DRAFT. Bringing super to life Understanding important changes to the Serco Australia Superannuation Plan

Transcription

1 Bringing super to life Understanding important changes to the Serco Australia Superannuation Plan DRAFT A transition to the Mercer Super Trust February 2017

2 Today Changes to Serco Superannuation Plan Why it is occurring? What was the outcome? What is changing? What stays the same? When is it occurring? Introducing Mercer Features and benefits in brief More information What you need to do Questions 2

3 3 Changes to the Serco Superannuation Plan

4 Why it is changing During 2016 Serco undertook a strategic review of its superannuation offering, partnering with expert industry advisers to guide us through this process Superannuation is an important part of your employment benefits. Serco wants to ensure: Your financial interests are looked after into the future You have access to cost-effective, best-in-market super arrangements Your superannuation arrangement provides access to additional enhancements as they become available 4

5 What was the outcome Mercer was chosen as to be our preferred provider: Mercer is a leading super trust administrator One of Australia s largest master trusts: Mercer Super Trust Mercer Super Trust offers significant advantages: Reduced administration and investment fees from 1 February 2017 Greater investment choice Generally lower insurance premiums paid by members Enhanced helpline and website Education services Financial advice Competitive pension arrangements 5

6 6 What is changing?

7 Changes from 1 February 2017 Transition to Serco Australia Superannuation Plan in the Mercer Super Trust will occur from 1 February 2017 in two phases: Phase 1 All eligible members of the default Serco Plan in AON Master Trust will automatically become members of the Mercer Super Trust from 1 February 2017*. New Serco Australia Plan members can request to consolidate their AON account into their Mercer account online or over the phone soon after 1 February All Superannuation Guarantee (SG) and voluntary contributions will automatically be paid into your account in the Serco Australia Plan in the Mercer Super Trust from February 2017* * Unless an employee requests a change 7

8 Changes from 1 February 2017 Transition to Serco Australia Superannuation Plan in the Mercer Super Trust will occur from 1 February 2017 in two phases: Phase 2 All other Serco employees can request to join the Mercer Super Trust Serco Australia Plan at any time after 1 February 2017 by completing a Choice of fund form and sending it to Reward.COE@serco-ap.com.au for processing in payroll. Serco Australia Plan will initially be the default fund for all new and existing monthly paid staff* and eventually for as many Serco employees as possible across all our contracts. *If you have exercised choice with another fund, you will remain in that fund unless you exercise a new choice in favor of the Mercer Super Trust 8

9 Changes from 1 February 2017 For all Serco Australia Superannuation Plan members: New administrator Mercer Lower administration and investment fees from 1 February 2017 Investment option choice increases to more than 40 investment options Dynamic default investment option, Mercer SmartPath, which uses a lifecycle investment approach If you don t make an investment choice, your account will be invested in Mercer SmartPath. You can change your investment choice at any time. A broader range of member features Enhanced member website capability More customer services New account number and PIN 9

10 Changes from 1 February 2017 Phase 2 employees are invited to join the Mercer Super Trust: Access to an award-winning super offering Effortless and seamless joining process Easy consolidation of super accounts 10

11 What stays the same Superannuation Guarantee contribution levels Before or after-tax voluntary contributions (unless you request a change) Your level of insurance cover* (unless you request a change) * if you are aged 24 or younger, your death and disability insurance cover will be of equal value 11

12 When is it occurring? 12

13 Key dates 1 February 2017: New employees and Phase 1 employees join the Serco Australia Superannuation Plan in the Mercer Super Trust Accounts in the Mercer Super Trust are fully operational Members receive Welcome letter and PIN for online account access From mid-february 2017 onwards Phase 2 employees can request to join the Serco Australia Plan in the Mercer Super Trust at any time February to April 2017 We'll send you a confirmation letter once your transition to the Mercer Super Trust is complete Access to Mercer Smart Start to get the most out of your super Ability to access 1:1 financial advice with a Mercer financial adviser 13

14 INTRODUCING MERCER MERCER MERCER

15 WHO IS MERCER? One of the world s leading superannuation providers In Australia Administers superannuation for 1.3m people in Australia Mercer Super Trust has $20B under management Globally Assists 110 million people worldwide to create a more secure and rewarding future by advancing their health, wealth, and career A leading global adviser to companies about superannuation and pension benefits MERCER

16 FEATURES AND BENEFITS WITH MERCER - A SNAPSHOT MERCER

17 INVESTMENTS Greater investment choice More than 40 investment options Three levels of control: Ready-made options Offering different levels of risk and a mix of asset classes Award-winning default option for those who don t make an investment choice: Mercer SmartPath Select-your-own options Mercer Direct option Greater control of your investment strategy Choose your own portfolio from ASX300, term deposits and Exchange Traded Funds (ETFs) MERCER

18 DEFAULT INVESTMENT OPTION Mercer SmartPath - A dynamic lifecycle investment option - Designed to produce better financial outcomes for retirement - Considers change in life characteristics and risk tolerance as a member ages: - Higher levels of risk in early working life for growth - More defensive assets before retirement to preserve capital - Tax effectiveness and income generation during retirement. MERCER

19 FEES AND COSTS A significant benefit is the reduction in fees and costs: Lower fees: Administration fees Default investment management fees Significantly lower insurance premiums for default cover paid by the member (unless you are age 63 or 64) MERCER

20 INSURANCE No change to level of insurance cover: Death Total and permanent disability*^ Additional voluntary cover^ Total and temporary disability cover (TTD) (non-executive members) Salary continuance insurance cover (executive members and insurance only members) Automatic continuation of your death and total and permanent disablement insurance cover if you leave Serco and move to the Individual section of the Mercer Super Trust. Slight change to insurance terms and conditions and disablement conditions * If you are aged 24 or younger, your TPD cover in the Mercer Super Trust will equal your death cover amount. ^ Options not available if you are an insurance only member. MERCER

21 INSURANCE (CONT D) Be aware if you remain a member of AON, your insurance cover may continue and insurance premiums will be deducted from your AON account unless you request for cover to cease or you close your AON account. Lower insurance premiums paid by the member (unless age 63 or 64) Nominated beneficiaries Binding nominations Non-binding MERCER

22 MEMBER SERVICES Seamless transition process A dedicated, award-winning helpline team 8am to 7pm Monday to Friday (AEST) Consolidate your other super accounts over the phone Customer care team Insurance team Digital member card on your smart phone Download the details you need to transact with your account such as making extra contributions and consolidating accounts MERCER

23 MEMBER SERVICES Workplace education sessions Information sessions on site/webinars Super pulse check with financial adviser at no cost Strategic financial advice General financial advice about your super choices (at no cost) Limited personal advice over the phone at no cost Online e-advice Access to financial advisers for strategic advice No commissions are ever paid to Mercer advisers Advice costs for super can be deducted from super accounts MERCER

24 WEBSITE Online account access 24/7 Account information is presented so you know what action to take to achieve your retirement goals Personalised messages about your super and insurance to help you to make the most of them Account projections based on current savings and investment strategy Fully responsive automatically adjusts to suit the device being used to view MERCER

25 WEBSITE Interactive Retirement income simulator models accumulation account scenarios to show projected income in retirement based on changes in savings and investment strategies Understanding your attitude towards risk quiz helping members to make an informed investment choice E-advice modules: risk profiles, investment options and contributions MERCER

26 WEBSITE Online transactions 24/7: - Update contact details - Change your password - Check your investments and insurance - Make investment switches - Consolidate other accounts - Provide your tax file number - Give consent to search the ATO data bases on your behalf for any lost super - Update non-binding beneficiaries - Nominate your communication preferences - Up-to-date unit prices MERCER

27 More information 27

28 More information Consult your Member Guide that Mercer sends you Read the Product Disclosure Statement Look out for financial adviser sessions in 2017 In the meantime go to

29 Summary Super remains an important part of your reward at Serco These important changes ensure your super benefits : Are in line with the best in the market Provide value for money Offer great member services 29

30 Summary From 1 February 2017, your super will be provided through the Mercer Super Trust, giving you a broader range of features and benefits: Lower fees More investment options Reduced insurance premiums paid by the member Enhanced member services including Helpline, phone financial advice and workplace information sessions State of the art website with designed to guide your super decisions and help you to make tomorrow today. Watch for more information in the coming months. 30

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