Insurance SUPER FACTSHEET. 1 May 2018

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1 1 May 2018 The information in this document forms part of the Australian Catholic Superannuation and Retirement Fund Superannuation Plan Product Disclosure Statement dated 1 May Insurance

2 Contents About this Fact Sheet 2 Overview 3 How Cover is Organised 4 Cover for Employer Members 5-9 Cover for Personal Members 9 Insurance Cover for All Members Death and TPD Cover Explained IP Cover Explained When Cover Starts and Ends When You Take Leave 25 About this Fact Sheet This fact sheet contains a summary of the Australian Catholic Superannuation and Retirement Fund s ( the Fund / Australian Catholic Superannuation ) insurance options. All cover is subject to the terms and conditions of the insurance policies. If there is any conflict between the information contained in this fact sheet and the insurance policies, the terms and conditions of the insurance policies will prevail. You should ask us for a free copy of the policy documents if you require details of the terms and conditions. The information contained in this fact sheet does not take into account your specific needs or circumstances. Whilst all due care has been taken in the preparation of this fact sheet, the Trustee reserves the right to correct any errors or omissions. 2

3 Overview This section provides a brief overview of our insurance options. More detail is provided in the sections following this overview. Types of Cover Australian Catholic Superannuation members have access to three types of insurance: Death cover (including Terminal Illness cover), which pays a lump sum to your beneficiaries if you die or to you if you suffer a Terminal Illness; Total and Permanent Disablement (TPD) cover, which pays a lump sum if illness or injury means you are unlikely to ever be able to work again; Income Protection (IP) cover, which pays a monthly income while you are temporarily unable to work because of illness or injury. Death and TPD cover are available as either a fixed dollar amount or in units. IP cover is available only in units. You can choose your own mix of cover, but your TPD cover cannot be more than your Death cover and you cannot hold TPD cover without Death cover. Automatic Cover When you join the Fund, you will automatically receive a certain amount of cover, provided you meet certain eligibility criteria. The type of cover and the amount you will receive depends on whether you join the Fund as an employer member or personal member. For details on when cover commences, please refer to the section When Cover Starts and Ends. If you do not want automatic cover, you will need to notify us on the Change your Insurance Arrangements form that we will provide when you join the Fund. Changing Your Cover You can apply for extra cover at any time, subject to underwriting by the insurer. You can also apply to change your IP waiting period or benefit payment period. If you are an employer member, you can also apply for extra cover by completing an application form containing a basic screening declaration (health questions) at the time of joining the Fund. For Death and TPD cover you can also apply to increase your cover on the occurrence of certain lifestyle events (e.g. marriage). You can also apply for extra cover over the phone or online. It is important that the level and type of insurance cover is correct for you and you can cease or reduce your cover at any time by advising the Fund in writing or requesting this over the phone. If you do so and want cover in future, you will have to be underwritten and the insurer may reject your application or may issue cover subject to a premium loading or exclusion. Transferring Cover From Your Previous Fund You can apply to transfer cover you have in another super fund, subject to meeting certain terms and conditions. Age Limits The minimum age for starting cover is age 15. The maximum age for starting cover is 64 for IP and 69 for Death and TPD. IP cover ceases at age 65 and Death and TPD cover ceases at age 70. (Note: a different definition of TPD will apply if you are aged 65 or more at the date of disablement. See Death and TPD Cover Explained for details.) Worldwide Cover If you are an Australian resident or visa holder, you will receive worldwide 24 hour cover when you are away from Australia for any reason, provided premiums continue to be paid. If you are a visa holder, cover will end on the earlier of when you are no longer eligible to work in Australia or the date Australia ceases to be your permanent place of residence. If you become TPD or suffer a Terminal Illness while overseas, the insurer may require you to return to Australia for assessment. IP benefit payments will cease if you travel or reside overseas for more than six months while claiming an IP benefit. Payments will only resume if you return to Australia and establish your entitlement to a benefit. 3

4 How Cover is Organised Death and TPD Cover Death and TPD cover are available in both unitised and fixed cover forms. You can apply for either fixed cover or unitised cover, but not a mix of the two. Unitised Cover Each unit of cover is worth a dollar amount that depends on your age. Your cover is the number of units you hold multiplied by the value of each unit based on your age next birthday at a point in time. As you age, your level of cover will decrease but the premium will remain the same. Each unit of Death only cover costs $0.74 per week or $38.48 per year. Each combined Death/TPD unit costs $1.29 per week or $67.08 per year. The amount of cover you receive at different ages for each unit is shown in Table 3. Fixed Cover You receive a dollar amount of cover (in multiples of $1,000). The premium will generally increase with age. The premium scale for fixed cover is shown in Table 3. Unless you apply to change it, your level of Fixed Death cover will remain the same until you reach age 70 and your level of Fixed TPD cover will remain unchanged until age 60. From age 61, the amount of your Fixed TPD cover will reduce by 10% each year, so that by age 70 your TPD cover is zero. You cannot apply for fixed cover if you are aged 61 or over. IP Cover IP cover is only available in units, with each unit covering a salary of up to $15,000. If you have a sufficient number of IP units to cover your full salary, the benefit you can receive is 85% your salary, split so that 75% of your salary is paid to you and 10% is paid as a contribution into your superannuation account. The level of cover does not change with age, but the cost (premium) of each unit generally increases with your age. The cost of IP cover also depends on the waiting period and the benefit payment period. IP premiums are shown in Tables 4, 5 and 6. If you have insufficient IP units to cover your full salary, in the event of a claim your cover will be limited to the number of units you hold at the time. Therefore, it is important you make sure you have adequate units of IP cover at all times. 4

5 Cover for Employer Members You are an employer member if you were enrolled into Australian Catholic Superannuation by an employer sponsor (i.e. an employer who has completed an Employer application form), who makes super contributions to the Fund on your behalf. When You Join The Fund Automatic (Default) Cover Once we receive an employer contribution (Superannuation Guarantee (SG) contribution, award contribution or a salary sacrifice contribution) from your employer you will automatically receive default cover on an opt-out basis. For details on when cover commences, please refer to the section When cover starts and ends. If you do not want this cover, you will need to complete and return the Opting out of insurance form that we will provide when you join the Fund or by requesting this over the telephone. If you opt out within 60 days of joining the Fund, we will cancel your cover from inception and refund any premiums we have deducted. If you are eligible*, you will receive the following default cover: For members who are under age 25, one unit of Death and Total and Permanent Disablement (TPD) cover, costing $1.29 per week. This will increase automatically to 3 units of Death and TPD cover at age 25, costing $3.87 per week; and For members age 25 or over 3 units of Death and Total and Permanent Disablement (TPD) cover, costing $3.87 per week; and One unit of Income Protection (IP) cover (sufficient for an annual salary of up to $15,000), with a benefit payment period of up to two years and a waiting period of 90 days. The cost of cover is shown in Tables 4, 5 and 6. If you are employed on a permanent basis (full-time or part-time) when you join the Fund, and you or your employer inform us of your salary, you will automatically receive sufficient IP units to cover your salary, rounded up to the next whole unit up to a maximum annual salary of $240,000 (i.e. a maximum monthly benefit of $17,000). If your salary is not provided or you are employed as a casual, you will be provided with one unit of cover. However, you may be able to apply for sufficient units to cover your salary - see the next section. In some cases the automatic default cover you receive on joining will be limited cover. The definition of limited cover is below but generally, this means you are only covered for injuries that occur or illnesses which first become apparent on or after the date your cover commences (or recommences, if applicable). You will receive limited cover if: you joined the Fund on or after 1 July 2017; you joined the Fund before 1 July 2017 but 6 months after starting employment with your sponsoring employer; or you joined the Fund before 1 July and you were not at work as a result of an injury or illness on the day you joined the Fund (the definition of at work is also below). In the first two cases, your limited cover will be replaced with standard cover after 12 months provided you are at work on the first normal business day (or the next normal business day if applicable) after the 12 months expires. In the third case, your limited cover will continue until you are next at work and performing your usual weekly hours. You can also apply at any time to change your limited cover to standard cover by answering a set of screening questions to the satisfaction of the Fund s insurer. At Work on the day cover starts means you are actively performing (or capable of performing) all the duties of your usual occupation and you are not receiving or entitled to claim income support benefits from any source (including workers compensation or disability income benefits). If you are not at work at the end of your 12-month period of Limited Cover, your Death, TPD and IP cover will be restricted to Limited Cover until you are again at work. * If you have previously been paid a TPD benefit or Terminal Illness benefit from a superannuation fund or a life insurance policy, you are currently applying for a TPD or Terminal Illness benefit or you are entitled to apply for a TPD or Terminal Illness benefit, you are not entitled to the Automatic (default) insurance cover. Please tell us if this applies - otherwise you may be charged premiums, but you will not be eligible to claim a benefit. If you do not qualify for automatic cover, you can apply for Death, TPD and/ or IP cover, but you will need to be underwritten. 5

6 Cover for Employer Members cont. Limited Cover (for Death and TPD) means for members who joined the Plan before 1 July 2017, Death Cover and New Events TPD Cover, and for members who joined after 1 July 2017, both New Events Death Cover and New Events TPD Cover. New Events Death Cover means cover only for a death caused by an event that occurs on or after your cover starts or cover for a Terminal Illness if the symptoms of the Terminal Illness only first become reasonably apparent on or after your cover starts. New Events Total and Permanent Disablement Cover means you are only insured for Total and Permanent Disablement caused by an illness or injury that occurred on or after the date your cover starts. Limited Cover (for Income Protection) means that you are not covered for an injury that occurred or an Illness that manifested itself, prior to, or a condition which caused you to be not at work or otherwise working in a reduced capacity on, the date your cover commenced, recommenced or increased. Optional Extra Cover for Employer Members In addition to the automatic cover listed above, you can also apply to increase your cover, to a maximum of: Six units of Death/TPD cover if you are aged 25 and above on joining the Fund or if you are aged below 25 on joining 2 units of Death/TPD cover; and/or The number of IP units needed to cover your salary from an employer who contributes to the Fund (up to a maximum annual salary of $240,000). Certain conditions apply to this offer: You must have joined the Fund within 2 months of commencing employment with your sponsoring employer; You must satisfactorily complete the application form containing a basic screening declaration (health questions); We must receive your application form no later than 60 days from the date we issue your new member statement; For IP cover, you must be At Work on the date that you sign and date the application form; You must not have ever been paid a TPD or Terminal Illness benefit from a superannuation fund or a life insurance policy, be currently applying for a TPD or Terminal Illness benefit or be entitled to apply for a TPD or Terminal Illness benefit. If your application for additional cover is accepted by the Fund s Insurer, your cover will commence on the date the insurer specifies. If you do not satisfy the conditions above, you may still apply for extra cover, but you will need to be underwritten. 6

7 Cover for Employer Members cont. When Significant Lifestyle Events Occur If you are under age 55 you may apply to increase your Death and/or TPD cover, by one unit (or the equivalent dollar amount based on a unit of cover for your age at the date of the lifestyle event, if you have fixed cover) when you experience one of the following life events: Marriage (once only); Birth or adoption of a child; Buying your principal residence; Taking out or increasing a mortgage to buy your principal residence. You must meet the eligibility requirements including satisfactorily completing the application form containing health questions and a declaration. You can apply for this extra cover only once in any 12 month period. You must apply within six months of the event occurring and supply the required evidence to confirm the occurrence of the lifestyle event. Your total cover cannot exceed the maximum benefit limit. If you have been underwritten and the insurer has applied any special conditions or exclusions to your cover, the same conditions or exclusions will apply to this extra cover. If your application for additional cover is accepted by the Fund s Insurer, your cover will commence on the date your application is accepted. When Your Salary Increases If you receive a salary increase and you notify us within three months, we will increase your IP cover (without underwriting) by up to two units to cover your most recent salary increase (up to a maximum annual salary of $240,000). If you need more than two units to cover your salary increase, you can apply for additional cover by being underwritten. If your employer notifies us of your salary, and you are a permanent member, the two unit limit will not apply. The increase will take effect from the date that you or your employer notifies us of your new salary. If you notify us of your salary increase, the increase will take effect from the date we receive your application form, subject to the application being accepted by the insurer. Please note that either you or your employer must notify us of your salary increase. It is your responsibility to notify us if your employer does not do so. Your cover will not be increased if we are not notified. The three month time limit starts on the later of the date you received notification of the salary increase or the date the increase becomes effective. You must provide evidence of the salary increase and you must be at work on the date your cover increases. If you are not at work, limited cover (for Income Protection) will apply until you are again at work. If you apply for an increase outside the three month limit, any increase will be subject to satisfactory completion of health questions and a declaration. 7

8 Cover for Employer Members cont. If You Change Your Employment Status With Your Current Employer Your insurance cover will not change unless you or your employer notifies us that your employment status has changed. The change to your cover will take effect from the date that we are advised of your changed employment status. From Permanent (Full-time or Part-time) to Casual Your death and TPD cover will remain the same. Your IP cover will reduce to 1 unit, however if your casual salary is greater than $15,000 you will need to notify the Fund. Please note: If the Fund has more than one active employment record, one of which is a permanent employment status, your IP cover will not reduce to 1 unit. If you are over-insured at the time of becoming disabled, you will not be able to receive a benefit of more than 85% of your predisability salary. From Casual to Permanent (Full-time or Part-time) Once you notify us of the change, you will receive the default level of IP cover for a permanent member. You will also receive the greater of three units of Death/TPD cover and the number of units you already hold, but if you joined the Fund on or after 1 July 2017 and are under age 25, you will not receive this increase in cover until your 25th birthday. Any increase in TPD and IP cover is subject to you being at work on the date your employment changes. If you are not at work, any increase will be new events total & permanent disablement cover and limited cover (for Income Protection), until you are again at work. Any loadings and exclusions that apply to your existing cover will also apply to any increased cover. To be eligible for the increased cover, you must not have received, or be eligible to receive, a TPD benefit from the Fund or from any other insurance policy. If you joined the Fund on or after 1 July 2017 and were not eligible for automatic (default) cover on the date you joined, you will not be entitled to this automatic increase in cover. If You Change Employers Your insurance cover will not change unless you notify us that you have changed employers. If you notify the Fund of a change in employer and your current level of cover is below the default level, and if you have not previously opted out of cover, you will receive the default level of IP for your employment status (i.e. permanent or casual). If your employment status is casual with the new employer, your IP cover will reduce to 1 unit. Please note that if the Fund has more than one active employment record, one of which is a permanent employment status, your IP cover will not reduce to 1 unit. You will also receive the greater of three units of Death/TPD cover and the number of units you already hold, but if you joined the Fund on or after 1 July 2017 and are under age 25, you will not receive this increase in cover until your 25th birthday. Any increase in TPD and IP cover is subject to you being at work on the date you start new employment. If you are not at work, any increase you receive will be new events total & permanent disablement cover and limited cover (for Income Protection), until you are again at work. Any loadings and exclusions that applied to your existing cover will continue to apply to any increased cover. To be eligible for increased cover, you must not have received, or be eligible to receive, a TPD benefit from the Fund or from any other insurance policy. If you joined the Fund on or after 1 July 2017 and were not eligible for automatic (default) cover on the date you joined, you will not be entitled to this automatic increase in cover. 8

9 Cover for Employer Members cont. Automatic Cover For Existing Uninsured Members as at 1 July 2013 Some existing members did not have default cover because they joined the Fund outside the eligibility rules that applied at the time. If you are one of these members, you would have received 1 unit of Death / TPD cover, on an opt-out basis, from 1 July In addition to our normal eligibility criteria, you must not have previously cancelled cover within the Fund and you must not have previously applied for cover within the Fund and been declined by the insurer. To be eligible for TPD cover, you must not have previously been paid a TPD benefit from a superannuation fund or life insurance policy, be currently applying for a TPD benefit or be currently entitled to apply for a TPD benefit. If you inform us that you are not eligible for TPD cover, you will be provided with one unit of Death cover only. What Exclusions Apply To The Default cover for existing uninsured members as at 1 July 2013? You will not be paid a benefit for any claim that is caused directly or indirectly from war. A definition of war is contained in our insurance policy document, which is available on request. You will receive limited cover for at least the first 12 months. Your limited cover will cease after 12 months provided that you are at work at the expiration of the 12 month period. If you are not at work on that date, your limited cover will continue until you are again at work. Cover for Personal Members Automatic (Default) Cover From 1 July 2013, all personal members automatically receive 1 unit of Death / TPD cover on an opt-out basis. In addition to our normal eligibility criteria, you must not have previously cancelled cover within the Fund and you must not have previously applied for cover within the Fund and been declined by the insurer. Also, you must not be employed in an excluded occupation. The list of excluded occupations is available from the insurance section of our website. To be eligible for TPD cover, you must not have previously been paid a TPD benefit from a superannuation fund or life insurance policy, be currently applying for a TPD benefit or be currently entitled to apply for a TPD benefit. If you inform us that you are not eligible for TPD cover, you will be provided with one unit of Death cover only. What exclusions apply to the default cover for Personal Members? You will not be paid a benefit for any claim: Which is directly or indirectly related to a pre-existing medical condition; or Is caused directly or indirectly from war. A pre-existing medical condition means any injury, illness, condition or related symptom that existed in the two years prior to or at the time your default cover commences: That you were aware of, or a reasonable person in your position should have been aware of; For which you had, or intended to have, a medical consultation; or For which a reasonable person in your circumstances would have had a medical consultation. Definitions of war and medical consultation are contained in our insurance policy document, which is available on request. Additional Cover for Personal Members You may apply for additional Death / TPD cover and /or IP cover at any time. Your application will be subject to underwriting (including satisfactory evidence of good health). Our insurer may accept or decline your application and may apply special conditions to your cover. 9

10 Insurance Cover for All Members Changing Your Cover Extra Cover or a Different Type of Cover You can apply at any time for: IP cover; Combined Death/TPD cover; Death only cover. The maximum IP cover is a monthly benefit of $27,625 which covers a salary of $390,000 per year. The maximum Death and TPD cover is $2 million. Your TPD cover cannot be greater than your Death cover. You can also apply to change: The waiting period for your IP cover to 30 days, 60 days or 90 days; The benefit payment period for your IP cover to two years, five years or to age 65. Upgrades to cover, including additional cover, longer benefit payment periods and shorter waiting periods are subject to underwriting and acceptance by our insurer. Exceptions, loadings and/or exclusions may apply if you have been underwritten by the insurer. Please contact the Fund office if you need any further information. Interim Accident Cover If you are eligible, our insurer provides free interim accident cover from the date we receive your underwriting application for cover or increased cover. The interim cover ends on the earlier of: 90 days after the date interim accident cover starts; When the insurer accepts or rejects your application; The day you withdraw or cancel your application; The date one of the other conditions for ceasing cover applies - refer to the When Cover Starts and Ends section. The maximum interim accident cover is $2 million for Death and TPD cover and $27,625 benefit per month, covering a salary of $390,000 per year, for IP cover. Accident is defined as a fortuitous, external event that was unexpected and unintended, causing injury or death or Total and Permanent Disablement. Cancelling or Reducing Your Cover You can cancel or reduce your insurance cover by completing the Change your Insurance Arrangements form located on our website or by requesting this over the phone. You can opt out of a particular type of cover (e.g. TPD) but you cannot reduce your Death cover so that it is below your TPD cover. If you want to reinstate your cover in the future, your application will be subject to assessment and acceptance by the Fund s insurer. Changing Between Fixed and Unitised Cover You can apply to change between fixed and unitised cover at any time. Some conditions apply: If you are aged 61 or over, you cannot convert unitised cover to fixed cover; You cannot mix unitised and fixed cover; If you convert from unitised cover to fixed cover, the amount of cover will be rounded up to the next $1,000; If you convert from fixed cover to unitised cover, the amount of cover will be rounded up to the next whole unit; 10

11 Insurance Cover for All Members cont. To convert fixed cover to unitised cover or vice versa you must satisfactorily complete the application which contains health questions and a declaration; If you wish to increase your level of cover (other than because of rounding) at the same time, your application will be subject to underwriting. Transferring Cover From Another Fund You may transfer your current cover from another employer sponsored or personal superannuation fund into the Fund, but not cover from a self-managed superannuation fund, a retail insurance policy, or a non-superannuation policy. Transferred cover is in addition to any existing Australian Catholic Superannuation cover, subject to the maximum benefit limits. Any loadings, restrictions or exclusions that apply to your previous cover will apply to the replacement cover provided by the Fund. You must meet the eligibility requirements, including satisfactorily completing an application form containing health questions and a declaration. You must also: Transfer your superannuation balance from the other fund to Australian Catholic Superannuation; Cancel your cover in the other fund; Not take up a continuation option under the other fund; Not transfer your cover to any other fund. (Do not cancel your existing cover until you have received confirmation in writing that your transfer request has been accepted.) The transferred cover will commence in Australian Catholic Superannuation from the date we accept your transfer application. Death/TPD Cover can be transferred on a fixed or a unitised basis, provided that all cover after transfer is on the same basis (all fixed or all unitised). If you are aged 61 or over, any fixed TPD cover you transfer will be reduced at the time of transfer by 10% for each year over age 60. The maximum Death and/or TPD cover that you can transfer under this arrangement is $1 million. IP Your total amount of IP cover after transfer can be no more than the number of units required to cover your salary immediately prior to transfer. The maximum monthly benefit that can be transferred is $25,000, subject to the total IP cover after transfer not exceeding the monthly benefit limit of $27,625 (covering a salary of $390,000 per year). The benefit payable is up to 85% of your salary. As far as possible, the waiting period that will apply to any transferred IP cover will remain the same. Your new waiting period will be: 30 days if your previous waiting period was less than 60 days; 60 days if your previous waiting period was 60 to 89 days; 90 days if your previous waiting period was 90 days or more. The benefit payment period that will apply to any transferred IP cover will remain the same, unless the required period is not available in Australian Catholic Superannuation. Your new benefit payment period will be: Two years, if your previous benefit payment period was two years; Five years if your previous benefit payment period was greater than two years, but not more than ten years; To age 65, if your previous benefit payment period was to age 60 or to age

12 Death and TPD Cover Explained If you die or become TPD, the total benefit payable is a lump sum consisting of your account balance plus any insured amount paid by the insurer. If the insurer does not pay an insured benefit, your benefit will be your account balance only. If you have combined Death/TPD cover, you may receive payment for a Death benefit (including a Terminal Illness benefit) or a TPD benefit, but not both. Early Payment of a Death Benefit if you Become Terminally Ill Terminally Ill means an illness that in the opinion of two medical practitioners (one of whom the insurer may require to be a specialist medical practitioner and one of whom may be appointed by our insurer) is likely to lead to your death within 12 months from the date that the written opinion is provided. (The date of certification by both practitioners must occur while you are insured for Death cover.) If you qualify, you may receive any early payment of the lesser of your insured Death benefit and $2 million. Any remaining insured benefit will be paid after your death. Qualifying for a TPD Benefit You may receive payment of a TPD (Total and Permanent Disablement) benefit if you satisfy at least one of the following Parts (1) to (6) of the definition below and as a result of illness or injury, as at the date of disablement, you are determined by the insurer to be permanently incapacitated to such an extent as to render you unlikely ever to engage in any gainful occupation, business, profession or employment, for which you are reasonably suited by education, training or experience. Part Table 1: TPD Definitions 1. Unlikely to Return to Work 2. Permanent Impairment If you are employed on, or have been engaged in Gainful Employment within 6 months prior to the date you suffer an injury or illness and as a result of that injury or illness, you are totally unable to engage in any occupation, business, profession or employment for a period of six consecutive months; Or If you are employed on, or, have been engaged in Gainful Employment within 6 months of the date you suffer an injury or illness and, as a result of that injury or illness, you suffer a permanent impairment of at least 25% of whole person function as defined in the American Medical Association publication Guides to the Evaluation of Permanent Impairment, 4th edition, or an equivalent guide to impairment approved by the insurer; Or 3. Specific Loss As a result of illness or injury, you suffer the total and permanent loss of the use of: Two limbs (where limb is defined as the whole hand or the whole foot); or The sight in both eyes; or One limb and the sight in one eye. Or 4. Loss of Independent Existence 5. Cognitive Loss As a result of illness or injury, you suffer loss of independent existence. Loss of independent existence means the insurer has determined that you are totally and irreversibly unable to perform at least two of the following five activities of daily living without the assistance of another adult person: Bathing and/or showering; Using a toilet to maintain personal hygiene; Dressing and undressing; Eating and drinking; Getting in and out of bed, a chair or wheelchair, or moving from place to place by walking, wheelchair or with assistance of a walking aid. Or As a result of illness or injury, you suffer cognitive loss. Cognitive loss means the insurer has determined that you have suffered a total and permanent deterioration or loss of intellectual capacity that has required you to be under continuous care and supervision by another adult person for at least six consecutive months and, at the end of that six-month period, you are likely to require permanent ongoing continuous care and supervision by another adult person. Or 6. Home Duties Where your occupation is classified as home duties, as a result of illness or injury you are: Under the care of a medical practitioner; and Unable to perform normal domestic duties or leave your home unaided, for a period of six consecutive months; and Determined by the insurer at the end of that six-month period to be permanently incapacitated to such an extent you are likely to require the ongoing care of a medical practitioner and unlikely to be able to ever perform normal domestic duties. Normal domestic duties means the tasks performed by a person whose sole occupation is to maintain their family home. These tasks included unassisted cleaning of the home, cooking of meals for their family, doing their family s laundry, shopping for their family s food and taking care of dependent children (where applicable). Normal domestic duties does not include duties performed outside the person s home for salary, reward or profit. 12

13 Death and TPD Cover Explained cont. NOTE: The part of the definition that is used to determine whether you are TPD depends on a number of factors, including whether or not you were employed within six months of becoming disabled, your age and whether or not you were a non-working spouse member. If you are in gainful employment within six months prior to suffering an illness or injury and under 65 years of age you may be assessed under parts one, two, three, four or five of the definition. If you have not been in employment for more than six months at the date of suffering an illness or injury, you will be assessed under parts three, four or five only. If you are years of age, you will only be eligible for assessment under parts three, four or five. Part six applies to non-working spouse members only. The Trustee may change insurers in future and the definition of TPD may also change. We will notify members if this occurs. Exclusions on Your Death/TPD cover Our insurer may exclude benefit payments if the event giving rise to the claim is caused directly or indirectly by war. What Your Death/TPD Cover Will Cost Premiums will be deducted from your account on a regular basis, usually monthly. These scales applied at the time of publication. We will notify members of any changes. Table 2: Death and TPD Premium Scale for Unitised Cover Type of Cover Cost per Unit per Week Death Only $0.74 ($38.48) Death and TPD $1.29 ($67.08) 13

14 Table 3: Death & TPD per Unit and Premium Scale for Fixed Cover Age Next Birthday Death & TPD Amount of Cover per Unit UNITISED COVER Death Only Amount of Cover per Unit FIXED COVER PREMIUMS Death & TPD Fixed Cover per $1,000 of Cover ($pa) Death Only Fixed Cover per $1,000 of Cover ($pa) 16 $108,200 $108,200 $0.62 $ $108,200 $108,200 $0.62 $ $108,200 $108,200 $0.62 $ $108,200 $108,200 $0.62 $ $108,200 $108,200 $0.62 $ $108,200 $108,200 $0.62 $ $105,300 $105,300 $0.63 $ $105,300 $105,300 $0.63 $ $105,300 $105,300 $0.63 $ $105,300 $105,300 $0.63 $ $105,300 $105,300 $0.63 $ $103,700 $103,700 $0.65 $ $103,700 $103,700 $0.65 $ $103,700 $103,700 $0.65 $ $103,700 $103,700 $0.65 $ $103,700 $103,700 $0.65 $ $101,300 $101,300 $0.66 $ $99,500 $99,500 $0.67 $ $98,600 $98,600 $0.69 $ $98,600 $98,600 $0.69 $ $96,500 $96,500 $0.70 $ $96,500 $96,500 $0.70 $ $94,400 $94,400 $0.71 $ $93,100 $93,100 $0.73 $ $92,500 $92,500 $0.73 $ $91,700 $91,700 $0.74 $ $86,000 $86,000 $0.77 $ $76,900 $76,900 $0.88 $

15 Table 3: Death & TPD per Unit and Premium Scale for Fixed Cover Age Next Birthday Death & TPD Amount of Cover per Unit UNITISED COVER Death Only Amount of Cover per Unit FIXED COVER PREMIUMS Death & TPD Fixed Cover per $1,000 of Cover ($pa) Death Only Fixed Cover per $1,000 of Cover ($pa) 44 $69,200 $69,200 $0.96 $ $63,100 $63,100 $1.06 $ $60,100 $60,100 $1.12 $ $46,900 $46,900 $1.43 $ $43,400 $43,400 $1.55 $ $41,900 $41,900 $1.59 $ $39,900 $39,900 $1.68 $ $39,100 $39,100 $1.72 $ $33,200 $33,200 $2.02 $ $27,800 $27,800 $2.41 $ $26,100 $26,100 $2.57 $ $22,700 $22,700 $2.95 $ $20,000 $20,000 $3.35 $ $16,600 $16,600 $4.04 $ $11,900 $11,900 $5.63 $ $11,900 $11,900 $5.63 $ $10,400 $10,400 $6.45 $ $9,000 $9,000 $7.45 $ $7,500 $7,500 $8.94 $ $6,800 $6,800 $9.87 $ $6,000 $6,000 $11.17 $ $6,000 $6,000 $11.17 $ $3,400 $3,400 $19.71 $ $3,400 $3,400 $19.71 $ $3,400 $3,400 $19.71 $ $3,400 $3,400 $19.71 $ $3,400 $3,400 $19.71 $

16 Death and TPD Cover Explained cont. Example - Death and TPD cover 1. John joins the Fund when he is 28 years old (i.e. 29 next birthday) and elects to have 6 units of Death and TPD cover. John s level of cover (refer to Table 3) = 6 units x $103,700 = $622,200 John s premium (refer to Table 2) = 6 x $1.29 per week = $7.74 per week (i.e. $ pa) While John retains his unitised cover, the cost will remain at $7.74 per week (subject to any future changes in premium rates which may occur), but his level of cover will decrease as he ages. 2. When John is 40 years old (i.e. 41 next birthday) his Death and TPD cover will have reduced to 6 units x $91,700 = $550,200. John does not want his cover to reduce below $550,200 as he ages, so he decides to convert his unitised cover to fixed cover. As the amount of cover is rounded up to the nearest $1,000, this means that John will receive cover of $551,000. John s new premium (refer to Table 3) = $551,000 $1,000 x $0.74 = $ pa John s level of cover will remain fixed at $551,000 (TPD reduces from age 61) unless he chooses to reduce it. However, his premium will generally increase each year as he grows older and is subject to any future changes in premium rates which may occur. 16

17 IP Cover Explained Qualifying for an IP Benefit You may receive a Total Disability benefit if you are Totally Disabled. If you return to work in a reduced capacity, you may be eligible for a Partial Disability benefit. The insurance policy contains information on how a Partial Disability benefit is calculated. Basically, the insurer will reduce your Total Disability benefit by any income you earn while you are Partially Disabled. The following summarises the definitions of Total and Partial Disability. The full definitions are contained in the insurance policy. Total Disability means that, solely as a result of injury or illness, you are: Medically certified as being incapable of performing one or more duties of your usual occupation necessary to produce income; Not engaged in any occupation; and Following the advice of a medical practitioner. Partial Disability means that solely as a result of injury or illness you are incapable or performing one or more duties of your usual occupation necessary to produce income, but: You have returned to work in your usual occupation or you are working in another occupation and you receive a monthly salary less than your Pre-Disability Salary; and You are following the advice of a Medical Practitioner. Exclusions on your IP Cover IP benefits may not be paid if your illness or injury is caused directly or indirectly by: War or an act of war; Intentional self-injury; Pregnancy; Engaging in professional sporting activity; Flying - there are some exceptions, please refer to the insurance policy for details. The insurer may reduce or refuse to pay any benefits: While you are imprisoned; If all premiums have not been paid; If you do not comply with the insurer s reasonable claim requirements; If you do not notify when your disability starts, to the extent that this prejudices the insurer s ability to assess or manage your claim. Benefits Payable If you qualify for an IP benefit, you will receive the lesser of: 85% of your salary (defined below) at the time of disablement; and The benefit provided by the number of units you hold (if this is not sufficient to cover your full salary). Refer to the Example - IP cover. Unless you inform us that it would cause you to exceed the concessional contributions cap, all benefit payments are split so that 75/85ths of the benefit is paid to you and 10/85ths is paid as a contribution to your Australian Catholic Superannuation account. The amount paid to you is taxable income. This means that pay as you go (PAYG) tax will be deducted before each payment is made. 17

18 IP Cover Explained cont. Definition of Salary Salary means: If You Are In Permanent Employment: The annual cash remuneration you were receiving from your employer/s for your personal exertion immediately prior to becoming disabled. It includes non-cash benefits or fringe benefits provided as a direct substitute for salary as well as performance-related commissions and bonuses. If You Are A Casual or Not Employed: The annual cash remuneration which you received from your employer/s for your personal exertion over the 12-month period immediately prior to your disability (or since you commenced employment if the period is less than 12 months). It includes non-cash benefits or fringe benefits provided as a direct substitute for remuneration as well as performancerelated commissions and bonuses received by you during the 12-month period immediately prior to your disability (or since you commenced employment if the period is less than 12 months). If You Are Self-Employed: The total amount earned by your business over the financial year (or proportion of a financial year) as a direct result of your personal exertion or activities through your usual occupation, less your share of business expenses, but before income tax (or the relevant proportion for part of a financial year). Salary includes income from all employment sources. How Benefits Are Paid Waiting Period If you qualify, your IP benefit will be paid after the expiry of the Waiting Period (30, 60 or 90 days). The waiting period is the number of consecutive days for which you must be totally or partially disabled before you are eligible to receive benefits. The Waiting Period starts the day that you become Totally Disabled. You can use any accrued sick leave, annual leave or long service leave during the Waiting Period, but you will not be forced to do so. Once your claim has been approved and the Waiting Period has expired, payments are made monthly in arrears. The insurer will require ongoing medical information (usually on a monthly basis) while you are receiving an IP benefit. Offsets If You Are Receiving Other Disability Payments Your benefit will be offset (reduced) by any of the following other payments (including settlement or commutation amounts): Workers compensation; Social security or other statutory or government payment; Payment in respect of loss of income (whether under legislation or otherwise); Payments made under any statutory accident compensation scheme; Amounts received as benefits under any other disability, injury or sickness insurance policy (except for lump sums received for TPD). However, payments for sick leave, annual leave or long service leave will not be offset. Indexation of Benefit Payments If your benefit payment period is longer than two years, benefit payments will be indexed annually by the lesser of 5% or the Consumer Price Index, to adjust for inflation. 18

19 IP Cover Explained cont. When Your IP Benefit Payments Will Stop IP payments will stop when one of the following happens: You are no longer Totally Disabled or Partially Disabled (as applicable); You reach the end of the benefit payment period (two years unless you have been approved for a longer payment period); You reach age 65; You die. If you are receiving a Partial Disability benefit, payment will also stop: When the amount you are earning, or capable of earning is equal to or greater than your pre-disability salary; or If you are on a visa, on the date your employment contract and/ or your visa expires, or the date you depart Australia. If The Disability Recurs After You Return To Work If you suffer a recurrence of the disability that was the cause of a claim within six months of your claim ending and you are still covered for IP, you may again be eligible for IP benefits. The continuing benefits will be considered to be part of your original claim. This means that you will not need to satisfy another Waiting Period and the maximum benefit period will include the period for which you have already received an IP benefit. 19

20 IP Cover Explained cont. What Your Income Protection Cover Will Cost Premiums will be deducted from your account on a regular basis, usually monthly. These scales applied are correct at the time of publication. We will notify members of any changes. Table 4: 2 Year Benefit Payment Period. Cost p.a. per $15,000 unit. Age Next Birthday WAITING PERIOD WAITING PERIOD Age Next Birthday 90 days 60 days 30 days 90 days 60 days 30 days 16 $15.06 $23.56 $ $22.79 $41.75 $ $15.06 $23.56 $ $24.99 $44.40 $ $15.06 $23.56 $ $27.61 $47.40 $ $15.06 $23.56 $ $30.62 $50.71 $ $15.06 $23.56 $ $33.93 $54.13 $ $15.06 $23.74 $ $37.84 $58.10 $ $15.06 $23.92 $ $42.36 $62.56 $ $15.26 $24.42 $ $47.28 $67.20 $ $15.57 $25.09 $ $53.00 $72.56 $ $15.57 $25.29 $ $59.33 $78.35 $ $15.06 $24.68 $ $66.56 $90.73 $ $14.55 $24.27 $ $74.69 $98.57 $ $13.75 $23.46 $ $83.72 $ $ $13.35 $23.36 $ $93.65 $ $ $13.16 $23.62 $ $ $ $ $13.16 $23.79 $ $ $ $ $13.16 $24.32 $ $ $ $ $13.55 $25.52 $ $ $ $ $13.96 $26.61 $ $ $ $ $14.66 $28.16 $ $ $ $ $15.57 $29.93 $ $ $ $ $16.67 $31.86 $ $ $ $ $17.67 $33.39 $ $ $ $ $19.17 $35.60 $ $ $ $ $20.88 $37.91 $ $30.62 $43.57 $

21 IP Cover Explained cont. Table 5: 5 Year Benefit Payment Period. Cost p.a. per $15,000 unit. Age Next Birthday WAITING PERIOD WAITING PERIOD Age Next Birthday 90 days 60 days 30 days 90 days 60 days 30 days 16 $22.13 $27.80 $ $56.52 $82.89 $ $22.13 $27.80 $ $62.60 $89.06 $ $22.13 $27.80 $ $69.52 $95.64 $ $22.13 $27.80 $ $77.32 $ $ $22.13 $27.80 $ $86.08 $ $ $22.44 $28.36 $ $95.86 $ $ $22.74 $28.95 $ $ $ $ $23.04 $29.54 $ $ $ $ $23.37 $30.16 $ $ $ $ $23.70 $30.79 $ $ $ $ $24.57 $32.20 $ $ $ $ $25.33 $33.77 $ $ $ $ $26.03 $35.49 $ $ $ $ $26.73 $37.37 $ $ $ $ $27.48 $39.43 $ $ $ $ $28.35 $40.97 $ $ $ $ $29.40 $43.44 $ $ $ $ $30.68 $46.15 $ $ $ $ $32.26 $49.16 $ $ $ $ $34.18 $52.47 $ $ $ $ $36.51 $56.12 $ $ $ $ $39.33 $60.13 $ $ $ $ $42.68 $64.50 $ $ $ $ $46.61 $69.25 $ $ $ $ $51.21 $74.41 $ $44.97 $55.83 $

22 IP Cover Explained cont. Table 6: To Age 65 Benefit Period. Cost p.a. per $15,000 unit. Age Next Birthday WAITING PERIOD WAITING PERIOD Age Next Birthday 90 days 60 days 30 days 90 days 60 days 30 days 16 $36.30 $41.13 $ $ $ $ $36.30 $41.13 $ $ $ $ $36.30 $41.13 $ $ $ $ $36.30 $41.13 $ $ $ $ $36.30 $41.13 $ $ $ $ $37.38 $42.58 $ $ $ $ $38.48 $44.10 $ $ $ $ $39.63 $45.68 $ $ $ $ $40.79 $47.31 $ $ $ $ $42.00 $49.01 $ $ $ $ $44.33 $52.17 $ $ $ $ $46.39 $55.53 $ $ $ $ $48.29 $59.14 $ $ $ $ $50.13 $62.98 $ $ $ $ $52.00 $67.10 $ $ $ $ $54.05 $70.30 $ $ $ $ $56.35 $75.04 $ $ $ $ $59.07 $80.19 $ $ $ $ $62.29 $85.81 $ $ $ $ $66.13 $91.93 $ $ $ $ $70.70 $98.57 $ $ $ $ $76.10 $ $ $ $ $ $82.40 $ $ $ $ $ $89.70 $ $ $ $ $ $98.07 $ $ $44.97 $55.83 $