Product Disclosure Statement For Members transferred from the Millennium Master Trust on 30/11/2013 Prepared 25/02/2014

Transcription

1 Millennium Master Plan A sub plan of EmPlus Super ABN RSE Registration Number R Product Disclosure Statement For Members transferred from the Millennium Master Trust on 30/11/2013 Prepared 25/02/2014 Issued by the trustee: Equity Trustees Limited ABN AFS Licence No RSE Licence No L Things you should know: This PDS applies to members of the Millennium Master Plan (Plan) who were transferred from the Millennium Master Trust ABN on 30/11/2013 This PDS is a summary of significant information about the Plan and contains a number of references to important information which is contained in the Plan s Member Guide. The information contained in the Member Guide forms part of the PDS; You should consider both the information in this PDS and Member Guide before making a decision about the product; This PDS and the Member Guide can be obtained from or free of charge on request by phoning The information provided in this PDS is general information only and does not take into account your personal financial situation or needs; and You should obtain financial advice tailored to your personal circumstances. Contents: 1: About the Millennium Master Plan Page 1 2: How super works Page 2 3: Benefits of investing with the Millennium Master Plan Page 2 4: Risks of super Page 3 5: How we invest your money Page 3 6: Fees and costs Page 5 7: How super is taxed Page 6 8: Insurance in your super Page 7 9: How to open an account? Page 8 Administrator: Millennium3 Financial Services Pty Ltd, ABN , AFSL No Unit 7, 50 Borthwick Avenue, Murarrie QLD 4172 PO Box 3528, Tingalpa DC Qld 4173 Phone: (Toll Free) or Fax: info@m3.com.au Section 1: About the Millennium Master Plan The Millennium Master Plan (Plan) was established as a division of the EmPlus Superannuation Fund (Fund) on 30/11/2013, following a successor fund transfer from the Millennium Master Trust (which was established on the 01/01/1999). The Millennium Master Plan provides superannuation products for employer sponsored members (who have joined the Plan through their employer) and personal superannuation members. The Fund has more than $150 million of assets under management. The Fund s superannuation products include accumulation accounts only for individuals who apply to join the Fund (Personal Members) and employees who join through their employer (Employer Sponsored Members). The Fund is authorised to offer a MySuper product (Authorisation Number: ) and can accept superannuation guarantee contributions from employers. This PDS is for all Millennium Master Plan members. The Trustee of the Fund is Equity Trustees Limited (EQT). EQT was established by a special act of the Victorian Parliament in 1888 as a licensed trustee. The Plan was developed by Millennium3 Financial Services Pty Ltd (ABN , AFSL No ) to meet the superannuation needs of their clients. As Plan Sponsor, Millennium3 s role includes the general marketing and sales functions for the Fund and advising the Trustee in respect of the ongoing management and public promotion of the Fund. Millennium3 is also the administrator and asset consultant for the Fund. Millennium3 is ultimately owned by the ANZ Banking Group. Insurance cover is provided to eligible Fund members by OnePath Life Limited ABN

2 Section 2: How super works Superannuation is a means of saving for retirement which is, in part, compulsory. Most Australian employers are required by Government legislation to contribute 9.25% (increasing to 12% in future years) of an employee s ordinary time earnings to a superannuation fund nominated by the employee or, if an employee does not nominate a fund, to the employer s default fund. These compulsory contributions are referred to as Superannuation Guarantee (SG) contributions. You can also make contributions towards superannuation. There are different types of contributions available to a person including SG contributions, additional employer contributions (for example, salary sacrifice contributions), voluntary member contributions and government co-contributions. There are limitations on the contributions to, and withdrawals from superannuation. These limitations apply to all superannuation funds. The Fund does not apply any additional limitations. Superannuation receives concessional tax treatment, that is, tax savings are provided by the Government. Refer to Section 7 of this PDS for more information. As most people have a right to choose into which fund their employer should direct their SG contributions (called Choice of Fund ), it s important you take an interest in your super and help it grow into a healthy retirement nest egg. Contact your employer to check whether you can make a Choice of Fund. Further information about Choice of Fund is available from You can access your superannuation savings once you retire on or after reaching your preservation age or in other circumstances permitted by law (for example, death, permanent incapacity and financial hardship), called conditions of release. The conditions of release for temporary residents vary from those applicable to Australian citizens, New Zealand citizens or permanent residents of Australia. There are certain circumstances in which superannuation benefits must be transferred by the Trustee to the Tax Office (for example, small or unidentifiable lost accounts, unclaimed benefits on or after age 65 and unclaimed benefits of former temporary residents). General information about super is available from You should read the important information about how super works before making a decision. For more information about how super works, go to Part 1 of the Member Guide which is available by going to the Forms page at or on request by phoning The information relating to how super works may change between the time you read this PDS and the day when you acquire this product. Section 3: Benefits of investing with the Millennium Master Plan The Millennium Master Plan is a division of the Fund ( a public offer superannuation fund ) available to: Employers, as a way of providing superannuation for their employees; Self-Employed people, as an inexpensive and easy way of providing for their retirement; Employees wishing to plan for a more prosperous retirement; People who have a rollover or eligible redundancy payment and are looking for a low cost and flexible investment; Spouses of members who wish to make contributions towards their retirement; and Employees who are nominated for membership by their employer. Members of the Fund have an accumulation style account, which means any contributions made to the Fund accumulate over time with any investment earnings (which may be positive or negative) after taking into account any fees, costs or other charges (eg. insurance premiums or taxes). Members can choose how their contributions and/or account are invested by selecting from over 40 investment options. The Plan offers a wide range of investment options including diversified and sector specific options. Member s contributions may be invested in the Fund s MySuper product EmPlus MySuper. There is no minimum contribution or investment amount required. Members can also apply for insurance cover for death, total and permanent disablement and income protection at competitive premium rates. When a member retires, or meets some other legislative condition for payment of their superannuation such as permanent incapacity, death or financial hardship, their account is payable as one or more lump sums. You can transfer superannuation in or out of the Fund. No minimum withdrawal is required. Other significant features and benefits of this product are: A financial adviser is allocated to each Member Account Contribution-splitting with your spouse is available There are no establishment, contribution or termination fees. Investment earnings are passed on to members, after allowing for relevant fees, costs and taxes, through the weekly declaration of unit prices Page 2 of 8

3 Binding death benefit nominations are available Online transacting and reporting is available The Fund has an anti-detriment payment policy, which means that death benefits paid to certain dependants may be increased by the amount of contributions tax previously deducted in respect of the deceased member (calculated in accordance with a legislative or Tax Office formula) Members personal information is protected in accordance with a Privacy Policy. You should read the important information about how super works before making a decision. For more information about the benefits of investing in the Plan, go to Part 2 of the Member Guide which is available by going to the Forms page at or on request by phoning The information relating to the benefits and features of the Fund may change between the time you read this PDS and the day when you acquire this product. Section 4: Things you should know: Risks of super All investments carry risk Different investment strategies (options) may carry different levels of risk depending on the assets that make up the strategy Assets with the highest long-term returns (such as shares and property) may also carry the highest level of short-term risk. The significant risks associated with the Fund include inflation risk, market risk, sector risk, interest rate risk, currency risk, derivatives risk and operational risk. Other general risks relevant to the Fund are: The value of your investment will vary The level of returns will vary, and future returns may differ from past returns Returns are not guaranteed, and you may lose some of your money Superannuation and taxation laws may change in the future The amount of your future superannuation savings (including contributions and returns) may not be enough to provide adequately your retirement Your level of risk will vary depending on a range of factors including your age, investment timeframe, where other parts of your wealth are invested and your risk tolerance. Section 5 of this PDS contains the risk profile of the Fund s default investment option. You should read the important information about risks of investing before making a decision. For more information about risks including the risk profile of other investment options, go to Part 5 of the Member Guide which is available by going to the Forms page at or on request by phoning The information relating to risks may change between the time you read this PDS and the day when you acquire this product. Section 5: How we invest your money Warning: You should consider the likely investment return, the risk and your investment timeframe when choosing an investment option. The Millennium Master Plan offers the following investment options. You may choose to select one or more of the following investment options: Former Millennium Master Trust (now Millennium Master Plan) Investment Options M3 Growth Strategy Pool Colonial First State Wholesale Conservative Fund M3 Balanced Strategy Pool OnePath Wholesale Capital Stable Trust M3 Conservative Strategy Pool BT Wholesale International Shares Fund M3 Australian Smaller Companies Strategy Pool MFS Global Equity Trust M3 Cash Strategy Pool AMP Capital Equity Fund Class A Units Colonial First State Wholesale Diversified Fund Aberdeen Classic Series Australian Equities Fund OnePath Wholesale Managed Growth Trust Alphinity Wholesale Socially Responsible Share Fund BlackRock Wholesale Balanced Fund SG Hiscock Wholesale Property Securities Fund Page 3 of 8

4 EmPlus Super Investment Options EmPlus MySuper m+ High Growth m+ Australian Equities - Geared m+ Growth m+ Australian Equities - Growth m+ Balanced m+ Australian Equities - Value m+ Moderate m+ Australian Equities - Index m+ Conservative m+ Australian Equities Small Companies m+ International Equities - Growth m+ Australian Shares m+ International Equities - Thematic m+ Global Property m+ International Equities Index (Hedged) m+ Australian Property Securities m+ International Equities Index (Unhedged) m+ Diversified Fixed Income m+ International Equities Emerging Markets m+ Australian Fixed Interest m+ International Equities Long/Short m+ Enhanced Cash m+ Global Smaller Companies Shares m+ Cash m+ Global Shares If you do not make an investment choice, your money will be invested in the EmPlus MySuper Investment Option - the default investment option. Before 1 July 2017, if you have not provided an investment direction to your super fund, your account balance will be transitioned to the MySuper option, in accordance with Government requirements. The following table provides details for the EmPlus MySuper Investment Option: EmPlus MySuper (default investment option) Investment Strategy Minimum Suggested Investment Time Frame Return Target Level of Investment Risk Standard Risk Measure A diversified portfolio of cash, fixed interest, Australian & global property, global emerging markets & infrastructure and shares both in Australia and internationally. The strategy would be appropriate for an investor seeking diversified, medium to long term capital growth-based returns with moderate income requirements 5 years CPI plus 4 % per annum over a 10 year rolling period. Estimated number of negative annual returns over any 20 years period: 4 to less than 6 High Asset Allocation ASSET CLASS BENCHMARK RANGE Australian Shares 24% 15% - 45% International Shares 37% 15% - 50% Property 9% 0% - 15% Australian Fixed Interest 11% 0% - 20% International Fixed Interest 9% 0% - 20% Cash 10% 0% - 20% TOTAL 100% You can switch investment options at any time by submitting an Investment Nomination Form to the Fund Administrator (contact details on the front page). Buy/sell costs apply when switching from or to some investment options. Refer to Section 6 of this PDS for more information. The Fund s investment options may be changed from time to time. The Trustee may close, remove or add investment options. The underlying managers and trusts used in the each investment option are reviewed regularly and may be changed without prior notification to members. Page 4 of 8

5 Labour Standards, Environmental, Social or Ethical Considerations The Trustee does not take into account labour, environmental, social or ethical considerations for the purpose of selecting, retaining and realising the investments. However, underlying fund managers may have their own declared ethical investment strategies in their own right (not on behalf of the Trustee). You should read the important information about how we invest your money before making a decision. For more information about how we invest your money including details of all of the Fund s investment options and how to switch investments, go to Part 5 of the Member Guide, which is available by going to the Forms page at or on request by phoning The information relating to investments may change between the time you read this PDS and the day when you acquire this product. Section 6: Fees and 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 our more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website ( has a superannuation calculator to help you check out different fee options. Fees and costs can be paid directly from your account or may be deducted from investment returns or Fund assets. You can use the fees and costs information below to compare costs between different MySuper products. However, bear in mind the nature of the investment option that you are comparing. The main fees to manage your account are listed in the table below. These fees are based on the EmPlus MySuper investment option and can be used to compare our fees with similar funds. Type of Fee or Cost* Amount How and when paid Fees when you move money in or out of the fund Establishment Fee Contribution Fee NIL NIL Withdrawal Fee $45 per withdrawal. Deducted from your account balance Termination Fee NIL Fees and costs for managing your investment Administration Fees $65 per annum. 0.58% per annum Deducted monthly in arrears from your account balance Deducted monthly in arrears from the assets of the EmPlus MySuper investment option. The deduction is reflected in the unit price. Investment Fee 0.322% per annum Deducted monthly in arrears from the assets of the EmPlus MySuper investment option. The deduction is reflected in the unit price. Advice Fee (Optional) You can agree a fee with your Financial Adviser. The agreed amount will be deducted from your account balance. Additional explanation of fees and costs The administration fees, investment fees, insurance fees, and advice fees of the other EmPlus Super investment options are different and are detailed in the Member Guide. Buy and sell spread costs will generally be incurred when you invest into, or withdraw out of investment options. The different buy / sell spreads for each investment option are detailed in the Member Guide. Page 5 of 8

6 If you are invested in any of the former Millennium Master Trust investment options an additional adviser service fee of 0.75% per annum will be deducted from amounts held in these investment options. If you are invested in any of the former Millennium Master Trust investment options the percentage based administration fee is 1.06% per annum for these investment options. If you invest in the EmPlus Super investment options (other than the EmPlus MySuper investment option) the percentage based administration fee is 0.61% per annum for these investment options. These fees are reflected in the unit price. Additional fees may be payable to a financial adviser. These fees are negotiable with your financial adviser. Refer to the Statement of Advice provided to you in which details of these fees are set out. For more information on the optional Advice Fee, refer to the Fees And Costs section of the Member Guide, available at or phone the Fund Administrator on to obtain a hard copy). For more information on adviser service fees and remuneration, refer to Part 3, Fees and Costs, of the Member Guide. Fees are estimates and may vary from year to year depending on experience of the Fund and its underlying assets. The Trustee can change the amount of fees without your consent. Any material increases in fees must be notified at least 30 days in advance. Estimated fees may vary from year to year depending on the experience of the Fund and its underlying investments. If you have insurance cover, insurance premiums will be deducted monthly in arrears from your account balance. Refer to Section 8. For more information on insurance cover and premiums, refer to the Member Guide. Example of annual fees and costs for the EmPlus MySuper investment option (Default Option): This table gives an example of how the fees and costs in the default investment option for this product can affect your investment over a 1 year period. You should use this table to compare this product with other superannuation products. Example EmPlus MySuper Investment Option BALANCE OF $50,000 WITH TOTAL CONTRIBUTIONS OF $5,000 DURING YEAR Contribution Fees NIL For every $5,000 you put in, you will be charged $0 PLUS Management Costs EQUALS Cost of Fund Administration Fees: 0.58% + $65 per year Investment Fee: 0.322% Total Fees: 0.902% + $65 per year And, for every $50,000 you have in the fund you will be charged $451 each year plus $65 in administration fees regardless of your balance If you put in $5,000 during the year and your balance was $50,000, then for that year you will be charged fees of $516. What it costs you will depend on the investment option you choose and fees you negotiate with your fund or financial adviser. * Additional fees may apply. Assumes $5,000 contribution is made on the last day of the financial year. If you would like to calculate the effect of fees and costs on your account balance, the Australian Securities & Investment Commission s website has a superannuation fee calculator. You should read the important information about fees and costs before making a decision. For more information about the fees and costs including fees and costs applicable to all of the Fund s investment options, go to Part 3 of the Member Guide which is available by going to the Forms page at or on request by phoning The information relating to fees and costs may change between the time you read this PDS and the day when you acquire this product. Section 7: How super is taxed Tax may apply to contributions made to the Fund, the Fund's investment earnings and withdrawals from the Fund, however, generally, any taxes applicable to superannuation are at a concessional (lower) rate. The Trustee will withhold and pay tax as necessary on contributions, investment earnings and withdrawals. Warning: concessional tax rates do not apply on contributions which exceed Government contribution limits. Contributions: Concessional contributions (for example, employer contributions and deductible member contributions) are subject to a tax rate of 15% provided the Fund holds your Tax File Number (TFN). Non-concessional contributions (for example, non-deductible member contributions) are usually not subject to tax. The Fund deducts contributions tax and remits it to the Australian Taxation Office after the end of each financial year. If your non-concessional contributions in a financial year exceed the relevant Government contribution limit, additional (excess) tax of 46.5% in relation to non-concessional contributions will apply. Page 6 of 8

7 From the 2013/14 financial year, taxation of excess concessional contributions will change. Excess concessional contributions will be taxed at the members marginal tax rate plus a charge to allow for the delay in paying the tax. The member will get a 15% tax offset to allow for the contributions tax that would already have applied to these contributions. Taxes may apply to transfers of superannuation into the Fund from an untaxed source (for example, certain public sector schemes). Investment Earnings: Net earnings are subject to a tax rate of up to 15%, however the actual rate may be less due to tax credits or other rebates. Withdrawals: If you are under age 60 but have reached your preservation age, the taxable component of lump sum superannuation payments is subject to a tax-free threshold of $180,000 (for the 2013/14 financial year), with the remainder taxed at 15% (plus Medicare levy). Benefits paid from age 60 and over, lump sum death benefits paid to tax-dependants and terminal illness benefits are generally tax-free. Taxes do not usually apply to transfers to another superannuation fund. Warning: You should provide your TFN when acquiring this product. If you were enrolled into the Fund by your employer, your employer will usually provide your TFN to the Fund. If the Fund doesn t hold your TFN, higher tax will apply to your concessional contributions, we cannot accept member contributions for you, the tax on superannuation benefits may be higher and it may be more difficult to locate any lost super benefits or consolidate your superannuation. Further information about tax is available from You should read the important information about tax before making a decision. For more information about taxation matters relevant to superannuation, go to Part 4 of the Member Guide available by going to the Forms page of or on request by phoning The information relating to tax may change between the time you read this PDS and the day when you acquire this product. Section 8: Insurance in your super The main types of insurance cover available via the Plan are: Death only cover Terminal Illness cover Death and Total & Permanent Disablement (TPD) cover Income Protection cover. Insurance cover is provided by OnePath Life Limited (Insurer) under insurance policies issued by the Insurer to the Trustee. To obtain additional voluntary insurance cover you must submit an Insurance Nomination Form, available from the Forms page at or on request by phoning , and any health or other evidence required, which will be assessed by the Insurer. Voluntary insurance cover only commences once the Insurer has accepted your application. Insurance cover ceases in certain circumstances including when the maximum insurable age is reached or there is insufficient money in a Member s account to pay for cover. There are costs associated with insurance cover. Different premium rates apply to different types of cover based on your personal circumstances including your age, occupation, health status and amount of cover. You are responsible for paying the insurance costs. Insurance premiums, calculated in accordance with the relevant insurance premium table, and taking into account any loadings which may apply specifically to you, are deducted from your account monthly in arrears and may be adjusted for any changes to your cover during a financial year. The Fund remits premiums to the Insurer monthly. From 1 January 2014, where your contributions are paid into the EmPlus MySuper investment option or your accrued default amount is transitioned to the EmPlus MySuper investment option (whichever occurs first), you will be provided with the EmPlus MySuper Default Table of Cover insurance cover. This insurance cover will be provided in addition to any existing insurance cover on your super account. This additional cover will be provided with Limited Default Cover exclusions (eg. excludes pre-existing medical conditions). Warning: unless you decline to acquire or cancel this cover, the additional premium for this insurance cover will be deducted from your account. You can opt-out any existing or additional insurance cover by contacting the Fund Administrator. Page 7 of 8

8 The EmPlus MySuper Default Table of Cover, death and TPD insurance cover, is set out in the table below. Up to age 64, two units of death and TPD insurance cover costs $3.20 per week. From age 65 to 69, two units of death only insurance cover costs $1.60 per week. Age Next Birthday Sum Insured 1 Unit Death & TPD Cover Number of Units EmPlus MySuper Default Cover Sum Insured EmPlus MySuper Default Death & TPD Cover Age Next Birthday Sum Insured 1 Unit Death & TPD Cover Number of Units EmPlus MySuper Default Cover Sum Insured EmPlus MySuper Default Death & TPD Cover $50,000 2 $100, $17,000 2 $34, $75,000 2 $150, $16,000 2 $32, $86,000 2 $172, $15,000 2 $30, $60,000 2 $120, $14,000 2 $28, $42,000 2 $84, $13,000 2 $26, $37,000 2 $74, $12,000 2 $24, $34,000 2 $68, $11,000 2 $22, $32,000 2 $64, $10,000 2 $20, $29,000 2 $58, $9,000 2 $18, $27,000 2 $54, * $6,000 2 $12, $25,000 2 $50, * $6,000 2 $12, $22,000 2 $44, * $6,000 2 $12, $20,000 2 $40, * $6,000 2 $12, $19,000 2 $38, * $6,000 2 $12,000 *Death cover only Warning: Insurance terms and conditions (in particular, eligibility criteria, cover cessation circumstances, conditions and exclusions) may affect your entitlement to insurance cover or the payment of insured benefits so you should read the Part 6 of the Member Guide before deciding whether the insurance is appropriate for you. You should read the important information about insurance before making a decision. For more information about insurance including when cover starts and ends, eligibility criteria for commencement of cover and payment of insured benefits, the level and types of cover available, premium costs, exclusions, and other important terms and conditions, go to Part 6 of the Member Guide available by going to the Forms page at of or on request by phoning The information relating to insurance may change between the time you read this PDS and the day when you acquire this product. Section 9: How to open an account The Millennium Master Plan is not open to new membership. If you have a complaint relating to this product, contact the Complaints Officer: Ph Address PO Box 3528, Tingalpa DC QLD info@m3.com.au. You should read the important information about cooling off and complaints handling before making a decision. For more information about cooling off (including restrictions applicable to any refunds) and complaints handling, go to Parts 7 and 8 of the Member Guide available by going to the Forms page at or on request by phoning The information relating to cooling off and complaints handling may change between the time you read this PDS and the day when you acquire this product. Page 8 of 8