Transfield Services Superannuation Plan Information Booklet. Fr#dom

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1 Q Transfield Services Superannuation Plan Information Booklet The secret of getting ahead is getting started Choice Simplicity Fr#dom This booklet provides you with information about your future superannuation arrangements with ASGARD Employee Super. You can learn more about: The decisions you have to make 3 ASGARD Employee Super and master trusts 4 Your investment options and where to get financial advice 5 The level and cost of your insurance and how to make changes 6 The fees Transfield Services has negotiated on your behalf 9 How to find out about banking discounts available through St George Bank 10

2 The secret of getting ahead is getting started Superannuation is an important employee benefit, and increasingly will become a major element of Australian retirement savings. The Transfield Retirement Fund has served both members and the company well in providing this benefit over the past decade, but recent changes to regulatory and governance requirements have forced rapid increases to the Fund s administration costs without improving your member benefits or services. In response to a growing market need, external superannuation products have been improved and streamlined to the point where a modern master trust now offers members and employers high quality services and innovative investment products at a price comparable to our corporate fund. It is important to us that we ensure you, our employees, have access to these benefits because they will assist you to make the most of your retirement savings. Take the time to read this Member Booklet, together with the ASGARD Employee Super Product Disclosure Statement - Members and consider your super goals. Information sessions will be held at most sites, where you will have the opportunity to learn more about ASGARD, your super savings strategy, and to ask questions.you will receive details of times and locations shortly. Superannuation is an important employment benefit for you and your family it s up to you to get started, and take control of your super to make it grow and reach your goals. Kind regards Peter Watson Managing Director Transfield Services (Australia) Pty Limited # After extensive benchmarking and a selection process that utilised the skills and expertise of our in-house superannuation team, our Trustee directors, and an external superannuation specialist, we decided that a master trust is the way of the future for Transfield Services superannuation. I m pleased to have this opportunity to introduce you to our chosen master trust partner, ASGARD Employee Super and Dunhill Financial Services, our Plan Manager. ASGARD is one of Australia s leading master trust providers and was chosen from a high quality field of tenderers because of their product flexibility and proven track record in providing superior member services and benefits. Dunhill Financial Services is a corporate superannuation specialist with a reputation for innovative solutions. Critical Dates 1 December 2003 your super contributions will be paid to ASGARD Employee Super from this date 27 January 2004 final date to elect an increase or decrease in your Death and TPD insurance cover 31 March 2004 final date to elect to transfer your existing balance to your ASGARD Account 30 April 2004 The Transfield Retirement Fund closes # On behalf of all participating employers of the Transfield Retirement Fund Transfield Holdings,Transfield Construction,Transfield Corporate,Translink Operations, Worley Limited,Transfield Worley Joint Venture,Transfield Worley Solutions,TGE Joint Venture,Transfield RSA Joint Venture, PT TransBakrie,TC1. 2 TRANSFIELD SERVICES Superannuation Plan Information Booklet

3 Your super your future Retirement may seem a long way off, but a few decisions now can have a big impact on what you can do once you stop working. ASGARD Employee Super can help you achieve your goals, whether you want to simply live comfortably in retirement or to travel the world. What is happening with my future contributions? From 1 December 2003 your super contributions will be paid to your new ASGARD Employee Super Account. Is there anything I need to do? There are three things you need to do. 1. Decide what to do with your existing super account balance Because the Transfield Retirement Fund will close from 30 April 2004, you must decide what you would like done with your existing super account balance.you can either: Consolidate your super in your Account with ASGARD Employee Super using the form provided on page 11 OR Transfer your super to a another complying super fund of your choice (please visit the Transfield Services Superannuation Plan website at or call Transfield Retirement Fund on for the required form). 2. Decide whether to change your Death & TPD insurance cover You also have the opportunity to increase or decrease the amount of Death and TPD insurance cover you have. If you do not currently have insurance in the Transfield Retirement Fund you may now be able to apply. Refer to page 6 for further information. 3. Decide whether to opt-out of Salary Continuance Insurance For the first time you will have access to Salary Continuance Insurance through your super fund. This will be provided automatically, however, you can choose to opt-out. More information is provided on page 7. What is consolidation? From a super perspective, consolidation refers to the process of transferring all your superannuation into the one Account.The benefits of consolidation are that you: pay only one set of fees, thereby potentially decreasing the amount of fees you pay receive statements from only one fund, reducing paperwork can implement an effective investment strategy for all your super. If you choose to consolidate your other super with ASGARD, ASGARD will organise for the transfer of your other funds. Simply complete the form enclosed in this information pack. What if I do nothing? If you do not nominate to transfer your existing super money to ASGARD or an alternate complying fund by 31 March 2004 your super balance will be transferred to the Colonial SuperTrace Eligible Rollover Fund (ERF), as nominated by the existing Transfield Retirement Fund. This will mean that you will pay two sets of fees (one set for ASGARD and one for the ERF). You should read this information booklet in conjunction with the ASGARD Employee Super Product Disclosure Statement Members (Members PDS).The Members PDS provides everything you need to know about ASGARD Employee Super, including details of the investments available to you, how your Account will work and your options if you leave your employer. Remember, however, that the information on fees and insurance in the Members PDS are the standard arrangements and aren t relevant to Transfield Services employees invested in ASGARD Employee Super. For the particular fees and insurance applicable to you, see pages 6 and 9 of this booklet. TRANSFIELD SERVICES Superannuation Plan Information Booklet 3

4 About ASGARD Employee Super ASGARD Employee Super allows you to tailor your super to your specific requirements. You can select from five preset portfolios (Separately Managed Accounts (SMA) - Funds), each with a different risk and return profile, or design your own portfolio (Managed Profiles) from over 200 managed investments and the top 300 Australian shares. ASGARD Employee Super also offers other great benefits, including: regular on-site education briefings internet access to view your account balance, transactions and details access to personal financial advice access to online education, including calculators insurance options the ability to swap between investment choices as often as you like twice yearly Account statements so you can keep track of your super loads of great extras including banking discounts. About ASGARD ASGARD is Australia s leading administration platform. It has $15 billion under management for 200,000 Australians. With an ASGARD Account, it s easy for you to diversify your savings and manage all your investments through one central contact point. ASGARD has over 15 years experience in master trust administration and has won many awards for its administrative excellence. What is a master trust? A master trust (also known as a master fund) is an administration facility for investment and superannuation. With a master trust, you can access a wide range of investments through your Account.You receive consolidated transaction and valuation reporting as well as the convenience of one central point of contact for all your Account queries. Investing through a master trust is an excellent way to diversify or spread your investments across different asset classes shares, property, cash and fixed interest. By diversifying your investments, you will generally receive a more consistent return on your overall investment (ie the investments performing well may compensate for any which don t perform quite so well). How a master trust works: Deposits Fees You The master trust Withdrawals Income Consolidated reporting performance and tax Investment Manager 1 Investment Manager 2 Investment Manager 3 Investment Manager 4 Investment Manager 5 Simplicity 4 TRANSFIELD SERVICES Superannuation Plan Information Booklet

5 What are my investment choices? ASGARD Employee Super offers you a choice between two investment streams. There s the flexibility to tailor your investments to your personal circumstances or you can invest in the pre-set portfolios. You take as much, or as little, control as you want. SMA-Funds offers five pre-set portfolios tailored to meet specific investment risk tolerance levels. Whether you are a cautious investor or are willing to take greater risks for a higher return on your money, there s a portfolio to suit you. SMA-Funds are generally suitable if you do not have the time or expertise to tailor your own investments. They are explained more fully in the Members PDS on pages 9 to 17. When you are initially enrolled in ASGARD by Transfield Services, ASGARD will automatically place you in an SMA- Funds portfolio based on your age (see table below). The age-based portfolios assume that different amounts of risk are more suitable at different stages of your working life. This means that your ASGARD investment option may have a different risk/return profile to the investment option you have in the Transfield Retirement Fund. Age-based portfolios Age Portfolio Older than 60 Defensive 56 to 60 Moderate 41 to 55 Balanced 30 to 40 Growth Managed Profiles enables you, together with Dunhill Financial Services, to design an investment profile from more than 200 managed investments and the top 300 shares listed on the Australian Stock Exchange, including Transfield Services shares*. It is suitable for those who want to take control of their super and manage their own investments. An example of the flexibility of Managed Profiles is the ability to invest in index funds. These are funds which closely track the underlying index in a particular asset class. One of the advantages of index funds is they tend to have lower fees than other types of funds. You can read more about Managed Profiles on pages 19 to 27 of the Members PDS. Help at no additional cost Dunhill Financial Services will provide access to a financial planner to assist you in considering your investment options. They will provide an analysis of your risk profile and recommend suitable investment options at no additional cost.you can contact Dunhill by calling Younger than 30 High Growth You can stay in the age-based portfolio allocated to you, or you are free to alter your portfolio choice or switch to Managed Profiles at any time. Refer to the Members PDS and the Help at no additional cost section below. There may be a cost associated with changing your investment. See page 43 of the Members PDS for full details. * Trading in Transfield Services shares through your Account with ASGARD Employee Super is subject to the terms and conditions of the Transfield Services Limited (TSL) Employee Share Trading Policy. Details of this policy are available from Transnet. TRANSFIELD SERVICES Superannuation Plan Information Booklet 5

6 How will my insurance work? Through your new ASGARD Account, Transfield has arranged Death and Total & Permanent Disablement (TPD) insurance benefits at discounted group rates. How much Death and TPD insurance cover will I have? If you are a full-time or part-time employee you are automatically given the same number of units of cover as you currently have with the Transfield Retirement Fund. Casual employees are currently unable to access insurance, however, will be able to apply for Death only insurance through ASGARD Employee Super. Contact Dunhill Financial Services for details. The level of cover is based on your age next birthday (ANB) on joining ASGARD and is reviewed on the Fund review date each subsequent year. The amount of cover per unit is as follows: ANB Cover ANB Cover Per Unit Per Unit Up to 38 $55, $29, $52, $27, $50, $25, $48, $23, $46, $21, $44, $19, $42, $17, $40, $15, $38, $13, $36, $10, $34, $8, $31, $6,700 If you are between 61 next birthday and 65 next birthday, you may be able to apply for Death and TPD Insurance. Speak to Dunhill Financial Services if you wish to apply. If you were previously declined insurance cover or cancelled your cover under the Transfield Retirement Fund, you will not receive any automatic cover and must apply for insurance. Speak to Dunhill Financial Services if you wish to apply. How much does it cost? The cost per unit is $1.79 per week. Case Study John, who is 40 years old, chooses to be insured for five units. He is therefore covered for $243,500 ($48, 700 x 5) should he die or become permanently disabled. His cover will cost him $8.95 ($1.79 x 5) per week. What if I want to change my level of Death and TPD cover? If you already have cover with the Transfield Retirement Fund you have until 27 January 2004 to increase or decrease your level of cover. You can add up to five units of cover before 27 January 2004 without having to provide any additional medical information, by completing the form on page 11. What is the maximum number of units I can have? The maximum level of cover you are able to select with ASGARD Employee Super is 15 units.this is an increase from the Transfield Retirement Fund which had a maximum of 10 units. Please note that medical information is required for any increase of more than five units. This offer expires on 27 January If you want to increase the number of units you are covered for after 27 January 2004 you will be required to provide medical information. Dunhill Financial Services can assist you with this. Fr#dom 6 TRANSFIELD SERVICES Superannuation Plan Information Booklet

7 Salary Continuance Insurance is now available!** For the first time Transfield Services employees will have access to Salary Continuance Insurance (SCI) through their superannuation. SCI replaces up to 75% of your monthly income if you become injured or disabled and unable to work.you must be working at least 15 hours per week to be eligible. It is not available to casual employees. If circumstances arise where payment of SCI occurs, the maximum time period you will be paid is 2 years for any one sickness or injury, after a 90 days waiting period. Calculating your SCI premium To estimate the monthly premium for your SCI, find the annual premium rate applicable for your age next birthday in the table opposite. The calculation is: 75% of annual income x annual premium rate x 1.06 = 14,400 + Stamp Duty (5%) Case study Anthony is 35 next birthday and has an annual income of $40,000. His monthly premium is 75% x $40,000 x $1.40 x 1.06/14,400 = $3.09 plus stamp duty (5%). Important information about automatic cover The above level of SCI cover is provided to Transfield Services employees automatically, but you are able to optout by completing section 5 of the form on page 11. However, if more than 25% of Transfield Services employees opt-out prior to 27 January 2004 then you will need to be medically underwritten.you will be notified if this is the case. If less than 25% of employees opt-out then the amount of cover that will be provided for each individual without medical information is a maximum of $10,000 per month. This is known as the Automatic Acceptance Limit (AAL). You are able to apply for up to $20,000 of cover per month if you provide medical evidence (provided it does not exceed 75% of your monthly income). Contact Dunhill Continued on page 8 SCI Annual Premium Rates per $100 monthly benefit Waiting Period: 90 Days, Benefit Period: 2 Years Age next birthday Male Female ** SCI will not be available to those that already have cover through their employment contract.this includes employees of Transfield Worley,Transfield Worley Joint Venture,Transfield Worley Solutions or Transfield Services Employees covered by the applicable Enterprise Bargaining Agreement.The cover letter accompanying this booklet will indicate whether you currently have SCI. TRANSFIELD SERVICES Superannuation Plan Information Booklet 7

8 Who will manage the plan? Dunhill Financial Services provides quality superannuation solutions and strategies for corporate and private clients. Dunhill was appointed by Transfield Services to assist in finding the most suitable superannuation solution for Transfield Services employees and was instrumental in the appointment of ASGARD. Dunhill will act as the Plan Manager and will also provide access to financial planning advice for members. As Plan Manager, Dunhill will monitor the performance of ASGARD and report to the Transfield Services Policy Committee. The Policy Committee will consist of two member elected representatives and two company nominated representatives. The first two member elected representatives will be the existing member representatives recently elected to the board of the trustee of the Transfield Retirement Fund. In addition to being Plan Manager, Dunhill will provide access for members to financial planning advice, at no additional cost. This advice includes: investment choice and risk profiling retirement planning super fund rollovers wealth creation. Where an individual tailored financial plan is required, there is a minimum fee of $275 (inc GST). You can contact Dunhill Financial Services on How will my insurance work? Continued from page 7. Financial Services if you would like to vary the automatic level of cover you are eligible for. If you opt-out and apply for SCI at a later date then you will need to provide medical information. What to do next? If you would like more or less Death and TPD insurance cover than you currently have with the Transfield Retirement Fund simply complete section 4 of the form provided on page 11 and return it to ASGARD by 27 January If you do not require any changes to your level of cover you do not need to do anything. If you would like to opt-out of Salary Continuance Insurance please complete section 5 of the form on page 11. If you want Salary Continuance Insurance there is no need to do anything. Need help? If you require assistance regarding your insurance cover, please call Dunhill Financial Services on TRANSFIELD SERVICES Superannuation Plan Information Booklet

9 What fees will I pay? Because of its size, Transfield Services has been able to negotiate very competitive fees for you, ensuring that you are not disadvantaged by the closure of the in-house Transfield Retirement Fund. This section details the costs that will apply to your ASGARD Employee Super Account. Upfront Fees (including rollovers) No Upfront Fee will apply to any contributions or rollovers that you invest in ASGARD Employee Super. Administration Fees This fee is paid to ASGARD for administering your Account. ASGARD Employee Super rewards you with lower fees as your superannuation balance with ASGARD grows. This does not include the Plan Management Fee. Administration fee % pa* Value of your Account on the last day of the month SMA-Funds Managed Profiles First $50, Next $50, Next $150, Next $750, Balance over $1,000, * The above fees are calculated assuming an employer group discount of 50%, as per page 40 of the Members PDS. Trustee, Expenses, Switching & Exit Fees Nil Investment manager charges # This fee is paid to the investment manager.the amount will depend upon the investment options you choose, however, for the default SMA - Funds the fees are: SMA - Funds Fee Defensive 0.17% Moderate 0.32% Balanced 0.45% Growth 0.53% High Growth 0.57% Plan Management and Financial Planning Fee This fee is paid to Dunhill Financial Services for being the Transfield Services Superannuation Plan Manager and providing access to financial planning advice. The fee is $4.74 per member per month and includes most financial planning advice. This fee will be reviewed by Transfield Services and Dunhill Financial Services each year and may change at each review. Should you require a tailored financial plan there is a minimum fee of $275 (inc GST). Other fees Please refer to page 43 of the Members PDS for details of other fees that may apply to your Account. These fees are generally based on individual transactions you may make. Case Study 1 Judy is 28 years old and has a $20,000 ASGARD Employee Super Account. She has decided to stay invested in her default portfolio, High Growth.The ASGARD Administration Fee that applies to Judy s Account is % and the current Investment Manager charge is 0.57%.The Plan Management Fee is $4.74 per month.therefore, her total monthly fee is $21.93** ($20,000 x % 12 + $4.74). Case Study 2 Colin is 59 years old and has a $100,000 ASGARD Employee Super Account. He has chosen to reduce the investment management fees he pays by investing in index funds through Managed Profiles. He wants to replicate the asset allocation of a balanced portfolio.the ASGARD Administration Fee that applies to Colin s Account is % and, based on the funds he chooses, his Investment Manager charge is 0.13%***.The Plan Management Fee is $4.74 per month.therefore, his total monthly fee is $59.62** ($100,000 x % 12 + $4.74). # After fee rebates. Note: Investment manager charges are based on average Management Expense Ratios (MERs) for 2002/2003. Past fees may not be a reflection of future fees. ** You won t actually see this whole amount deducted from your Account, since investment manager charges are deducted from the unit price of your investment. However, the value of your Account will effectively be reduced by this amount. *** This fee is based on the following combination of funds available through Managed Profiles: Advance PST Australian Shares Index Portfolio (19%), Advance PST International Sharemarket Index Fund (35%), Advance PST International Fixed Interest Index Portfolio (13%), Money Market Investment Account (25%), Advance PST Australian Property Securities Fund (8%). Fees are provided after rebates. TRANSFIELD SERVICES Superannuation Plan Information Booklet 9

10 Exclusive banking offers through St.George Bank St.George Bank is Australia s fifth largest bank. St.George prides itself on being big enough to offer a variety of financial solutions but small enough to offer genuinely good customer service. ASGARD is part of the St.George Bank Group. As an employee of Transfield Services you can access a range of special offers on personal banking products and services through the St.George Bank Workplace Banking program. These include: discounts on home loan interest rates and establishment fees discounts on general insurance, including home and contents insurance no establishment fee on personal loans no annual fee for the first year on the Essential (Interest Free Days) Credit Card a range of discounts and/or bonus interest offers on various deposit accounts such as transactions, investments or fixed term deposits. If you d like to find out more about the St.George Workplace Banking offers, you can do so by calling the Workplace Banking Hotline on (02) or them directly at workplacebanking@stgeorge.com.au. ST.GEORGE WORKPLACE BANKING DISCLAIMER Terms & Conditions available upon application. Interest rate discounts may not be available on all loan types.all applications are subject to our prevailing credit criteria. Other fees and charges may be payable. In arranging this insurance, St.George Bank Limited ABN (St.George) is acting as an agent of CGU Insurance Limited ABN (CGU), an IAG Company, and not as your agent. St.George will receive a commission from CGU for arranging this insurance. Neither St.George Bank nor any member of the St.George Bank Group guarantees benefits payable under the proposed insurance contract. In deciding whether to acquire, or continue to hold, an insurance product, you should consider the Product Disclosure Statement or Consumer Information Brochure for that product issued by CGU. Copies of the Product Disclosure Statements and Customer Information Brochures for each product are available from St.George or your financial advisor. Choice ASGARD Capital Management Ltd, ABN , Licensed Dealer in Securities, Investor Services DISCLAIMER Material contained in this publication is a summary only and is based on information believed to be reliable and received from sources within the market. It is not the intention of ASGARD Capital Management Ltd ABN (ASGARD) that this publication be used as the primary source of readers information but as an adjunct to their own resources and training. No representation is given, warranty made or responsibility taken as to the accuracy, timeliness or completeness of any information or recommendation contained in this publication and ASGARD will not be liable to the reader in contract or tort (including for negligence) or otherwise for any loss or damage arising as a result of the reader relying on any such information or recommendation (except in so far as any statutory liability cannot be excluded).this publication has been prepared for general information and not having regard to any particular person s investment objectives, financial situation or needs.accordingly, no recommendation (express or implied) should be acted on without obtaining specific advice from an authorised representative. Please note past performance is not indicative, nor a guarantee, of future performance. DISCLOSURE In deciding whether to open, or to continue to hold, an ASGARD Employee Super Account, you should consider the Members PDS issued by ASGARD. Copies can be obtained from ASGARD or a financial adviser.asgard is a licensed dealer in securities. In the event of any person subscribing for the securities or insurance referred to in this publication, such subscription may result in ASGARD and an authorised representative receiving a commission, fee or other benefit or advantage, precise details of which can be obtained from a current ASGARD Product Disclosure Statement.ASGARD is a wholly owned subsidiary of SEALCORP Holdings Limited ABN SEALCORP in turn is a wholly owned subsidiary of St.George. ASGARD. 10 TRANSFIELD SERVICES Superannuation Plan Information Booklet

11 ASGARD Employee Super Transfield Services Superannuation Plan Your Decisions Form Complete this form in block letters and: e Post it in the reply paid envelope provided to AESA Group Services, PO Box 7461, Cloisters Square, Perth WA 6850 Note: Privacy laws protect your privacy. Please read our Privacy Brochure for more information. A copy can be obtained from ASGARD Investor Services. 1. Your details Title Surname Given Names Date of Birth Postal address State Postcode Phone: Home Business OFFICE USE ONLY Account Number Adviser Code -BA Details of fund to be transferred Fund Name T R A N S F I E L D R E T I R E M E N T F U N D Member Number (if known) Please transfer my total Account value. Yes OR No 3. Instructions to the Trustee of the Transfield Retirement Fund Please transfer my total account value to ASGARD Capital Management Ltd as Trustee for the ASGARD Employee Superannuation Account.The ASGARD Employee Superannuation Account forms part of a complying superannuation fund. ASGARD is acting on my behalf for this transfer and I authorise you to provide all relevant information to them. 4. Death and Total & Permanent Disablement (TPD) Protection If you wish to have a different number of units than the current number of units, please specify. units You are allowed to add another 5 units of cover before 27 January 2004 without providing medical evidence if you currently have cover with the Transfield Retirement Fund. If you were previously declined insurance cover or cancelled your cover under the Transfield Retirement Fund, the free selection period to 27 January 2004 does not apply.you will be required to be personally underwritten for your insurance cover. 5. Salary Continuance Insurance (SCI) Opt-out Please tick the box if you do not want Salary Continuance Insurance 6. Declaration I understand that: once benefits have been transferred, the Trustee of my previous fund is discharged from any further liability in respect of the amount transfers to ASGARD Employee Super are done at least every month. x Signature Date 89 PO ASGARD Capital Management Ltd ABN Licensed Dealer in Securities Investor Services Box 7490, Cloisters Square, Perth WA 6850 AFETPD11103 TRANSFIELD SERVICES Superannuation Plan Information Booklet 11

12 Sydney Level George Street Sydney NSW 2000 Telephone Facsimile Melbourne Level 41, ANZ Tower 55 Collins Street Melbourne VIC 3000 Telephone Facsimile Brisbane Level 21, Central Plaza One 345 Queen Street Brisbane QLD 4000 Telephone Facsimile Perth Level 38, Central Park 152 St George s Terrace Perth WA 6000 Telephone Facsimile Adelaide Level 25, Santos House 91 King William Street Adelaide SA 5000 Telephone Facsimile Investor Services asgard.investor.services@ sealcorp.com.au Website: www/asgard/transfield.html 89q ASGARD Capital Management Ltd ABN Licensed Dealer in Securities S ABETIB11103