VicSuper Webinar Update 2016

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2 VicSuper Webinar Update 2016 Presented by: Jarrod Clark Team Leader Employer Relations Anthony Giudice Senior Account Consultant Employer Relations

3 The webinar will run until 11.15am with 15 minutes question time. Please submit questions on the right hand side of the screen If you are experiencing a slow connection turn the camera off. You will still hear the audio and see the slide deck This webinar will be recorded for viewing after the webinar Alternatively you can contact our Employer Services team on

4 General Nature of Presentation > The information contained in this Employer Update is given in good faith and has been derived from sources believed to be reliable and accurate. No warranty as to the accuracy or completeness of this information is given and no responsibility is accepted by VicSuper Pty Ltd or its employees for any loss or damage arising from reliance on the information provided > This seminar does not take into account your financial situation, objectives or needs. VicSuper recommends you seek professional advice for your own circumstances. This is where we can help you. Contact us today to make a time to see a VicSuper representative > Please read the relevant Product Disclosure Statement and Financial Services Guide which are available at vicsuper.com.au or by calling

5 General Nature of Presentation (Cont ) > VicSuper representatives are paid salaries by VicSuper. No commissions are payable to or received by VicSuper representatives, any other person or entity or VicSuper itself > VicSuper is not owned, aligned or affiliated with any other institution. VicSuper is the Trustee of the Fund and, as the AFS licensee, is responsible for the advice provided > The projections assume after tax investment returns (above inflation) of 4% pa in the superannuation phase and 4.9% pa in the pension phase. These are the 10-year investment return objectives for the Growth Option, which is VicSuper's default investment option

6 General Nature of Presentation (Cont ) > Retirement income is assumed to increase at inflation of 3% pa and salaries are assumed to increase at 4% pa > VicSuper' s fees have been taken into account. However, insurance premiums and any tax payable on withdrawal (before age 60) have not been taken into account. All figures are in today's dollars > For all projections, it is important to note that this information is predictive in character, may be affected by inaccurate assumptions or by known or unknown risks and uncertainties, and may differ materially from results ultimately achieved > The assumptions for the investment returns are based on modelling by Frontier Investment Consulting Pty Ltd (AFS Licence No ). The wage and inflation assumptions are based on analysis carried out by Russell Employee Benefits Pty Ltd (AFS Licence No )

7 CONTENTS 1. VicSuper Overview 8 2. SuperStream Update Q&A Session 25

8 1. VicSuper Overview

9 VicSuper at a glance VicSuper s Funds Under Management ($billion) $15.5b 14 $13.3b 12 $10.8b 10 8 $8.5b $9.2b / / / /2014 As of Dec 2015

10 2. Superstream Update

11 2015 ATO released SuperStream Readiness Video

12 SuperStream Key Players APRA Funds 100% of APRA funds are receiving contributions in the new SuperStream standard SMSFs >50% of SMSFs are receiving contributions in the SuperStream standard Payroll Providers Majority of payroll providers have released SuperStream upgrades to their software. Clearing Houses Commercial Clearing House Integrated through payroll system Offered through default fund Large Employers Over 150,000 large employers > 20 employees) were required to be SuperStream compliant by 1 October 2015 Small Employers 800,000 small employers (< 20 employees) have until 1 July 2016

13 Employer Obligations Payments Data must be sent the same day that payments are made Electronic payments only Direct Debit and EFT Bpay is acceptable but is not being widely used Negative contributions will generally not be accepted Data Mandatory data standards apply Data must be validated upon submission Invalid data will not be accepted into the system

14 VicSuper 4 Steps to SuperStream Success Step 1 Assess your options Step 2 Collect data Step 3 Implement your solution Step 4 Submit your first contribution

15 Step 1 Assess your options ATO Small Business Clearing House Payroll Provider s Using a Clearing House Superfund Payroll provider

16 How do Clearing House solution s work? Default Employees COF employees Properly completed COF form returned Choice data Westpac Quick Super and Gateway Network Choice fund All funds Fund name Bank Account BSB USI Member number SMSF USI = ABN Service provider number Member number can equal 1 Payroll system USI will link employees to funds VicSuper Portal / Clearing House Data validation Default data VicSuper Administration systems Employee s Employer Superfund ATO and Gateway Network VicSuper Can Help (1300 VSUPER).

17 VicSuper 4 Steps to SuperStream Success Step 1 Assess your options Step 2 Collect data Step 3 Implement your solution Step 4 Submit your first contribution

18 Step 2 Collecting Data Choice employees Fund Name USI (unique superannuation identifier) Super fund member number SMSF employees ABN ESA (electronic service address) Bank Account Details All employees Full Name Date of Birth Gender Address Employment Start Date

19 New Standard Choice of Fund Form New fields in the standard choice form include; 1. Unique Superannuation Identifier (USI) for APRA funds 2. Electronic Service Address (ESA) of Self managed super funds Source :ATO website

20 New Standard Choice of Fund Form (Cont ) USI ESA

21 Choice of Fund SMSF s What if I don't give this information to my employer in time? Your employer will need your fund's ABN, electronic service address, and bank account details before they can start making contributions using SuperStream. Your employer may contact you to request this information by a specific date to ensure they are able to finalise their SuperStream plans by the 30 June deadline. If you don't give them the required information, they will not be able to send contributions to your fund. To ensure that employers obtain all the information they need to finalise their SuperStream preparations, they can request that you complete a choice of fund form within a reasonable period of time (for example, within 28 days). The current standard choice form has been updated to include the required mandatory information to support SuperStream (including the ABN of the SMSF, the bank account details and an electronic service address). If this information is not provided, you will be deemed as not having provided sufficient details for the choice fund to be accepted and your employer may direct contributions made on your behalf to the employer default fund.

22 VicSuper 4 Steps to SuperStream Success Step 1 Assess your options Step 2 Collect data Step 3 Implement your solution Step 4 Submit your first contribution

23 Step 3 Implement your solution Communication with employees regarding additional SuperStream information is critical Start now! Proactively engage with your payroll provider to ensure required SuperStream upgrades are implemented Picking the right solution is critical Don t leave it too late Data cleansing of employee payroll records is critical Retail super funds have multiple products Your first submission will be your hardest Are there costs? Other Implementation Feedback from VicSuper employers

24 VicSuper Solution Next Steps VicSuper account consultants available to assist with implementation of our clearing house solution

25 3. Questions? Please submit your questions at the bottom of the right hand side task bar

26 Thank you for attending our VicSuper webinar. Please provide feedback from our follow up to continue to help us improve our events and webinars