Newcastle Permanent Superannuation Member Information Booklet. 27 July 2015

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1 Newcastle Permanent Superannuation Member Information Booklet 613_ July 2015 This Member Information Booklet (MIB) is only applicable to members of the Superannuation Division of the Newcastle Permanent Superannuation Plan ABN (the Plan). This MIB is issued by the Trustee of the Plan, Mercer Superannuation (Australia) Limited (MSAL) ABN , Australian Financial Services Licence , RSE Licence L The Plan s administrator is Mercer Outsourcing (Australia) Pty Ltd ABN , Australian Financial Services Licence The Plan is distributed by Newcastle Permanent Building Society Limited (NPBS) ACN , Australian Financial Services Licence/Australian Credit Licence The Newcastle Permanent logo is a trademark of NPBS.

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3 Newcastle Permanent Superannuation Plan Superannuation Division Member Information Booklet Prepared 27 July 2015 The important information in this Member Information Booklet forms part of the Product Disclosure Statement for the Superannuation Division of the Newcastle Permanent Superannuation Plan dated 27 July 2015 (PDS). This Member Information Booklet (MIB) is only applicable to members of the Superannuation Division of the Newcastle Permanent Superannuation Plan ABN (the Plan). This MIB is issued by the Trustee of the Plan, Mercer Superannuation (Australia) Limited (MSAL) ABN , Australian Financial Services Licence #235906, RSE Licence #L The Plan s administrator is Mercer Outsourcing (Australia) Pty Ltd ABN , Australian Financial Services Licence # The Plan is distributed by the Newcastle Permanent Building Society Limited ABN (NPBS) Australian Financial Services Licence #

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5 ABOUT THIS MEMBER INFORMATION BOOKLET This Member Information Booklet (Booklet) provides important information about the Superannuation Division in the Newcastle Permanent Superannuation Plan (the Plan). The important information in this Booklet forms part of the Product Disclosure Statement for the Superannuation Division of the Newcastle Permanent Superannuation Plan dated 1 July 2015 (PDS). You should consider the important information in this Booklet and the PDS collectively before making a decision about the Plan. Mercer Superannuation (Australia) Limited ABN (MSAL) is responsible for the contents of this Booklet and is the issuer of this Booklet. In this Booklet, MSAL is called Trustee, we or us. The Trustee has appointed a number of service providers to assist in the day to day operations of the Plan or to provide services to members of the Plan. The following service providers are named in this Booklet and have consented to being so named: the Plan s administrator, Mercer Outsourcing (Australia) Pty Ltd ABN Australian Financial Services Licence # (MOAPL), the Plan s investment managers, Mercer Investments (Australia) Limited ABN Australian Financial Services Licence # (MIAL) and the Newcastle Permanent Building Society Limited ABN Australian Financial Services Licence # (NPBS), the Plan s distributor and provider of personal advice to members, NPBS. the Plan s insurer, TAL Life Limited ABN , Australian Financial Services Licence # (TAL). None of MOAPL, MIAL, NPBS or TAL are responsible for the issue of, or any statements in this Booklet or the PDS. None of MOAPL, MIAL or TAL make any recommendation or provide any opinion regarding the Plan or an investment in it. The value of investments in the Plan s investment options may rise and fall from time to time. Neither the Trustee, MIAL, NPBS (except as detailed in the How we invest your super section of this Booklet in relation to the Cash and Term Deposit investment options) guarantee the investment performance, earnings or return of capital invested in any of the investment options of the Plan made available to members through the Plan and described in this Booklet. Insurance benefits are provided by the Plan s insurer and not the Trustee, MOAPL, MIAL or NPBS. Trustee s contact details Mercer Superannuation (Australia) Limited ABN GPO Box 4303 Melbourne VIC 3001 Tel: Website: newcastlepermanent.superfacts.com STAYING UP TO DATE The information contained in this Booklet and the PDS may change from time to time. We will advise you (as required by law) if there is a material change, inaccurate statement or omission from this Booklet or the PDS. You can obtain up-to-date information by calling the Plan s Superannuation Helpline on or by visiting the Plan s website at: newcastlepermanent.superfacts.com Generally the Plan s website is available 24/7. However, when we need to carry out scheduled updates and system maintenance, the website may not be available and you should plan ahead accordingly. We can send you a paper copy of the updated information free of charge on request. 1

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7 INDEX OF TOPICS 1 About the Newcastle Permanent Superannuation Plan 5 2 Benefits of Investing with the Newcastle Permanent Superannuation Plan 6 Significant benefits and features of the Plan 6 Receiving your benefit 6 3 How Super Works 8 Contributions 8 Paying your benefits 13 4 How we invest your super 15 The Trustee s investment approach 18 Understanding investment risk 21 Your investment options... in detail 23 The Plan s investment options 24 How the term deposit works 29 Some frequently asked questions 32 5 Fees and costs 34 Fees and other costs table 34 Additional explanation of fees and costs 36 Defined fees How super is taxed Insurance in your super 43 8 Other things you should know 48 3

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9 1 ABOUT THE NEWCASTLE PERMANENT SUPERANNUATION PLAN The Plan is constituted as a trust, and the Trustee is Mercer Superannuation (Australia) Limited (MSAL). MSAL holds a Registrable Superannuation Entity (RSE) licence under the Superannuation Industry (Supervision) Act 1993 (SIS), number L The RSE number for the Plan is R The Trustee is not related to and is completely separate from NPBS. The Plan s assets are kept separate from NPBS assets. This means the Plan s assets can t be used to pay any debts of NPBS. The Plan is a public offer superannuation fund as provided under SIS, which may be used by your employer to provide some or all of the superannuation benefits for its employees and former employees. The Plan is regulated under SIS and the Corporations Act WE LL KEEP YOU INFORMED As a Plan member you will be kept informed about the operations of the Plan and any changes to the Plan and your benefits. After joining the Plan you will receive: a welcome letter confirming your choices in the Plan you will also receive confirmation of any superannuation monies transferred in to the Plan. an annual report, via the Plan s website to bring you up to speed on investment performance and what s happened to the Plan over the year. You can request a hard copy of the annual report to be sent to you free of charge by calling the Helpline on member statements showing changes to your account balance. a statement about your benefit when you request payment of your benefit. notification of all material changes or the occurrence of significant events. regular news articles and investment updates to keep you informed. access to a wealth of information and interactive planning tools on the Plan s website at: newcastlepermanent.superfacts.com We may provide certain member communications (including member statements and significant event notices) that are permitted by law to you electronically, either by: sending them to you by (which may include a link to a website from where they can be downloaded) where we have an address for you including any address provided by you or any other person on your behalf (including your employer); and/ or making them available to you on a website from where they can be downloaded. FURTHER INFORMATION AVAILABLE ON REQUEST As well as sending you regular information and answering your questions, the Trustee can provide you, free of charge, with further information including: the Plan s Trust Deed the Plan s Investment Policy Statement the latest audited Plan accounts the Plan s Privacy Policy Statement the Plan s Enquiries and complaints procedures. If you d like to see copies of any of these documents, call the Plan s Superannuation Helpline on You can also access up-to-date information by visiting the Plan website at: newcastlepermanent.superfacts.com For example, at the website you can: update your personal details view your current account balance view the contributions you have received in the current financial year check the latest investment returns change your investment options, and change your nominated beneficiaries STAYING IN TOUCH Please take the time to carefully read this Booklet and the PDS as superannuation is an increasingly important component of financial planning during your working life as well as for retirement. If you have any questions about your superannuation you can: call the Plan s Superannuation Helpline on write to us at - The Plan Administrator Newcastle Permanent Superannuation Plan GPO Box 4303 Melbourne VIC 3001 visit the Plan s website at - newcastlepermanent.superfacts.com LET US KNOW IF YOUR DETAILS CHANGE To help with the administration of your benefits, please let us know if your address or personal details change. We can only send you information about the Plan and your benefits if we have your current address. Once you have joined the Plan, you have the opportunity to change your details including: your preferred beneficiaries in the event of your death, your investment choice, and your insurance choice (if applicable). via the Plan s website at: newcastlepermanent.superfacts.com or by calling the Plan s Superannuation Helpline on

10 2 - BENEFITS OF INVESTING WITH THE NEWCASTLE PERMANENT SUPERANNUATION PLAN SIGNIFICANT BENEFITS AND FEATURES OF THE PLAN CONTROL OVER YOUR SUPERANNUATION CHOICES If you are currently working or in transition between careers, the Plan gives you control over your superannuation choices to help you towards maximising your retirement savings. You decide how much to invest, how often to invest and in which investment option to invest. INVESTMENT FLEXIBILITY AND CHOICE Whatever your investment timeframe, the Plan can give you life-long flexibility over your investments. You can choose from one or a combination of nine professionally managed investment options available through the Plan. Each option has a different investment profile, allowing you to choose the type of investments that best suit your investment needs, investment timeframes and personal investment preferences. You are able to change your investment choice if your circumstances change at any time. See the How we invest your money section for more information. YOU CAN CHOOSE TO JOIN UNDER CHOICE OF FUND The Plan qualifies as a complying fund under Choice of Fund legislation (Superannuation Product Identification Number (SPIN): NPB0102AU). This means that if you are employed and eligible to make a choice as to where your employer pays your superannuation contributions, you can apply to join the Plan and request that your employer make their SG contributions for you to your account in the Plan. INSURANCE BENEFITS Getting cover is easy and it helps protect you and your family. When you join, you're automatically given death cover (some conditions apply) and if eligible you can also apply for total and permanent disablement cover. You're free to apply to change your level of cover at any time (you might need to provide health information to the insurer). See the Insurance in your super section for more information. PENSION DIVISION AVAILABLE When the time comes to receive your super payout, you may be able to transfer all or part of your super to the Pension Division of the Plan. The Pension Division offers two different types of pensions an Allocated Pension and a Transition to Retirement Allocated Pension. An Allocated Pension allows you to control your income within Government regulated limits and draw down an income in retirement whilst still being able to make lump sum withdrawals when the need arises. A Transition to Retirement Allocated Pension allows you (if you have reached your preservation age currently 55 or over) to access your super whilst you are still employed within Government regulated limits and draw down an income. See the Preservation Fact sheet on the Plan s website at: newcastlepermanent.superfacts.com Before deciding to invest in the Pension Division, you should read the Product Disclosure Statement for the Pension Division of the Plan and seek advice from a licensed, or appropriately authorised, financial adviser. You will also need to complete an application form. If you would like a copy of the Product Disclosure Statement for the Pension Division, call the Plan s Superannuation Helpline on or visit the Plan s website at: newcastlepermanent.superfacts.com where you can download a copy. RECEIVING YOUR BENEFIT The Plan provides a super benefit if you are a member of the Plan and one of the following events occur: when you request to leave the Plan, or on your death; or if you suffer a total and permanent disability; or in a limited number of other circumstances permitted under Government regulations. Your super benefit will generally be equal to your account balance*. You can withdraw your super from the Plan and transfer it to another super fund at any time. However you generally won t be able to access it in cash until you are at least 55 years old and retire OR you satisfy a condition of release. For more information see the Preservation Fact sheet on the Plan s website at: newcastlepermanent.superfacts.com 6

11 You may be able to transfer all or part of your account balance to the Plan s Pension Division. Even if you have not fully retired from employment, you may still be able to commence a pension. See the Product Disclosure Statement (PDS) for the Pension Division of the Plan for more information. You can download a copy of that PDS by visiting the Plan s website at: newcastlepermanent.superfacts.com or you can call the Plan s Superannuation Helpline on and request a copy. * The super benefit you receive if you die or are totally and permanently disabled may be more than your account balance if you have insurance cover in the Plan. You should read the Insurance in your super section for more information about insurance cover. If your account balance should fall below $1,200 and you or your employer are not participating in a regular contribution plan, your super may be transferred to the Eligible Rollover Fund (ERF) currently used by the Plan unless you make further contributions or request to transfer your super to another fund. See the How super works section for full details on the minimum account balance requirements and the Other things you should know section for details about the Plan s Eligible Rollover Fund. Any insurance cover you have in the Plan will cease from the date your benefit is transferred to the ERF. Any insurance premiums regularly deducted will also cease from the same date. You will however be entitled to extended cover. See the Insurance in your super section for more information 7

12 3 HOW SUPER WORKS YOU HAVE AN ACCUMULATION STYLE OF SUPER. IT WORKS LIKE THIS: Your contributions You can contribute amounts which are allocated to your account in the Plan. Any employer contributions, spouse contributions and Government cocontributions received for you are also allocated to your account. You can roll over amounts from other superannuation arrangements which will be added to your account. Less Contributions tax, insurance premiums (if any), fees and other costs, tax assessments (if any), and any partial payment(s) are deducted from your account. Plus Investment returns* * Investment returns can be positive or negative. In the case of the Cash and the Term Deposit investment option, the crediting rate or the break crediting rate (as applicable) will not be negative, noting that this guarantee is directly linked to the security and financial stability of NPBS. For the Cash and Term Deposit investment options, the Cash crediting rate, the Term Deposit crediting rate and the Term Deposit break crediting rate (as applicable) (net of tax) are declared monthly by the Trustee, based on information provided by NPBS, and after the Trustee makes an allowance for tax (as applicable). For all other investment options, the unit prices are calculated and declared on a daily basis by the Trustee (net of investment management fees and tax as applicable). Equals Your account balance. The member statement regularly issued by the Trustee shows how your account balance has changed throughout the previous period. CONTRIBUTIONS To join the Plan you must make an initial investment or start a regular contribution plan, as detailed below. Your membership in the Plan will begin only when the Plan receives and processes your initial investment or your first regular contribution. Remember, some contributions cannot be accepted until we receive your tax file number. INITIAL INVESTMENT PROCESS To make an initial investment complete item number (1) under Step 2 on your Application for membership form. Your initial investment must be at least $1,200* and can be made in one of the following two ways: 1. As rollover from another superannuation plan. A cheque and Rollover Benefit Statement and any other associated documentation must be sent to the Plan Administrator before your membership in the Plan will begin. You can send this in with your Application for membership form, or complete a Rollover form for each amount and forward it to each provider. Details on rolling other super money into the Plan are outlined on the Rollover form. 2. As a Lump sum amount of at least $1,200*. a cheque (made payable to Newcastle Permanent Superannuation Plan) must be sent to the Plan Administrator with your Application for membership of the Superannuation Division form. you need to nominate the amount you are contributing, what type of contribution it is, i.e. personal after-tax member contribution, employer contribution or employer salary sacrifice contribution and indicate if you are claiming a tax deduction for this initial contribution. *A lower initial amount may be negotiated with NPBS before you join the Plan if you choose to invest in the Cash option only. 8

13 REGULAR CONTRIBUTIONS PROCESS You or your employer can start a regular contribution plan (details below). If you or your employer start a regular contribution plan you do not need to make an initial investment to the Plan. To start a regular contribution plan: tick the box under item number (2) in Step 2 of the Application for membership of the Superannuation Division form. You must also complete a Starting a regular contribution plan form. you must make a minimum regular contribution of at least $100 per month or $300 per quarter (unless a lower regular contribution has been negotiated with NPBS before you join the Plan). Once a month your regular contribution will be automatically taken out by direct debit from your nominated bank, credit union, building society or cash management trust account. This will happen on either the 10th or 20th of each month. If you are making regular contributions for your spouse (known as spouse contributions described in more detail later) who has also joined the Plan, your spouse contributions may be used to satisfy the minimum regular contribution requirement for your spouse (provided the minimum amount is paid, i.e. $100 a month or $300 per quarter). You can also make regular contributions on a quarterly basis. In the case of quarterly contributions, we will deduct your contribution from your nominated account on the 10th or 20th of the month each September, December, March and June. You may change your payment details at any time. You must nominate your preferred deduction method, either monthly or quarterly, and date, either 10th or 20th of the month, when you complete the Starting a regular contribution plan form. You can obtain a copy of this form by visiting the Plan s website at: newcastlepermanent.superfacts.com where it can be downloaded or you can call the Plan s Superannuation Helpline on to request a copy. YOU CAN MAKE CONTRIBUTIONS VIA BPAY You can make personal after-tax contributions via BPAY. BPAY is an easy and convenient way for you to make contributions at any time through the phone or internet banking services provided by your bank, building society or credit union account. You can make contributions via BPAY on a regular basis or you can make individual contributions. See Regular contributions process and Lump sum contributions for details. The maximum contribution which can be made via BPAY is $100,000. You can confirm this by visiting or you can phone your bank, credit union or building society directly to confirm this. If you wish to make a contribution via BPAY, please sign-in to your member account at: newcastlepermanent.superfacts.com for the Plan s BPAY biller code and your personal reference number. Alternatively, you can call the Plan s Superannuation Helpline on to access this information. Please ensure you record or print your receipt number as you will need this if you have any future queries about the contribution made. You need to allow at least 3 business days prior to any applicable deadlines to allow for the clearance and processing of your funds into your super account and for the contribution to be visible in your account on the Plan s website at: newcastlepermanent.superfacts.com The Plan does not charge any fees for making contributions by BPAY. However, you should check with your bank, credit union or building society to determine whether they charge any transaction fees for using BPAY. registered to BPAY Pty Ltd ABN YOUR EMPLOYER MAY ALSO CONTRIBUTE By contributing on your behalf, your employer can satisfy their obligations under the Government s Superannuation Guarantee legislation. If your employer chooses to make regular contributions for you using a regular contribution plan you do not need to make an initial contribution. To commence a regular contribution plan your employer should complete a Starting a regular contribution plan form. You can obtain a copy of this form by visiting the Plan s website at: newcastlepermanent.superfacts.com where it can be downloaded or you can call also call the Plan s Superannuation Helpline on at any time to request for a copy of the Starting a regular contribution plan form. Your employer can also make irregular contributions to the Plan at any time. For further details, please call the Plan s Superannuation Helpline on

14 LUMP SUM CONTRIBUTIONS You can make additional lump sum contributions to the Plan at any time. You can make these via cheque (payable to Newcastle Permanent Superannuation Plan) and send it to the Plan Administrator along with a completed Making contribution in the Newcastle Permanent Superannuation Plan Superannuation Division form. Alternatively, you can make post-tax lump sum contributions direct to NPBS over the counter by visiting your local branch or via EFT directly to your local branch. If you need more information on making direct lump sum contributions at a branch or via EFT, you should call NPBS on Whether making a lump sum contribution to the Plan or directly to a branch, it must be at least $500. Please call the Plan s Superannuation Helpline on for details on how to make lump sum contributions to the Plan. THE MINIMUM LEVEL FOR YOUR ACCOUNT BALANCE The Trustee requires that your account balance remains above $1,200 at all times, unless you or your employer is participating in a regular contribution plan. If your account balance should fall below this level and you or your employer are currently not participating in a regular contribution plan, your account balance may be transferred to the ERF currently used by the Plan unless you make further contributions so that your account balance becomes greater than $1,200, or you request to transfer your account balance to another fund. The Plan Administrator will write to you if your account balance reaches $1,200. You will be asked to make additional contributions which must be received and processed by us within 30 days from the date of the notice to top up your account balance. If you do not do this: your remaining account balance will be transferred to the Plan s ERF after 30 days from the date of the notice to top up your account balance (see About the Eligible Rollover Fund (ERF) in the Other things you should know section for more information), and any insurance cover you had in the Plan will cease when your account balance is transferred to the ERF. You may however be entitled to extended death cover and eligible to apply to continue your death cover only outside of the Plan (see the Insurance in your super section for more information). You can check your account balance at any time by calling the Plan s Superannuation Helpline on You should also check your member statement. If you or your employer are participating in a regular contribution plan, and your account balance becomes insufficient to meet your monthly insurance cover premium, the Plan Administrator will write to you. You will be asked to make additional contributions within 30 days to top up your account balance, or change your regular contribution amount, otherwise your death and total and permanent disablement (TPD) cover will cease 30 days after the end of the month in which your account balance becomes insufficient to meet the monthly insurance premium. See the Insurance in your super section for more information. ROLLOVERS You may roll over money from your other super accounts into the Plan if you want to. If you ve had other jobs in the past, you will probably have super accounts with your previous employers. If you d like to roll other super money into the Plan, call the Plan s Superannuation Helpline on to obtain a Rollover form. You can also download a copy of this form by visiting the Plan s website at: newcastlepermanent.superfacts.com You should check with your other fund/s to see what fees may apply if you withdraw your money. If the money you roll in is preserved, it stays preserved in the Plan until you satisfy a condition of release. For more details see the Preservation Fact sheet on the Plan s website at: newcastlepermanent.superfacts.com SPOUSE SUPER If you want to make contributions for your spouse, they can also join the Plan. The same rules about making an initial contribution will apply to the new spouse account and your spouse will also need to complete and return an Application for membership of the Superannuation Division form. Once your spouse s application for membership has been accepted by the Trustee, you can make contributions for your spouse known as spouse contributions. To make these contributions complete and return a Spouse contributions to the Newcastle Permanent Superannuation Plan - Superannuation Division form with that contribution. You can access a copy of this form and the Superannuation Division PDS from the Plan s website at: newcastlepermanent.superfacts.com or by calling the Plan s Superannuation Helpline on and requesting a copy. 10

15 CONTRIBUTION SPLITTING Contribution splitting allows members to split their super contributions with their eligible spouse and transfer the eligible contributions to an account in the name of their eligible spouse in a complying superannuation fund. Contributions can only be split with an eligible spouse who has not permanently retired or reached age 65. An eligible spouse includes: your husband or wife another person (whether of the same sex or not) with whom you are in a registered relationship, or another person who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple. Provided you maintain an account balance of at least $5,000, you will generally be able to request a contribution split of up to 85% of concessional contributions (see Concessional Contributions in the How super is taxed section for details). You will not be able to split contributions over the concessional contribution limit (see Concessional Contributions in the How super is taxed section for details) Any contributions that you split will count towards your concessional contributions limit. In other words, splitting contributions will not reduce your concessional contributions for the year. The following contributions cannot be split: untaxed contributions including member contributions (but excluding those for which you have advised the Trustee that you are claiming a tax deduction), eligible spouse contributions and any government contributions amounts rolled over or transferred into the Plan lump sum payments from an overseas super fund employment termination payments notional contributions relating to a member s defined benefits. There may be other circumstances in which superannuation legislation restricts or prohibits contribution splitting depending on a member's individual circumstances. We will advise you if this applies at the time you make a request to split contributions. The super contribution splitting rules work on a financial year basis (i.e. year ending 30 June): splitting periods will comprise the twelve months from 1 July to 30 June each year. generally, a member will be able to split once per year and will have 12 months to make a request to split all or part of a previous year's contributions once that year is over. However, if you leave the Plan before the 12 months has elapsed, your request to split contributions must be received by the Trustee on or before the time that your super is paid out, rolled over or transferred to another super fund. You may also be able to split contributions made in the financial year that your super benefit was paid. However, this can only take place if your request to split contributions is provided to the Trustee on or before the time that your super benefit is paid out, rolled over or transferred to another super fund. WHEN THE TRUSTEE CAN T ACCEPT CONTRIBUTIONS There are some circumstances when the Trustee is unable to accept certain contributions made for or by you: if you have not provided your TFN (unless the contribution has been made by your employer) if an individual contribution is greater than the specified limit allowed; if you have not met the work tests as set by the Government (only applicable from age 65). Any contributions received when these conditions have not been met will be returned to you or the person, or organisation (including where applicable your employer), who made the contribution. The amount returned will generally not form part of your account balance. For more details please refer to the Contributions Fact sheet on the Plan s website newcastlepermanent.superfacts.com GOVERNMENT CONTRIBUTIONS Low Income Earners Government Superannuation Contribution Depending on your level of income, you may be eligible for the Low Income Earners Government Superannuation Contribution (LIEGSC). The amount of LIEGSC you may receive depends on your income and your total concessional contributions for the financial year. However note that the LIEGSC will cease to apply from 1 July The last LIEGSC payments will be in respect of the year ending 30 June For more details and conditions see the Government Contributions Fact sheet on the Plan s website at: newcastlepermanent.superfacts.com Government Co-contribution If you make personal after-tax member contributions to a superannuation fund, you may be eligible for the Government co-contribution. The amount of the Government co-contribution you may get depends on your income and the personal after tax contributions you have made during the financial year. For more details and conditions see the Government Contributions Fact sheet on the Plan s website at: newcastlepermanent.superfacts.com 11

16 SPOUSE CONTRIBUTIONS TAX OFFSET If your income is below $10,800 in a financial year, your Spouse may be entitled to a tax offset (or rebate) of 18% on Spouse contributions your Spouse makes in respect of you. This tax offset (or rebate) is available on the first $3,000 per annum of contributions made by your Spouse in respect of you. If your income is between $10,800 and $13,800 any applicable tax offset will be less than 18%. Certain conditions must be met to be eligible for the tax offset including that you must be living with your Spouse and you both must be Australian residents. Your income for this purpose includes your assessable income and your reportable fringe benefits. It also includes most before tax or salary sacrifice contributions you make and can also include voluntary employer contributions where you have an option whether or not these are payable. 12

17 PAYING YOUR BENEFITS SUPER AND PRESERVATION Government legislation is designed to make sure that your super is used for retirement and, consequently, restricts your accessibility to your super. There are three super payout categories: Unrestricted non-preserved super payouts Preserved super payouts Restricted non-preserved super payouts. The unrestricted non-preserved amount (if any) is the part of your super payout that is available to be paid in cash at any time. Preserved or Restricted non-preserved payouts, which may include insurance proceeds from a total and permanent disablement claim, must be kept in a superannuation fund or other approved superannuation arrangement and are only accessible on satisfaction of the conditions imposed under superannuation law. For further details please refer to the Preservation Fact sheet on the Plan s website at: newcastlepermanent.superfacts.com Your member statement will set out which portion of your super is contained within these categories. Further information about: Conditions for accessibility of preserved or restricted non-preserved super, and Your preservation age (ie the age at which your preserved super can be paid to you in cash if you permanently leave work) can be found in the Preservation Fact sheet on the Plan s website at: newcastlepermanent.superfacts.com ACCESSING YOUR SUPER You can choose to take unrestricted nonpreserved components of your super (see earlier in this Booklet for details) before you leave the Plan. Your member statement will show if you have any such unrestricted non-preserved amounts. If you do so, then tax may be deducted. If you want to take advantage of this option you should call the Plan s Superannuation Helpline on for details. You may also be able to transfer all or part of your superannuation account balance to another approved superannuation arrangement at any time. For further information on transferring your superannuation benefit while still employed, including how this will impact on your remaining superannuation entitlements such as your insurance cover (if any), call the Plan s Superannuation Helpline on The Trustee recommends that you seek advice from a licensed or appropriately authorised, financial adviser before making any decisions regarding your super. LOST MEMBERS If we ve written to you twice and both times the mail has been returned unclaimed and you are under age 65, we may transfer your super to the SuperTrace Eligible Rollover Fund (see About the Eligible Rollover Fund later in this Booklet for more details). If your super is transferred into the SuperTrace Eligible Rollover Fund, you will no longer be a member of the Plan and any insurance cover you may have had through the plan will cease. UNCLAIMED MONEY If you are over age 65 and we have been unable to contact you for a period of 5 years, then your account balance will be considered to be unclaimed money and will be sent to the Australian Taxation Office (ATO). There are also other circumstances under which we may be required by law to transfer your account balance to the ATO. This will generally only occur if no contributions or rollovers have been received for more than 12 months and either we have not been able to contact you and your account balance is less than $2,000, or if we do not have enough information to properly identify you. The Government has proposed increasing the amount of $2,000 to $4,000 from 31 December 2015 and up to $6,000 from 31 December You can approach the ATO to claim any such money directly. ANTI-MONEY LAUNDERING Under the Anti-Money Laundering and Counter Terrorism Financing Act 2006 (AMLCTF), superannuation funds are required to identify, monitor and mitigate the risk that the Plan may be used for the laundering of money or the financing of terrorism. Because of this, you may be required to provide proof of your identity that is satisfactory to the Trustee before you withdraw your benefit from the Plan. You may also need to provide satisfactory proof of identity in other circumstances as required by law. At a minimum, you may be required to provide the Trustee with evidence that verifies your full name, your date of birth and your residential address. Such evidence would usually be in the form of a certified copy of your driver's licence or passport. Unless we receive this information in appropriate form, we may be unable to process your payment request. 13

18 Under AMLCTF we are also required in some circumstances to undertake additional identification checks and to monitor transactions. In some cases we may need to block or suspend transactions. Please note that the Trustee will not be liable for any loss suffered by you as a result of any delay in making a payment, caused or contributed to by the need to comply with AMLCTF requirements. By law the Trustee is also required to comply with confidential reporting obligations to the AMLCTF regulator, AUSTRAC. BANKRUPTCY & SUPER CONTRIBUTIONS Government legislation allows a Trustee in bankruptcy to recover certain super contributions. Your account will be adjusted to reflect any payments in respect of you made to a Trustee in bankruptcy under a notice issued in accordance with this legislation. FAMILY LAW Government legislation allows married and de facto* couples (including same sex couples) to make binding agreements or get court orders in respect of how each partner s super will be divided upon marriage or relationship breakdown. The law also gives the Family Court a say in how a couple s super is divided upon marriage or relationship breakdown. *Restrictions apply where a de facto relationship has been in existence for less than 2 years. Restrictions also apply in respect of de facto couples in Western Australia. Currently the Commonwealth laws in relation to de facto couples do not apply in Western Australia. Under the Family Law Act the Trustee is also required to provide certain information about a member s super payout to eligible persons where the information is required to negotiate a superannuation agreement or to assist with a court order. For the purposes of the Family Law Act an eligible person includes a member, the spouse of a member or any person who intends to enter a superannuation agreement with the member. Your account balance may need to be adjusted to reflect any agreements or court orders which may be binding on the Trustee. You ll be advised of any fee that applies when a request is made for actions to be taken under the Family Law Act in respect of your super payout. You can call the Plan s Superannuation Helpline on about family law matters affecting your super in the Plan. PAYING YOUR SUPER IF YOU LEAVE AUSTRALIA You may be eligible to access your super and have it paid directly to you after you have left Australia as long as: you entered Australia on a temporary visa, and you will be leaving Australia, and your temporary visa will soon expire or will be cancelled, and you are not an Australian or New Zealand citizen or permanent resident, Call the Plan s Superannuation Helpline on for more information on how to make an application to the Trustee for the release of your super for this reason and what will happen to your super if you make such an application. Note that if at least 6 months has passed since the expiry or cancellation of your temporary visa and you have left Australia and have not claimed your super from the Plan, the Trustee may be required to transfer your account balance to the Australian Taxation Office (ATO). If this happens, you will then need to contact the ATO to claim your super, which will be paid subject to the deduction of tax. The ATO will provide the Trustee with details of the members whose account balances must be transferred in these circumstances. Note that the tax rates on super payouts to a temporary resident who has left Australia are higher than those which apply to permanent residents or Australian or New Zealand citizens. Interest (or investment earnings) in respect to temporary residents is not paid on amounts paid by the ATO (except in certain circumstances). The transfer to the ATO can be required even if you are still employed by your Australian employer. If your benefit is transferred to the ATO in these circumstances and you need assistance to prove to the ATO that you are entitled to that benefit, call the Plan s Superannuation Helpline on In most cases, the Trustee is required to provide a member with an exit statement when their benefit has been paid out of the Plan. However, the Australian Securities and Investments Commission has provided Trustees with relief from this requirement where benefits are paid to the ATO in these circumstances. This relief has been granted because most temporary residents do not advise the Trustee of their overseas address details. The Trustee intends to rely on this relief. This means that the Trustee is not obliged to notify or give an exit statement to a non-resident where a benefit has been transferred to the ATO in these circumstances. 14

19 4 HOW WE INVEST YOUR SUPER No two members are the same. That s why the Plan provides a suite of investment options to meet your needs. This gives you the flexibility to tailor your portfolio. This section provides information about how the Trustee invests your super, the Trustee s investment approach, the risks associated with investing, and detailed information about each investment option available to you in the Plan. As a new member of the Plan, you can choose your investments, by selecting one or more investment options from the Plan s investment menu. You must choose an investment option in Step 3 of the Application for membership of the Superannuation Division form. If you do not make a valid choice, then the Trustee won t be able to accept your application for membership of the Plan. Prior to making an investment choice, the Trustee recommends that you seek advice from a licensed, or appropriately authorised, financial adviser to assist you in deciding what option will help you achieve your goals. BALANCING RISK AND RETURN All investments, including super, carry some risk. Your super is invested in different investment options that have different levels of risk depending on the assets that make up that investment option. You can balance risk and return by spreading your investments across different asset classes, countries and investment managers. Growth investments, such as shares and property, have the potential to grow over the long term but are also likely to experience more volatility (ups and downs) in the short term. Defensive investments, such as cash or fixed interest (including higher yielding fixed interest), tend to produce lower but more stable long-term returns than growth investments. Different combinations of growth and defensive investments change the characteristics of an investment option. It is not possible to guarantee investment returns and you may lose some of the money you have invested. The table below shows the various asset classes in which your super can be invested. Asset Class Description Investments in companies listed on securities exchanges around the world, International Shares including emerging markets. These investments may be hedged* or unhedged to manage movements in exchange rates, which can impact the value of investments both positively and negatively. Investments in Australian companies listed on the Australian Stock Exchange Australian Shares or equity based trusts, derivatives or unlisted Australian based equity type investments. It may include a small exposure to companies listed outside the Australian exchange from time to time. Australian and international listed and unlisted property funds including (but not limited to) office buildings, shopping centres, industrial estates and other Property and similar property investments. Infrastructure Australian and International listed and unlisted infrastructure investments are investments in long-term assets required to fulfil major economic and social needs such as airports, tunnels, bridges, toll roads, pipelines and utilities. Alternative assets comprise investments that do not fit within other asset classes. They may include investments in hedge funds, private equity, natural Alternative Assets resources, mezzanine debt and insurance linked strategies. Alternative investments may have growth or defensive characteristics. Australian or international exposure and may be hedged or unhedged. Targets a higher yield from fixed interest by investing in issuers that carry a higher degree of credit risk or illiquidity relative to defensive fixed interest and Higher Yielding cash investments. Fixed Interest Generally the exposures will be to non-investment grade corporate issuers, or sovereign bond issuers in emerging markets which may also carry emerging market currency risks. Fixed interest investments generally provide a regular income stream with the repayment of capital expected at the end of the term. These exposures are generally considered defensive as they are invested in highly rated sovereign Defensive Fixed bond issuers in developed markets or highly rated investment grade corporate Interest and Cash issuers. They may be Australian or international and may be hedged or unhedged. Cash includes short-term interest bearing investments and fixed term interest bearing investments (or term deposits ). *SEE SUMMARY OF KEY INVESTMENT TERMS SECTION 15

20 SUMMARY OF INVESTMENT OPTIONS As a member of the Plan, you have a choice of any one or a combination of the following nine investment options: Cash-type Options Cash Term Deposit Diversified Options* Largely Passively Managed Conservative (Enhanced Indexed) Moderately Conservative (Enhanced Indexed) Moderate Growth (Enhanced Indexed) Diversified Shares (Indexed), and Actively Managed Conservative (Active) Moderate Growth (Active) Assertive (Active) *These options hold assets across a number of different asset types. Refer below for further details. By selecting one or more of the Diversified investment options, you are investing your super in a set mix of shares, property, fixed interest, term deposits, cash and other types of assets. The mix of assets in the option that you choose will determine the level of risk and earnings that you could expect in your super. If the Trustee adds new investment options, removes existing investment options or materially alters any investment option, you ll be informed in accordance with the law. Please note you can only invest in the Term Deposit investment option once your membership in the Plan has been established and your initial investment has been received and invested in your chosen investment option(s) (not including the Term Deposit investment option). See the Term Deposit investment option later in this section for more information on how to invest in this option. Please note that the Trustee invests in your chosen option(s) on your behalf. You do not have a direct interest in the option(s) that apply to you. The Trustee holds that interest on your behalf. 16

21 SUMMARY OF KEY INVESTMENT TERMS Active investment approach Investment managers with an active approach aim to outperform the overall market for that particular asset class or investment approach. Asset allocation This refers to the allocation between the various asset classes (e.g. shares, fixed interest, and property) of an investment option. It also includes the Growth/Defensive benchmark of the investment option. Average Weekly Earnings (AWE) AWE is a measure of the average weekly earnings of employed wage and salary earners in Australia. It is based on employment and earnings data from a sample of businesses from the Australian Bureau of Statistics (ABS) register of businesses. Benchmark and ranges The benchmark is the asset allocation of the investment option which is expected to apply over the long term. Factors such as the Trustee s ongoing assessment of market conditions may cause the actual asset allocation to vary from the benchmark from time to time, but the actual asset allocation will generally stay within the asset allocation ranges. Accordingly at any point in time, actual asset allocation is unlikely to be exactly as per the benchmark for each asset class. Consumer Price Index (CPI) CPI is a measure of the rate of inflation. In Australia it s based on a selection of household goods and services. Minimum suggested timeframe This is the minimum time for which you should consider holding your investment in an investment option. This is a guide only. Objectives These identify the amount of investment return the option aims to achieve for investors. The objectives are sometimes stated in terms of a particular named index, e.g. the Reserve Bank of Australia cash rate, or a target that relates to CPI or AWE. Please note the objective of any particular investment option should not be treated, or relied upon as a forecast, indicator or guarantee of any future returns or performance for that option. The value of investments may rise and fall, in any of the options. Passive investment approach Indexed investment options Investment managers with an indexed approach aim to perform in line with the overall market for the applicable asset classes of the option. Enhanced Indexed investment options Investment managers with an enhanced indexed approach aim to perform slightly above the overall market for the applicable asset classes of the option. These options are mainly invested in indexed funds but with an actively managed component. Hedging Hedging is the process of protecting investments against a loss, or reducing the risk of a loss. For example, the value of international investments is affected by changes in the value of the Australian dollar. If the Australian dollar rises in value, then international investments reduce in value. Currency hedging is where investment managers use various techniques to minimise the effect of currency movements on international investments. 17