Plum Super. resourcing the future. BHP Billiton Superannuation Fund (Plan) Product Disclosure Statement. Pension Division

Transcription

1 resourcing the future Plum Super BHP Billiton Superannuation Fund (Plan) Product Disclosure Statement Pension Division Preparation date 1 July 2016 Issued by the Trustee NULIS Nominees (Australia) Limited ABN AFSL The Fund MLC Super Fund ABN GPO Box 63 Melbourne VIC 3001 Telephone Fax Web superau.bhpbilliton.com

2 Contents Important information about the Fund i About this PDS ii Relevant reference material to be read with this PDS Understanding your super 1 The BHP Billiton Superannuation Fund (Plan) (Page 1) 2 Your pension options (Page 3) 3 General pension information (Page 6) 4 What will happen to my pension if I die? (Page 7) 5 Fees and costs (Page 9) 6 Additional explanation of fees and costs (Page 11) 7 How we invest your money (Page 13) 8 Keeping you informed (Page 14) 9 Additional information (Page 15) 10 Information about the Fund (Page 17) 11 Glossary (Page 18)

3 About this PDS Important information This PDS is provided by the Trustee as a guide only and contains a summary of the main features of membership in the BHP Billiton Superannuation Fund (Plan). You should read this PDS carefully. This PDS does not constitute and should not be construed as an offer, invitation or recommendation by the Trustee to apply for units in the Fund in any state, country or jurisdiction (other than Australia) where such an offer, invitation or recommendation may not be lawfully made. Applications from outside Australia may not be accepted through this PDS. References within the PDS to we, us or our are references to the Trustee, unless otherwise stated. The final authority on any issue relating to the Fund is the Trust Deed, any applicable Participation Schedule and the relevant insurance policy of your superannuation plan. The Trust Deed provides the Trustee with wide discretionary powers over your ability to join the Fund, the ongoing operation of the Fund and when/how benefits are payable. As a member of the Fund you will be subject to the Trustee s discretionary powers, for example in determining whether you have met a condition of release in order that your benefit can be paid from the Fund. In addition, the Trust Deed provides that in the event the Plan or Fund terminates in circumstances where the assets are less than members accrued benefits, your benefit entitlements may be adjusted accordingly. A copy of the Fund s Trust Deed is available upon written request to: Plum Super GPO Box 63 Melbourne VIC 3001 Information contained in this PDS is subject to change The information contained within this PDS is current at the time it was prepared. However, changes to the information may subsequently occur. You can access updated information free of charge either from the Plan website or by contacting us on If there is a materially adverse change to information contained in this PDS, we will advise you of the change in writing. Changes the Trustee may make We may amend the terms and conditions governing the Fund subject to applicable law. This could include introducing new or increased fees or charges subject to appropriate notification. How will l be notified of changes? Unless otherwise specified in this PDS, or separately agreed with us, you will be given written notification of any material changes or significant events within the timeframe prescribed in the relevant legislation. General Advice Warning Any advice in this PDS is of a general nature only and has been prepared without taking into account your objectives, financial situation or needs. Because of this, you should, before acting on any information in this PDS, consider whether it is appropriate to your objectives, financial situation and needs and seek professional financial advice before you decide to invest in the Fund. i

4 Relevant reference material to be read with this PDS The information contained in this PDS is a summary only. The material listed in the table below provides further information. We recommend that you read this PDS in conjunction with this information to ensure that you fully understand your membership and what the Fund has to offer. This reference material has been developed to assist you in making decisions about your super. You can get these documents free of charge at the website superau.bhpbilliton.com or by contacting us on Name of publication Your investment options explained (Pension division) guide Description Detailed investment information to help you make an investment choice decision. This guide provides you with basic information about investments, the investment options available, and can assist you in determining which one is right for you. It provides a glossary of some investment terminology and is an essential tool to help you understand the level of risk involved in each of the investment options offered and the importance of diversification. ii

5 1. The BHP Billiton Superannuation Fund (Plan) The BHP Billiton Superannuation Fund (Plan) is the superannuation arrangement for current and former employees of BHP Billiton Limited and any associated employers (BHP Billiton). The Fund operates to help you build wealth for retirement. Benefits and services We offer a range of features that can help you maximise your retirement savings. Access to your account is available at superau.bhpbilliton.com, so you can always keep up to date with your pension. You ll enjoy: regular monthly pension payments made directly to your nominated account; an extensive range of investment options; the choice to make a reversionary, binding or non-binding nomination on your account; access to interactive tools and calculators online at superau.bhpbilliton.com; our investment and education newsletter; six-monthly Pension benefit statements; access to financial advice services; flexibility to withdraw part or all of your Accountbased pension at any time (if eligible); and Pay As You Go (PAYG) statements where applicable. Pension options A pension through the Plan is a way to receive your superannuation entitlement through a regular income stream instead of a one-off lump sum payment. There are two ways for you to open a pension account, these are: Account-based pension all employees who have retired and reached preservation age or have reached age 65. Transition to retirement (TTR) Account- based pension a pension for employees who are between preservation age and 65 years old and are still in the workforce. On commencement of your pension, your account balance is equal to the total of all transfers made to start your pension. Your pension account balance will be adjusted for any pension payments made to you, tax payable and administration costs incurred in managing your pension account. Your pension ceases to be paid when your pension account balance is reduced to zero. Making an investment choice Your pension in the Plan is invested in an account. You can choose how you would like to invest your benefit from a range of investment options. Your investment options explained (Pension Division) guide includes further details of the investment options available. You can obtain a copy at superau.bhpbilliton.com or contact us on for a printed version. Your account balance will increase with positive investment earnings, whilst it will decrease with the deduction of taxes, pension payments, fees and negative investment earnings. The amount of your pension will vary over time as investment values move up and down. Policy Committee BHP Billiton plays an active role in the Plan and supports the interests of all members through the Policy Committee. The Policy Committee assists in overseeing the superannuation arrangements for Plan members and includes equal numbers of company-appointed and member-elected representatives. The Policy Committee gives you and BHP Billiton a convenient way to enquire into and understand the Plan s operations, investment strategy and recent performance. It also allows us to obtain your views about your information needs and to deal with complaints or enquiries about the operation or management of the Plan. The Policy Committee s decisions or recommendations, however, are not binding on the Trustee. We have a set of rules for establishment of Policy Committees and these are available to members on request. Details of your Policy Committee representatives are located in your latest Annual Report. You can obtain a copy at superau.bhpbilliton.com or by contacting us on

6 Financial advice services We offer a graduated advice model to meet your varying needs. This ranges from free phone-based and online advice to full fee-for-service financial advice. Phone-based advice at no cost to you As a member of the Fund you can access advice about your account at no cost to you, contact us on Our Super Consultants can provide you with advice on key areas of your super including investment choice, contributions, transition to retirement (TTR) strategies, retirement and insurance adequacy. Online advice at no cost to you Our online advice tool automatically references your current super benefit, salary and risk profile and provides online financial advice according to your indicated retirement goals. The calculator automatically provides you with a formal Statement of Advice at no additional cost to you. Areas of advice covered include: investment choice; and retirement income. Comprehensive advice at an agreed fee-forservice If you re in need of comprehensive advice about your personal financial circumstances we can put you in touch with a financial adviser to discuss the broad area of financial advice you require and then you can organise a face-to-face appointment with an adviser from the Momentum Financial Advice panel. These financial advisers can provide advice across all financial matters from Funds for creating financial security to assistance and advice in managing complex investment portfolios and insurance arrangements. Your initial telephone consultation is at no cost to you. Each financial adviser: has obtained a high level of industry accreditation; has a minimum of three years experience providing face-to-face financial advice; is experienced in providing advice to clients in a workplace environment (if this is your preference); and provides advice on a capped, fee-for-service basis. Momentum Financial Advice is provided by GWM Adviser Services Limited (GWMAS). 2

7 2. Your pension options Account-based pension You can convert your lump sum superannuation benefit to an Account-based pension: 1. When you have reached your preservation age and are not intending to work 10 or more hours per week ever again; or 2. When you have retired or resigned from BHP Billiton after turning age 60; or 3. When you have reached age 65 even if you are still working; or 4. When you are permanently incapacitated (at any age); or 5. At any age with unrestricted non-preserved benefits. Initial contribution A minimum opening balance of $25,000 is required to open your Account-based pension. You may rollover any amount you have in other superannuation funds into your account in the Plan before your pension is commenced. Regular contributions Once your Account-based pension has commenced, further superannuation contributions or transfers from other funds are not permitted into your pension. Flexible payment frequencies You can choose to receive your pension payments weekly, fortnightly, monthly, quarterly, half-yearly or yearly. You can choose the amount of the income payments you receive, as long as the total pension amounts are within the legislated limits. If you do not select a payment frequency, your pension payments will be paid monthly to your Australian nominated bank account. Pension payments Pension payments are made directly into your Australian nominated bank account, and will be paid as follows: Frequency Weekly Fortnightly Payment date Friday (in advance) Friday (in advance) Quarterly 15 July, 15 October,15 January and 15 April Half-yearly Yearly 15 July and 15 January 15 July Please note: 1 July pension payments are delayed for approximately 10 days to ensure that payments fall in the correct financial year to allow for the review of the minimum and maximum limits recalculation. You may also choose to have this payment paid in an alternative month. Your nominated bank account must be held either solely in your name or jointly in your name. You are able to select which of your investment options should be redeemed to fund your pension payments. If you do not make a selection, the Trustee will redeem your pension payments from the investment option with the largest holding at the time you commenced your pension, and will continue to deduct your payments from this option unless otherwise advised. At such time that your selected investment option no longer contains sufficient assets to complete your pension payment, unless you instruct otherwise, future payments will be made from whichever of your selected investment options contains the next largest asset holdings at the time, and so on. To allow sufficient time for your payment to be processed, we require any request for a change of bank details or payment amount to be received at least 15 days prior to your next payment date. Payment details With an Account-based pension, the government sets a minimum amount that you must receive from your pension account each year. Your total pension payments for each year will be at a level chosen by you so long as they are equal to or above the minimum limit for that year. There is no maximum limit set. Your minimum pension payment amount is calculated by multiplying your account balance on 1 July by a percentage factor depending on your age at 1 July, and is rounded to the nearest $10. If your pension commences after 1 July, your minimum pension payments will be calculated based on the number of days remaining in the financial year. Age Minimum drawdown percentage Under 65 4% % % % % % 95 or more 14% Example John establishes an Account-based pension of $200,000 on 1 July He is aged 65, so his minimum pension payment amount for is 5%. As a result, his minimum pension payment amount for is: $200,000 x 5% = $10,000 p.a. 3

8 Withdrawals You are able to withdraw (convert to a lump sum) a portion of or your entire Account-based pension. If you request a full withdrawal, an additional pension payment may be made to you first, to ensure the minimum pro-rated pension payment requirements are met for the financial year. If you have chosen more than one investment option for your pension, any withdrawal will be deducted from each investment option in the same manner as for the payment of your monthly pension. See Monthly payments section of this PDS for details. Account-based pension? you would like to choose your income level from year to year; you would like the ability to make lump sum withdrawals at any time; you would like your pension investment earnings to be tax-free. Cessation of your pension An Account-based pension will cease when the balance of your account has reduced to zero or your balance is fully withdrawn. Reversionary beneficiary You may wish to nominate a Reversionary beneficiary to receive the balance of your Accountbased pension in the event of your death, which the Trustee may continue to pay in pension form or pay your benefit out as a lump sum. You may only nominate a Reversionary beneficiary at the time you commence your pension. If you have not nominated a Reversionary beneficiary, you have the option of nominating a binding or non-binding beneficiary. For more information on death benefits and nominating a beneficiary, see the What will happen to my pension if I die? section of this PDS. Transition to Retirement (TTR) Accountbased pension A TTR Account-based pension allows members aged between preservation age and 65 access to their benefits in the form of an income stream, without having to retire or leave the workforce. Depending on your circumstances, a TTR Accountbased pension may help you ease your way into retirement by giving you the opportunity to: supplement your income if you reduce your working hours; reduce the amount of tax you pay; and continue to contribute to your superannuation account. A TTR Account-based pension has all of the same features, rules and restrictions as a regular Account-based pension account, with the following exceptions: Contributions The same contribution rules apply as for an Account-based pension except that the $25,000 initial contribution can be made up of any type of superannuation component, including preserved monies. Payment details If you have a TTR Account-based pension a maximum payment of 10% p.a. will generally apply prior to age 65. This is calculated at the start of each financial year or upon joining the Pension division. Monthly payments If you have a TTR Account-based pension, your pension payments will be withdrawn from your account balance in the following order: unrestricted non-preserved amount; restricted non-preserved amount; and preserved amount. Withdrawals There are limited circumstances in which you can withdraw your TTR Account-based pension to a lump sum. No part of a TTR Account-based pension can be withdrawn as a lump sum unless you meet a condition of release. However, you may be able to take a lump sum from a TTR Account-based pension to: comply with a Family Law Act 1975 splitting agreement; pay superannuation surcharge tax liability; withdraw any unrestricted non-preserved benefits; or pay excess contributions tax to the Australian Taxation Office (ATO) if authorised by the ATO. You may choose to reduce or stop your TTR Account-based pension at any time and transfer the money back into your superannuation account, provided you have met your minimum pension payment requirements for the year. 4

9 TTR Account-based pension? you have met your preservation age; you would like to draw income from your preserved super benefits while continuing to work; you would like to choose your level of income (within limits) from year to year; you would like your pension investment earnings to be tax-free. Cessation of your TTR Account-based pension A TTR Account-based pension will cease when the balance of your account has reduced to zero and will convert to an Account-based pension (with no maximum pension payment amount, or withdrawal restrictions) when you: permanently retire from the workforce; reach age 65, even if you are still working; or meet another general condition of release. If you retire from the workforce or have met another general condition of release, please contact us on Please refer to the General pension information section in this PDS for more details about pensions. It is recommended that you seek appropriate financial advice from a licensed financial adviser before making any decisions regarding your pension. Reversionary Beneficiary You may wish to nominate a Reversionary beneficiary to receive the balance of your Account- based pension in the event of your death. The Trustee will continue to pay your pension to your Reversionary beneficiary unless they make a lump- sum withdrawal request. If you have not nominated a Reversionary beneficiary, you have the option of nominating a binding or non-binding beneficiary. For more information on death benefits and nominating a beneficiary, see the What will happen to my pension if I die? section of this PDS. Defined Benefit members If you are a Defined Benefit member you can use the value accrued in your Defined Contribution account (if any) to purchase a TTR Account-based pension. If you wish to transfer more than your additional voluntary contributions you will need to transfer your Defined Benefit to an accumulation benefit. Please contact us on for more information. 5

10 3. General pension information Starting a pension To apply for a pension you will need to complete the attached Application form and Tax file number declaration form. If a pension commences part way through the financial year, the minimum pension payment limit for the first year is calculated proportionately, based on the number of days remaining in the financial year divided by the total number of days in the financial year. However, if the commencement date of the pension is between 1 June and 30 June, no pension payments are required to be made in that financial year. Choosing your income level You can choose the amount of your regular pension payment provided it meets the minimum and maximum (in the case of a TTR Account-based pension) limits as set out in legislation. Subject to the applicable limits, you may notify us at any time during the year if you wish to change the amount of pension payments to be received for the remainder of the year. Contributing to your pension You cannot make additional contributions or transfers once your pension has commenced. You may consider combining all your superannuation before beginning a pension, or alternatively, you may be able to transfer an existing pension together with any additional super contributions or transfers to commence a new Account-based pension. There may be taxation or social security implications if you start a new pension. You should speak to your financial adviser about your personal circumstances before making this decision. Consolidating your super It is common to have superannuation accounts with more than one superannuation fund if you have changed jobs. We can help you consolidate all of your superannuation into the Fund prior to commencing your pension. Just complete and return the Consolidate your superannuation benefits form available at the website - superau.bhpbilliton.com Contact us on for more information about consolidating your superannuation. Insurance cover The Plan does not provide insurance cover under your pension membership. However, if you commence a TTR Account-based pension and are still employed, any insurance cover you have in your superannuation membership in the Plan may continue to apply. Depending on your age when you leave your employer, you may be able to exercise an option to continue your insurance arrangements in the Plan (if any) under a personal policy with the Insurer. Contact us on to discuss the options available to you. Risks of pension membership in the Plan There are risks associated with membership of the Plan and electing to receive your benefit as a pension. A change in laws that govern pensions may also have an impact on your ability to gain access to your money in the future or affect the tax effectiveness of your benefit. We will inform you about any material changes to law which may affect your pension. You should discuss any changes with your financial adviser. Some of the risks associated with choosing to receive part or all of your benefit as a pension include: the risk that the amount of your pension may not be sufficient for your needs; the risk that your pension payments will lose their purchasing power as a result of price inflation; and the risk that the pension payable from the Plan may not be the most appropriate type of pension for your needs. Additional risks related to investment in the Plan are described in the Investment option costs section of this PDS. Some funds may charge you an exit fee to transfer your benefits. Therefore, you may wish to seek appropriate financial advice before transferring your benefits from other funds. In addition, you should consider the effect of a transfer on any death or disablement insurance arrangements you may have with other funds. 6

11 4. What will happen to my pension if I die? In the event of your death, your pension will be paid as follows: Your account balance will revert to your Reversionary beneficiary, if you have nominated one and they are a dependant at the time of your death. You cannot nominate a Reversionary beneficiary once your pension has commenced. A Reversionary beneficiary must either be a spouse or a disabled child. The Trustee will decide whether to pay it as a continuing Account-based pension or as a lump sum, but will take into account the wishes of the reversionary beneficiary in making this choice. If you have not nominated a Reversionary beneficiary the Trustee will pay the balance of your account in accordance with the following section, Nominating your beneficiary. Your dependants are defined in the Who can receive a death benefit? section of this PDS. A pension cannot be paid to a non-dependent. If a pension is paid to a child, the recipient must be less than 18 years of age or between 18 to 25 years and financially dependent on the member. Once the child receiving the pension turns 25 years of age, the pension will be converted to a lump sum. This does not apply if the recipient is a disabled child, in which case pension payments will continue. Nominating your beneficiary There are three options available to you regarding the distribution of your death benefits: 1. A Reversionary beneficiary; 2. A non-binding nomination; 3. A binding nomination; or 4. No nomination. 1. Reversionary beneficiary A Reversionary beneficiary will continue to receive your pension payments after your death or they can commute their pension and be paid a lump sum benefit. A Reversionary beneficiary must be a dependant. 2. Non-binding nomination We are required by superannuation law to consider all of your dependants before making a decision about how to distribute your death benefit, taking into consideration your personal circumstances at the time of your death. We will refer to your non-binding nomination when making a decision but will not be bound by it. You can update your non-binding nomination at any time by logging into your account at superau.bhpbilliton.com or by completing a new Beneficiary nomination form. 3. Binding nomination If your binding nomination is valid, we are obliged to follow it regardless of how your personal circumstances may have changed. Your whole binding nomination will become invalid if: it has expired; or a nominated beneficiary dies before payment of the benefit, (even if other nominated beneficiaries are alive); or a nominated beneficiary is not a dependant or legal personal representative at the time of your death, for example if: o you nominated your de facto and you subsequently separate; or o you nominated your husband or wife and you subsequently divorce; or you are transferred from the Fund to another fund. If at the time of your death your binding nomination has expired, we will treat the benefit as if a nomination had never been made. We will identify all of your potential beneficiaries and use our discretion to determine who will be paid, and in what proportions. If your nomination is found to be invalid at the time of your death, we will take your nomination into consideration but will not be bound by it. 7

12 How long will my binding nomination remain valid? A binding nomination is valid for three years from the date the Beneficiary nomination form is first signed, last confirmed or amended unless an event occurs to invalidate your nomination. To ensure your nomination remains valid, you must confirm it in writing before it expires. You can do this by providing us with a written notice that has been signed and dated by you to that effect. It is your responsibility to ensure your nomination is confirmed before it expires. However we will also write to you requesting you confirm your existing nomination or make a new binding nomination. 4. No nomination It is not compulsory to nominate a beneficiary to receive your death benefit. If you do not make a nomination and you die, we will decide which of your dependants and/or legal personal representatives will receive your death benefit, taking into consideration your personal circumstances at the time of your death. How to make a nomination You may make a nomination of your beneficiaries by completing the Beneficiary nomination form when joining the Fund and change, renew or revoke it at any time. The Beneficiary nomination form is available at the website - superau.bhpbilliton.com If you choose to nominate a beneficiary, it is important you keep your nomination up to date so that it reflects any changes in your personal circumstances. We will report your current nominations on your sixmonthly Pension benefit statement. You can also view your current nomination on your account online at superau.bhpbilliton.com or by contacting us on Who can receive a death benefit? When paying your death benefit, we are restricted to paying the benefit to any combination of your dependants and legal personal representative. Dependants include: your spouse (including a legally married, a de facto or same sex partner); your children (including stepchildren, ex-nuptial or adopted children); any other person (as permitted by the relevant law) who is wholly or partially financially dependent on you at the time of your death; or a legal personal representative (the executor of your will or the administrator of your estate); or any other person with whom you are in an interdependency relationship (as defined in the relevant law see below) at the time of your death. What is an interdependency relationship? An interdependency relationship exists where two people (whether or not related by family): have a close personal relationship; live together; 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. Two persons may also have an interdependency relationship if they have a close personal relationship and the only reason they fail to satisfy all the conditions above is that either or both of them suffer from a physical, intellectual or psychiatric disability, or they are temporarily living apart because, for example one is overseas or in prison. A legal personal representative is the executor of your will or the administrator of your estate. In the event that we determine a minor child (i.e. under the age of 18 years old) is entitled to a death benefit payment, we may direct that the money be paid into a trust established for the minor s benefit. Anti-detriment payments The anti-detriment payment is an additional amount included in a lump sum benefit paid on the death of a member to eligible dependants. The payment is intended to restore the deceased s death benefit to what it would have been if contributions tax had not been paid on taxable contributions. It is not compulsory for trustees to make antidetriment payments. However, we have resolved to do so, in order to ensure your eligible beneficiaries will not be adversely affected by the cumulative effect of contributions tax on death benefits. Anti-detriment will not be paid if the death benefit is taken as a pension. Providing proof of identity We are required by the Anti-money Laundering and Counter-terrorism Financing Act (2006) to verify the identity of members and any other benefit recipients before any superannuation benefit is withdrawn from, or transferred out of the Fund. This identity check (e.g. a certified copy of a driver s licence or passport) helps ensure that the Fund is not being used for money laundering, or the funding of terrorist or criminal activities. Withdrawals cannot be processed until you have supplied the required proof of identity to the Fund. We may need to obtain additional identification information and verify your identity from time to time. In some circumstances, we may have to disclose information about you to the regulator of this legislation, the Australian Transactions Reports and Analysis Centre (AUSTRAC). If this happens, we are not permitted to inform you due to the sensitive nature of this information. 8

13 5. Fees and other costs Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. To find out more If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (moneysmart.gov.au) has a Superannuation fee calculator to help you check out different fee options. This document shows fees and other costs that you may be charged. These fees and other costs may be deducted from your account, from the returns on your investment or from the assets of the Fund as a whole. Other fees, such as activity fees and advice fees for personal advice may also be charged, but these will depend on the nature of the activity or advice chosen by you. Taxes are set out in the Taxation of your pension section of this PDS. You should read all the information about fees and other costs because it is important to understand their impact on your investment. All fees in this PDS are shown inclusive of GST and net of Reduced Input Tax Credits and stamp duty (where applicable). 9

14 Type of fee Amount How and when paid Indicative Investment fee Range from 0.09% p.a. to 0.74% p.a. (estimated). Reflected in the daily unit price for each investment option. The Investment fee for each investment option varies daily as investment costs change and may also include an estimated performance fee. No maximum. The amount you pay for specific investment options, including the estimated performance fee if applicable, is shown in the Your investment options explained (Pension Division) guide. Administration fee 1.00% p.a. of your account balance, The Administration fee is calculated and capped at a maximum of $2,000 p.a. deducted monthly from your account. Buy-sell spread Range from Nil/Nil to 0.15%/0.15% Reflected in the buy and sell unit price of each investment option. The amount you pay for specific investment options is shown in the Your investment options explained (Pension Division) guide. Switching fee Nil Not applicable Exit fee Nil Not applicable Advice fees Nil There is no advice fee charged by us. Other fees and costs are shown in the Additional explanation of fees and costs section of this PDS. Estimated indirect Range from Nil to 0.14% p.a. Reflected in the daily unit price for each cost ratio 1 investment option and may vary daily as costs change. 1 The estimated indirect cost ratio is based on information available as at 31 March Example of annual fees and costs for a balanced investment option This table gives an example of how the fees and costs for the default investment option, the Pension Moderate Option, can affect your superannuation investment over a one year period. You should use this table to compare this superannuation product with other superannuation products. Example: Pension Moderate Option Balance of $50,000 Indicative investment fee 0.45% x $50,000 $225 For every $50,000 you have in the Pension moderate option you will be charged $225 each year. Plus 1.00% x $50,000 $500 And, you will be charged $500 in administration fees. Administration fee Plus Indirect costs % x $50,000 $60 And, indirect costs of $60 each year will be deducted from your investment. Equals Cost of product $785 If your balance was $50,000, then for that year you would be charged fees of $785 for the Pension moderate option. 1 The estimated indirect cost ratio is based on information available as at 31 March Additional fees may apply. 10

15 6. Additional explanation of fees and costs This section provides information on fees and costs that are in addition to the Fees and costs section of this PDS. Fees incurred when investing Performance fees Where applicable, an estimated of this fee is included in the investment fees shown in the Your investment options explained (Pension Division) guide. The estimate is what the investment manager would charge if its investment returns exceed a specified level by 2%. The actual performance fee charged in future periods may differ from the estimated fee. Indirect costs When investing your money, we may incur costs and expenses that won t be charged to you as a fee but will reduce the net return of the investment option. These indirect costs are reflected in the daily unit price and any reporting on the performance of the investment option. Indirect costs are not paid to us. Other fees Government levies The government applies levies to super funds, which may vary in different years. To cover these, we may deduct amounts from your account at different times each year. These will be shown on your six monthly Member Benefit Statement. Operational Risk Financial Requirement (Reserve) The Government requires super funds to keep a financial reserve to cover any losses that members incur due to a breakdown in operations. The Reserve has been established in full by the National Australia Bank. We may require members to contribute to the Reserve in the future. If we do, we ll notify you in advance of any deductions. Family Law fee The Family Law Act enables investments to be divided between parties in the event of a breakdown in a marriage or a de facto relationship. We may be legally compelled to provide information to other parties in accordance with this legislation. We may charge a fee for this service. Changes to fees We may vary our fees, costs or fee discounts but we ll give you 30 days notice of any increase. The only exceptions are investment fees, which vary daily with investment costs; and the Government taxes and charges. Investment managers may also vary their investment fees. 11

16 Taxation of your pension This section is not a comprehensive and complete tax guide. The taxation treatment of super is complex; we recommend that you contact your financial adviser, tax adviser or the ATO at ato.gov.au for further details and expert advice in relation to your own personal circumstances. All the taxes explained in this section are set by the Commonwealth Government and administered by the ATO. They only relate to super benefits paid from a taxed source. The Fund is a taxed source. All fees quoted include goods and services tax (GST) (if applicable) and any applicable reduced input tax credit (RITC). Any tax amount may attract interest before it is paid to the ATO. We may retain all or a portion of the interest on this amount and on amounts in trust accounts we hold, which will be used as we determine to pay Trustee expenses and expenses of the Fund. Any interest not retained may be distributed through the Fund as earnings. Under age 60 For those under age 60, tax may be withheld from the taxable component of your pension payments and lump sum withdrawals. For pension payments, tax is generally calculated on your marginal tax rate, taking into account any taxfree thresholds or pension tax offsets. Tax is calculated slightly differently for withdrawals. For more information on your tax-free and taxable components, contact us on Age 60 and over If you are age 60 or over, no tax will be withheld from your withdrawals or pension payments (unless requested by the member). Your pension will still consist of a tax-free and a taxable component. However, the components will generally only be relevant if your pension is being paid as a lump sum death benefit to a non-dependant for tax purposes. Pension tax offset You may be entitled to certain tax concessions: if you are under age 60 and have reached your preservation age; or if you are permanently disabled; or if you are an eligible dependent of a member who has died. Please contact the ATO for further details. Tax on investment earnings Investment earnings in your pension account are taxfree. PAYG We will deduct PAYG tax (if applicable) for you and provide a PAYG payment summary following the end of each financial year, together with any other information required for completing your tax return. Social Security and the Government age pension Your eligibility to receive a full or part age pension or other income support payment from the Government will depend on the Government s income and assets test rules. Rules concerning Government benefits can be complex. Therefore, you should contact the relevant Government agency and/or a licensed financial adviser to consider how a pension account may affect your Federal Government entitlements. Momentum Financial Advice offers access to the services of telephone-based financial advisers, and may be able to provide advice on the rules concerning Social Security and Government benefits. For more information or to gain access to the Momentum Financial Advice services, contact us on

17 7. How we invest your money The Plan provides a range of investment options and you can choose any of these investment options to really put your investment plan into action. If you don t make a choice, your super will be invested in the Pension Moderate Option. Diversified options Choose from five diversified options suited to a range of risk profiles from conservative through to aggressive. Sector specific options Choose from a range of six sector specific options. Each of our investment options has a different level of risk and potential level of return. For more information on the above investment options go to superau.bhpbilliton.com to rad the Your investment options explained (Pension Division) guide. You should consider the likely return, risk and investment timeframe when choosing to invest in an option. We may change the allocation in each investment option, and add or remove options at any stage. Up to date information is available at superau.bhpbilliton.com You can change you investment strategy or switch between investment options at any time. To do this, log in to superau.bhpbilliton.com You should read the important information about the investment options, understanding risk and ethical investing before making a decision. Go to superau.bhpbilliton.com to read the Your investment options explained (Pension Division) guide. The material relating to the investment options may change between the time you read this PDS and the day the product is acquired. Making an investment choice To make an investment choice for your pension account, simply complete Your Application form. The investment options offered through the Plan are outlined in Your investment options explained (Pension Division) guide. Investment information For more information about our investment options, such as asset allocations, performance and investment commentary, visit superau.bhpbilliton.com or call

18 8. Keeping you informed The education and communication program is one of the membership features of the Plan and helps you to understand more about your pension. We will send you a Welcome kit confirming your personal details. We will then send you a personal identification number (PIN) after your Welcome kit. Your PIN will give you access to information about your account on the member website. Annual Report The Annual Report provides details of the Plan s investment options and a review of the operation of the Fund during the previous financial year. The Annual Report will be made available on the website superau.bhpbilliton.com You can elect to have a printed copy sent to you free of charge. If you would like to choose this option, you can indicate your preference by completing the My details section on the website once you receive your PIN or you can call us on You may elect to change your preference and receive a hard-copy of this report at any time. Pension benefit statement As a Plan member, we will send you a six-monthly Pension benefit statement within six months of the end of the Plan s reporting period. Your Pension benefit statement includes details of your pension arrangements in the Plan and a summary of all transactions that have occurred during the previous six months. You can subscribe to receive an alert when your latest Pension benefit statement (including significant event notifications) is available for download from the member website by completing the My details section on the member website - superau.bhpbilliton.com or completing the Choose how you would like us to connect with you section of your Application form. Regular updates If you provide us with your address we ll send you regular investment and education updates. Simply complete the Application form or go to the My details section of the website when you log into your account at superau.bhpbilliton.com Keeping us informed Please notify us if you change your personal details or address. You can change your details on the website - superau.bhpbilliton.com or contact us on You will also need to notify BHP Billiton if your personal details have changed. How to contact us Log on to superau.bhpbilliton.com Contact us on Fax: Write to: Plum Super Box 63 Melbourne VIC 3001 Gain access to your personal account information and other educational information and tools 24 hours a day, seven days per week. Obtain answers to your pension q u e r i e s 8am to 7pm AEST (8pm day savings time), Monday to Friday Fax your queries to us. Send your queries to us. 14

19 9. Additional information Temporary residents If you re a temporary resident and you leave Australia permanently, you may be able to claim your superannuation from the Fund as a Departing Australia Superannuation Payment. Withholding taxes may apply to the lump sum payment. However, if you don t make a claim within six months of becoming eligible, we may be required to transfer your superannuation to the ATO. In these circumstances, we re not required to notify you and you ll need to contact the ATO directly to claim your superannuation. Terminating the Fund or the Plan We have the power under the Trust Deed to terminate the Fund, although the Fund is intended to continue indefinitely. The Plan may also be terminated in accordance with the terms of the Trust Deed, including the Plan s Participation Schedule. In either case, we will notify members in advance. Benefits will be appropriately adjusted and transferred to an alternative complying superannuation fund or retirement savings account in accordance with the Trust Deed and applicable legislation. Assigned benefits You cannot assign your benefits in the Plan nor do anything else which may deprive you of the right to receive your benefit. You cannot use a benefit from the Plan as security for borrowing. Loans We are not permitted by law to make loans to members. Enquiries Contact us on if you have any queries or concerns about your pension. We are available between 8am and 7pm AEST (8pm daylight savings time), Monday to Friday. Complaints If you have a complaint or are not satisfied with the response to a telephone enquiry, a decision we have made or if we fail to make a decision, then you should lodge a formal complaint with us in writing. The letter should state that it is a complaint not an enquiry. You may be requested to provide evidence in support of your complaint. Complaints should be directed to: The Complaints Officer Plum Super GPO Box 63 Melbourne VIC 300 Superannuation Complaints Tribunal The Superannuation Complaints Tribunal (SCT) is an independent dispute resolution body. It was set up by the government to assist members and beneficiaries of members to resolve certain types of superannuation complaints that have not been resolved by the Trustee to the satisfaction of the member or beneficiary. The SCT can only assist you to resolve a complaint if you have already made use of the Trustee s enquiries and complaints procedures. You should only contact the SCT to see if it can deal with your complaint if: you are not satisfied with our handling of your complaint; you are not satisfied with our decision about your complaint; or we or our delegate have not dealt with your complaint within 90 days. There are restrictions on the SCT s jurisdiction for some types of complaints but the SCT will be able to advise you if it is able to hear your complaint. Important note Time limits on death and disability benefit complaints We may claim stake a death benefit before making payment. This involves writing to all potential beneficiaries to a death claim known to us (before a payment is made) to inform them of our intention regarding to which beneficiaries, and in what proportions, the death benefit will be paid. Potential beneficiaries are given 28 days in which to object to our proposed benefit distribution. We must review our decision in light of any such objection being lodged within the 28 day claim staking period and issue written advice to all potential beneficiaries about our review of the decision. If a potential beneficiary is still unhappy with the proposed distribution, he or she must refer their complaint about the proposed distribution to the SCT within 28 days of receiving written advice of our decision or their right to lodge a complaint with the SCT may be lost. Depending on your circumstances, you must refer complaints about a TPD benefit to the SCT within four or six years of the Trustee s original decision. If the SCT accepts a complaint, it attempts to conciliate the dispute by helping the complainant and superannuation fund trustee to reach agreement. The SCT will formally review the matter and may make a binding decision where this conciliation is unsuccessful. The SCT s services are free and the contact details are as follows: Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC 3001 Phone: Fax: sct.gov.au 15