The Executive Superannuation Fund

Transcription

1 The Executive Superannuation Fund Pension Fact Sheet The Executive Superannuation Fund offers you flexibility as you approach retirement. Although superannuation is money set aside for your retirement, you may be able to commence a pension while still working. The issuer and Trustee of The Executive Superannuation Fund (ABN: ) is Equity Trustees Limited (ABN: , AFSL No: ). Address: GPO Box 2307, Melbourne VIC Ph (03) , Fax: (03) The Administrator of The Executive Superannuation Fund is KPMG Superannuation Services Pty Limited (ABN: , AFSL No: ). Address: PO Box 67 Australia Square NSW Ph (02) , Fax (02) address: AU-FMNATASC@kpmg.com.au ASC Plan Website:

2 How does a pension work? A superannuation pension allows you to receive some or all of your superannuation benefit as an income stream, as opposed to a lump sum. The Fund s Pension Division offers the following two types of superannuation pensions to members: Superannuation Pension A post-retirement pension You elect to transfer some or all of your money from your superannuation account to your new pension account. You choose your regular pension payment amount (minimum limits may apply) and how frequently you want to receive these payments. Your balance will decrease with regular payments and lump sum withdrawals and fees, and may fluctuate with investment performance. Transition to Retirement ( TtR ) Pension A pre-retirement pension You elect to transfer some or all of your money from your superannuation account to your new pension account. You choose your regular pension payment amount (minimum and maximum limits may apply) and how frequently you want to receive these payments. Your balance will decrease with regular payments and lump sum withdrawals and fees, and may fluctuate with investment performance. Benefits of an Superannuation / Transition to Retirement ( TtR ) Pension Accessing a pension through the Fund can provide you with a range of benefits, including: Low monthly fees; Tax-free investment earnings; Regular income paid to your bank account; Tax free income once you attain age 60, and concessional tax treatment between age 55 and 59; Access to your account 24 hours a day, 7 days a week through the online portal; Ability to choose from a variety of investment options; No loss of capital on death as benefit can be paid as a Reversionary Pension or a lump sum benefit (less any applicable taxes); Intra fund advice though KPMG Superannuation Services Pty Limited (AFSL ); Ability to commute your pension as a lump sum benefit at any time; TtR pensions can be utilised with various strategies to reduce the amount of tax you pay; TtR pensions can be structured to increase your retirement savings; and TtR pensions can allow you to reduce your hours of work while easing into retirement whilst maintaining the same level of income.

3 Am I eligible for a pension? Existing members of the Fund may be eligible to commence a pension from the Fund s Pension Division. Spouses of members of the Fund can also join the Fund and commence a pension from the Pension Division, provided they meet the relevant eligibility criteria (see below). To begin a pension, you must have access to all or part of your superannuation benefits. Conditions to commence a pension The following conditions must be satisfied prior to commencing a pension from the Plan: 1 You have reached your preservation age as set out in the table below and permanently retired from the workforce; or Date of Birth Preservation Age Before 1 July July June July June July June July June After 30 June (a) You have reached age 60 and ceased an employment arrangement; or (b) You have reached age 65; or (c) You have become permanently incapacitated, as defined by legislation; or (d) You have become terminally ill. Additional conditions to commence a TtR pension To be eligible for a TtR Pension, you must have reached your preservation age (see above) but have not yet fully retired from the workforce. How often will I receive pension payments? You can elect to receive your pension payments monthly, quarterly, half yearly and yearly. What are my Investment Choice options? You have the same investment options available to you that are offered in the Superannuation Division. The Fund allows you to select from one or any combination of the following investments: The Aggressive Option; The Balanced Option; The Conservative Option; and The Cash Option. If you do not choose an investment option, your pension balance will be invested in the Fund s Balanced option. You are able to switch your investment option as often as you like.

4 Further information about each of the Fund s investment options is available in the Pension Division Product Disclosure Statement ( Pension PDS ). What are the fees? Please refer to the Pension Division PDS for details regarding fees and costs applicable to your account. What happens to my pension if I die? Reversionary pension continuation of pension You can, if you wish, nominate an eligible dependant, which includes your spouse, a child under the age of 18, a financially dependent child aged or a permanently disabled child aged 18 or more as a reversionary beneficiary to continue to receive your pension in the event of your death. Lump sum payments type of beneficiary nominations The Fund offers both binding and non-binding nominations to allow you to confirm your intentions for the payment of the benefit from the Plan as a lump sum upon your death. Online access You can access your account details online through the ASC Superannuation Plan website ( Members should contact the Fund Administrator (contact details on the front page) to obtain a login and PIN. What if I change my mind? Cooling-off period Provided you have not exercised any right or power in relation to your pension, you have a 14-day period (a cooling-off period) in which you may cancel your pension and transfer/rollover your benefit to the Fund s Superannuation Division. Cancelling your pension outside the Cooling-off period In the event that you cancel your pension, your benefit can only be paid directly to you if you have applied for a standard Superannuation Pension. The cancellation of Transition to Retirement Pensions is subject to a preservation rules in superannuation legislation. Any preserved or restricted non-preserved benefits must be transferred to the Superannuation Division or rolled over to another regulated superannuation fund or pension product.

5 How are my pension payments calculated? Superannuation pensions At the start of each financial year, you are able to elect the pension amount that you wish to receive for that year. The amount you receive must be equal to or above the prescribed legislated minimum amount as set out in the following table: Age Annual percentage payment amount Under 65 4% % % % % % % Additional conditions for TtR pensions A maximum of 10% of your account balance is only allowed to be taken as pension payments in any one year. You are also unable to make any partial or lump sum withdrawals from the pension until you satisfy a condition of release. What Next? For more information about pensions available in the Fund, refer to the Pension Division PDS which is available on the Fund s website: or by contacting the Fund Administrator on (02) Should you wish to make an application to become a member of the Pension Division, please complete the Pension Application Form at the back of the Pension Division PDS and return to the Fund Administrator. The information contained in this document is general information only. This document does not take into account your individual financial situation, circumstances or needs. You should take these into account when making decisions about your benefit in the Plan, and consult a financial adviser where required. You should obtain a copy of the Fund s Pension Division Product Disclosure Statement and consider the information contained in the Statement before making any decision about whether to acquire an interest in the Fund. The information contained in this fact sheet is current as at 12 June 2014.

6 Superannuation and Pension Accounts Superannuation Account TtR / Account Based Pension Opening Balance Opening Balance (less) Transfer to Pension Account Plus Pension Purchase Price (Transfer from Superannuation Account) Plus Contributions (less) Pension Payments Plus / (Less) Investment earnings, insurance premiums and contribution tax and fees Plus / (Less) Investment earnings, contribution tax and fees Closing Balance Closing Balance TtR Pension Accounts require a Superannuation Account to remain open in order to continue to receive employer contributions (Pension Accounts do not allow the receipt of contributions). A minimum of $5,000 must be retained in your superannuation account at the time you decide to commence a TtR pension to ensure that contributions can continue to be made or received by the Fund on your behalf