Progress Super Fund Transfer

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3 Progress Super Fund Transfer Important Information for Members with Pension Accounts On 1 December 2015, the Progress Super Fund will be transferred by way of a Successor Fund Transfer (SFT) to EquitySuper. To enable this, a new sub-fund within EquitySuper called the Progress Plan will be established and all member benefits and accounts will be transferred from the Progress Super Fund to the Progress Plan. Timeline 30 October Significant Event Notice issued to members 1 December Transfer complete Early December Exit statements sent to members Mid December Welcome packs sent to members from the Progress Plan OCTOBER NOVEMBER DECEMBER 16 November 30 November Temporary freeze on transactions (to allow member accounts to be transferred) What do you need to do? You don t need to do anything to transfer into the Progress Plan your account will be transferred automatically. However, you may need to take action after the transfer has taken place e.g. make a new binding death benefit nomination. Refer to What s changing and what s staying the same? on the following page for more information. If your account consists solely of the Conservative investment option, you can elect to roll out of Progress Super Fund prior to the transfer. You will need to submit your request to roll out of Progress Super Fund by 11 November Call to arrange this. Turn over for a summary of what will and won t change after the transfer on 1 December P1 of 4

4 Progress Super Fund Transfer Important Information for Members What s changing and what s staying the same? What will change post-transfer Fund name Fund Trustee Fund Administrator Fund Australian Business Number (ABN) and Australian Financial Services License (AFSL) details Fees Member number Account balance Binding death benefit nominations (if applicable) Third party authorities (e.g. Power of Attorney) Pension payment date Online access From Progress Super Fund to Progress Plan (a sub-fund of EquitySuper). From Equity Trustees Limited to Equity Trustees Superannuation Limited (ETSL). From Diversa Superannuation Services Limited to Equity Investment Management Limited (EIML). From Equity Trustees Limited ABN AFSL as trustee for the Progress Super Fund ABN to Equity Trustees Superannuation Limited ABN AFSL as trustee for the Progress Plan, a sub-fund of EquitySuper ABN Ongoing fees in the Progress Plan will be generally lower than fees in the Progress Super Fund see Fees. A new member number will be provided to you in the welcome pack you ll receive in the weeks after the transfer. Your account balance will be displayed in units see Your account balance. Any binding death benefit nomination you have in place will become invalid see Death benefit nominations. Any third party authority you have in place will become invalid see Third party authorities. Monthly pension payments will be paid on 15th of each month see Pension payments. You will be able to view your account via an online portal see Online access. Fund contact details For any enquiries from 1 December 2015, contact EquitySuper on Up until this date, contact Progress Super Fund on What won t change post-transfer Investment options Non-binding death nominations Reversionary death nominations Your investment options will be moved across to the Progress plan. Any non-binding death nominations you have in place will transfer over. Any reversionary death nomination you have in place will transfer over. P2 of 4

5 Further information Fees The following table details significant fees for the Progress Super Fund (your current fund) and the Progress Plan. Type of fee or cost Progress Super Fund %p.a. Current Fund How and when paid Progress Plan %p.a. New Fund How and when paid Investment Fee Nil n/a Nil All investment costs are included in the indirect cost ratio. Administration Fee Nil n/a 0.55% p.a. Deducted from your account at the end of each month based on your account balance. Buy/Sell spread Nil Not disclosed 0.2% Included in the unit price and applied to your buy or sell transaction(s) as applicable. Switching Fee Nil n/a Nil n/a Exit Fee Nil n/a $70 per withdrawal 1 Advice Fees Nil n/a Nil n/a Other fees and costs Indirect Cost Ratio (ICR) 1.37% 2 Calculated and accrued bi-monthly and deducted monthly in arrears from Fund Assets. Deducted at the time a withdrawal transaction is processed. 0.65% p.a. Deducted from investment returns before unit prices are determined. 1 This fee will be waived for members choosing to switch between Progress Plan and other EquitySuper investment options. 2 The Progress Super Fund ICR is disclosed in the Product Disclosure Statement issued 10 April Your account balance The method for attributing investment earnings to your investment options will change from using an earnings allocation approach to daily unit pricing. This means your account balance will be shown in both units and dollars for each of your investment options. The value of your account won t change. Unit prices are calculated daily. P3 of 4

6 Progress Super Fund Transfer Important Information for Members Further information (continued) Death benefit nominations If you currently have a binding death benefit nomination in place on your account, this will become invalid on 1 December To make a new binding death benefit nomination, please complete the form you receive in your welcome back (to be issued to members in December). Non-binding and reversionary death benefit nominations will remain in place on all accounts (if applicable). Third party authorities If you have a third party authority in place on your account e.g. power of attorney this will become invalid on 1 December To nominate a third party authority on your account, please contact Equity Super on after this date. Online access If you would like to establish online access to view your account balance, please call EquitySuper on (from 1 December 2015). Tax and social security The transfer has no impact on tax or Centrelink considerations for pension members. However, where you are under age 60, you will receive two PAYG tax statements: one with the Exit Statement you ll receive from Progress Super Fund, and one soon after the end of the financial year from the trustee of Progress Plan. Pension payments After the transfer, pension payments will occur on or by the 15th of each month not at the beginning of the month as per the current arrangement. This means the pension payment for December will occur on Tuesday 15 December If you would like to receive an additional pension payment, to ensure you have cash for the period of 1 November 15 December 2015, please submit the enclosed Progress Super Fund Additional Pension Payment Request Form by 11 November to: The Administrator Progress Super Fund PO Box A2499 Sydney South NSW 1235 Note: additional pension payments are made at ETSL s discretion and, in this instance, cannot exceed the equivalent of one month s pension payment. Please note that this may have tax or social security implications, subject to statutory limits. Temporary freeze on member transactions To allow the transfer to take place, all transactions will be temporarily suspended from November This means no withdrawals can be made during this time. Equity Trustees Limited ABN AFSL P4 of 4 TWS-ETSL-FS0038_