Optimum Corporate Super

Transcription

1 Optimum Corporate Super Product Disclosure Statement (PDS) Inside this PDS Issued 1 July 2014 How to contact us: 1. About Optimum Corporate Super (Optimum) Customer Service Centre GPO Box 1576 Sydney NSW How super works 3. Benefits of investing with Optimum 4. Risks of super How we invest your money 6. Fees and costs 7. How super is Insurance in your super 9. How to open an account super@asteronlife.com.au www asteronlife.com.au This PDS was prepared on 25 June 2014 and summarises important information about investing in Optimum Corporate Super (Optimum). It contains references to important information about Optimum, which is available in the Product Guide, and any other material incorporated by reference. The Product Guide, and any other material incorporated by reference, forms part of the PDS and contains important information which should be read and considered before making a decision to invest in Optimum. The information contained in this PDS, the Product Guide, and any other material incorporated by reference, is of a general nature only and doesn t constitute financial advice. It has been prepared without taking into account your particular objectives, financial situation or needs. Before deciding to open an account or continuing to hold an interest, you should consider how the information contained in this PDS relates to your own situation. We recommend that you speak to a financial adviser who will be able to help you with your investment and insurance decisions. Suncorp Portfolio Services Limited (Trustee) (ABN , AFSL , RSE Licence No L ) is the Trustee of Optimum and the issuer of this PDS, the Product Guide, and any other material incorporated by reference, and takes responsibility for its contents. Optimum (SPIN and Unique Superannuation Identifier RSA0111AU) is part of the Suncorp Master Trust (Fund) (ABN , RSE Fund Registration No. R ). The Trustee, Suncorp Life & Superannuation Limited (SLSL) (Insurer) (ABN , AFSL ) and Suncorp-Metway Limited (ABN , AFSL ), are related bodies corporate of Suncorp Group Limited (Suncorp Group) (ABN ). Insurance cover offered through Optimum is provided by SLSL in a non-participating policy issued to the Trustee. Various products and services are provided by different entities of the Suncorp Group. The different entities of the Suncorp Group are not responsible for, or liable in respect of, products or services provided by other entities of the Suncorp Group. The obligations of the Trustee and the Insurer aren t guaranteed by any other company within the Suncorp Group. Except as otherwise stated, the Suncorp Group and its subsidiaries and related bodies corporate don t guarantee the repayment of capital invested in or the investment performance of this product. This product is not a bank deposit or other liability and is subject to investment risk including possible delays in repayment and loss of the interest and principal invested. If you d like a free, printed copy of the PDS and Product Guide, contact us on The information in this PDS may change or be updated by us from time to time. If we update the information in the PDS, you can view it on our website at asteronlife.com.au If you d like a free, printed copy of the updated information you can request it by calling us on

2 1. About Optimum Corporate Super (Optimum) Optimum is part of the Suncorp Master Trust. Your employer has chosen Optimum as your superannuation fund to help you invest and save for your retirement. When it comes to investing in super, Optimum gives you a high degree of flexibility to suit your individual investment goals. Optimum can also take care of your insurance needs with cover from Suncorp Life s leading range of life insurance products. Optimum includes a simple and cost effective super product called MySuper. The Suncorp Lifestage Fund is the default investment option for Optimum and is an authorised MySuper product. We re proud to have been chosen as your superannuation provider. So first of all, we d like to welcome you and invite you to get to know your super account. After all, one day your super s going to play a big role in your family s financial security. About superannuation (or super ) Did you know your super is likely to be the second largest asset you build in your lifetime, after the family home? Your super can help you reach your financial goals and achieve the retirement lifestyle you want. The Government provides significant tax concessions and other benefits such as the Government co-contribution scheme, generally making it one of the best ways to save for your retirement. About us WOptimum is provided by Suncorp Portfolio Services Limited (SPSL), a wholly owned subsidiary of Suncorp Group Limited. SPSL is the trustee of Optimum. (The trustee is a semiindependent body that makes sure our super fund is run in the best interests of our customers and as per superannuation law.) What you can expect from us We take the responsibility for your investment very seriously. That s why we ll do all we can to support you and help you make the most of your super account. How will we do this? We ll keep things simple. If you re unsure about where your super should be invested, we ll help you with information about how to match your attitude to risk with your investment choice. We ll help you protect what s important with insurance within your super. We ll make it easy for you to manage your account, by giving you a range of contact options from online, telephone, fax or post. With Optimum, you re on the way to a better future for you and your family. Optimum for business Optimum is also available for employers. You ll find what you need to know in the Optimum Corporate Super Product Guide. The Product Guide is available at asteronlife.com.au 2. How super works Your super, which is in part compulsory, is a means of saving for your retirement. For many, if not most of us, the current level of 9.5% our employer contributes is unlikely to be enough to give us a big enough income, for as long as we need it, when we retire. But there are plenty of other ways to make the most of your super, and several tax advantages and incentives provided by the Federal Government to encourage you to invest in super and save more for your retirement. The choice is yours Where you invest your super is your choice. Super Choice is legislation that allows you to choose (if you re eligible) where you want your compulsory employer contributions paid. If your compulsory employer contributions are currently being paid into another account and you d like them to be paid into your Optimum account, fill in a Standard Choice form, available from our website. For more information about Super Choice, visit the Australian Taxation Office s (ATO) website at ato.gov.au/super Contribution types There are different types of contributions you can make into your super account. These fit into one of two categories: Concessional contributions (from pre-tax dollars) or Non-concessional contributions (from after-tax dollars). In both categories there are caps on the amount you can contribute to super in a financial year (from 1 July to 30 June), without incurring additional tax. Employer contributions Unless you are an exempt employee, your employer must make superannuation guarantee (SG) contributions to your account on a quarterly basis. The SG amount is currently equal to 9.5% of most employees salary. This will gradually increase to 12%. Voluntary contributions Voluntary contributions include amounts you deposit into your super account in addition to any compulsory contributions made by your employer. Voluntary contributions can be made as a personal, after-tax contribution or from your pre-tax salary. Government co-contribution If you make a personal contribution from after-tax dollars, you may be eligible to receive an additional contribution into your account from the Government. This is known as the Government co-contribution scheme. 2 Asteron Life

3 If you earn $34,488 a year or less (in the 2014/15 financial year) and make a personal, after-tax contribution of $1,000 into your super account, the Government may pay $500 (the maximum co-contribution amount) into your super account. The co-contribution amount decreases for those on higher incomes, but you can still benefit from the scheme if you earn less than $49,488 a year. Rollovers If you ve had a few jobs, you ve probably got a few different super funds. One of the easiest ways to simplify your finances, and potentially boost the amount of money you ll have when you retire, is to combine multiple super funds into one. Consolidating your funds is easy, and we can help you. You can even do most of it online using our Super Rollover Wizard visit asteronlife.com.au/combineyoursuper to get started. Before consolidating, we recommend you contact your other super funds to find out if any exit fees are payable and how your insurance arrangements may be affected. Accessing your benefits Super is a long-term investment designed to help you save for your retirement. Legislation determines when you can access your super benefits. To give your super time to grow, it s preserved throughout your working life and access is generally restricted until you at least reach your preservation age. However, you can transfer (rollover) to another complying super fund at any time. How super works before making a decision. Go to Contributions in the Product Guide. The material relating to Contributions may change between the time when you read this PDS and the day you join Optimum. 3. Benefits of investing with Optimum Optimum is a super fund that helps you invest and save for your retirement. It provides you with: Access to the Suncorp Lifestage Fund, an investment option that changes as you get older. A choice of nine diversified and 41 single sector investment options. Insurance provided by one of the highest rated, and most award-winning insurers in Australia. Online access to your account whenever you feel like it, allowing you to view and manage your account how you want to, when you want to. Straightforward, easy to understand communications and education tools to assist you in understanding your super and investing. Choice of binding or non-binding death benefit nominations. Benefits of investing with Optimum before making a decision. Go to the Product Summary in the Product Guide. The material relating to Benefits of investing with Optimum may change between the time when you read this PDS and the day you join Optimum. 4. Risks of super All types of investment, including super, carry risk. The level of risk tolerance varies for each person depending on things like their age, how long they plan to keep their investment for, and what other investments they ve got. That s why it s important to speak to your financial adviser before making any investment decisions. Most importantly, you should understand that: The overall risk with super is that you may not end up with enough money to provide you with an adequate lifestyle when you stop working. As a general rule, riskier investments will provide a higher potential long-term return. By the same token, the smaller the risk an investment poses, the lower the potential return it will provide. The value of your investments (and thus your super account balance) may go up or down. Unless specified, investment performance is not guaranteed, which means you could lose some or all of your money. Investment returns will vary. Just because an investment or asset class has done well in the past doesn t necessarily mean it will do well in the future. Laws affecting super (such as superannuation, taxation and social security laws) change. Super is generally preserved until you retire or meet another condition of release. It s a good idea for you to consider what these risks might mean for you. If you re not sure how you feel about risk, you ll find tools and calculators on our website or give us a call and we can help you. Standard Risk Measure The Standard Risk Measure (SRM) is a calculation we do to help make it easier for you to compare the riskiness of investment options. It tells you how many negative annual returns an investment option can be expected to deliver over any 20 year period. The SRM doesn t assess all forms of risk so it s important you read the Understanding Investment Risk flyer, available on our website. the Risks of super before making a decision. Go to How we invest your money in the Product Guide and the Understanding Investment Risk flyer. The material relating to How we invest your money and the Understanding Investment Risk flyer may change between the time when you read this PDS and the day you join Optimum. Optimum Corporate Super PDS 3

4 5. How we invest your money Our investment menu The Optimum investment menu makes it simple for you to choose an investment option that s right for you. You can build your own investment portfolio from our nine diversified and 41 single sector multi-manager investment options. You can change your investment strategy at any time by completing an Investment change form available on our website. Before making a choice, you should consider the possible investment return and risk of the investment options and how long you plan to keep them. Refer to the Product Guide for more information on the Optimum investment options. Default investment strategy If you don t choose your own investment strategy, you will be invested in the default Suncorp Lifestage Fund. This means you will be invested in the Suncorp Lifestage Fund for your year of birth. For example if you were born in 1982, you will be invested in the Suncorp Lifestage Fund For an illustration on how your investment mix changes as you get older, please refer to the next page of this PDS. Fund profile for the Suncorp Lifestage Fund Investment objective Investment strategy The Suncorp Lifestage Fund aims to maximise capital growth, real capital preservation and income returns from a diversified mix of investments. The emphasis changes from capital growth to capital preservation and income as you get older. The Suncorp Lifestage Fund holds a diversified mix of growth and income investments, with an increased allocation to income investments as you get older. Each Suncorp Lifestage Fund is tailored to suit the investment needs and risk profile of investors within the specified age group. How we invest your money in the Suncorp Lifestage Fund Year of birth Standard Risk Measure Recommended minimum time to keep the investment Strategic Asset Allocation (This shows the percentage of money that we put into each type of investment. They add up to 100%.) Income investments (%) Growth investments (%) Cash Aus fixed interest Intl fixed interest Infrastructure Total income Property Aus shares Intl shares High 10 years High 10 years High 10 years High 10 years High 10 years High 10 years High 10 years Med 10 years to high Med 10 years Med 10 years Low 7 years Low 5 years Low 5 years Low 5 years and earlier 3 Low 5 years These percentages can vary to allow our investment manager to maintain the long-term objective of each Suncorp Lifestage Fund. To keep things simple, we ve rounded these numbers up or down to the nearest full one per cent, and where the resulting totals haven t added up to 100 per cent, we ve adjusted cash. Total growth 4 Asteron Life

5 Proportion of growth investments 100% 80% 60% 40% 20% 0% Changes to investment options The Optimum investment menu may change from time to time, including the fees and costs relating to the investment options. It s important to check our website regularly for any changes to your investment options, including the fees and costs relating to the investment options. How we invest your money before making a decision. Go to How we invest your money in the Product Guide. The material relating to How we invest your money may change between the time when you read this PDS and the day you join Optimum. 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. Your employer may be able to negotiate to pay lower administration fees. Ask the fund or your financial adviser. 1 To find out more If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (moneysmart.gov.au) has a superannuation fee calculator to help you compare different fee options. 1 We re required by law to include this paragraph. Sorry, but our fees aren t negotiable. Summary of fees and costs How we invest your money with the Suncorp Lifestage Fund More growth investments, such as shares and property We change your investment mix as you get older This PDS shows fees and costs that you may be charged. These fees and costs may be deducted from your money, from the returns on your investment or from the assets of the superannuation entity as a whole. Other fees, such as activity fees, advice fees for personal advice and insurance fees, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you. Taxes, insurance fees and costs relating to insurance are set out in the Product Guide. You should read all the information about fees and costs because it is important to understand their impact on your investment. Fees and costs associated with any investment in the Suncorp Lifestage Fund (as outlined below) will be separate from your other investment options. For fees and costs applied to your other investments, please refer to the Fees and costs section of the Product Guide. Suncorp Lifestage Fund Type of fee Amount How and when paid Investment fee 0.20% pa This fee is included in the daily unit price calculation Administration fees 0.65% pa This fee is included in the daily unit price calculation Fewer growth investments (and more income investments like fixed interest and cash) Your age Illustrative only $1.50 per week This is charged as a monthly fee of $6.50 and is deducted by withdrawing units from your account on or around the 28th of the month 100% 80% 60% 40% 20% 0% Buy-sell spread Switching fee Exit fee Optimum Corporate Super PDS 5

6 6. Fees and costs (continued) Suncorp Lifestage Fund Type of fee Amount How and when paid Advice fees relating to all members investing in the Suncorp Lifestage Fund Other fees and costs Indirect cost ratio Please refer to the Additional explanation of fees and costs section for more information Changing investment options Changing your future investment strategy (or switching your investment) from the Suncorp Lifestage Fund to other investment options may mean a change to the fees and costs you pay, including investment and administration fees. Please see Fees and costs in the Product Guide for more information. Additional explanation of fees and costs Personal advice fees You can authorise us to pay a fee for personal advice to your financial adviser (agreed by us) and have the fee charged to the Suncorp Lifestage Fund. It can be a one-off or ongoing fee and may be either a dollar or percentage amount. You can also direct us to deduct this fee from your other investment options. You should refer to your financial adviser s Statement of Advice for details of this fee. Other important information The Trustee may also recoup a proportion of its APRA levy from your investment returns. Please refer to the Product Guide for more information. For insurance fees on your super account, please refer to the Insurance in your super section of this PDS. All fees in this PDS are quoted after the effect of income tax and inclusive of GST (less any available reduced input tax credit). This means the fees you see are the fees you ll actually pay. We can also introduce certain new fees or change the level of fees you pay at any time without your consent. But if we need to do this, we ll always let you know by writing to you at least 30 days before any adverse change. Example of fees and costs The following table gives you an example of how the fees and costs for the Suncorp Lifestage Fund (MySuper product) in Optimum Corporate Super affect your superannuation investment over a one year period. You should use this table to compare this product with other super products. Example Suncorp Lifestage Fund Balance of $50,000 Investment fees 0.20% pa For every $50,000 you have invested in the Suncorp Lifestage Fund you will be charged $100 each year PLUS Administration fees $78 pa ($6.50 per month) plus 0.65% pa And, you will be charged $403 in administration fees PLUS Indirect costs for the Suncorp Lifestage Fund EQUALS cost of product And, indirect costs of $0 each year will be deducted from your investment If your balance was $50,000, then for that year you will be charged fees of $503 for the Suncorp Lifestage Fund Fees and costs and How we invest your money before making a decision. Go to Fees and costs in the Product Guide. The material relating to Fees and costs and How we invest your money may change between the time when you read this PDS and the day you join Optimum. 6 Asteron Life

7 7. How super is taxed There are a number of ways that your super account is taxed: On contributions received On your investment earnings On withdrawals 0% on non-concessional contributions 15% on concessional contributions 1 47% 2 on excess amounts over the non-concessional contribution cap 3 Your marginal tax rate 2 plus an excess concessional contributions charge on excess amounts over the concessional contribution cap 47% 2 on concessional contributions where a TFN is not held by the super fund 15% if your transfer contains any untaxed components 4 Up to 15% on investment earnings For lump sum withdrawals 0% if you re age 60 or over 15% 2 on taxable components over $185,000 5 if received when you re between your preservation age and age 59 20% 2 on taxable components if you re under your preservation age For death benefits paid as a lump sum withdrawal 0% if paid to a tax dependant 15% 2 on taxable (taxed) component paid to a non-tax dependant 30% 2 on taxable (untaxed) component paid to a non-tax dependant 1 If income exceeds $300,000 per annum, contributions tax of 30% will apply. 2 Plus Medicare levy. 3 It is proposed if your non-concessional contribution exceeds the non-concessional contribution cap, you can withdraw the excess contributions with no excess contribution tax payable and with associated earnings taxed at your marginal tax rate. However, if you leave your excess non-concessional contributions in your super, you will be taxed on these at the top marginal tax rate plus budget repair and Medicare levies. 4 Any excess over your untaxed plan cap amount (which is up to $1,355,000 for the 2014/15 financial year) is taxed at 47% plus Medicare levy. 5 For the 2014/15 financial year. Tax file numbers While you don t have to give us your tax file number (TFN), there are disadvantages in not doing so. You may be taxed more and we may not be able to accept certain contributions. For more information on this, please see the Tax file numbers (TFN) section in the Product Guide. Other important information about tax Taxes, duties and levies incurred by us are recovered directly from the assets of the investment options (where the expenses are investment costs) before determining unit prices, or from your account. You should be aware that if your super contributions exceed the caps, there may be tax consequences. You may pay additional tax or the contributions will be rejected. The Trustee will deduct any applicable tax from your account for contributions and withdrawals. Taxation information before making a decision. Go to Taxation information in the Product Guide. The material relating to Taxation information may change between the time when you read this PDS and the day you join Optimum. 8. Insurance in your super Optimum offers Death only, Death & Total and Permanent Disablement (TPD) and Income Protection (IP) insurance. Your insurance in Optimum What insurance cover are you provided when you join Optimum? The type of cover you will automatically receive as a corporate member of Optimum is selected by your employer. This cover is subject to you being under age 65 for Death and under age 60 for TPD and IP, employed for more than 15 hours per week and being At Work on the day you join. Your employer also needs to provide us with contributions and certain information within 130 days of you commencing employment. See the Product Guide for full details about the eligibility requirements. Your employer can choose: Type of cover Death and Total and Permanent Disablement (TPD) Income Protection Cover options Trustee Minimum Cover Fixed benefit amount Multiple of your salary (minimum of 2 x salary ) Percentage of your salary multiplied by the future years of service to age 65 (minimum of 5.5%) Fixed insurance fee minimum of $1 per week for white collar and $1.50 per week for blue collar employees Up to 75% of salary Plus optional super contributions of up to 10% of your salary Two year benefit period 30, 60 or 90 day waiting period The insurance that you receive will be detailed in your welcome pack. If your employer has arranged insurance cover with another insurer agreed by the Trustee, the terms and conditions of insurance in this PDS and the Product Guide will not apply to you. Your welcome pack will include details of your insurance, the insurance policy and any relevant endorsements that apply to you. Optimum Corporate Super PDS 7

8 8. Insurance in your super (continued) Automatic cover If your employer has not arranged any insurance cover for you through Optimum, the Trustee may automatically give you its Trustee Minimum Cover for Death and TPD. How do you apply for additional or member selected cover? If you d like to apply for additional or member selected cover, simply fill out an Insurance Application form, available on our website and return it to us. The insurance cover provided under the plan is subject to you meeting certain eligibility criteria or underwriting requirements. These may affect your insurance cover, or the circumstances in which an insurance benefit may be payable under the Policy. Who pays for your insurance cover? There are costs associated with your insurance. Your insurance fees are calculated based on a number of factors which include the type and amount of insurance cover, your age, gender and occupation. Unless you have an alternative arrangement with your employer, your insurance fees will be deducted monthly from your super account. For more information, refer to the Optimum Corporate and Personal Insurance Premiums and Occupational Ratings Guide which is available at asteronlife.com.au or by calling us. What if you don t want insurance? If you don t want insurance cover, you can cancel your insurance cover at any time by writing to us. If you cancel or reduce your cover within 30 days of receiving your confirmation of membership, we ll refund all insurance fees deducted from your account. What happens when you leave your employer? When we are notified you have left your employer, your Death and TPD cover will continue automatically. Your insurance will be fixed at the dollar amount of your insurance that applied at the time you left your employer, and your insurance fees will be based on individual smoker rates, unless you write to us to advise you are a non-smoker. Any Income Protection cover will stop. You can apply to continue your Income Protection cover, but must apply within 30 days of leaving your employer (or your employer notifying us that you have left, if later). If accepted, your insurance fees will be based on individual rates. For full details, please see the Product Guide. Insurance in your super before making a decision. Go to Insurance in the Product Guide and the Insurance Premiums and Occupational Ratings Guide for more information. The material relating to Insurance may change between the time when you read this PDS and the day you join Optimum. 9. How to open an account If you re employed by an employer who has their corporate super plan with Optimum they will notify us of your details. We ll open an account for you so there s no need for you to complete an application form. You should read the PDS and Product Guide, which provides details on the features and benefits of Optimum and how it operates. Cooling off period (employers only) If you change your mind, and decide to cancel your Optimum employer plan, a 14 day cooling-off period will apply. The cooling-off period will start on the date we confirm an account has been established for one or more of your employees, or the 5th day after the day on which the account was established (whichever is earlier). You ll need to contact your financial adviser to request the return of contributions, and provide us with written confirmation of your cancellation within the 14-day period. The amount of money we return may be less than the amount you contributed due to adjustment for any market fluctuations, any withdrawals already taken and any tax that we may be required to deduct. Any fees and charges, except those payable to investment managers will be refunded. The cooling-off period will end earlier if you or any of your employees exercise any of your membership rights, such as changing your investment portfolios. Employees of an Optimum employer plan do not get a cooling off period. Refer to the Product Guide for more information. Privacy We appreciate that privacy is important to you. Before making a decision, you should read our Privacy Statement in the Product Guide and Suncorp Group Privacy Policy to ensure that you understand how our companies may collect, use and disclose your personal information. For more information please refer to the Product Guide. Complaints If you have any feedback, we d like to hear from you. You can find details on how to contact us on the front cover of this PDS. This also includes any issues or complaints you may have. We make every effort to ensure your complaints are resolved satisfactorily and quickly. MYSUPER AUTHORISATION NUMBER Asteron Life AS /07/14 A