About the Defined Benefit Section (Category C1 and D1 members)

Transcription

1 Toyota Australia Superannuation Plan About the Defined Benefit Section (Category C1 and D1 members) Product Disclosure Statement 15 February 2016 Contents 2 How super works 5 Benefits of investing with the Plan 12 How to open an account Issued by Toyota Australia Superannuation Plan Pty. Ltd. (ABN ) (AFSL ) as Trustee of the Toyota Australia Superannuation Plan (ABN ).

2 Important information The information in this document forms part of the Product Disclosure Statement, Your Guide to the Defined Benefit Section, (dated 15 February 2016) for the Defined Benefit Section of the Toyota Australia Superannuation Plan. It is also applicable to eligible transfer members joining the Plan from the Toyota Employees Superannuation Trust (TEST). This information should be read in conjunction with the other documents that form part of the Product Disclosure Statement (PDS). You should consider this information before making a decision about the product. The information provided is general information only and does not take into account your particular objectives, financial circumstances or needs. It is not personal or tax advice. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. You should consider obtaining professional advice about your particular circumstances before making any financial or investment decisions based on the information contained in this document. The Trustee cannot provide you with financial advice. The Trustee will only provide factual information or general superannuation advice. Information contained in this document that is not materially adverse may be updated if it changes. Updated information can be found at In addition, a hard copy is available free of charge, by contacting the Super Hotline on How to contact us Super Hotline on * help@toyotasuper.com.au Toyota Admin Team Mercer GPO Box 4303 MELBOURNE VIC 3001 The Secretary Toyota Australia Superannuation Plan 494 Grieve Parade ALTONA NORTH VIC 3025 * Super Hotline personnel are not representatives of the Trustee. Any financial product advice given by Hotline personnel is provided under the licence of Mercer (Australia) Pty Ltd (ABN ) a corporate representative of Mercer Outsourcing (Australia) Pty Ltd (ABN , AFSL ). 1

3 How super works Your contributions Your employer contributions Under the Government s Superannuation Guarantee (SG) legislation, your employer is obliged to provide minimum superannuation benefits for all eligible employees. The benefits provided through the Plan meet this obligation. Your employer pays contributions as recommended by the Plan s actuary to provide your defined benefits. To make sure your super meets the minimum amount required by law, it is tested against the minimum required by the SG legislation and, if necessary, topped up to meet the minimum. This benefit, also known as your SG Minimum Benefit, is specified by the Plan s actuary in accordance with the SG legislation. If this minimum applies to you, it will be shown on your annual Benefit Statement. What is superannuation salary? Your superannuation salary (other than for SG purposes) is defined as your basic salary excluding commission, bonus, overtime and other allowances of a special nature or another amount as determined by Toyota. Your member contributions You are required to make a 5.88% member contribution from your pre-tax salary to help fund your defined benefit unless Toyota pays the member contribution on your behalf. Your additional voluntary member contributions If you want your savings to grow faster so you have more for your retirement, you may choose to make voluntary contributions from your pre-tax salary (i.e. via salary sacrifice) into your Salary Sacrifice Account or from your post-tax salary into an Employee Voluntary Contribution Account. Post-tax contributions can only be accepted if the Plan has your Tax File Number (TFN). You can make additional voluntary contributions to your super at any time please note that contributions from your pre-tax salary are subject to Company approval. If your circumstances change, you can change your contribution rate by contacting the Toyota Pay Office and requesting a form. Remember that the Government has caps on the amount that can be contributed to super before extra tax applies see More information on tax which is available on the website. Go to www. toyotasuper. com. au; click on Documents then Product Disclosure Statement Accumulation members. Your rollovers You can choose to roll over any amounts that you have in other super funds (e.g. with previous employers) into the Plan. There are no fees charged for rolling your super into the Plan. However, you should check to see whether your other fund will charge you an exit fee or if you will lose other important benefits like insurance. Keeping your super in one fund means: It s easier for you to keep track of; Your rollover amount will accumulate with the investment earnings of your chosen investment option; and You pay only one set of fees. To make a rollover, simply contact the Super Hotline on Government co-contributions can help your super to grow Lower and middle-income earners who make an post-tax contribution to their super may be eligible for an extra contribution of up to $500 from the Government (or co-contribution). To see if you are eligible, contact the Super Hotline on The Australian Taxation Office (ATO) determines your eligibility for the co- contribution when you submit your tax return at the end of each financial year. If you are eligible, the ATO makes the relevant co-contribution payment to the Plan on your behalf. Co-contributions can only be made if the Plan has your TFN. Spouse contributions The Plan allows you to make superannuation contributions for your partner, and to take out life insurance on his or her behalf. This means you and your partner can have your superannuation accounts in the one fund for a shared future. Spouse contributions can only be accepted if you and your spouse have provided the Plan with your Tax File Numbers. Any spouse contributions you make from your post-tax salary will count towards your spouse s non-concessional contributions cap, rather than your own. Refer to More information on tax which is available on the website. Go to click on Documents then Product Disclosure Statement Accumulation members or call the Super Hotline on Spouse members may transfer out of the Plan at any time. Any insurance cover a Spouse member has will cease on the date that their account balance is paid to another fund or earlier if there is not enough money in the Spouse member s account to meet the fee. For more information on spouse benefits, refer to the PDS, Your Guide to the Accumulation Section. Super Hotline

4 Contribution splitting You have the option of splitting up to 85% of your pre-tax contributions with your spouse that is, certain contributions your employer makes, including any pre-tax voluntary contributions. However, any contributions you split will count towards your concessional contributions cap, not your spouse s see More information on tax for more information. Defined Benefit members can only split their voluntary member contributions. You cannot split: Post-tax contributions; Rollovers; Transfers (e.g. from overseas funds) you have made into the Plan; or Concessional contributions made to your defined benefit. The Trustee will limit the amount to be transferred if your total benefit is less than $5,000. This limit ensures that there are sufficient funds to meet tax, fees and expenses, and any ongoing insurance fees. At the end of each financial year, you can apply to the Trustee to split the contributions you have made to your super during that financial year. If you are leaving the Plan, you may apply at the time of exiting. You can split your contributions once in relation to any financial year. Split contributions can either be paid into an account in the Plan in your spouse s name, or into an account with another complying super fund (nominated by your spouse). When you split your super contributions with your spouse, these contributions become the entitlement of your spouse. And just like your super, these contributions must be preserved in the superannuation system until your spouse reaches their preservation age (see page 4 for more information about preservation) or satisfies a condition of release (for example, financial hardship or compassionate grounds). Splitting your contributions will not affect your insured benefits in the Plan, even if you split the maximum amount of contributions allowable each year with your spouse. To split your super contributions, please call the Super Hotline on An exit fee applies each time a splitting application is processed on your behalf by the Toyota Admin Team. For details of the current fee, refer to More information on fees and costs which can be found on the website. Go to www. toyotasuper. com. au; click on Documents then Product Disclosure Statement Accumulation members. If you are thinking of splitting your super contributions with your spouse, the Trustee recommends that you talk over your options with a licensed financial adviser as there may be disadvantages to splitting in certain circumstances. Your benefits on divorce or separation Under the Family Law Act superannuation benefits can generally be divided when a couple separates or divorces (including de facto and same-sex couples). A member and spouse can agree to split the member s superannuation benefit within the Plan or ask the Family Court to order a split if no agreement can be reached. This means your account will be reduced for the amount paid to your ex-spouse. The Plan may charge a fee to implement the split request and for certain other transactions linked to the Family Law provisions. Super contributions and bankruptcy Should you be declared bankrupt, contributions to super (excluding SG contributions) made by you, or on your behalf, may be recoverable by creditors. This applies to contributions (excluding SG contributions) made on or after 27 July 2006 if these contributions are demonstrated to have been made with the specific intention of defeating creditors. You will be advised if this affects you. For more information, contact the Super Hotline on Spouse defined Your spouse is currently defined to include a person who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple. Your spouse may be of the same or the opposite sex to you. Choice of Fund and Portability Choice of Fund legislation allows most working Australians to choose which superannuation fund they wish to belong to. As an employee of Toyota, you have the opportunity to participate in Choice of Fund if you wish to. Choice of Fund means that you have the opportunity to choose a complying super fund other than the Plan for the SG contributions the Company makes to super on your behalf. It s important to keep in mind that Choice of Fund is optional. You can only change your Choice of Fund once every 12 months. If you wish to choose another super fund, you will need to complete a Standard Choice Form, available from the Toyota Pay Office. If you are considering choosing another super fund, it s important that you first consider the implications on your super. Some of these implications are explained below: Your defined benefit: If you exercise Choice of Fund, your benefit will be converted to an accumulation benefit and you will cease to be a member of the Defined Benefit Section. Your current benefit in the Plan, if greater than $1,000, will be transferred to the Plan s Retained Benefit Section on the last day of the month for which the Plan receives the final employer contribution for you. You will not be eligible for insurance cover in the Retained Benefit Section. Once you cease to be a member of the Defined Benefit Section, you cannot rejoin this section at any time in the future. Your existing balance: You can request to transfer your accumulation accounts to another complying fund of your choice. This is called a portability transfer. If you wish to transfer any of your defined benefit to another fund, you must first fully convert your benefit to an accumulation benefit. Contact the Super Hotline for more information.

5 If you convert your benefit to an accumulation benefit you will be moved to another category of the Plan, and you will not be able to rejoin the Defined Benefit Section in the future. This may also affect your insurance cover in the Plan. If you elect to transfer out your full benefit, your membership in the Plan will cease and you will need to nominate a new fund for your future superannuation contributions. If you wish to make a partial transfer, you must retain a minimum balance of $5,000 in the Plan. To transfer your existing balance you will need to complete the Portability Transfer Instructions. This is available from the Toyota Admin Team or can be downloaded at www. toyotasuper. com.au. Insurance: If you exercise Choice of Fund, your cover for death, terminal illness and disablement (including any additional voluntary insurance) will cease on the last day of the month the Plan receives contributions for you. You will need to make your own insurance arrangements, at your own cost, through your new fund or take out your own personal insurance cover. You may not be able to match the level of cover or the terms and conditions provided under the Plan s insurance policy. If you transfer any of your existing defined benefit to another fund (i.e. a portability transfer), without exercising Choice of Fund, you will be transferred to the Accumulation Section where your insurance cover (as per the rules of the Accumulation Section) will continue, provided you have a minimum balance of $5,000 in the Plan. Fees: If you exercise Choice of Fund and your current benefit is transferred to the Retained Benefit Section, the weekly administration fee will be debited to your account rather than paid for by Toyota. You should also check the fees of any other fund you are considering. Returning to the Plan: You can rejoin the Plan, however, you should keep in mind that you will not automatically be provided with insurance cover and will have to provide any required evidence of good health and be assessed and accepted by the insurer before any cover commences. For more information about Choice of Fund and portability, call the Super Hotline on Taking your super in cash According to the Government's preservation laws, you cannot generally take your super benefit as cash until you have retired after reaching your preservation age. Your preservation age depends on when you were born. DATE OF BIRTH PRESERVATION AGE Before 1/7/ /7/1960 to 30/6/ /7/1961 to 30/6/ /7/1962 to 30/6/ /7/1963 to 30/6/ /7/1964 or later 60 For the purposes of the preservation laws retired means that you must have ceased gainful employment, and one of the following must apply to you: If you have reached your preservation age but are less than age 60, the Trustee must be satisfied that you intend never again to be gainfully employed more than 10 hours per week. If you are over age 60, either: You must have ceased gainful employment after reaching age 60; or The Trustee must be satisfied that you intend never again to be gainfully employed more than 10 hours per week. You can receive your benefit in cash after you have reached age 65 regardless of whether you are working or have ever worked. You may be able to take part of your super in cash before your preservation age; for example, if it relates to employment before 1 July Your annual Benefit Statement will show you if this applies to you. You may also be able to take part of your benefit in cash in other limited circumstances. This includes permanent incapacity, if you suffer from a terminal medical condition or you meet the conditions in the law to receive your benefit on compassionate or financial hardship grounds. You may also access your super on reaching your preservation age but before being retired by rolling over part or all of your benefit into a Transition Pension see page 10 for more information. Temporary residents If you are not an Australian or New Zealand citizen or resident and you accrued super while in Australia on a temporary resident visa, you may be able to claim your super when you return home. Applicable taxes will be deducted. If you do not claim your super within six months of permanently departing Australia, the Trustee may be required to pay your super to the ATO without your consent. You may then claim your super from the ATO, but it may not earn any interest while with the ATO. Super Hotline

6 Benefits of investing with the Plan At a glance Style of super Contributions Rollovers Spouse contributions and contribution splitting Investment choice Your benefits Your insurance cover (for eligible employees) More super information Retained benefits choice Accessing your super Defined benefit Your employer pays contributions as recommended by the Plan s actuary to meet your defined benefits. This includes a compulsory member contribution of 5.88% You can make additional voluntary contributions from either your pre-tax salary (subject to Company consent) or post-tax salary Roll super in from other super funds at any time No additional fees apply for rollovers Contribute to your partner s super (tax rebates may apply) Split your own pre-tax super contributions with your spouse Choose from four investment options for your additional account balances. You do not have investment choice on the defined benefit part of your super or on your defined benefit accounts You can switch options at any time. Some fees may apply Leaving service benefit Death and terminal illness benefit Total and permanent disablement benefit Total and temporary disablement benefit The choice of either a binding or non-binding nomination for your death benefit Death and terminal illness insurance Total and permanent disablement insurance Additional death and TPD insurance Total and temporary disablement insurance (TTD or salary continuance insurance) Annual Benefit Statement Trustee Report Regular newsletters The Plan website Educational flyers If you leave your employer, you can leave your super invested in the Plan in your preferred investment option. The Plan allows you to continue to have the same amount of Death (including terminal illness) cover you had at the date you left employment When you retire, you can invest in a Retirement Pension or take a cash lump sum Access your super benefit before you retire under the transition to retirement laws by rolling over your benefit into a Transition Pension 5

7 How your defined benefit works You have a combination of defined benefit and accumulation styles of super it works like this: Some of your defined benefit super is worked out using a formula. The formula takes account of how long you ve been in this Plan and TEST and your salary near retirement. These and other terms are defined in Some helpful terms on the next page. Investment returns generally don t affect the size of some of this defined benefit style super as it is fixed according to the formula. However, some components of your super may be paid in accumulation form. Your additional account balances are also accumulation-style super. Accumulation-style super means investment returns directly affect its value. Any money invested can increase or decrease due to investment earnings which can be positive or negative. You have a choice of how your Transfer Account, Rollover Account, Employee Voluntary Contribution (post-tax) Account and Salary Sacrifice (pre-tax) Account are invested. You do not have member investment choice for your Employee Compulsory Account and Surcharge Tax Offset Account (if any). You also have the option to make additional voluntary member contributions and rollovers see page 2. Super Hotline

8 Some helpful terms Your superannuation salary (other than for SG purposes) is defined as your basic salary excluding commission, bonus, overtime and other allowances of a special nature, or it is Total Cash or another amount as determined by Toyota. Your date of admission is the earlier of the date you joined the Toyota Australia Superannuation Plan (the Plan) and, if applicable, the date you joined the Toyota Employees Superannuation Trust (TEST). Your final average salary is a term used in calculating your super benefit on retirement. It means the average of your annual superannuation salary over the last three years (for Category C1) or the last four years (for Category D1) prior to you ceasing service. Special conditions apply for members who have a date of admission prior to 1 February Your prospective final average salary is a term used in calculating your super payout on death, terminal illness or total and permanent disablement. It means your final average salary at your normal retirement date assuming your current superannuation salary remains unchanged until your normal retirement date. Your accrued retirement multiple is a figure used in the calculation of your super payout. It s calculated as your accrued retirement multiple from TEST, plus 15%* (Category C1) or 12.5%* (Category D1) for each year (with complete months counting proportionately) that you are a Defined Benefit member of the Plan. For Category C1 members who were over age 45 on admission to the Plan and who joined after 1 November 1978, the accrued multiple increases to 20% p.a. with a minimum multiple of 4 applying. * Adjusted during any periods of part-time employment. Your normal retirement multiple is your accrued retirement multiple calculated at your normal retirement date, assuming you remain in the same category until your normal retirement date. Your resignation factor is a factor used in the calculation of your resignation payout. It s based on the number of complete years of service with your employer: Completed Years of Service Resignation Factor 0 4 0% 5 25% 6 30% 7 35% 8 40% 9 45% 10 50% 11 55% 12 60% 13 65% 14 70% 15 75% 16 80% 17 85% 18 90% 19 95% 20 or more 100% Your employee compulsory account is the account to which your employer contributes, on your behalf, 5.88% (5% grossed-up for 15% contributions tax) of your superannuation salary. If you make any pre-tax or post-tax voluntary contributions or have rolled money in, this money is invested in your salary sacrifice (pre-tax), employee voluntary contribution (post-tax) and rollover accounts respectively. Your voluntary member contributions and rollovers made to TEST will be transferred into these accounts. Your transfer account is the account which includes any additional amounts transferred from TEST. This is included as an additional account balance. Your surcharge tax offset account balance is the total amount of any surcharge assessments paid by TEST and the Plan on your behalf, with investment earnings. This account is deducted from any benefit paid to you. The earnings charged to your surcharge tax offset account will be based on the Plan s Defined Benefit Section crediting rate. Your defined benefit SG minimum account is used in the calculation of your minimum benefit (refer to page 2). Your normal retirement date is your 65th birthday for males. If you are female, with a date of admission prior to 1 May 1985, you can nominate your 60th birthday. Retrenchment means the termination of employment by your employer before your normal retirement date for any of the following reasons: the work for which you were engaged has been completed; the position for which you were engaged has ceased to exist and your services are no longer necessary; the amount of work to be carried out by your employer has diminished and has rendered a reduction in the number of employees necessary or expedient; or as a result of a reorganisation by your employer or rearrangement of staff for business policy reasons, your services have become redundant; so long as, in the opinion of the Trustee, your employer has not offered comparable alternative employment to you. Your additional account balances are your transfer account, salary sacrifice (pre-tax) account, employee voluntary contribution (post-tax) account and your rollover account. Your defined benefit account balances are your employee compulsory account, defined benefit SG minimum account and surcharge tax offset account. 7

9 What benefits do I receive? As a Defined Benefit member of the Plan you will be entitled to receive a benefit if you: Resign from your employer; Are retrenched; Retire; or Die, become terminally ill or totally and permanently disabled. The Plan also provides an insured benefit on becoming temporarily disabled. Your benefit if you resign If you cease employment other than due to retirement, death, terminal illness, total and permanent disablement or retrenchment, then your leaving service benefit is: your employee compulsory account plus your employee compulsory account times your resignation factor plus your additional account balances less your surcharge tax offset account balance. If you leave service, your defined benefit will receive investment returns based on the rate earned by the Plan s bank account, less tax. This will apply from the date you leave service until the date payment of your benefit is made from the Plan (or after 90 days if you transfer to the Retained Benefit or Pension Section). Example Jill leaves her employer in July She joined her employer in July Her employee compulsory account at the date of leaving service is $150,000. Her rollover account and surcharge tax offset account at the date of leaving service were $32,000 and $16,000 respectively. Jill has no other additional account balances. Jill s leaving service payout is: $150,000 (employee compulsory account) plus $150,000 x 0.85 (employee compulsory account x resignation factor) = $127,500 plus $32,000 (rollover account) less $16,000 (surcharge tax offset account) = $293,500 Your benefit on retrenchment In the event that you are retrenched by your employer and you are not entitled to an early retirement benefit, your payout is: 2 times your employee compulsory account plus your additional account balances less your surcharge tax offset account balance. Example Teresa is made redundant. Her employee compulsory account at the date of retrenchment is $150,000. Her rollover account and surcharge tax offset account at the date of retrenchment are $32,000 and $16,000 respectively. Teresa has no other additional account balances. Teresa s redundancy benefit is: 2 times $150,000 (employee compulsory account) = $300,000 plus $32,000 (rollover account) less $16,000 (surcharge tax offset account) = $284,000 Your benefit if you retire Your normal retirement date is generally your 65th birthday (60 for females with a date of admission prior to 1 May 1985), but you can early retire at any time from your 55th birthday (50th birthday if you are a female with a date of admission prior to 1 May 1985) or, with the consent of your employer, at any age due to ill health. Your retirement benefit is: your accrued retirement multiple times your final average salary plus your additional account balances less your surcharge tax offset account balance. Example At 1 July 2005, Jack transferred from TEST to the Plan with an accrued retirement multiple of At 1 July 2015 at age 60, he retires. His final average salary is $100,000. His employee voluntary contribution (post-tax) account balance is $40,000. He is a Category D1 member with no other additional account balances and no surcharge tax offset account. His retirement payout is: 2.15 (accrued retirement multiple at July 2005) plus 1.25 (12.5% x 10 years (July 2005 to July 2015)) = 3.40 times $100,000 (his final average salary) = $340,000 plus $40,000 (his employee voluntary contribution (post-tax) account balance) = $380,000 If you work past your normal retirement date If you work past your normal retirement date, your benefit will be calculated as the benefit you would have received at your normal retirement date, plus any contributions made by or in respect of you after that date, all with investment earnings less tax and less any amounts previously paid to you. After your normal retirement date, you can choose which investment option you want your entire super to be invested in. The Toyota Admin Team will write to you regarding your investment options just before your normal retirement date. Super Hotline

10 Your death and disablement benefits Subject to any insurance restrictions, the benefit payable in the event of your death, terminal illness or TPD is as follows: your normal retirement multiple times your prospective final average salary any additional (optional) insurance cover that you have requested and been approved for your additional account balances your surcharge tax offset account balance. You will need to seek your own advice on how payment of a terminal illness benefit may impact on other benefits you or your beneficiaries may be eligible to receive. Terminal illness and total and permanent disablement are defined in the insurance policy and the definitions may therefore vary over time. Various definitions are included in the Plan s Defined Benefit Insurance Guide which is available on the website. Go to click on Documents then Product Disclosure Statement Accumulation members or by calling the Super Hotline. Example Tom dies at exactly 52 years of age. His accrued retirement multiple is His superannuation salary at the date of his death is $100,000. His employee voluntary contribution (post-tax) account balance is $35,000. Tom was a Category D1 member with no other additional account balances or additional insurance cover. His death benefit is equal to: 1.55 (accrued retirement multiple) plus 1.63 (12.5% times 13 years (age 52 to age 65)) = 3.18 (normal retirement multiple) times $100,000 (his prospective final average salary) = $318,000 plus $35,000 (his employee voluntary (post-tax) account) = $353,000 Nominating your beneficiaries Nominated beneficiaries must be your dependants or legal personal representative. Your dependants are: Your spouse (including de facto or same-sex spouse); i i Your children (including step, adopted or ex-nuptial children, or children of your spouse); Any other person with whom you have, in the opinion of the Trustee, an interdependency relationship ; or Any other person who the Trustee may, in its absolute discretion, determine to be dependent on you either wholly or in part or to have a right to look to you for support at the date of your death. If none of the above can be located, the Trustee may pay your benefit to your legal personal representative upon production of probate or letters of administration. Two people have an interdependency relationship if they satisfy all of the following criteria: They have a close personal relationship; They 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. An interdependency relationship also exists where there is a close personal relationship and either or both people suffer from a physical, intellectual, or psychiatric disability. In these circumstances, you don t have to be living together or provide financial support, domestic support, and personal care. The law includes matters that the Trustee must consider in deciding whether an interdependency relationship exists. If the Trustee determines that no dependants or legal personal representative can be found, your benefit may be paid to another person (e.g. a relative) in accordance with superannuation law. The Trustee is bound by trust law (and not your Will) and must undertake a careful examination of your personal situation in the event of a death claim to ensure the correct person(s) are paid any entitlement. How to nominate your beneficiaries The Plan offers you a choice of binding or non-binding nominations for your death benefit. The key differences are: Binding nomination Valid for a maximum of three years Your nomination must be witnessed by two adults who are not beneficiaries The Trustee is obliged to follow your nomination (provided it is valid at the time of your death) Binding nominations Non-binding nomination No expiry date No witnesses are required Your nomination is used as a guide. The Trustee is not bound by your nomination A binding nomination obliges the Trustee to pay your death benefit according to your stated wishes (provided that it is valid at the time of your death). It is your responsibility to update your nomination every three years, or more often if your personal circumstances change. To make a binding nomination, you need to have it witnessed by two people. Your witnesses must be at least 18 years old and must not be nominated as beneficiaries. Your witnesses must see you signing the Nominating your beneficiaries form and must sign and date the form at the same time you do. You must ensure you allocate the total share of your death benefit. If the percentages do not add up to 100%, your nomination will be invalid. Non-binding nominations To make a non-binding nomination, you should complete the relevant section of the Nominating your beneficiaries form. You can update this nomination at any time (e.g. if you marry or have children). If your nomination is non-binding, the Trustee will take note of your wishes but is not bound by them. You can obtain additional copies from the Super Hotline on

11 Options if you leave Toyota Option 1. Stay with the Plan if you leave your employer When you leave your employer, the Toyota Admin Team will ask you how you want to receive your super benefit. Your super will be transferred automatically into an account in your name in the Retained Benefit Section of the Plan. Once your super benefit is transferred to this section you can make lump sum personal contributions, roll over super from other plans and withdraw any of your benefit which is not preserved. Any additional account balances can also remain invested in your chosen investment option or it will be invested in MySuper Growth if you have never made an investment choice. About the Retained Benefit Section Leaving your super invested in the Plan may be a convenient and cost-effective alternative for you. There is no entry fee and by leaving your super invested in the Plan, you can maintain your longterm investment strategy. If your super benefit is transferred to this section, you can make lump sum personal contributions, roll over super from other funds and withdraw any part of your benefit that is not preserved. In the Retained Benefit Section, you can continue to have the same amount of death and terminal illness cover you had at the date you left employment. This cover will be provided automatically on moving to the Retained Benefit Section without needing evidence of good health (unless you have exercised Choice of Fund). See the Plan s Defined Benefit Insurance Guide available by calling the Super Hotline. For more information see the PDS, Your Guide to the Accumulation Section. For information on how your defined benefit is invested in the Retained Benefit Section see the Member Investment Choice Guide. These are available on the website. Go to www. toyotasuper. com.au; click on Documents then Product Disclosure Statement Accumulation members or call the Super Hotline on If your benefit is less than $1,000, the Trustee may roll your benefit over to an Eligible Rollover Fund (ERF) if: You fail to give the Toyota Admin Team instructions within 90 days of receiving details of your benefit; or The super fund you nominate won t accept your benefit. The ERF for the Plan is: SuperTrace Eligible Rollover Fund Locked Bag 5429 PARRAMATTA NSW 2124 Phone: Contact: The Administrator Website: Once your benefit is transferred to the ERF, you stop being a member of the Plan and no longer have any rights under the Plan. You will then need to contact the ERF directly about your benefit. You can also obtain the ERF s Product Disclosure Statement using the contact details above. The investment and crediting rate policy of the ERF may be different to those that applied in the Plan. Also, the ERF may not offer any insurance cover. You should seek advice from a licensed financial adviser about whether the ERF is a suitable investment for you. Option 2. Take a cash payment If you have any unrestricted non-preserved super (refer to your Benefit Statement), you have the option of withdrawing that amount in cash. If you are under age 60, tax may apply to the taxable component of this amount (if any). For partial payments, the tax components of the payment will be in proportion to your total benefit. You cannot choose, for example, to withdraw only your tax-free component. Amounts paid by the Plan to members aged 60 or over are generally tax free. For more information on the tax payable on benefits, refer to More information on tax which is available from the website or from the Super Hotline on Option 3. Roll over to another superannuation fund You can roll your super into another fund of your choice, providing it is a complying superannuation fund under law. If the fund you have nominated won t accept your benefit, the Trustee will roll your benefit over to the Plan s ERF (see to the left for details). Option 4. Your options when you retire When you retire after your preservation age, the Plan will give you the choice of taking your super as a lump sum, or rolling it over into the Plan s Pension Section. This will not only provide you with a regular income stream, but may be more tax-effective than taking your superannuation benefit as a lump sum. With a Retirement Pension, your lump sum superannuation benefit is held in an account and invested in your chosen investment option. You receive regular income payments from the account. The amount of income that you choose to draw down each period is flexible (subject to a minimum limit set by the Government). You can access your entire lump sum at any time, should you need it. When you die, your remaining account balance (if any) will be paid to your dependants or your estate. See the PDS, Your Pension Guide, for more information, which can be downloaded from or obtained by calling the Super Hotline on Accessing your super before you retire If it suits your personal situation, you can access your super before you permanently retire from the workforce under the transition to retirement rules. Under these rules, you can access your super when you reach your preservation age (see page 4 for more information on preservation) provided you roll over your superannuation benefit into a transition to retirement pension that is, a special type of pension that pays you a regular income but does not generally allow your balance to be converted into a lump sum prior to your retirement. The Plan provides a Transition Pension which qualifies as a transition to retirement pension. For more information on the Transition Pension and the transition to retirement rules, refer to the PDS, Your Pension Guide, which can be downloaded from the website. Go to www. toyotasuper. com.au; click on Documents then Product Disclosure Statement Pension Section or calli the Super Hotline on Super Hotline

12 to your super. Investment returns Aggressive Growth -6.4% -0.4% p.a. -3.3% Returns are after taxes and expenses. Pension returns 1.5% p.a. 3.9% p.a. 0.9% 4.6% p.a. 2.1% 4.9% p.a. Moderate Pension Pension Pension Pension Aggressive Growth Moderate Cash -6.8% -3.9% 1.2% p.a 1 0.7% p.a 2 0.6% 4.5% p.a 1 2.4% 5.4% p.a 2 Cash -3.3% 1.5% p.a. 3.9% p.a. Defined benefit 1 July 2011 to 31 December July 2011 to 31 December 2011 Return since introduced (period to 31 Dec 2011) How the Plan is managed The Toyota Australia Superannuation Plan (ABN ) is managed and operated by a Trustee company called Toyota Australia Superannuation Plan Pty. Ltd. (ABN ). This company is managed by a Board of six Directors with three Directors representing employees and three representing employers. Details of the current Directors are contained in the annual Trustee Report. Rules governing the appointment of Member Representative Directors are available from the Plan Secretary. You can contact the Trustee via the Secretary at the address below. Toyota Australia Superannuation Plan c/- Toyota Motor Corporation Australia Limited 494 Grieve Parade ALTONA NORTH VIC 3025 The Trustee is responsible for: Protecting your rights and interests as a member; Operating in line with the Trust Deed and super law; Investing assets prudently according to the Trustee s investment objectives; Paying benefits when they are due; and Communicating with you, our members. Loans The Trustee is not permitted to make loans to members. The Trust Deed The Trust Deed is a formal document that sets out the rights and duties of all employer participants, and outlines the rules under which it is administered and benefits are paid. If there are any differences to this PDS, then the Trust Deed is the final authority. As circumstances change, it may be necessary to amend the Trust Deed (e.g. to reflect changes in legislation). Amendments cannot reduce the amount of your benefit up to the date of the amendment without your consent, unless otherwise allowed by Government legislation. Providing proof of identity The Trustee is required to comply with the Government s Anti-Money Laundering and Counter-Terrorism Financing (AML/CTF) legislation. Under the legislation, the Trustee is required to verify a member s identity, and any other benefit recipients, before any benefit is withdrawn from the Plan. This verification process helps ensure that the Plan is not being used for money laundering, or funding terrorist or criminal activities. Withdrawals cannot be processed until the required proof of identity is supplied to the Toyota Admin Team. The Trustee may need to obtain additional identification information and verify your identity from time to time. It may have to disclose information about you to the regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC). If this happens, the Trustee is not permitted to inform you due to the sensitive nature of this information. Keeping you in touch with your super The Trustee wants you to know about the Plan and your super benefits. As a member of the Plan, the following will be available to you: ia i Trustee Report, which will tell you how your super is being managed and how it has performed over the past year. It will also keep you up to date with any changes that may affect your super (e.g. legislation, administration or management changes). The Trustee Report is published annually. ia i Benefit Statement, which will show you the value of your Plan account each year. It will also include details of your contributions and investment earnings that have been applied to your account over the past year, along with the fees deducted from your account. Your Benefit Statement is mailed to you annually. i i The Plan s regular newsletter, Super made easy, keeps you up to date with changes in super and the Plan as well as how your super is performing. ilimited i financial advice is available to you via the Super Hotline on Neither the Trustee, Toyota Motor Corporation Australia Limited (TMCA) nor their representatives can give you personal financial advice. If you want personal financial advice you will need to contact a person or company licensed to provide such advice. Super Hotline personnel are not representatives of the Trustee. Any financial product advice given by Hotline personnel is provided under the licence of Mercer (Australia) Pty Ltd (ABN ) a corporate representative of Mercer Outsourcing (Australia) Pty Ltd (ABN , AFSL ). ithe i website at Here you can download forms and publications, check the Plan s current unit prices and learn more about the Plan and your super. February 2012 issue Super made easy Investment market performance Australian investment markets followed the downward trend of global markets over the December quarter. This was mainly due to investors concern over the ongoing European banking and debt crisis. These concerns are reflected in the returns for Toyota Super s investment options as seen in the following graphs. If you would like to learn more about how investment markets have performed recently, simply go to the www. toyotasuper.com.au homepage and review the Latest news. For the latest unit prices, please refer to the Investments section of www. toyotasuper.com.au. Returns for Pension members differ from those shown on the website. For more information about pension returns, contact the Super Hotline on Toyota Super offers you flexibility in how to invest your super. If you are considering changing how your super is invested, you should seek licensed financial advice. You can obtain limited financial advice about Toyota Super free of charge via the Super Hotline on Past performance should not be taken as a guide to future performance. * Compound average to 31 December Your super options on leaving Toyota 1. The Pension Aggressive and Pension Moderate options started on 1 February The Pension Growth and Pension Cash options started on 8 February You can also find executive remuneration and other documents that must be disclosed under superannuation law, when required. Compound average returns since 1 July 2006* Compound average returns since 1 July 2001* Whether you leave Toyota due to redundancy, resignation or retirement, you need to consider what to do with your super as it plays an important role in your financial future. Leaving employment due to redundancy does not automatically give you access It is important to seek licensed financial advice in regards to your personal situation. If you have any queries about the options for your super on leaving Toyota, please contact the Super Hotline on who can also provide limited financial advice. 11

13 How to open an account Joining the Plan is easy! Just follow these simple steps. 1 Read 2 Consider this PDS carefully to learn about the options and features available to you. your super choices for: Additional contributions Rollovers Your investment choice Your insurance cover Your beneficiaries Once you have made your choices, complete and return the forms at the back of the PDS. Members who transfer from the Defined Benefit Section of the Toyota Employees Superannuation Trust must also complete and return the forms. Do you have a question? If you have any questions or would like more information about the Plan, please contact: Toyota Admin Team Mercer GPO Box 4303 Melbourne VIC 3001 Super Hotline: In most cases, your enquiry will be resolved over the phone. If not, you may be asked to write to the Administrator. The matter will be referred to the Trustee and you should receive a reply within 90 days. If you are not satisfied with the Trustee's response, you may wish to contact the Superannuation Complaints Tribunal (SCT), except in relation to privacy-related matters. The SCT is an independent body set up by the Federal Government to deal with enquiries or complaints that the Trustee has not dealt with to your satisfaction. The SCT may mediate the dispute. There are some complaints that the Tribunal cannot consider such as those relating to the management of the Plan as a whole. In addition, time limits may apply to certain complaints such as those about objections to the payment of death benefits. If your complaint is in relation to one of these areas, please contact the Super Hotline on or refer to the Tribunal s website at as soon as possible for further information. You can contact the SCT at: The Secretariat Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC info@sct.gov.au Phone: For privacy-related matters, please contact the Office of the Australian Information Commissioner on Protecting your personal information To ensure that you receive the correct benefit, the Plan keeps precise records about you. This means that the Plan holds a great deal of information about you, such as your contact details, date of birth, Tax File Number, and so on. Under privacy legislation, you have the right to access the personal information the Plan holds about you, subject to any applicable exceptions. If you believe that the information is inaccurate or incomplete, you are entitled to request an amendment to your personal information. The privacy legislation also requires your consent before any sensitive information is collected and passed to third parties. The Trustee believes your privacy is important and so has developed a privacy policy to protect your personal information. The policy outlines how the Plan collects and manages your personal information. A copy of the policy is available by calling the Super Hotline on If you would like to access or update your personal information, please contact: Privacy Officer Toyota Australia Superannuation Plan GPO Box 2006S MELBOURNE VIC 3001 Phone: (03) Super Hotline