mars australia retirement plan product disclosure statement death and total permanent disablement benefits

Transcription

1 mars australia retirement plan product disclosure statement death and total permanent disablement benefits (lump sum risk only category members) Date Issued: June 2011 This Product Disclosure Statement is for Lump Sum Risk Only Members in the Mars Australia Retirement Plan. It contains general information only. We have not taken your investment objectives, financial situation or particular needs into account when preparing this Product Disclosure Statement. The issuer of this Product Disclosure Statement and the trustee for the Mars Australia Retirement Plan ABN is Mars Australia Superannuation Pty Ltd, ABN

2 Contents Introduction...3 Total and Permanent Disablement Benefit...4 Death in Service Benefit...5 Information required to report under law...8 Commonly Asked Questions...14 Important Terms Mars Australia Retirement Plan

3 Introduction Welcome to the Lump Sum Risk Only Category Lump Sum (RO Category) of the Mars Australia Retirement Plan (MARP).The Lump Sum RO Category has been designed to provide you and your family with financial security and protection in the event of death or total and permanent disablement. A person ceases to be a Lump Sum RO Category Member on the earlier of the member s death, receipt of a lump sum Total and Permanent Disablement benefit and cessation of Service with the Business. The cost of these benefits are currently met by the Business and requires no contribution from you. This Product Disclosure Statement (PDS) outlines your benefit entitlements as a Lump Sum RO Category Member and includes information about how they are calculated and when they are payable. Neither the Trustee, the Business nor any of their related companies, directors, officers or service providers guarantee the payment of a benefit. Your benefits are subject to risk (see page 8 for further information). The MARP is a trust established under a trust deed and rules (Trust Deed). To the extent permitted by law and the Trust Deed, we have the right to change the terms and conditions in this PDS without notice to you. Contact for the MARP Lump Sum RO Category If you have questions or would like more information about the MARP Lump Sum RO Category, please contact the MARP Helpline on: Telephone: Speed dial 298 or Dial 1 - Superannuation and then Dial 1 again for the MARP Helpline Address: Mars Australia Retirement Plan C/ Mercer GPO BOX 4303 Melbourne VIC 3001 Terms Used in the PDS A number of terms used in this PDS have special meanings. These are explained at page 15 of the PDS. The trustee of the MARP is a company called Mars Australia Superannuation Pty Ltd which is responsible for the management of the plan in accordance with superannuation legislation and the Trust Deed. Throughout this PDS, Mars Australia Superannuation Pty Ltd is referred to as the Trustee, we and us. This PDS is issued solely by the Trustee. No other person (whether or not related to the Trustee) is responsible for the information contained in this PDS. Please read this PDS carefully and refer to it when you have a question about the Lump Sum RO Category. Information in this PDS is subject to change from time to time. Information that is not materially adverse may be updated by us without amending this PDS. A paper copy of updated information will be given to you without charge on request. This updated information can be obtained by contacting the MARP Helpline (whose contact details are set out on this page). product disclosure statement lump sum risk only members 3

4 Total and Permanent Disablement Benefit A Total and Permanent Disablement Benefit is payable from the Lump Sum RO Category if you cease employment with the Business before age 65 because you have become Totally and Permanently Disabled. For many people, a serious accident or illness that permanently stops them from working can cause financial problems. The Total and Permanent Disablement Benefit provided through the Lump Sum RO Category is designed to assist you by providing financial help if you become Totally and Permanently Disabled. To qualify for this benefit, you must be considered by the Trustee to be Totally and Permanently Disabled. Briefly, this means that you must have become incapacitated through illness or injury to such an extent that you are unlikely ever to be able to resume any form of paid employment (see page 16 of the PDS for a full explanation). Further, in order to receive a cash benefit under the superannuation law, you must be Permanently Incapacitated. Your Total and Permanent Disablement Benefit is paid as a lump sum equal to 3 x Annual Earnings. This benefit is reduced by any workers compensation or other benefits or compensation payments that you receive from any other source in relation to the event that caused the disability. Example Suppose you become totally and permanently disabled at age 39. Your Annual Earnings at disablement is $50,000. Total and Permanent Disablement Benefit = 3 x $50,000 = $150,000 This amount would be reduced by any workers compensation or other benefit, or compensation payments. Note: You need to be aware that the example above is by way of illustration only and is based on the listed factors. The example should not be taken as involving an estimate of the Total and Permanent Disablement Benefit payable. The actual benefit payable will be dependent upon various factors, including those detailed above. Payment if you die A Death in Service Benefit is payable if you become Totally and Permanent Disabled but die before receiving the disability benefit. How to make a claim? As soon as you become aware of a potential claim, you should tell us in writing. We will contact you to request information to allow us to assess your claim. This will include information about your health. You may be asked to undergo medical examinations and provide medical certificates and appropriate medical advice in relation to your claim. 4 Mars Australia Retirement Plan

5 Death in Service Benefit If you die while employed by the Business and while an Lump Sum RO Category Member, a Death in Service Benefit is payable. This will be paid as a lump sum. Lump sum benefit The lump sum Death in Service Benefit is equal to: 3 x Annual Earnings, at the date of death. Any such lump sum benefit will be payable as follows (whether or not there is a Nominated Beneficiary): (a) one or more of your Dependants; or (b) the executor or administrator of your estate, in such manner and in such proportions between them (if more than one) as the Trustee in its absolute discretion determines. If you left no Dependants and there is no executor or administrator, the Trustee may pay the benefit to a relative (whether or not there is a Nominated Relative) and/or any other person who applies to the Trustee for payment of the benefit and to whom the Trustee considers it appropriate to pay some or all of the benefit. product disclosure statement lump sum risk only members 5

6 Death in Service Benefit (continued) Death benefits and nominations You have the ability to nominate beneficiaries for receipt of any lump sum death benefit. If you wish to nominate one or more beneficiaries, they must be a Dependant or the executor or administrator of your estate. To nominate one or more beneficiaries, complete the Nomination of Beneficiary Form attached to this PDS. Additional forms are available from the MARP Helpline (whose contact details are set out on page 3). You may change any aspect of your beneficiary nomination at any time by completing and lodging a new Nomination of Beneficiary Form. You may choose one of the following options for nomination of beneficiaries for payment of lump sum benefits on your death: No Nomination the Trustee has absolute discretion to pay your benefit to any of your Dependants and/or to your estate in any proportion Non-Binding Nominations The final decision as to whom your benefit will be paid rests entirely with the Trustee. However, in making its decision, the Trustee will take into account your non binding nomination (made using the Nomination of Beneficiary Form) but is not obliged to pay an amount in accordance with the nomination. You should keep your Nomination of Beneficiary Form up to date to indicate to whom you would like your benefit paid and in what proportions. If your personal circumstances change, such as marriage, divorce or the birth of children, you should consider completing a new form. It is also important that you have a will that discusses superannuation (consistent with any Non-Binding Nomination you make) and make sure that it is kept up to date to prevent possible delays in beneficiaries receiving the benefit, where the Trustee determines to pay the benefit to your estate. The Trustee will also consider any statement regarding superannuation contained in your will in determining to whom your benefit will be paid. 6 Mars Australia Retirement Plan

7 Death in Service Benefit (continued) Continuing cover when you leave The Trustee funds (in part) death benefits through insurance. Your entitlement to cover under this insurance policy continues for 30 days from the day you cease employment with the Business. Subject to some conditions, the insurer may offer you the option to take out death only insurance up to the level of the previous insured amount without medical evidence of health. Insurance cover is subject to a maximum of $1.5 million. You need to take up this option with the insurer within 60 days after the day you leave the Business. If you wish to exercise this continuation option you should contact the MARP Helpline (whose contact details are set out on page 3). The Mars Australia Retirement Plan that provides your Death and Total Permanent Disablement benefits is a superannuation fund operating under a Trust Deed. As such, the Trustee is obligated under law to provide you with the following information: Contributions and transfers in What are the significant risks? Fees and other costs Taxation The management of the MARP General information Privacy Family law. Contributions and transfers in Business contributions The Business currently makes contributions sufficient to fund your benefit entitlements. An actuary has been appointed by the Trustee to calculate the required level of contributions. The Business does have the ability to terminate, reduce or suspend its contributions in respect of one or more members. However, the Business must give the Trustee at least one month s notice before it can terminate, reduce or suspend contributions. The Trustee may then adjust the benefits in respect of affected members on such basis as the Trustee having received the advice of the Actuary considers equitable and will immediately notify the affected members. Capping of Business contributions The law classes Business contributions as concessional contributions. The amount of concessional contributions that can be made without being subject to additional tax is capped. In the 2010/2011 year, the concessional contributions cap is: If you are under age 50, $25,000pa (standard cap) If you are 50 or older, $50,000pa (transitional cap) The standard cap may increase in later years in accordance with the tax legislation. Concessional contributions in excess of the relevant concessional contributions cap is subject to an additional 31.5% tax, in addition to the fund tax rate of (up to) 15%. They are called excess concessional contributions. Where you have excess concessional contributions, the additional tax will be payable by you, not by the MARP. However, the legislation prevents Lump Sum RO Category members from being able to withdraw any amount from your Lump Sum RO Category benefit. Other contributions Except in limited circumstances, the MARP is unable to accept contributions from other persons, including members. Transfers in The MARP is unable to accept transfers from other superannuation arrangements. product disclosure statement lump sum risk only members 7

8 Information required to report under law What are the significant risks? The law requires the Trustee to highlight the risk involved to your benefits. The Business does have the ability to terminate, reduce or suspend the benefits provided under the Lump Sum RO Category. The Business must give the Trustee at least one month s notice before it can terminate, reduce or suspend benefits. The Trustee may then adjust the benefits in respect of affected members on such basis as the Trustee having received the advice of the Actuary considers equitable and will immediately notify the affected members. The risks can be categorised as follows: Fund risk: risks particular to the fund include that it could terminate, we could be replaced as trustee or the Trust Deed could be amended. If the Lump Sum RO Category is terminated, your benefits could be changed and may be reduced. Employer risk: the Business could suspend or cease contributing to the Lump Sum RO Category and this could result in benefits being changed and/or reduced. Changes to superannuation law: Changes are frequently made to superannuation law, which may affect your ability to access your benefit. Changes to taxation: Changes can also occur to the taxation of superannuation, which may affect the value of your benefit. Insurer risk or insolvency: Because your benefits are funded partly through insurance arrangements, your benefits could be adjusted upon the insolvency of the insurer. Or the insurer could refuse to pay all or part of an insured benefit, which would reduce the death or disablement benefit payable from the MARP. 8 Mars Australia Retirement Plan

9 Information required to report under law (continued) 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 fund 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. You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser. To find out more If you would like to find out more, or see the impact of fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website ( has a superannuation fee calculator to help you check out different fee options. This document shows fees and other costs. Taxes are explained on page 10. You should read all the information about fees and costs. Type of fee or cost Amount How and when paid Fees when your money moves in or out of the Fund Establishment fee The fee to open your investment. Contribution fee The fee on each amount contributed to your investment either by you or your employer. Withdrawal fee The fee on each amount you take out of your investment. Termination fee The fee to close your investment. Management Costs The fees and costs for managing your investment. Service Fees Investment switching fee The fee for changing investment options. Nil Nil Nil Nil Nil Nil This fee is not permitted under the trust deed. This fee is not permitted under the trust deed. This fee is not permitted under the trust deed. This fee is not permitted under the trust deed. While costs are incurred in managing your investment, the Business effectively bears all such management costs. Accordingly, management costs will not impact on the value of your benefit. This fee is not permitted under the trust deed. Additional explanation of fees and costs Family Law Fees The Trustee may charge for some costs incurred in attending to certain enquiries and administration work in relation to family law and superannuation matters. Where a payment split is processed as part of a family law agreement, a family law account splitting fee of $ is charged. The fee is split between the member and the non-member spouse. Tax Deductions A tax deduction is claimed for the management costs of the MARP and for expenses incurred by the MARP. The benefit structure means that the tax deduction is not passed on to members through lower taxation costs. product disclosure statement lump sum risk only members 9

10 Information required to report under law (continued) Taxation The following summary of taxation information is an outline only of the main tax issues affecting superannuation investments. It is recommended that you contact your taxation adviser in order to obtain the most up to date tax and superannuation information. Tax may be payable on contributions, fund earnings, and cash benefits, including death benefits. Contributions Tax up to a rate of 15% may be payable from contributions made to the MARP by the Business. A further tax (called the no-tfn tax ) of 31.5% applies to employer contributions if you do not give us your Tax File Number (TFN). Fund earnings The MARP is generally subject to tax at a maximum rate of 15% on its taxable income, including fund earnings. However, the tax payable by the MARP will be reduced due to tax offsets, such as imputation credits received in respect of shares held by the fund. The effective rate of income tax paid on most capital gains derived by or distributed to the MARP is generally a maximum of 10%. Components of a superannuation benefit Superannuation benefits can be made up of two components: the tax-free component; and the taxable component. However, as a new Lump Sum RO Category Member, any benefits payable to or in respect of you from the Lump Sum RO Category will be comprised wholly of a taxable component. Taxation of lump sum death benefits Where a person receives a lump sum superannuation benefit upon the death of a Lump Sum RO Category Member, and that person was a Death Benefit Dependant of the deceased, the lump sum payment will be tax free. A person who is not a Death Benefit Dependant may also receive a lump sum payment. No tax is payable on the tax free component. Tax at a maximum rate of 15% will be payable in respect of the taxable component of the lump sum benefit. The taxation treatment of a lump sum superannuation death benefit received by a deceased person s estate will be governed by the above taxation arrangements. For example, where a person who is not a Death Benefit Dependant of the deceased is expected to receive all or part of the superannuation death benefit from the estate, the estate will be subject to tax as if the benefit were paid directly to that person. However, the person who will receive the lump sum benefit will not pay tax on the benefit at the time he or she actually receives payment. Taxation of a lump sum total and permanent disablement benefits A person receiving a lump sum Total and Permanent Disablement Benefit will be entitled to favourable tax treatment if the benefit is a disability superannuation benefit, as defined in the tax law. A person receives a disability superannuation benefit if he or she has suffered physical or mental ill-health and two legally qualified medical practitioners certify that the person is unlikely to be gainfully employed again in a position for which he or she is reasonably qualified due to his or her education, experience or training. If a person receives a disability superannuation benefit as a lump sum, the tax free component of the benefit is increased to broadly reflect the period during which they would have otherwise been expected to have been gainfully employed. 10 Mars Australia Retirement Plan

11 Information required to report under law (continued) Management of the MARP The Trustee The MARP has a corporate Trustee called Mars Australia Superannuation Pty Ltd (ABN ). The Trustee is responsible for ensuring the MARP Lump Sum RO Category is run in accordance with the Trust Deed, Rules and superannuation legislation, for the benefit of all members. The Trustee is made up of an equal number of member-elected Directors and Businessappointed Directors. The names of the current Trustee Directors are provided in the latest MARP Annual Report. Appointment and removal of member nominated Trustee Directors The following procedure is used for electing new member nominated Directors when a vacancy occurs. 1. Nomination forms are distributed to Associates; 2. Nominated Associates complete the Consent to nomination section; 3. If more than the required number of Trustee Directors are nominated from a location then an election is required; 4. Ballot papers with instructions on how to vote are issued; and 5. The Associate with the highest number of votes is elected from each of the locations. Further, the fitness and propriety of Nominated Associates will be investigated in accordance with the Trustee s Fitness and Propriety Policy before being appointed in order to ensure eligibility for appointment. This includes assessing the Nominated Associate s knowledge and skills and undertaking background checks (such as police checks). Under the Fitness and Propriety Policy, new member nominated Directors must undertake appropriate courses within the first six months of the appointment to obtain knowledge of superannuation law and investment concepts. Further, all Directors, including member-nominated Directors, need to undertake a minimum amount of training each year as part of their role of being a Director. If a vacancy occurs during the term of a member-nominated Trustee Director, the position will be filled by an Associate from the same location with the next highest number of votes from the last election process, providing the member is still willing to take on the role and can satisfy the Trustee fitness and propriety standards. A member Director may be removed from office if he or she: resigns; ceases to be an MARP member or an Associate; ceases to hold office because the term of the position has expired; dies; becomes disqualified (i.e. has been convicted of an offence in respect of dishonest conduct in Australia or overseas, has had a civil penalty order made against them, or becomes insolvent under administration); ceases to satisfy standards of fitness and propriety, as set out in the Trustee s Fitness and Propriety Policy, such as becoming disqualified (e.g. being convicted of an offence in respect of dishonest conduct in Australia and overseas); is mentally or physically unable to act in the capacity of a Director of the Trustee company; or is otherwise removed by the same procedure used to appoint the person. A copy of the Trustee s Fitness and Propriety Policy can be requested from the Fund Secretary on (02) The MARP has to reimburse the expenses that the Trustee Directors incur in administering the MARP. The Trustee and its Directors are also entitled to be indemnified out of the MARP against all liabilities, which they may incur in administering the MARP (unless they have acted fraudulently, dishonestly, out of wilful misconduct or have breached a civil penalty provision under the relevant legislation). product disclosure statement lump sum risk only members 11

12 Information required to report under law (continued) Investments The MARP s assets are managed by the Trustee with the assistance of investment managers and professional advisors. The assets are invested in a range of assets aimed at providing security and a sound rate of return. The Trustee regularly monitors the performance of the selected manager(s) and makes changes if necessary. The Trustee s investment objectives and strategy and details of the MARP s assets are set out in the latest MARP Annual Report. Socially Responsible Investments We do not have regard to labour standards or environmental, social or ethical considerations when appointing investment managers. Nor do we instruct our investment managers to take into account these considerations in their investment decisions. Further, each of our investment managers have confirmed that they currently do not take into account labour standards or environmental, social or ethical considerations in respect of investment decisions. Payment of expenses The Trustee is entitled to be reimbursed from the assets of MARP for all expenses it incurs. However, currently all expenses incurred by the MARP are met by the Business. General Information Dealing with inquiries and complaints A procedure is in place to allow Associates to make inquiries or complaints about the operation or management of the MARP. These inquiries or complaints must be dealt with within 90 days. The procedure to be used is consistent with the How Problems Are Settled process outlined in the Associate s handbook, except that after Personnel, the Associate would go to the Plan Secretary and Trustee rather than the Personnel Director and General Manager. This procedure is summarised below. If you have any difficulties, worries or disagreements, you should firstly talk to your manager. The manager will attempt to find a satisfactory solution and advise you within 24 hours. If, after discussion, you still feel that the answer is not satisfactory, the matter should be discussed with your local P&O Associate. The Personnel & Organisation Division is responsible for representing any Associate s case in the resolution of problems, even when these problems involve management issues. In the event of a situation being unresolved, or in the case of more difficult problems, you have the right of appeal to the Superannuation Inquiries Officer. Contact details are included in the latest MARP Annual Report. Annual Reports The Annual Report for the MARP, containing financial information and other information about the management and operation of the MARP, will be available from our website ( com) within four months after the end of each financial year. However, you can ask us to send you a copy of the Annual Report in the post free of charge. Superannuation Complaints Tribunal If you are still unhappy with the way any inquiry or complaint has been handled, you can apply to have the decision reviewed by the Superannuation Complaints Tribunal. The Superannuation Complaints Tribunal is an independent body set up by the Federal Government to assist members and beneficiaries to resolve certain superannuation complaints. The Tribunal may be able to assist you to resolve your complaint, but only after you have made use of the MARP s complaint handling procedure. 12 Mars Australia Retirement Plan

13 Information required to report under law (continued) If the Tribunal accepts your complaint, it will attempt to resolve the matter through inquiry and conciliation, which involves assisting you and the Trustee of the MARP to come to a mutual agreement. If you wish to find out whether the Tribunal can handle your complaint and the type of information you would need to provide, phone the following number for the cost of a local call from anywhere in Australia or write to the following address: The Superannuation Complaints Tribunal Locked Bag 3060 GPO Melbourne Vic 3001 Telephone: Additional Identification requirements The Trustee is required to comply with the Anti-Money Laundering and Counter-Terrorism Financing Act This means that the Trustee may need to obtain additional identification information before paying a benefit from the RO Category or when we change your member details. The Trustee will need to identify: A Lump Sum RO Category Member prior to paying a Total and Permanent Disablement benefit. The Trustee will not pay the benefit until all relevant information has been received and your identity has been satisfactorily verified. Your estate if you die while you are a Lump Sum RO Category Member. The Trustee is required to verify the identity of any person(s), including your estate, you have selected to receive your death benefit prior to the payment of any death benefit. Anyone acting on your behalf, including your legal personal representative. If you have a legal personal representative, the Trustee will identify the legal personal representative prior to allowing them to be added as a signatory to your account. In limited circumstances, the Trustee may be required to re-verify your identity. Privacy We use personal information about you to administer your benefit in the Lump Sum RO Category. If we do not obtain all the requested information, it may not be possible to process your benefit. We won t tell anyone any information that we have about you unless: you agree the law requires we need to do so to best manage your investment If you think our records are wrong or out of date, particularly your address, it s important that you contact us and we will correct them. We may disclose your personal information to : the Business external service suppliers who supply administrative, financial or other services to the Fund the Australian Taxation Office (ATO) the Australian Transaction Reports and Analysis Centre (Austrac) where required by our anti-money laundering compliance plan your Spouse or another person who intends to enter into an agreement with you about splitting your superannuation as part of a marriage separation anyone you have authorised or if required by law. If health information is collected in relation to this financial product, then additional restrictions apply. The purpose for obtaining this health information is for us and the insurer to process claims. The insurer may disclose this type of health information to: the Business the Trustee the insurer s reinsurers medical practitioners any person the insurer considers necessary to help either assess claims or resolve complaints, and anyone you have authorised or if required by law. You can always access our privacy policy and the personal information we hold about you by contacting the MARP Helpline (whose contact details are set out on page 3). product disclosure statement lump sum risk only members 13

14 Commonly asked questions Family law and your super An interest in the MARP may be split when a married couple separates or divorces. Further, in all States and Territories (apart from South Australia and Western Australia), an interest in the MARP may also be split if a de facto relationship (including a same sex relationship) breaks down. Your benefit can also be flagged as part of a separation this prevents us from making most types of benefit payments. The law sets down how superannuation interests will be valued and split for these purposes. Splitting or flagging can be achieved by the agreement between the separating couple or by a Court Order. Your benefits will be reduced by the amount of the non-member Spouse s entitlement under a payment split, as adjusted by investment performance from time to time. Anti-money laundering legislation Under the Anti-Money Laundering and Counter Terrorism Financing Act 2006, 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 before you withdraw your benefit from the Plan or commence an income stream. 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. How are my benefits calculated if I work part-time? Your Death in Service and Total and Permanent Disablement Benefits will be calculated using your actual part-time salary. What happens to my benefits if I go on leave? Your benefits will continue while on maternity or paternity leave or other paid leave, provided you return to employment with the Business in accordance with your period of approved leave. Can the Lump Sum RO Category be changed or discontinued? Circumstances may change from time to time that require the Trust Deed to be amended. With the consent of the Trustee, the Business has the power to amend all or any of the provisions of the Trust Deed. Any amendment to the Trust Deed must comply with the Trust Deed s amending power and would be required to meet the standards set by relevant Government legislation. An amendment cannot be made if it will reduce your accrued benefits up to the date of amendment except if the reduction of benefits was required by law, or if you have consented to the amendment in writing. The Business or the Trustee has the power to terminate the MARP RO Category in certain circumstances. 14 Mars Australia Retirement Plan

15 Important terms Annual Earnings means, in most cases, your total Earnings over your last year of employment with the Business. Associate means an employee of the Business. Business is Mars Australia Pty Ltd (ABN ). Child means any child of a Member or former Member, including: (a) an adopted child; (b a step-child; (c) an ex-nuptial child; and (d) in relation to a Member or former Member who did not die before 1 July 2008: (i) a child of the Spouse of the Member or former Member; and (ii) a child of the Member or former Member within the meaning of the Family Law Act 1975 (Cth). Death Benefit Dependant means, in respect of a person who has died: the deceased s Spouse or former Spouse; the deceased s Child under age 18; Earnings refers to your gross earnings including overtime, shift allowances, good timekeeping bonuses and other performance bonuses as agreed by the Business. Amounts paid as reimbursement or recognition of expenses, and amounts paid in respect of termination of employment are not included in your Earnings. Interdependency Relationship means a close personal relationship between two people who live together, where one or both provides the other with financial support and where one or both provides the other with domestic and personal support. Factors which the law requires the Trustee to take into account when determining whether an interdependency relationship exists include all the circumstances of the relationship (e.g. the duration of the relationship, whether or not a sexual relationship exists and the ownership, use and acquisition of property) and the existence of a statutory declaration signed by one of the persons to the effect that the person is or (in the case of a statutory declaration made after the end of the relationship) was, in an interdependency relationship with the other person. MARP is the Mars Australia Retirement Plan. any person with whom the deceased had an Interdependency Relationship; and any other person who was dependent on the deceased just before he or she died. Dependant means: your Spouse your Children; a person with whom you have an Interdependency Relationship; and any person who the Trustee considers to be fully or partially dependent on you for financial support. product disclosure statement lump sum risk only members 15

16 Important terms (continued) Permanent Incapacity means, in relation to a member, ill-health (whether physical or mental), where the Trustee is reasonably satisfied that the member is unlikely, because of the ill-health, to engage in gainful employment for which the member is reasonably qualified by education, training or experience. Preservation Age means the following: Date of birth Before 1 July Between 1 July 1960 and 30 June Between 1 July 1961 and 30 June Between 1 July 1962 and 30 June Between 1 July 1963 and 30 June After 30 June Preservation Age Service means employment as an Associate and Deemed Service. Spouse includes: (a) another person legally married to the person; (b) another person whether of the same sex or opposite sex) with whom the person is or was in: (i) a registered relationship registered under the Relationships Act 2008 (Vic); (ii) a significant relationship registered under the Relationships Act 2003 (Tas); or (iii) a civil relationship registered under the Civil Partnerships Act 2008 (ACT) Total and Permanent Disablement in relation to a Member has the same meaning as that phrase has for the purposes of any Policy effected by the Trustee in respect of: (a) that Member s death or total disablement or both; or (b) the death or total disablement or both of Members generally or of any category of Members in which that Member is included, provided that: (1) if there is no such Policy; or (2) if no meaning is attributed to that phrase in any such Policy, Total and Permanent Disablement in relation to a Member shall mean that Member has, prior to the Member s sixty-fifth (65th) birthday: (a) suffered the loss of two limbs or the sight of both eyes or the loss of one limb and sight of one eye; or (b) been absent from Service through injury or illness for not less than three (3) consecutive months and in the opinion of the Trustee, after consideration of medical evidence, has become incapacitated to such an extent as to render the Member unlikely ever to be able to resume work or attend to any gainful profession or occupation PROVIDED THAT the Trustee may waive or reduce the requirement for the Member to have been absent from Service for at least three (3) consecutive months; and Totally and Permanently Disabled has a corresponding meaning. (c) another person, although not legally married to the person, in the opinion of the Trustee, lives or lived with the person on a genuine domestic basis in a relationship as a couple. 16 Mars Australia Retirement Plan

17 Mars Australia Retirement Plan Nominating your beneficiaries Who will get your super if you die? You can nominate who you would like to receive your death benefit should you die while a member of the Mars Australia Retirement Plan. Your nominee(s) must be a Dependant* and/or your legal personal representative. The Trustee of Mars Australia Retirement Plan is not legally bound by your wishes but will take them into account. You can update your nomination of beneficiaries any time. This form replaces any previous nomination of beneficiaries. As your personal circumstances change, it s important to remember to keep both your Will and your nomination of beneficiaries up-to-date. *See Step 2 If you need help For assistance call the MARP Helpline on Step 1 Complete your personal details Please print in black or blue pen, in uppercase, one character per box. A Title Mr Mrs Ms Miss Other Date of birth / / Given names Surname Home address Suburb State Postcode Daytime telephone - Membership number Plan name M A R S A U S T R A L I A R E T I R E M E N T P L A N Name of your employer M A R S A U S T R A L I A P T Y L I M I T E D Continued over Issued by Mars Australia Superannuation Trustee Pty Ltd, ABN , RSE Licence Number L as Trustee for the Mars Australia Retirement Plan ABN RSE Registration No R *EFFEM.801TU1*

18 Step 2 Make your nomination I would prefer my death benefit to be paid to the following people in the proportion shown below: Name Relationship to you* Proportion of payout % Name Relationship to you* Proportion of payout % Name Relationship to you* Proportion of payout % Name Relationship to you* Proportion of payout % Name Relationship to you* Proportion of payout % Total % * Must be a Dependant or be your legal personal representative (the executor of your Will or administrator of your estate), if you wish to have your benefit payable to your estate. Dependant is defined as: your spouse (including de-facto) your children including step-children and adopted children; and any other person who the Trustee considers is wholly or partially dependent on you at the time of death any other person who the Trustee considers you had an interdependency relationship, which is where two persons: have a close relationship; and they live together; and one or each of them provides the other with financial support; and one or each of them provides the other with domestic support and personal care. Step 3 Sign the form By signing this form I understand that: this form is not legally binding on the Trustee in making its decision about my death benefit this form will be used by the Trustee to help work out who will receive my death benefit the information may be disclosed to the administrator of the MARP, my employer and other parties as required to access my personal information I can contact the Plan s Privacy Officer. I consent to the handling of my personal information in this way. Signature Date / / Please return your completed form to the Fund Administrator, Mars Australia Retirement Plan, GPO Box 4303, Melbourne, VIC *EFFEM.801TU2*

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