supplementary product disclosure statement legalsuper Allocated Pension & Non Commutable Allocated Pension

Transcription

1 supplementary product disclosure statement legalsuper Allocated Pension & Non Commutable Allocated Pension This Supplementary Product Disclosure Statement (SPDS) supplements the legalsuper Product Disclosure Statement (PDS) issued on 1 October 2005, and they should be read in conjunction with each other. This SPDS has been issued to provide information on legalsuper s Allocated Pension and Non Commutable Allocated Pension. Trustee: Legal Super Pty Ltd ACN Australian Financial Services Licence number Bourke Street Melbourne VIC 3000 Phone Fax Date of preparation 1 July 2006

2 Contents Allocated Pension...1 & Non Commutable Allocated Pension...1 Contents...2 Document Information...4 Product Issuer...4 Financial advice...4 About this document...4 Abbreviations used in this document...4 Overview...5 legalsuper pension products at a glance...5 The main features of legalsuper pensions...6 What are the benefits of superannuation pensions?...6 What are the risks of superannuation pensions?...6 What features or options are available with a legalsuper pension?...6 What initial investment amount do you need?...6 Do you have to be a member of legalsuper to apply for a legalsuper pension?...7 Are you eligible to become a legalsuper pension member?...7 How are your benefits transferred to a legalsuper pension account?...7 Can you add funds to a pension account once pension payments have started?...7 The legalsuper pension products Allocated pension...8 Who can start an allocated pension?...8 How much are you paid?...8 How long will your investment last?...8 Can you make lump sum withdrawals? Non Commutable Allocated Pension...9 Who can apply?...9 How much are you paid?...9 How long will your investment last?...9 Can you make lump sum withdrawals?...10 General information about legalsuper pensions...11 When do you receive income?...11 Can you make an investment choice?...11 If you make no choice, will your previous account choice carry over?...11 What investment option will your pension payment be drawn from?...11 What are the fees and costs?...11 What documentation do you need to complete to apply for a legalsuper pension?...11 What sort of confirmation will you receive?...11 What regular reporting will you receive?...12 Are the normal legalsuper benefits available with pensions?...12 Is there a cooling off period?...12 Taxation Information...13 Is there tax on money you rollover into a legalsuper pension account?...13 Is there tax on your pension payments?...13 Which is the relevant RBL?...13 Annual deductible amount...13 Is there tax on your investment earnings?...13 Do you pay any tax if you withdraw funds?...13 What is the tax treatment of death benefits?...14 How do the pensions fit in with the Social Security assets and income tests?...14 Pension Valuation Factors (PVFs)...15 Work Sheet...16 Pension Application checklist...17 Page 2 of 20

3 pension application form...18 Contact legalsuper:...20 Page 3 of 20

4 Document Information Product Issuer The legalsuper Allocated Pension and legalsuper Non Commutable Allocated Pension are issued by the Trustee of legalsuper, Legal Super Pty Limited (ACN ). Financial advice This SPDS and the PDS only provide you with general product information about the legalsuper pension products, which does not take account of your personal investment objectives, financial situation or particular needs. We strongly recommend you seek financial advice from an appropriately qualified adviser before taking a pension from legalsuper, particularly in light of proposed changes to superannuation announced in the 2006 Federal Budget. About this document The information contained in this SPDS is correct at the date of its preparation, 1 July This SPDS should be read in conjunction with the PDS. A copy of the current PDS and SPDS is available from us on request at any time without charge. Information contained in this SPDS may change from time to time and may be updated on our website at or by information updates. For any information which could be materially adverse, updates will be provided in a revised PDS or SPDS. Paper copies of any updated material will also be available without charge on request to the Trustee (contact details are shown on the back cover of this SPDS). The distribution of this SPDS in jurisdictions outside Australia may be restricted by law. Anyone outside Australia who comes into possession of this SPDS should seek advice on and observe any restrictions that apply in that jurisdiction. A failure to comply with such restrictions may constitute a violation of applicable securities law. The offer constituted by the PDS supplemented by this SPDS if received in electronic form is available only to persons in Australia. Abbreviations used in this document PDS Product Disclosure Statement SPDS Supplementary Product Disclosure Statement RBL Reasonable Benefit Limit TPD Total and Permanent Disablement ETP - Eligible Termination Payment PVF - Pension Valuation Factor References in this SPDS to the Trustee, us, we or our are references to the trustee of legalsuper, Legal Super Pty Ltd. Page 4 of 20

5 Overview There are two legalsuper pension products, which are summarised below, and the remainder of this document is presented in an easy to follow Q&A style. If you take your superannuation in the form of a pension rather than as a lump sum, you receive income at regular intervals of your choice, while your remaining capital remains in legalsuper, and any income earned on that capital is tax-free. We recommend you seek independent financial advice before making any decisions. legalsuper pension products at a glance Who can start a pension Partial withdrawal in addition to regular income payment or complete withdrawal (also known as Commutation) Pension Term Pension amount Payment frequency Investment options Reasonable Benefit Limit (RBL) Application of Centrelink Asset Test Application of Centrelink Income Test Allocated Pension Anyone who has access to an unrestricted non-preserved superannuation benefit of at least $20,000. Commutation is available, as long as certain conditions are met (refer to page 9). Non-Commutable Allocated Pension Anyone who has reached their preservation age (anyone presently 55 or older) and has access to a superannuation benefit of at least $20,000. Commutation is available in limited circumstances (refer to page 10). No fixed term, pension ceases when pension account balance reaches Nil. You can choose your pension amount each year, subject to the minimum and maximum limits set by the Federal Government. See page 8 for more information about these limits. You can choose your pension amount each year, subject to the minimum and maximum limits set by the Federal Government. See page 9 for more information about these limits. You have a choice of yearly, half-yearly, quarterly, monthly or twice monthly payments Members with pension accounts have the same investment options as other members of legalsuper. Please see page 11, and also see information about investment choice and the default choice on pages of the PDS. Lump sum RBL* applies. No asset test exemption is available. Centrelink treats pension payments as income for the purposes of the income test, but allows a reduction to the extent of the deductible amount. See page 14. *RBLs are explained on page 57 of the PDS under the heading Reasonable Benefit Limits. Page 5 of 20

6 The main features of legalsuper pensions Following are answers to the main questions you may have about legalsuper pensions. What are the benefits of superannuation pensions? Investment earnings on your pension account balance are tax-free at fund level. Currently, part of each pension payment made to you may be tax-free, and the rest may attract a 15% tax rebate. The Budget issued on 9 May 2006 proposed that from 1 July 2007, all pension payments to a retired person over 60 will be tax free. The legislation to effect this change has not yet been passed. Allocated pensions and non-commutable allocated pensions are non complying pensions and are subject to the lump sum RBL. The Budget issued on 9 May 2006 proposed that from 1 July 2007, RBLs will no longer apply. The legislation to effect this change has not yet been passed. For further information about how pensions are taxed, see page 13. What are the risks of superannuation pensions? Most of the risks of legalsuper superannuation pensions are the same as other legalsuper superannuation interests. These are described on pages 6 and 13 of the PDS, and include the risk of changes in the law. There are some risks particular to pensions. A legalsuper pension may not be the most appropriate product for your needs. The investment returns on your pension account may not be sufficiently high, and may not keep pace with inflation. The pension you choose may not provide adequate income to meet your needs or may not provide income for as long as you need it. What features or options are available with a legalsuper pension? You have access to the same investment options as other legalsuper members. You can choose more than one investment option and the proportion of your pension account balance to which each investment choice is to apply. See pages of the PDS for details of the current investment options, and details of the default option that applies if you do not make an investment choice for your pension account balance. The same fees and costs apply as for other legalsuper members, except that: o there is no death and TPD insurance coverage associated with your pension account, and therefore there are no deductions for premiums; o and with a pension account, there is no fee for switching between investment options, even after the first switch in each financial year. You have flexibility to choose how often your pension is paid, whether yearly or more often. See pages 8-10 for more information. What initial investment amount do you need? You need $20,000 to start a legalsuper pension. Page 6 of 20

7 Do you have to be a member of legalsuper to apply for a legalsuper pension? If you are not currently a member of legalsuper, you must first open an account with legalsuper and transfer or rollover your funds into your legalsuper account. Anyone can join legalsuper, this includes your spouse or someone who does not work in the legal profession. Are you eligible to become a legalsuper pension member? Eligibility varies depending on the type of legalsuper pension you wish to take: legalsuper Allocated Pension: You can open an allocated pension account with a minimum balance of $20,000, comprising unrestricted non-preserved benefits in the form of ETPs and transfers from superannuation or rollover funds, if you have satisfied a condition of release. legalsuper Non-Commutable Allocated Pension: You can open a legalsuper non-commutable allocated pension account with a minimum balance of $20,000, once you have attained preservation age - anyone who is already 55 or older. The superannuation benefits you transfer or rollover can be preserved, restricted non-preserved, or unrestricted non-preserved benefits in the form of ETPs and transfers from superannuation or rollover funds. Your current fund will be able to tell you what kind of benefits you have if you are not sure. How are your benefits transferred to a legalsuper pension account? We can accept rollovers and transfers from other superannuation or rollover funds, and transfers from an existing legalsuper account. These amounts will be deposited into your legalsuper pension account and the balance of this account will be used to fund your pension. When you fill in the pension application form at the back of this SPDS, please list the payments you are rolling over or transferring. Pension payments will not commence until we receive all of the rollovers and transfers that you have listed on the application form. Can you add funds to a pension account once pension payments have started? No. Money cannot be added to an existing pension account once that pension is being paid. If you wish, you may commence another pension, but the eligibility requirements, including the minimum investment amount, apply separately to each pension. Page 7 of 20

8 The legalsuper pension products Legalsuper offers two types of pensions: 1. Allocated pension Who can start an allocated pension? Anyone can start an allocated pension as long as they have access to an unrestricted, non-preserved superannuation benefit of at least $20,000. How much are you paid? At present, your annual allocated pension payments must be within the minimum and maximum limits set by the Federal Government. Each year you can change the amount of your pension for the coming year, as long as it is within the Government s minimum and maximum limits. The limits applicable to you are determined each year, and are affected by your age, your allocated pension account balance, and the Government Actuary s minimum and maximum pension valuation factors (PVFs). The Budget issued on 9 May 2006 proposed that, upon 1 July 2007, new simpler limits will apply. The legislation to effect this change has not yet been passed. Your pension account balance, which funds your pension, will be invested in your chosen investment option(s). If you don t choose a pension investment option, your pension account balance will be invested in the legalsuper default investment option described in the PDS. Investment returns will be applied to your pension account balance at the applicable investment option s crediting rate. To work out your minimum and maximum limits, see the allocated pension and noncommutable allocated pension worksheet on page 16 of the SPDS. If you do not make a choice, we will pay you the minimum once a year in June for that financial year. We will monitor your pension account to ensure it complies with the Federal Government limits. We will always pay you at least the minimum amount and never more than the maximum amount each financial year. We will let you know if it is necessary to adjust your pension payments to stay within Federal Government limits. If you do reach your maximum limit during the financial year we will not make further pension payments to you that financial year. If you set up a pension between 1 June and 30 June inclusive, there is no minimum amount of income you must receive for that financial year. How long will your investment last? Your allocated pension will be paid until your pension account balance reaches zero. Each time you receive a pension payment or make a lump sum withdrawal, the balance of your account reduces. How long your allocated pension lasts will depend on five factors: the level of pension payments you choose (within the permitted range) the investment earnings credited (or debited in the case of negative earnings) to your allocated pension account each year applicable tax any lump sum withdrawals you make, and the amount of fees and costs deducted from your account. Page 8 of 20

9 Can you make lump sum withdrawals? You can make lump sum withdrawals from your account at any time. This is also known as a commutation. Withdrawals can be made by completing a benefit application form available from us. A withdrawal fee of $50 will be deducted from each lump sum withdrawal. The minimum amount you can withdraw from your account is $1,000 (if your account balance is less than $1,000, you will need to withdraw your total balance). Withdrawals from your account will be treated as Eligible Termination Payments and may be subject to tax. See page 13 for more tax information. Please note: Your allocated pension is not guaranteed to last for any specific period. Just like any other investment, your investment returns will move up and down with economic and market conditions. No matter which investment option(s) you choose, your returns are not guaranteed. Your allocated pension payments are subject to splitting in a family law context. After your pension payments have started, you cannot add to your account. You can, however, take out another allocated pension for any further rollovers you receive, if you meet eligibility requirements. You cannot use your pension account balance or pension income stream as security for any borrowing. 2. Non Commutable Allocated Pension Who can apply? You can apply for a legalsuper non-commutable allocated pension if you ve reached your preservation age. If you re born after 1 July 1960, see page 49 of the PDS for a table showing your preservation age. If you re already 55 years of age or over, you have reached your preservation age, and so you can apply for a legalsuper non-commutable allocated pension. It does not matter whether, or how much, you are working. You may want to reduce your working hours and receive a pension. When you retire, you can choose to maintain or increase your pension payments (within the limits set by the Federal Government), or take all or part of your pension account balance as a lump sum. You can stop the pension at any time, and payment of your account balance is subject to the normal cashing and rollover restrictions (see information about lump sum withdrawals on page 10). How much are you paid? The amount you are paid is calculated in the same way as for Allocated Pensions. See page 8. How long will your investment last? As with the Allocated Pension, your Non-Commutable Allocated Pension will be paid until the pension account balance reaches zero. See the comments on page 8 that explain how that occurs. Page 9 of 20

10 Can you make lump sum withdrawals? With a non-commutable allocated pension, there is a very limited right to make lump sum withdrawals. You will only be allowed to take any restricted non-preserved and/or preserved benefits as a lump sum if you will use it to: pay the surcharge tax; or satisfy a family law order regarding splitting of superannuation benefits; or acquire another non-commutable income stream. Otherwise, to make a lump sum withdrawal, you have to satisfy a condition of release in respect of which there is no cashing restriction. Conditions of release are described on page 48 of the PDS under the heading Accessing your benefits. Although the circumstances in which you can withdraw a lump sum are very limited, you have the option of stopping the non-commutable allocation pension at any time, and having the balance of your pension account transferred into an accumulation account with legalsuper or another fund. If your circumstances change and you believe that you meet a condition of release, please contact us to confirm the preservation status of your account balance. If you remain working while being paid a legalsuper non-commutable allocated pension, legalsuper may continue to receive super contributions made by or in respect of you. Such contributions will be paid into another legalsuper superannuation account, as you cannot make additional contributions to a pension once it has started. Please note: We will record separately your preserved and non-preserved benefits in your non-commutable allocated pension. Your non-commutable allocated pension payments will be made first from any unrestricted non-preserved amounts, then from any restricted non-preserved amounts and finally from the remaining preserved balance of your account. You can cash out any unrestricted non-preserved benefits in your legalsuper non-commutable allocated pension at any time. However, restricted nonpreserved and preserved benefits cannot be taken in cash until you meet a condition of release or meet one of the conditions noted above. Your non-commutable allocated pension is not guaranteed to last for any specific period. Just like any other investment, your investment returns will move up and down with economic and market conditions. No matter which investment option(s) you choose, your returns are not guaranteed. Your non-commutable allocated pension payments are subject to splitting in a family law context. After your pension payments have started, you cannot add to your account. You can, however, take out another allocated pension with any further rollovers you receive, if you meet eligibility requirements. You cannot use your pension account balance or pension income stream as security for any borrowing. Page 10 of 20

11 General information about legalsuper pensions When do you receive income? No matter which legalsuper pension you choose, you will receive your income payments by electronic funds transfer to your bank, building society or credit union account. Payments are processed in arrears on or prior to the 28th day of any month in which you are to receive a pension payment. You can choose to receive your payments twice-monthly, monthly, quarterly, half-yearly or yearly. Yearly payments are paid in June. Half-yearly payments are paid in June and December. Quarterly payments are paid in June, September, December and March. Can you make an investment choice? We encourage you to actively choose one or more investment option(s) for your pension account balance, in consultation with an adviser. If you make no choice, will your previous account choice carry over? No. Any investment choice you have made in relation to your accumulation account balance does not carry over to your pension account balance. If you don t choose an investment option for your pension account, the default investment option described in the PDS will apply to your pension account balance. What investment option will your pension payment be drawn from? If you select more than one investment option, your pension payment will be drawn from your pension account balance in the same proportions as your investment choices, except if there is insufficient in one or more of the selected investment options to pay the full specified proportion. In that case, the pension payments will be drawn in the manner, and proportions, determined by the trustee. What are the fees and costs? The same fees and costs apply as for other legalsuper members, except that: there is no death and TPD insurance coverage associated with your pension account, and therefore there are no deductions for premiums; and with a pension account, there is no fee for switching between investment options, even after the first switch in each financial year. If you maintain more than one legalsuper superannuation account (for example, a superannuation account and one or more pension accounts), the weekly administration fee will be applicable in respect of each of the accounts. What documentation do you need to complete to apply for a legalsuper pension? Simply complete the pension application form at the back of this SPDS, and if you are not already a legalsuper member, the member application form at the back of the PDS. What sort of confirmation will you receive? Once your application is accepted by legalsuper, you will receive a statement that shows the details of your chosen pension. You should check that the details are correct. If your application is not accepted, you will be notified in writing. Page 11 of 20

12 What regular reporting will you receive? We will keep you up to date with various, regular, easy to understand reports: Twice yearly statements - provide details of the current value of your pension, transactions, and any changes in fees and costs or the taxation treatment of the pension during the relevant period. These statements will keep you informed about how your pension is performing and help you manage your investment. legalsuper Payment Summary issued at the end of each financial year, this discloses the tax components of your pension(s) and should be included in your income tax return. Annual Report to members - issued in September each year, the Annual Report includes information about investment performance and asset allocation of legalsuper s investment options. Regular newsletters keep you up to date on the latest news about legalsuper pensions and the market in general. Are the normal legalsuper benefits available with pensions? All other benefits of being a legalsuper member apply, save that there is no death and TPD insurance coverage associated with your pension account. Refer to legalsuper s PDS for more information. Is there a cooling off period? You may cancel your pension during a 14-day cooling off period. If you wish to exercise this right, you must advise us in writing during the cooling-off period. The 14-day cooling off period commences when we confirm that your application to open a pension account has been approved, or on the fifth day after we accept your application to open a pension account (whichever happens first). If you cancel your pension in this way, no fees or charges will be deducted from your account. However, any amount refunded will be adjusted for any increase or decrease in the investment value, any pension payments already made, and any applicable tax. Some restrictions apply to any preserved amounts or restricted nonpreserved amounts paid into your pension account. For this reason, any refunds will most likely be required to be paid into another complying superannuation fund or approved deposit fund and would not be able to be paid directly to you. If you are entitled to a refund directly, you might have to pay lump sum tax on it and you will not be able to roll it over again. Page 12 of 20

13 Taxation Information The main taxation provisions affecting pension accounts and pension payments are summarised below. However, we recommend you seek advice from an appropriately qualified adviser to help you fully understand the implications of your choice. The Budget issued on 9 May 2006 proposed that from 1 July 2007, all pension payments to a retired person over 60 will be tax free and RBLs will no longer apply. The legislation to effect this change has not yet been passed, and the information below reflects the current position. Is there tax on money you rollover into a legalsuper pension account? No tax is payable when you roll over money from another superannuation fund or an ETP to legalsuper, unless the amount includes an untaxed element (for example, a benefit from certain public sector funds, or an ETP made by your employer). We are required to deduct tax of 15% from any untaxed element. Is there tax on your pension payments? The regular pension payments you receive from legalsuper are taxable as income and are subject to Pay As You Go (PAYG) tax, which will be deducted by us from your pension account. The tax payable on your pension payments from legalsuper may be reduced if you are: entitled to claim the tax-free income threshold eligible for an annual deductible amount (also referred to as your tax-free amount) eligible to claim the 15% tax rebate, available in respect of pension payments which are within the relevant RBL. The tax payable on your income payments may be further reduced if you are entitled to other rebates or deductions such as the Low Income Tax Offset, or the Senior Australians or Pensioner Tax offset. The rules for these entitlements are complex and depend on your particular circumstances. You should contact the Australian Tax Office for information, or seek specialist tax advice in relation to these matters. Which is the relevant RBL? Allocated pension and non-commutable allocated pensions are subject to the lump sum RBL. The section headed Reasonable Benefits Limit on page 57 of the PDS provides further information about RBLs. Annual deductible amount The annual deductible amount is calculated when you start to receive your pension, by dividing the undeducted purchase price by your life expectancy when you commence your pension. The undeducted purchase price is generally any part of the opening balance of your pension account that is an undeducted contribution, a capital gains tax-exempt component, or a post-1 June 1994 invalidity component. Is there tax on your investment earnings? No tax is payable on the investment earnings of your legalsuper pension account. Do you pay any tax if you withdraw funds? If you withdraw a lump sum, the withdrawal amount will be taxed as an ETP and tax will be deducted from the lump sum accordingly. The Taxation of Benefits section on page 56 of the PDS sets out details of the tax payable on ETPs. Page 13 of 20

14 What is the tax treatment of death benefits? The taxation of death benefits is described on page 57 of the PDS. How do the pensions fit in with the Social Security assets and income tests? The Australian Government uses two tests to assess eligibility for an aged pension, the assets test and the income test. Pension account balances and pension payment levels are re-evaluated every six months. Assets test Your allocated pension account balance and your non-commutable allocation pension account balance are considered assets for the purposes of the Social Security assets test. Income test Your allocated pension and non-commutable allocated pension income payments are treated as income for the purposes of the income test. Payments from your pension account, less a non-assessable amount, are assessed for income test purposes. For an allocated pension or a non-commutable allocated pension, the nonassessable amount is determined by taking the original purchase price of your pension (that is, the total amount held in your pension account immediately before commencing your pension) and deducting the amount of any withdrawals, and then dividing by the number representing your life expectancy. Page 14 of 20

15 Pension Valuation Factors (PVFs) Minimum / Maximum Pension Valuation Factors (PVFs) (referred to on page 8 of this SPDS, and used in the worksheet on page 16 of this SPDS for allocated pensions and non-commutable allocated pensions) Age of Beneficiary Maximum Pension Valuation Factor Minimum Pension Valuation Factor Age of Beneficiary Maximum Pension Valuation Factor Minimum Pension Valuation Factor or more Source: Superannuation Industry (Supervision) Regulations 1994, Schedule 1AAB Page 15 of 20

16 Work Sheet Choosing your income. You can choose how much income you receive from your pension account in each financial year. The total income you receive each financial year must be within the minimum and maximum limits set by the Government and these limits change each year. These minimum and maximum limits are calculated at the date you invest and each 1 July thereafter. They apply for the rest of that financial year and remain the same regardless of changes to the balance of your pension account during the year or any partial withdrawals you may make. How to calculate your income payment A good place to start is working through an example. Liz is 65 years old and invests $200,000 in an allocated pension on 1 March The following table illustrates how much income Liz can receive in the financial year (rounded to the nearest $10). While you may not be Liz s age or have the amount she has to invest, it should help you understand how to calculate your income payment. Space has been provided to work out your own income payments. Liz s example Your example Amount invested: $200,000 $ From the table on page 14, minimum pension payment factor is: 17.3 From the table on page 14, maximum pension payment factor is: The minimum annual amount of income that must be received in the financial year is: The maximum annual amount* of income that can be received in the financial year is: 9.9 $200, = $11,560 $200, = $20,200 $ = $ $ = $ * Note: First year of income may be less If Liz invests part way through a financial year, the minimum and maximum amount of pension income she can receive in her first year can be pro-rated for the part of the financial year remaining. Say Liz invests on 1 March. The number of days remaining in the financial year is 122. Therefore the minimum and maximum amounts of pension income in Liz s first year are: Minimum amount of income: $11,560 x (122/365) = $3,864 Maximum amount of income $20,200 x (122/365) = $6,752 $ = $ $ = $ Liz can choose how much income she receives for the first financial year, between $3,864 and $6,752. The amount Liz chooses in the first and later years will influence how long her allocated pension will last. Page 16 of 20

17 Pension Application checklist 1. Personal details Provide us with your relevant personal details, or membership number if you are already a legalsuper member. 2. Investment amount Decide how much you wish to move into a legalsuper pension account. Decide how to split it if you want to purchase more than one pension. Advise your current complying superannuation fund that cheques for your investment in a legalsuper pension must be made payable to legalsuper Allocated Pension or legalsuper Non-Commutable Allocated Pension (as applicable in your case). 3. Investment choice Select your investment option(s) If you choose more than one, indicate the proportion of your pension account balance that should be invested in each. Note: if you don t choose, the default option specified in the PDS will apply. If you selected more than one investment option, your pension payment will be drawn from your pension account balance in the same proportions as your investment choice, unless that is not possible. 4. Pension payment instructions Advise us how you would like your pension payments paid. Select how often you wish to receive your payments. Choose the amount of income you would like to receive each year. Your income amount must fall between the maximum and minimum limits set by the Government. Note: if you do not make a choice, we will pay you the minimum based on your life expectancy, once a year in June. Provide bank details for receipt of your pension payments If you have an allocated pension, these bank details will also be used for any lump sum withdrawals you choose to make. 6. Declaration and signature You must sign the form confirming that you have read and understood the PDS and this SPDS. 7. Membership application form If you are not already a legalsuper member and wish to start a legalsuper pension, you must complete the application form at the back of the PDS as well as the application form at the back of this SPDS. Page 17 of 20

18 allocated pension membership application Please return this completed for to legalsuper GPO Box 4952 Melbourne VIC 3001 or DX 145 Melbourne or fax to freecall telephone freecall Before you complete this application from, you should read legalsuper s PDS and SPDS, which include important information about legalsuper. Please use BLOCK letters and black ink when completing this form. 1. current personal details If you are already a legalsuper member, Membership Number: MR/MRS/MS/MISS SURNAME GIVEN NAMES DATE OF BIRTH D D M M Y Y Y Y STREET ADDRESS/PO BOX SUBURB/TOWN/CITY STATE POSTCODE TAX FILE NUMBER TELEPHONE (HOME) TELEPHONE (MOBILE) TELEPHONE (WORK) ADDRESS 2. investment choice You can choose from eight different investment options for your pension. You can choose one option or a mix of options that you consider will best suit your individual needs. I want legalsuper to invest my pension amount in the following choices: INVESTMENT CHOICE OPTION % FOR EACH INVESTMENT CHOICE Enhanced Cash % Conservative % Moderate (Fund default option) % Assertive % Aggressive % Australian Shares % Overseas Shares % Socially Responsible Investment (SRI) % Total (must be 100%) % I understand that (and my signature following is evidence of this understanding) The investment performance of legalsuper s investment choice options is not guaranteed. If I do not select an investment choice option upon joining legalsuper, my super will be invested in the Moderate option, which is the fund s default option. My investment choice can be changed on any working day, and becomes effective on the following working day after legalsuper receives this correctly completed form. legalsuper will confirm my investment choice in writing. page 1 Legal Super Pty Ltd ABN as trustee for legalsuper AFSL RSE L July 06

19 3. investment amount Are you rolling over from legalsuper? No Yes Are you rolling over from another superannuation fund? No Yes If Yes, complete a Transfer of Superannuation into legalsuper form, and we will arrange the transfer for you. A copy of this form can be found in the legalsuper PDS or you can download one from our website at These monies will be consolidated in legalsuper. Your Allocated Pension will not commence until all your rollovers have been received. Company Policy/ Member number Amount. Company Policy/ Member number Amount. 4. payment details Payment Frequency (in arrears) Nominated date of first payment Twice-monthly Monthly Quarterly Half-yearly Yearly D D M M Y Y Y Y Note: Payments are processed on the 28th of each month (in arrears). Twice-monthly payments are processed on the 14th and 28th of each month (in arrears). REGULAR INCOME PAYMENT (please tick one box only) The minimum amount per annum allowed under legislative guidelines The maximum amount per annum allowed under legislation guidelines A nominated amount (subject to min/max guidelines): $ Payment instructions Credit the following bank/building society/credit union (via electronic funds transfer where applicable) Name of institution Address of institution SUBURB/TOWN/CITY STATE POSTCODE Account in name of BSB number - Account Number 5. management of personal information The personal information that you have provided on this form will be used by legalsuper to establish your account in accordance with your instructions. If you do not provide the information, the Trustee will not be able to establish an account as you have requested. Information about how legalsuper uses and discloses the personal information that you provide is contained in the Fund s Policy for Management of Personal Information. To access the Fund s Policy and your personal details or to make an enquiry about any aspect of your Fund membership, please call legalsuper on freecall , visit legalsuper s website at or write to legalsuper, GPO BOX 4952, Melbourne VIC I have read and understood the PDS and this SPDS. I declare that the above information is true, and acknowledge responsibility for its completeness and accuracy. I agree and understand that my pension superannuation arrangements will be governed by prevailing legislation and the terms and provisions of legalsuper s trust deed as in force from time to time. MEMBER APPLICANT S SIGNATURE DATE x D D M M Y Y Y Y page 2 Legal Super Pty Ltd ABN as trustee for legalsuper AFSL RSE L July 06

20 Contact legasuper: legalsuper GPO Box 4952 Melbourne VIC 8060 DX 145 Melbourne telephone freecall fax freecall LEGS 25781