Equip MyPension. Product Disclosure Statement. Be better equipped for retirement. Contents

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1 Be better equipped for retirement Equip MyPension Product Disclosure Statement Contents Equip MyPension 4 General information about your pension 9 Tax on income & withdrawals 11 Beneficiaries - who will get your benefit? 13 Managing your investments 14 Fees and costs 17 Additional explanation of fees and costs 18 General information 22 Forms 27 Equip MyPension is a retirement strategy, designed to provide you with a stable, regular pension income stream over time. Equipsuper Pty Ltd ABN , AFSL ( Equip ) is the Trustee of the Equipsuper Superannuation Fund ABN ( the Fund ).

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3 3 Equip MyPension is a retirement strategy, designed to provide you with a stable, regular pension income stream over time. Product Disclosure Statement (PDS) Equipsuper Pty Ltd ABN , AFSL ( the Trustee or we or us ) is the Trustee of the Equipsuper Superannuation Fund ( Equip or the Fund ) ABN This PDS is issued by the Trustee and contains a summary of the main features available. It should be considered as a guide only. Any Supplementary PDS (SPDS) that may be issued by the Trustee and is relevant to this division should be read together with this PDS. This PDS does not constitute and should not be construed as an offer, invitation or recommendation by the Trustee to apply for membership in the Fund in any state, country or jurisdiction (other than Australia) where such an offer, invitation or recommendation may not be lawfully made. Applications from outside Australia may not be accepted through this PDS. The final authority on any issue relating to Equip is the Trust Deed governing Equip, any applicable Participation Agreement and the relevant insurance policy. Although we use the term Equip MyPension, under superannuation law it is known as Account Based Pension. We use Equip MyPension in this document for ease of reference. This document is for general information only. It has been prepared without taking into account your personal objectives, financial situation or needs. You should consider whether this information is appropriate to your personal circumstances before acting on it and, if necessary, you should also seek professional financial advice. Where tax information is included you should consider obtaining personal taxation advice. If you are considering investing in the Fund, you should read the appropriate PDS before making an investment decision. Neither the Trustee, nor any employees or directors of the Trustee, guarantee the repayment of capital or the performance of the Fund. Past performance is not an indication of future performance. This document was up to date at the time when it was prepared. There is some information in this document that is subject to change from time to time. If this information is not materially adverse to you, we may update it by insertion on our website at and/or inclusion in the next available edition of our newsletter. Any updated information may be found by logging into the members area of our website or calling our Helpline A paper copy of updated information will be given to you without charge on request. If there is a materially adverse change to the information contained in this PDS, we will advise you of the change in writing and issue a SPDS. Unless otherwise specified in the PDS, you will be given written notice of any material change or significant event within the time frame prescribed in the relevant legislation.

4 Equip MyPension 4 Be better equipped for retirement About Equip MyPension Once you have made the decision to fully retire from the workforce or have satisfied a condition of release, you have the option of commencing a pension with Equip, which you can only purchase with superannuation money. Equip MyPension is a retirement strategy, designed to provide you with a stable, regular pension income stream over time so you can enjoy your retirement. The investment strategy behind Equip MyPension has been designed to strike a balance between income stability and capital growth over the medium to long term. Why? While it s important for your retirement assets to deliver consistent income for example stable investments, dividends and the like some of your money also needs to be set up to grow through time. It is this capital growth that is designed to make your assets stretch as far as possible. And while Equip MyPension is designed to make your money last, you still have the flexibility to make lump sum withdrawals to pay for extras, such as holidays, at any time, although this will deplete your account more quickly. Equip MyPension key features at a glance Income: Choose your annual income and receive regular income payments. Investments: Set-and-forget investment strategy, providing you with income while also managing the risk of you outliving your money. Automation: An annual financial check of your Equip MyPension account that rebalances your investment portfolio. Flexibility: Make lump sum withdrawals at any time; cease or roll back into super at any time. Payment frequency: Choose between fortnightly, monthly, quarterly, half yearly and annual payments. Estate planning: Access to various options, such as death benefits paid to a spouse as continued pension payments, or as a lump sum to dependant(s) or estate. How your investments work To invest your money, we use our three-bucket approach. When starting your pension, your money is divided into three distinct investment options (or buckets ). These options are part of the Equip s long-standing investment offering and have been chosen to meet specific investment objectives, as outlined below. Buckets Objective What the money is used for Cash option Conservative option Growth option Starting with three years worth of income, the money in this bucket is designed to meet your income needs over the short time (generally 2-3 years). This bucket provides some stability over the medium to longer term, with the goal to generate income and some capital growth. This bucket is designed for your savings to grow and make them last as long as possible. Its return may fluctuate more over shorter time frames than the other buckets, but is expected to produce higher returns over the long term. Your income is paid from this bucket. Any earnings in this bucket will top up the Cash bucket. Lump sum payments (if any) are drawn in equal amounts from this bucket and and the Growth bucket. Any earnings in this bucket will top up the Cash bucket. Lump sum payments (if any) are drawn in equal amounts from the Growth and Conservative buckets. Who should consider Equip MyPension Equip MyPension is designed for people who don t want to make investment choices for retirement. We manage your money for you, with the goal to make your retirement assets last as long as possible. You can purchase an Equip MyPension with a minimum of $50,000. However, depending on your income needs, the product will work more effectively with a higher starting balance. Eligibility To be eligible, you must first satisfy one of the following conditions of release: you have permanently retired from the workforce at or after your preservation age; you have reached age 65; you have reached age 60 and have ceased employment since attaining 60 or you have reached age 60 and have changed employment since attaining age 60; or you become permanently disabled and the Trustee is satisfied that you are permanently disabled.

5 Equip MyPension 5 Be better equipped for retirement How your money is allocated when you start Equip MyPension When you start an Equip MyPension, you must choose your annual income. Based on that amount, we will put three years worth of income into the Cash bucket; the remaining money will be split in equal amounts between the Conservative and Growth buckets. Your annual income must be at least the minimum pension payments mandated by law, as set out in the table below. To illustrate, we show some examples below. The objective of Equip MyPension is to make your money last as long as possible. When designing Equip MyPension, we tested the assumptions rigorously. These tests have shown that Equip MyPension works well when members take out 7% (or less) of the initial account balance as income per annum. This ensures that there is enough money in the Conservative and Growth buckets, providing you with the investment earnings needed to make your money last through retirement. Whilst you may choose a higher income, this may deplete your account balance faster. In this instance, we recommend you obtain personal financial advice to ensure this product is suited to your objectives. Example 1: Harry, 62 years of age. Initial account balance: $450,000. Harry would like to receive an annual income of $30,000 (or $2,500 monthly). According to the government minimums, he must draw down at least 4% of his account balance. The annual income he chooses is approximately 6.6% of his initial account balance. His initial account balance will be invested as follows: Example 2: Elizabeth, 60 years of age. Initial account balance: $300,000. Elizabeth would like to receive the minimum income as mandated by law, which is 4% of her initial account balance or $12,000 per year. Her initial account balance will be invested as follows: Cash Conservative Growth Cash Conservative Growth 3 X $30,000 = $90,000 ($450,000-$90,000)/2 = $180,000 ($450,000-$90,000)/2 = $180,000 3 X $12,000 = $36,000 ($300,000-$36,000)/2 = $132,000 ($300,000-$36,000)/2 = $132,000 If you commence your pension on or after 1 June, you don t need to receive a payment in that financial year (ie, there is no minimum). However, if you commence your pension at other times during the financial year, then your payments will be pro-rated for the remainder of the year. Income payments, lump sum withdrawals and the investment returns of the three buckets will change the asset allocation of your Equip MyPension over time. We perform an annual check of the asset allocation each April, and rebalance your account if necessary. For more information on rebalancing, see Rebalancing Equip MyPension investments on page 6. Minimum pension payments Age Minimum % % % % % % % % Flexible income payments Once you start an Equip MyPension, your income payments will remain fixed at the dollar amount calculated when you commenced (subject to the legislated minimum, see table on the left), unless you change it. You can adjust your income at any time. Annual income review Your income payments will be reviewed annually, using your 1 July account balance. If your annual pension payment falls below what is legislated (see table), it will be adjusted to meet government guidelines. You will be notified of any changes to your income according to your limits. Important note This might not be the right product for you if you want to actively choose how your money is invested. For other pension options with Equip, check out the Equip Account Based Pension PDS or see a financial planner.

6 Equip MyPension 6 Be better equipped for retirement Rebalancing Equip MyPension investments Every year in April, Equip will review all three buckets, i.e., Cash, Conservative and Growth, in your Equip MyPension portfolio. Depending on the amount of money in the Cash bucket, and the earnings experienced by the other two buckets, we will rebalance your overall portfolio. The objective is to maintain a minimum of two years worth of pension payments in the Cash bucket. The rebalancing of your Equip MyPension portfolio is done according to some basic rules, as summarised below: Cash balance in April is between 2 to 5 years worth of annual pension payments Step 1: check investment returns in Conservative and Growth buckets Possible scenarios Earnings in both investment buckets positive Positive earnings in one bucket, negative earnings in the other All earnings negative Step 2: rebalance Any positive earnings in either of the investment buckets go into the Cash bucket. Any investment bucket with negative earnings remains untouched. Cash balance in April is under 2 years worth of annual pension payments Step 1: check investment returns in Conservative and Growth buckets Possible scenarios Earnings in both investment buckets positive Positive earnings in one bucket, negative earnings in the other All earnings negative Step 2: rebalance Any positive earnings in either of the investment buckets go into the Cash bucket. If the balance of the Cash bucket after moving any positive earnings is still less than the 2 year minimum pension payment requirements, then equal amounts are taken from the other two investment buckets, irrespective of earnings, to replenish the Cash bucket to a two year balance. In the unlikely event that the Cash bucket holds more than 5 years worth of pension payments, any balance over 5 years worth of payments is moved back into the Conservative and Growth buckets in equal amounts. For examples on rebalancing, see page 7.

7 Equip MyPension 7 Be better equipped for retirement Examples rebalancing Equip MyPension Elizabeth started an Equip MyPension in July with a balance of $300,000. She chose an annual income of $21,000, paid in monthly instalments of $1,750, based on this initial balance. The following April, her account is reviewed: Cash bucket Conservative bucket Growth bucket Initial balances $63,000 $118,500 $118,500 Pension payment (July to April) # -$15,750 N/A N/A Earnings* +$1,900 +$7,231 +$11,353 Balance at April review $49,150 $125,731 $129,853 What needs to be done Transfer any positive earnings from Conservative and/or Growth buckets into Cash bucket New balances after rebalancing of positive earnings Final check At the rebalancing review, the cash bucket balance has more than two years (i.e., $42,000) worth of pension payments in it. Any positive earnings from the Conservative and Growth buckets will be transferred to the Cash bucket. +$18,584 -$7,231 -$11,353 $67,734 $118,500 $118,500 The cash bucket was further boosted by transferring all positive earnings from the Conservative and Growth buckets into the Cash bucket, and is now over the 2-year income requirement. Richard is already an Equip MyPension member. He receives $1,750 monthly. At the last review date in April, his balance was $200,000. The following April his account is reviewed: Cash bucket Conservative bucket Growth bucket Initial balances $42,000 $95,000 $63,000 Pension payment # -$21,000 N/A N/A Earnings* +$1,689 +$7,729 +$8,048 Balance at April review $22,689 $102,729 $71,048 What needs to be done Transfer any positive earnings from Conservative and/or Growth buckets into Cash bucket New balances after rebalancing of positive earnings What needs to be done Transfer equal amounts from Conservative and/or Growth buckets into the Cash bucket New balances after cash top up rebalance Final check At the rebalancing review, the cash bucket balance has less than two years (i.e. $42,000) worth of pension payments in it. Any positive earnings from the Conservative and Growth buckets will be transferred to the Cash bucket. +$15,777 -$7,729 -$8,048 $38,466 $95,000 $63,000 The cash bucket balance still has less than two years (i.e. $42,000) worth of income. It needs to be replenished up to this amount. The money is taken in equal amounts from the Conservative and Growth buckets. +$3,534 -$1,767 -$1,767 $42,000 $93,233 $61,233 The cash bucket now has enough to be at the two-year income requirement. # Assumes that only the scheduled pensions payments are made and no further withdrawals are made by the member. * Earnings shown are for illustrative purposes only and take into account investment costs, but no other costs and fees. Investment returns are applied only to the initial balances and are actual historical returns delivered by the fund for the five years to 31 March Past performance is not a reliable indicator of future performance.

8 Equip MyPension 8 Be better equipped for retirement Starting Equip MyPension Once you have decided to commence an EquipMyPension, you will need to complete the following forms: Equip MyPension Application TFN declaration form if you re under age 60 Roll your super into Equip form if you re rolling in funds from other super funds You must also provide us with a copy of your bank statement to verify the bank account you want your pension income paid to. We may seek further evidence of your bank account details prior to commencing payments into your account. We need to have a copy of your statement to safeguard your pension from fraudulent activity. You will need a minimum of $50,000 which must be transferred from your existing Equip accumulation account or from another super fund. Please note you cannot make ongoing contributions to Equip MyPension. If you commence your pension on or after 1 June, you don t need to receive a payment in that financial year (ie, there is no minimum). However, if you commence your pension at other times during the financial year, then your payments will be pro-rated for the remainder of the year. Transfer balance cap A limit applies to the total amount you can transfer into tax-free retirement income streams, such as Equip MyPension. This limit, also known as the transfer balance cap, is currently $1.6 million, and includes any pension accounts or annuities you may have. Payment dates and frequencies You can choose to have your pension paid on a fortnightly, monthly, quarterly, half-yearly or annual basis. We make payments directly into your nominated bank account and funds should be available within five working days. Your first payment will be issued on the next payment cycle once your application has been processed. Payment due dates are: Fortnightly: every second Thursday Monthly: the 15th of the month or the working day prior if the 15th is a weekend or public holiday Quarterly: the 15th of the month every quarter, i.e. March, June, September and December, or the working day prior if the 15th is a weekend or public holiday Half-yearly and annually: You must nominate the first month in which the payment is to be made and subsequent payments will be six or 12 months later. Payments will be made on the 15th of that month or the working day prior if the 15th is a weekend or public holiday or, unless you request a change. Processing your transactions in Equip MyPension 1. Establishing your pension We endeavour to establish your MyPension account within two working days of receiving your completed application form and the funds required to commence your account. At times, there may be delays in receiving the funds, particularly if the commencing funds include a rollover from another super fund.if your previous superannuation fund does not provide the necessary details of your rollover being paid to your Equip account, your rollover payment will be returned without earnings to your previous superannuation fund. Note: Only rollovers can be used as the initial purchase of a pension. Once established, no further rollovers will be accepted. 2. Initiating lump sum payments You can request lump sum payments at any time. Use the Request for partial/full payment for Equip MyPension form to initiate your lump sum. You must take lump sum payments in equal parts from the Growth and Conservative buckets. If you request a payment in other proportions between the Growth and Conservative buckets, your Equip MyPension reverts to a standard Equip Account Based Pension and you will be responsible for managing your investment strategy. Note that taking frequent lump sum payments will deplete your Equip MyPension account more quickly than if you just took your regular income payments. 3. Making changes to Equip MyPension The investment strategy of Equip MyPension is set when you purchase it and it doesn t require you to make any changes to it. Should you initiate an investment switch, your account will revert to a standard Equip Account Based Pension (ABP), and you ll be responsible for managing your investment strategy. We will then write to you and send you the relevant product disclosure statement (PDS). You can change the income amount and how often you get paid at any time via the Change your income form or by calling the Helpline. When funds are low You will continue to receive pension payments until your account balance falls below $1,000. At that point, we will pay the balance to you as a lump sum and you will receive no further pension payments. Monitoring your Equip MyPension You will receive an annual statement each year to 30 June which will show the balance in each of the investment buckets, and details of your payments and rebalancing that occurred in the previous year.

9 General information about your pension 9 Your Equip MyPension account The money in your account at any time is comprised of a number of possible components. They might include: At least $50,000 as your initial deposit into your account; Any other amounts you roll in at the same time (prior to commencing your pension); Any positive investment earnings (reflected in unit price increases); Less: Your regular pension payments; Any lump sum withdrawals you make; Any negative investment earnings (reflected in unit price decreases); Fees. A pension is different to super Once you have established your Equip MyPension, you cannot make any further regular or one-off contributions to the account. However, if you want to add to your pension account, you can: 1. cease the existing pension and roll it back into an accumulation account, make contributions, then instruct Equip to re-establish the pension with a greater capital value; or 2. retain your existing pension and establish another pension account with the additional monies. 3. rollover your current ABP plus other accumulation accounts directly into a new Equip MyPension account. You should consider any applicable fees, tax and costs before making your decision. Consolidating your super You can consolidate all your super into an Equip MyPension account at the time you set it up (you cannot roll in money later). If you have money invested in other super funds and would like to roll that money into Equip, you may do so by using the Roll your super into Equip form attached to this PDS, or available from our website or Helpline. By consolidating your super, it may allow you to more easily monitor and manage your investments and income payments. We charge no fees for rolling your money into Equip. However, your other fund/s may charge you fees and you may incur taxes when withdrawing your money (instead of rolling it over). We recommend that you obtain financial advice before transferring any other fund balances to Equip. Is a pension for me? Getting advice Purchasing an Equip MyPension is something you should consider carefully in the context of your overall financial strategy for your retirement. We recommend you obtain financial advice to ensure it is the right product for you. Some considerations you should think about include: Your financial commitments (both current and on-going) Taxation Impact on any social security (Centrelink) payments Your life expectancy beyond retirement. If you would like to arrange to speak to an Equip Financial Planner^, please call or visit the website at for further information. ^ Equipsuper Financial Planning Pty Ltd (ABN , AFSL ) is licensed to provide financial planning services to retail and wholesale clients. Equipsuper Financial Planning Pty Ltd is owned by Equipsuper Financial Holdings (ABN ). Preservation ages In order to commence an Equip MyPension, you generally need to be at or over your preservation age and have satisfied a condition of release. This age differs depending on your date of birth. Date of Birth Preservation age Pre 1 July /7/60 30/6/ /7/61 30/6/ /7/62 30/6/ /7/63 30/6/64 59 Post 1 July Centrelink - income & assets test Assets 100% of your Equip pension account balance is assessed against the Centrelink assets test. Income Under the Centrelink income test, the value of financial investments is deemed to earn a specific rate of return. This is counted as income under the income test, regardless of the actual returns generated, or the actual income received. This includes allocated pensions. The deeming rates change periodically. For the most recent rates, go to deeming rules at enablers/deeming.

10 General information about your pension 10 Costs Your costs consist of taxes and fees. For full details, please refer to Fees and costs. You can make lump sum withdrawals from Equip MyPension, which must be deducted in equal parts from the Growth and Conservative buckets. For full details on fees and tax you may incur, please refer to Fees and costs and Tax on income and withdrawals. Proof of identity requirements Anti-money laundering and counter terrorism financing (AML/CTF) legislation requires strict customer identification and verification procedures when applying for your pension. When you commence a pension, request to commute part of your benefit, or request a full payment of your benefit, we will need to verify your identity. You will be notified of these requirements when applying for a pension or when you request a benefit payment. If you do not provide the required information, your application may not be accepted and any benefit payments may be delayed or even refused. Cooling-off period If you join as a new Equip MyPension member, you have 14 days to decide if this is the right choice for you from the earlier of: a) the date we send confirmation to you that your application has been processed; or b) the end of the fifth day after the day we issue investment units in the Fund to you. During this time, known as the cooling-off period, you can cancel your membership by contacting Equip. We will return any amounts we have received on your behalf, including money you have rolled in, adjusted for any investment earnings or losses incurred during the period. Note that this money can not be returned to you in cash, it must be transferred to another super fund. Access to member support Our Helpline offers support and can provide you with general information on your account including any account activity and transactions. Helpline service hours are Monday to Friday, from 8:00am to 8:00pm AEST (allow for daylight saving). The Helpline is closed on national public holidays.

11 Tax on income & withdrawals 11 Tax on income Super income tax benefits The following provides a general outline of taxation rules that apply to your pension payments. Given the complexity of the tax rules, we recommend you seek professional financial advice based on your circumstances. There are a number of tax benefits applicable to Equip pensions. These are as follows: 1. People aged 60 and over receive income payments tax-free 2. Proportional drawdown rules allow under 60s to receive a portion of income tax-free 3. Taxable income offsets available for people under No tax on pension investment earnings in the Fund 4. No tax on investment earnings Assets of the fund that are used to pay eligible pensions are exempt from earnings tax. Given the exemption, returns for pension products are often different to returns in accumulation accounts where earnings are taxed. Equip s pensions meet the minimum pension standards set by legislation and therefore the investment returns credited to your pension account are not taxed while in the Fund. Tax on withdrawing cash lump sums Cash lump sum payments are generally divided into tax-free and taxable components and are taxed according to your age. The table below details this. The tax-free and taxable components are worked out using complicated rules, but in general the components depend on the source of the original contribution. 1. Under age 60 If you start a pension, you may be able to receive a portion of your pension income tax-free if the initial amount used to purchase the pension included a tax-free component. Less than preservation age Taxable component Taxed at 20% (plus Medicare levy) Tax-free component (eg after tax contributions) Tax-free Example A 56 year old starts a pension with $487,500 which is made up of the following components: $195,000 is from the tax-free component $292,500 is from the taxable component The proportion of the components in the $487,500 becomes: Tax-free proportion is 40% ($195,000 / $487,500) Taxable proportion is 60% ($292,500 / $487,500) If the pensioner elected an income of $40,000, the income proportions will be: $40,000 x 40% = $16,000 paid as tax-free income $40,000 x 60% = $24,000 paid as taxable income Preservation age to age 59 Taxable component The first $205,000 (2018/19)* is tax-free. You pay tax at 15% on the balance (plus Medicare levy) Age 60 and over Taxable component Tax-free Tax-free component Tax-free Tax-free component Tax-free The tax rates shown above assume you have supplied your TFN and that there is no untaxed element of your benefit in the Fund. * This cap is indexed, but only when indexation produces an increase of $5,000 or more. 2. Aged 60 or over If you are aged 60 or over, you will receive your pension payments tax-free. This applies to all Equip pensions. 3. Taxable income and offsets applied If you are between your preservation age and under age 60, the taxable component of your pension payment will be treated as income. Income tax at your marginal rate plus the Medicare levy may be deducted at the time of payment. The taxable portion of your income may attract a 15% tax offset, which will increase your net payment. Equip will automatically apply this offset to your ongoing pension payments. It is important to note that, should you have other assessable income, you may have a tax liability on completion of your tax return. You can request in writing that Equip does not apply the tax offset. This allows you to defer the 15% tax offset until you complete your tax return. As a result you will have to wait to receive your annual income tax assessment before you can receive any tax concessions to which you may be entitled.

12 Tax on income & withdrawals 12 How tax applies a) Rollovers Generally, you will not pay any lump sum taxes when you roll money from a superannuation account to a pension account as it is not a withdrawal from the super fund. b) Withdrawals - Proportional drawdowns of lump sums - under age 60 When withdrawing a lump sum from your Equip MyPension, the amount withdrawn will need to be paid in proportion to your taxable and tax-free components. For example: Jean is 56 years old with a $487,500 pension. Her components would be: $195,000 tax-free (40%) $292,500 taxable (60%) If Jean later requests a $100,000 lump sum payment, the $100,000 would be drawn as follows: $40,000 tax-free ($100,000 x 40%) $60,000 taxable ($100,000 x 60%) The percentages determining your proportional component drawdowns do not change through out the life of the pension. Those aged less than 60 will receive the tax-free component tax-free, and the taxable component will generally be taxed according to the table on page 11. For those over age 60, the full amount is tax-free. Supplying your tax file number (TFN) We are authorised under the Superannuation Industry (Supervision) Act 1993 to collect your tax file number, and also to use and disclose it in specific circumstances. Your TFN enables us to manage your pension in the most tax-efficient manner. If you are under age 60, you need to complete a Tax File Number declaration form when you apply for an Equip pension. The information on this form is used to: determine how much tax should be deducted from your pension payments; and identify your benefits where other information is insufficient. This may be useful if you have benefits in a number of different superannuation funds that you wish to combine or if you change address without telling us. There are very strict laws governing the use of your TFN, particularly when we can provide your TFN to other parties. Where required, we will disclose your TFN to: the Trustee of another superannuation fund or account to which your benefits are transferred in the future, unless you tell the Trustee in writing not to do so; the ATO so it can reconcile the amount of any previous contributions, including if there is additional tax payable on contributions made to the Fund after 30 June 2007 for you. It is not an offence to decline to provide your TFN to us. However, giving us your TFN will have the advantage that, other than the tax that may ordinarily apply, you will not pay more tax than you need to. This will affect your pension payments. Tax on death benefits Upon your death, your remaining pension balance will be paid to your dependants either as a reversionary pension (if you have nominated one at the time of commencing your pension) or as a lump sum to a beneficiary. Reversionary beneficiary tax (nominating a tax dependant) The tax on reversionary pensions depends on age. If either you or your reversionary pensioner is aged 60 or over, then the pension is paid tax-free. If you are both under age 60, then the taxable component of the pension will be taxed at the reversionary beneficiary s marginal tax rate until he or she turns 60. Why providing your TFN is important If you are under age 60, it is important that you provide Equip with your TFN when you commence an Equip pension. If you are under 60, and we do not have your TFN, Equip will withhold tax on your pension at the top marginal tax rate. You will have to wait to receive your annual income tax assessment before you can receive any tax concessions to which you may be entitled. To avoid this, please ensure we have your TFN. Lump sum death benefits Lump sum death benefits paid to tax dependants will be tax-free. Dependants for income tax purposes are considered to be: your spouse (including a person who is legally married to you, a person with whom you have a relationship registered under State or Territory law or a person with whom you live on a genuine domestic basis in a relationship as a couple (such as opposite sex or same-sex de facto partners); children, but only those under age 18; any person who is financially dependent on you at the time of your death; a person with whom you have an interdependency relationship. If the lump sum is paid to non-tax dependants i.e. independent adult children, the taxable component will be taxed at 15% plus Medicare Levy.

13 Beneficiaries - who will get your benefit? 13 Reversionary beneficiary - payment as a pension On your application form, you have the option of nominating a dependant to continue receiving your pension payments upon your death. This person is known as a reversionary beneficiary and your nomination is legally binding on the trustee. Only tax dependants can be nominated as a reversionary beneficiary. Tax dependants can include your spouse, a person with whom you have an interdependency relationship, a financial dependant or a child under the age of 18 at the time of your death. Children over the age of 18 can only be paid the pension if: The child is financially dependent on you and is less than 25 years of age. Once they turn 25, the remaining pension balance must be paid as a lump sum; or Has a disability of a kind which is described in the Disability Services Act Upon death, your remaining pension account balance is transferred to your reversionary beneficiary and the income limits are then calculated based on the reversionary beneficiary s age. Your reversionary beneficiary would also have the option of receiving your remaining pension balance as a lump sum. Please note: You can only nominate a reversionary beneficiary on the application form prior to the commencement of your pension. You cannot change your reversionary beneficiary once your pension starts. Preferred beneficiary - payment as a lump sum Under the Equip Rules and legislation, payment of your death benefit as a lump sum can be made to one or more of your dependants or to your estate (i.e. your legal personal representative). A dependant for superannuation purposes is defined as: your spouse (including a person who is legally married to you, a person with whom you have a relationship registered under State or Territory law or a person with whom you live on a genuine domestic basis in a relationship as a couple (such as opposite sex or same-sex de facto partners)); or your children (including natural, adopted, step or ex-nuptial children and children of your spouse) no matter what age they are; or a person whether related to you or not, who in the opinion of the Trustee, is or was at any relevant time wholly or partially financially dependent on you and who the Trustee determines to be your dependant; or a person in an interdependent relationship with you, as evidenced by a close personal relationship where one or each of you provide the other with financial support and domestic support and personal care and may live together. Note: An interdependent relationship can also exist if a close personal relationship exists but the other residential requirements for interdependency are not satisfied because of a physical, intellectual or psychiatric disability that requires a person to live in an institution. We will generally pay your death benefit to your dependants or estate in accordance with your wishes. The Trustee will generally give weight to your wishes and tends to follow them unless the payment would be illegal or if your nomination was unfair or unreasonable having regard to all your circumstances. For example, if you had two dependant children, but only nominated one as a beneficiary. When processing death benefits, we collect as much information as we can about your wishes and your potential beneficiaries. We will request your Will, your birth and death certificates and your marriage certificate (if married) from your legal personal representative. Statements are also requested from all potential beneficiaries. We also check whether you have lodged a preferred nomination of beneficiaries with us. After we have made our initial decision, we notify the potential beneficiaries (if there is more than one) about that decision. If none of the potential beneficiaries disagree with the decision, then the initial decision becomes final and we pay the benefit. Special arrangements may apply for beneficiaries who are under-age children. Binding death benefit nominations - payment as a lump sum A binding death benefit nomination ensures that Equip will pay lump sum death benefits to your dependants in accordance with your wishes, providing the nominated parties either meet the definition of a dependant under superannuation law or are your properly appointed legal representative/s. To make a binding death benefit nomination, you should complete a Binding Death Benefit Nomination form available from our website or Helpline If you do not nominate a reversionary pensioner, or make a binding death benefit nomination, the Trustee will use it s discretion to determine the distribution of your remaining account balance according to superannuation rules. Family Law and your super Since 28 December 2002, couples who divorce or separate are able to divide their super entitlements (including pensions) as part of their property settlements. These Family Law rules apply to legally married couples and genuinely separated couples (including defacto couples in all states except Western Australia). We recommend you seek advice from a licensed financial advisor before finalising an agreement involving your superannuation benefit, as there may be tax, social security and other financial implications arising from splitting your superannuation entitlements.

14 Managing your investments 14 Equip MyPension underlying investment options Your Equip MyPension investments are allocated to the investment options ( buckets ) below: Cash Conservative Growth Because your money is invested in a variety of assets, the value of each bucket will fluctuate, reflecting the changing underlying asset prices. Furthermore, the money invested in these options is rebalanced periodically ( Rebalancing Equip MyPension investments ). The investment options underlying Equip MyPension are well established options in our existing investment lineup that we have run for our members for a number of years. We have always taken a long term view of investing and use a combination of in-house investment managers and external specialists to manage our investment portfolio. If you d like to see all options we offer, go to our website at to see more details. Please note, however, that as soon as you switch in and out of options, your Equip MyPension account will revert to a standard Equip Account Based Pension (ABP) and you ll be responsible for managing your investment strategy. We will then write to you and send you the relevant PDS. About risk and return In creating Equip MyPension, we have sought to balance risk and return in the buckets we use, and how we mix them together. Whilst the aim is to give you an appropriate blend of stable income and capital growth, you should be aware that investment returns over shorter periods of time might differ from our expectations, and may even be negative. Levels of investment risk are linked to the asset classes each individual bucket invests in, and the allocation between defensive and growth orientated asset classes. For example, the Conservative and Growth options invest in broadly the same asset classes, but the Conservative option has a lesser weighting to growth assets. It is thus likely that the Conservative bucket will not grow as much as the Growth bucket during buoyant financial conditions; however, it is also not expected to decline as much as the Growth bucket in more volatile financial conditions. Derivatives Derivatives are investments where investment values are based on those of an underlying physical security. For instance, the value of a share option is based on the price of the underlying share. Equip permits the selective use of derivatives as part of its investment strategy in any of its investment options. Derivatives enable us to hedge against risk by increasing or decreasing exposure to individual securities and markets without having to buy or sell underlying physical securities. Unit prices When you invest with Equip, your money buys a number of units in each of your nominated or default investment options. Unit prices go up and down according to investment performance and the unit price of an investment option will fluctuate to reflect investment earnings (which can be positive and/or negative) and deductions for investment fees, costs and taxes. These movements are ultimately reflected in your account balance. Our latest unit prices are usually updated on our website by 10 a.m. on the second business day after the business day on which they are calculated. The publication of unit prices might be delayed as a consequence of abnormal market conditions or system failures. In such circumstances, Equip will use its best endeavours to publish unit prices as soon as possible. The unit prices are calculated after an estimate of investment fees and taxes are taken out. These estimates will be adjusted as information becomes available for the calculation of future prices. When you exit from Equip, your units are sold at the applicable unit prices available on the date your transaction is processed. What happens if we make a mistake when calculating unit prices? Although we have controls in place to check for unit pricing errors, occasionally they may occur. Equip follows industry practice if an error is made. Interested members can view FSC Standard No.17 on the Financial Services Council website at fsc.org.au Sustainable Responsible Investment Equip does not apply Environmental, Social or Governance (ESG) filters to the three investment options that underpin Equip MyPension accounts. Managing your investments Equip s Investment Committee, comprised of directors and external advisors, sets the strategy and manages our investments. External investment managers are used to provide members with the advantages of different investment management styles. Different styles enable us to identify and take advantage of diverse opportunities with the potential to enhance returns to members and to manage risk. You can find a list of our current investment managers on our website equipsuper.com.au.

15 Managing your investments 15 Benchmark allocations and permitted ranges The pie charts describing asset allocations set out here are based on benchmark (or long-term, strategic) allocations for the Diversified investment options. Actual asset allocations may vary from the benchmark allocations within permitted ranges from time to time depending on market movements, cash flows and tactical investment decisions. In particular, we may alter asset allocations within the permitted ranges to manage investments through adverse or abnormal market conditions. Investment objectives The investment objectives for the Conservative and Growth investment options aim to earn investment returns higher than the inflation rate. Inflation is measured by the Consumer Price Index (CPI) published by the Australian Bureau of Statistics (ABS), which indicates the average change in prices paid for a basket of goods and services. The Cash investment option aims to outperform the RBA cash rate. Strategy While the investment objective states the investment aim, the strategy provided for each option is a guide to how we intend to go about achieving the objective. You should note that these objectives are not predictions or forecasts, but merely represent a performance measure for each strategy. Standard risk measure The standard risk measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The standard risk measure is not a complete assessment of all forms of investment risk. For instance, it does not detail what the size of a negative return could be or the potential for a positive return to be less than what you may require to meet your objectives and it is based on predictions of the future economic environment which may change over time. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. You should ensure that you are comfortable with the risks and potential losses associated with your chosen investment options and if necessary you should seek professional financial advice. Equip does not guarantee the performance of the Fund. And, as mentioned, past performance is not an indicator of future performance. Growth Investment objective Achieve a net return of at least 4.5% p.a. above inflation (measured by CPI) over a rolling 10 year period. Strategy Invest primarily in Australian and overseas shares, while providing some exposure to property and alternative assets. These are growth investments, with the property allocation providing some diversification from shares. Benchmark allocations Actual asset allocation for each asset class may vary from time to time within the permitted ranges published in the table below: Asset class Benchmark allocation Permitted range Growth assets 85% % G Australian shares 35% 25-45% Overseas shares 35% 25-45% 85% Property 5% 0-15% Infrastructure 5% 0-15% Growth alternatives 5% 0-15% G Defensive assets 15% 0-30% Fixed interest 7% 0-17% Defensive alternatives 5% 0-15% 15% Cash 3% 0-13% Minimum investment timeframe The minimum suggested time frame to invest in this product is long term (6 to 12 years). Members should hold the investment for a minimum of 6 years. Who should invest in this option? This option is designed for members who are prepared to accept an aggressive asset allocation which has the potential of providing higher returns, but also increases the risk of a negative return. Standard risk measure The risk level of this option is medium to high, with a likelihood of negative returns occurring 3.8 years in a 20 year period.

16 Managing your investments 16 Conservative (the default option) Investment objective Achieve a net return of at least 2% p.a. above inflation (measured by CPI) over a rolling 5 year period. Strategy Invest mainly in fixed interest securities and cash, which are expected to deliver stable returns over the long term. Invest the balance in shares and property. Benchmark allocations Actual asset allocation for each asset class may vary from time to time within the permitted ranges published in the table below: Asset class Benchmark allocation Permitted range Growth assets 30% 15-45% G Australian shares 9% 0-19% Overseas shares 9% 0-19% Property 4% 0-14% 30% G Infrastructure 4% 0-14% Growth alternatives 4% 0-14% Defensive assets 70% 60-80% Fixed interest 40% 30-50% Defensive alternatives 10% 0-20% 70% Cash 20% 10-30% Minimum investment timeframe The minimum suggested time frame to invest in this product is short term (3 to 6 years). Members should hold the investment for a minimum of 3 years. Who should invest in this option? This option is designed for members who wish to select a less aggressive asset allocation in exchange for more stability and security. Standard risk measure The risk level of this option is low, with a likelihood of negative returns occurring 0.6 years in a 20 year period. Cash Investment objective This option aims to outperform its benchmark, the Bloomberg AusBond Bank Bill Index. Strategy Invest cash in money market securities such as bank term deposits and bank bills. Benchmark allocations Asset class Cash 100% Benchmark allocation 100+G 100% Minimum investment timeframe The suggested time frame to invest in this product is short term (0 to 3 years). There is no minimum period suggested for holding this option. Who should invest in this option? This option is designed for members who wish to select a less aggressive asset allocation in exchange for more stability and security. Standard risk measure The risk level of this option is very low, with a likelihood of negative returns occurring in years in a 20 year period.