 14

15 If you do not provide the personal information sought from time to time, it may mean that your enrolment in the Fund cannot be processed or that services cannot be provided to you. The Trustee may disclose your personal information (as necessary): To its agents, contractors or third party service providers that provide financial, administrative or other services in connection with the operation of the Fund or its business, for example where a fund administrator is appointed; To your financial advisor, or sponsoring employer, if any, unless you tell us not to; To an insurer where insurance services are arranged in connection with your enrolment in the Fund; To any new Trustee as may be appointed from time to time; To any party which holds amounts on your behalf which will be transferred to the Fund; and Where the law requires or permits us to do so (e.g. to law enforcement agencies or other government agencies such as AUSTRAC, the agency responsible for monitoring anti-money laundering and counter-terrorism financing legislation), or if you consent. By becoming a member of the Fund, you agree to the Trustee collecting, using, storing and disclosing personal information about you in accordance with this privacy statement. For a further explanation of our privacy practices and how we comply with privacy laws, please contact the Fund Administrator (contact details on the back page) for a copy of the privacy policy. Access to information Under privacy laws, you are entitled to request access to personal information held by the Trustee about you and to ask the Trustee to correct this information where you believe it is incorrect or out of date. No fee will be charged for an access request, however you may be charged the reasonable expenses incurred in giving you any information you have requested (e.g. searching and photocopying costs). To access personal information about you or to obtain more information about your rights or our privacy policy, please contact the Fund Administrator (contact details on the back page). Member online access and the Fund Website You can access your account details online through the Fund website at Logging on to the website To log on to the website, you need to provide your member number in the Plan and your log-in PIN. You will be provided with your member number and initial PIN details upon joining the Plan. Alternatively, you can also request your initial PIN by sending an to the following address: AU-FMNatSuperPINRqst@kpmg.com.au Your should contain the subject line PIN request and provide your name, date of birth, residential address and member number in the Plan in the body of the . Your PIN will then be ed to you along with instructions to log onto the website. You can personalise your PIN when you log onto the website for the first time. Individual member account details You can view the following details regarding your account online and confirm transactions that may occur from time to time: Your membership details such as your name, date of birth, the date you joined; Your up to date account balance and benefit quotes; The transaction history of your account; Your nominated beneficiaries; Your insurance details; and Details regarding your chosen investment option(s). You can also update/provide certain details regarding your account such as: Your address details; 15

16 Your nominated beneficiaries (however please note that you can only update nonbinding nominations via the website); and Your TFN. You can also access general information about the Plan on the website, such as investment updates, as well as all Plan booklets and forms. The website is provided by the Administrator to the Plan, KPMG Superannuation Services Pty Limited (AFSL No ). With the exception of the Fund or Plan documentation issued by the Trustee which can be accessed via the website (such as this Incorporated Information), the Trustee is not responsible for the information provided on the website. More information in relation to the website can be obtained from the Plan (contact details on the back page). 16

17 Section 2: Risks of investing in super There are a number of significant risks associated with investments in superannuation funds and associated with particular investment option within superannuation funds. These include: Market risk Various economic, technological, political, legal and social factors have an effect on the value of investment markets and may affect the value of your investment in your chosen investment option within the Plan. The Trustee and the Plan s investment manager seek to reduce and manage this market risk through the specific investment strategies adopted for each investment option, as described in Section 3. Investment risk Investment risk can be described as the variability of returns or the chance of negative returns. An investment that has a high chance of fluctuations or negative returns is considered high risk and an investment with a low chance of negative returns is considered low risk. Generally, share investments are considered high risk and cash or fixed interest investments are considered low risk. Investment risk is also affected by the length of time that an investment is held because the chance of a negative return may decrease (and the potential for higher returns may increase) the longer that an investment is held. For example, a share investment held over a period of only one year might be considered very high risk compared to a share investment held over a much longer period (say 10 years). Over the long term, high risk investments may, therefore, lead to greater returns than low risk investments. Risks associated with various investments may change depending on the economic environment and other external factors. This means that different asset classes perform differently at different times. For example returns in relation to shares may increase over a period, whereas, the returns in relation to fixed interest investments may decrease over the same period of time. Should you leave the Plan or withdraw monies, fluctuations in investment returns (in addition to taxation, fees and costs) may result in you getting back less than you have contributed. The risk associated with any particular investment option will depend on the composition of the assets and underlying investments used in each investment option. See the investment profiles later in this Incorporated Information for each of the investment options available in the Plan for a general indication of the level of risk associated with each option (this is a general guide only and does not take into account your personal circumstances). The risk level shown 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 risks and potential losses associated with their chosen investment option. Superannuation fund risk Risks specific to the Plan, as with any other superannuation fund, include the possibility of changes to the Plan or its internal operations such as changes to key staff involved in the management of the Plan or a disruption of its systems. The Trustee seeks to minimise this risk by taking into account the best interests of members at all times when making decisions about the Plan and maintaining a risk management and compliance framework in accordance with legislative requirements. Risk of changes in the legal environment Superannuation laws, the Corporations Act, Australian taxation laws and other laws affect the Plan and the Plan s investments. Changes in superannuation laws may affect your ability to access your benefit in the Plan. Changes in taxation laws may also affect the value of your benefit. 17