IBM defined benefit transition guide

Transcription

1 IBM defined benefit transition guide

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3 Welcome to Equip Your defined benefit, including your additional accumulation benefit, is expected to transfer to Equip on 2 November You can be assured that your defined benefit will be calculated the same way as before. This guide provides you with an overview of your new super fund provider, your investments, fees and insurance cover, as well as what to look out for during the transition period. Equip your defined benefit specialist Table of contents What we offer our members 4 Overview of key dates 7 Your transfer to Equip in detail 8 9 Your additional accumulation investments at a glance Fees for your additional accumulation account from November 2016 Getting advice 14 3

4 What we offer our members At Equip, we understand that your defined benefit is an important component of your financial planning and retirement. We have over 80 years of experience administering such funds, and are recognised as industry specialists. Joining Equip as a defined benefit member means your future is with a trusted financial partner. We closely monitor and manage your benefit, regularly liaising with your employer on the funding level of your benefit, so you can start drawing on it when you re ready to retire. It s regular communication that is good for you and for your employer. Joining Equip is the start of a financial partnership that benefits you. We offer an excellent array of products and services to help you make the most of your super. You can make extra contributions using an additional accumulation account, learn and benefit from our education and financial advice and, when you eventually retire, draw a regular income from the award-winning Equip MyPension^ or our other retirement income products.

5 Industry fund, with the goal to solely profit our members We are an industry fund. This means that all the profits we make flow back to our members. A best value for money fund We receive top ratings from various independent ratings agencies. We re a multiple award-winner across several categories including value and product innovation *. History of strong investment returns Our diversified investment options have consistently outperformed industry averages. And not just in the odd year, but when it counts most over the long-term. ** We can help you reach your goals Get personal help, from simple queries to comprehensive advice. We can assist you with sorting your super, and at a competitive price too. Access your account anytime from anywhere Manage your super online: make investment switches, roll over super from other funds, or update your personal details at your leisure. ^Product innovation award is from SelectingSuper for Equip MyPension. *Ratings agencies include SuperRatings, Chant West, Heron Partnership, SelectingSuper. Best value for money is from SuperRatings. Awards are only one factor to consider when deciding if this product is right for you. **Past performance is not a reliable indicator of future performance. 5

6 Transition from AustralianSuper to Equip AustralianSuper is expected to transfer your superannuation benefits as at 1 November 2016 into your new Equip account, which will commence on 2 November For most members, the transfer process will be completed in early December As the transfer of defined benefit assets is complex, there will be a period of limited administration services, commencing on 18 October 2016 and concluding in early December. For members of categories II, IIB Former Qantas Division 2 and IIB Former Qantas Division 3, the limited service period may be longer. We will keep you informed as services resume. During this period, members may experience an interruption to some services; however, both super funds are committed to providing you continuity of service, to make this transition as easy as possible. 6

7 Overview of key dates 18 October October November 2016 Deadline for receipt of your application for any benefit payment from AustralianSuper, assuming you meet the relevant eligibility criteria. Deadline for other transactions with AustralianSuper such as investment switches and contributions *. Your login to the AustralianSuper website will be disabled from 5pm, so no online transactions will be possible, and you won t be able to see any of your account details. Changeover from AustralianSuper to Equip. Equip s Helpline will have access to some of your data to assist with managing enquiries or urgent requests. Late November 2016 Early December 2016 You will receive your transfer statement from AustralianSuper. You will receive your Equip welcome letter. Your Equip member card will be issued. Your Equip online PIN will be issued. You can access your Equip account online by logging into Full processing commences. * You cannot split any of the voluntary contributions you made to AustralianSuper with your spouse once your account is transferred to Equip. If you wish to do so, you need to complete your request by 25 October

8 Your transfer to Equip in detail AustralianSuper Until 1 November 2016 Equip From 2 November 2016 Your defined benefit Your insurance Your main superannuation benefits are based on specific formulas to calculate your benefit under a variety of circumstances, including if you leave your employer, retire, become disabled or die. These formulas will remain the same upon transfer. Any death, total and permanent disablement or salary continuance cover you have with AustralianSuper as at 1 November will transfer to Equip. However, future increases in cover may be subject to underwriting if your cover exceeds certain limits. Contact Benefit payments, including lump sum payments, financial hardship, etc. Employment termination Until 1 November From 8 AM until 8 PM AEST From 18 October, AustralianSuper will stop processing your benefit payment requests. In urgent cases, please contact AustralianSuper until 1 November. If you are planning on ceasing employment before the transfer date, we suggest you talk to your employer about your options. From 2 November From 8 AM until 6 PM AEST From 2 November, all requests will need to be sent to Equip for processing, using the appropriate Equip forms. Urgent applications from 2 November will be processed, but we may not be able to pay your full balance until the transfer has been completed in early December. Benefit payments will resume from early December. If your termination advice is received after 2 November, your request will only be processed once full administration services resume in early December. 8

9 Voluntary contributions and roll ins Your investments (additional accumulation account) Investment switching (additional accumulation account) Binding / preferred beneficiary nominations AustralianSuper Until 1 November 2016 You can make voluntary contributions and roll ins until 25 October. Any contributions and roll ins received after that date will be refunded. Your additional accumulation account will remain invested until 1 November. You can make online switches until 25 October, 4 PM AEST. Any binding death benefit nominations will expire on 1 November, and will be transferred as preferred nominations to Equip. Equip From 2 November 2016 Contributions and roll ins can be accepted from 2 November. Your new Equip BPAY details will be provided as part of our welcome package that you will receive in late November. From 2 November, your investments will be switched into Equip investment options (see pages 10-11). Daily unit prices for each option are published on the Equip website. You can initiate a paper-based investment switch from 2 November, however, these will only become effective in early December once your account balance has been transferred. If you submit several requests, only the most recently dated request will be implemented. The form can be found on the Equip website in the forms section. Online switching will be available in early December. To maintain your binding nomination, you will need to submit a new binding death benefit nomination. Any preferred nominations will transfer automatically. Website services online secure account Website services public website Your usual online services will be available until the end of business on 25 October. corporate Access to your secure account information resumes in early December. Your log in will require a plan number, as well as your member number and PIN. You will receive these details by letter just prior to the secure site becoming available. Any other requests received by AustralianSuper and not finalised by 1 November will be handed over to Equip. 9

10 Your additional accumulation investments at a glance If you have an additional accumulation account with AustralianSuper, then your investments will be transferred to Equip. For members of categories IIA, IIB Former Qantas Division 2 and IIB Former Qantas Division 3, your additional accumulation account will be invested in the same Equip option as the assets supporting your defined benefit. For members of category II, your additional accumulation account will be invested in the Equip option that most closely matches your current investments. If there are significant differences between the mapped options, we ve marked them next to each option in the following tables. We have taken into account the investment objective, asset allocation, investment timeframes and risk for each option. You can switch your investments until 25 October (4 PM) on the AustralianSuper website, or from early December on the Equip website. Your current AustralianSuper PreMixed investment options will be mapped to Equip s Diversified options as follows: AustralianSuper PreMixed investment options High Growth Indexed Diversified Equip Diversified options Growth Growth Significant investment differences None Equip does not run any indexed (or passive) investment options; the Equip Growth option is actively managed and hence the associated fees are higher. Balanced Socially Aware Conservative Balanced Stable Capital Guaranteed Balanced Growth Balanced Growth Balanced Conservative Cash None The Equip option does not apply a strict focus on environmental, social and corporate governance standards. None None Equip does not offer a capital guaranteed option. Monies will be transferred into the Cash option. 10

11 Your current AustralianSuper DIY Mix options will be mapped to the following Equip Sector Specific options: AustralianSuper DIY Mix options Australian Shares International Shares Property Diversified Fixed Interest Cash Equip Sector Specific options Australian Shares Overseas Shares Property Fixed Interest Cash Significant investment differences None None The AustralianSuper option consists entirely of direct property investments, while the Equip option includes a 30% allocation to listed property and invests the rest in unlisted property trusts. None None Daily unit pricing Note that unlike AustralianSuper, who use crediting rates, we use daily unit prices for our investment options, which means that you will hold a number of units for each investment option you invest in. The value of your account changes depending on the current sell price of these options. Unit prices are published daily on our website under the investments tab. For more information on our investment options, including details on the investment mix and objectives, go to the investment tab on our website, There, you can also find more about our long-term performance track record, our top holdings, our investment approach and much more. 11

12 Fees for your additional accumulation account from 2 November 2016 As an industry fund or, as we prefer to call it, a profit-for-member fund we are very conscious of the costs we charge to you, our members. Our goal is to keep your fees as low as possible, while providing value to you for all of our products and services. Any profits we make flow back to members. We decreased the investment fees for all investment options (but Cash) on 1 February All costs associated with your defined benefit account as well as the administration fee for your additional accumulation account are paid by your employer. The table below shows the fees you will pay if you have an additional accumulation account. Type of fee Amount How and when paid Investment management fees Buy-sell spread fee Switching fee 0.06% to 0.72% per annum, depending on the option you invest in. Buy and sell spreads depend on the investment options and range from 0% %. Nil Deducted from the underlying asset value and reflected in the daily unit prices applied to your account. The fee depends on the investment option you choose. Charged via the unit buy and sell price, when you transact. N/A There is no charge for binding death benefit nominations. Additional fees may apply for specific services or activities, such as family law requests and splits. For other fees and costs, refer to IBMtransfer, or you can call the Equip Helpline on

13 The table below shows the investment management fees we charge for each investment option a category II member can hold in their additional accumulation account.* Equip Diversified options Cost* p.a. Equip Sector Specific options Cost* p.a. Growth Plus Growth Balanced Growth Balanced Conservative 0.59% Australian Shares 0.56% 0.61% Overseas Shares 0.59% 0.58% Property 0.72% 0.50% Sustainable Responsible 0.53% Investments (Shares) 0.38% Fixed Interest 0.36% *The annual investment fees are estimates only and include performance fees we pay to investment managers. Cash 0.06% Insurance premiums Premiums associated with your standard insurance cover are paid by your employer. If you also have additional voluntary cover, then this cover will transfer and you will continue to pay for the costs associated with it. Depending on your age and level of cover, the premiums of the additional cover will be the same or cheaper. We will provide more details in our welcome letter in late November

14 Getting advice We have a dedicated team of in-house financial advisors. Whether you are mid career or heading towards retirement, Equip Financial Planning can help you build wealth and financial security with a tailor made plan. Our planners focus on you and achieving your goals. Our planners have in-depth experience with all aspects of your defined benefit. They can explain your defined benefit to you in detail and assist you with projections for your retirement income, maximise your defined benefit while you re still working, or put a retirement plan into action. We charge on a fee-for-service basis at competitive rates, and receive no commissions from financial product providers. Please call us at for more information. If you are already using a financial planner who has access to your account details, and you would like them to continue to do so, please complete and lodge the Establish authority to obtain information form which can be found on our website. 14

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16 IBM defined benefit transition guide Equipsuper Superannuation Fund ABN USI SPIN EPL0100AU Equipsuper Pty Ltd ABN AFSL Head office Level 12, 330 Collins Street Melbourne VIC 3000 Mail Equipsuper Pty Ltd GPO Box 4303, Melbourne VIC 3001 Member Services Representatives Helpline: Fax: (03) Equipsuper Pty Ltd ABN AFSL is the Trustee of the Equipsuper Superannuation Fund ABN This information is general information only. Before making a decision to invest in the fund, you should read the appropriate Equip Product Disclosure Statement (PDS). Past performance is not an indication of future performance. 16 IBM and the IBM logo are trademarks of International Business Machines Corp., registered in many jurisdictions worldwide. Publication No: ESP_IBM_TG _0916