AMP Superannuation Savings Trust Register of significant event notifications

Transcription

1 AMP Superannuation Savings Trust Register of significant event notifications This register provides a summary of significant event and material change notifications issued to members of the AMP Superannuation Savings Trust (ABN ) on behalf of AMP Superannuation Limited (ABN , AFSL ) for the last two years. The register is provided for information purposes, as required by legislation. All affected members are contacted directly within the timeframe prescribed by legislation and provided with additional information, as appropriate. Date issued Products affected Reason for communication Description of significant event or material change 22 December Custom Super Flexible Lifetime Allocated Pension Flexible Lifetime Super Flexible Lifetime Term Pension Allocated Pension Woolworths Allocated Pension Woolworths Group Superannuation Plan A plan in Signature Super Fee Change On 15 December the AMP Master Trust will be updated. This update includes manager changes in one investment option which will result in fee differences to members. An underlying Manager for the Responsible Investment Leader Australian Share Fund, is being updated; the Ausbil long-only ESG mandate is being replaced with the Ausbil 130/30 long-short ESG strategy. This new strategy means there will be the introduction of a performance based fee (only on the funds allocated to Ausbil) and changes to estimated transaction costs and investment fee. Members will be notified via a letter from 22 December advising them of the introduction of the performance based fee for the affected investment options, as well as giving them the opportunity to ask questions about the performance based fee. 27 October Allocated Pension Flexible Lifetime Allocated Pension Woolworths Allocated Pension Woolworths Group Superannuation Plan A plan in Signature Super As part of super reform changes, this SEN advises customers with transition to retirement term deposits about changes to how their product is administered when they retire or meet a condition of release. The letter is sent to a customer who's TTR Term deposits is tax exempt. However, if it matures and is rolled into a new term, that new term deposit will be in a taxed state. In this instance, if a customer meets a condition of release, the term deposit will need to be broken and an adjusted crediting rate will be applied. On meeting a condition of release, unless the customer gives us other instructions like switching the amount to another investment option, or reinvesting the amount in a new term deposit, we ll automatically switch the balance to the relevant cash option for their product. 25 September Flexible Lifetime Protection Closure of FLP to new business A notice was added to the annual renewals notifying members that Flexible Lifetime Protection is now closed to new business. This notice will continue for renewals occurring over the next 12 months (from 25 September to 24 September 2018). AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 1

2 14 August Flexible Lifetime Super Premium change AMP will apply the following insurance premium changes to existing and new clients with temporary salary continuance (TSC) and temporary incapacity (TI) on policies from 1 October : Reduce premium rate by 1% for clients with hybrid premium status and a 2-year benefit period Increase premium rate by 13.85% for clients with a hybrid premium status and a benefit period to age 65 Increase premium rate by 15% for clients with a smoker and nonsmoker status and a benefit period to age 65 Background The premiums for AMP Flexible Lifetime Super were last reviewed in Since then the life insurance industry has seen an increase in the number and duration of temporary salary continuance claims, while at the same time facing challenging market conditions. To maintain the sustainability of our offer, it has been necessary to make some changes to our premium rates. These changes ensure we can continue to offer the highest quality products and pay claims well into the future. 1 August CustomSuper Flexible Lifetime Super Flexible Lifetime Allocated Pension Flexible Lifetime Term Pension Allocated Pension Select SuperLeader Woolworths Group Superannuation Plan A plan in Signature Super Annual Product Update covering product changes The following changes are described in the Annual Product Update: Annual indexation o Member fees o MySuper exit fee Removal of the Stronger Super fee for pension accounts Federal Budget reforms commencing 1 July o Reduction of non-concessional cap to $100,000 o Reduction of concessional cap to $25,000 o Income from investments in TTR are now taxed at 15% o The requirement of being self-employed to claim a tax deduction has been removed o Introduction of the transfer balance cap of $1,600,000 o Increase to the eligibility of the spouse contribution tax offset o Division 293 threshold reduced to $250,000 o Removal of anti-detriment benefit reduction on death payments o Superannuation death benefit income stream can now be rolled-over to another product provider AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 2

3 23 June Federal Government Superannuation reforms o Introduction of the Low Income Super Tax Offset o First Home Saver Scheme o Increase to Medicare Levy and Medicare Levy low income thresholds Reforms impacting defined benefit accounts o Trustee has made a decision to not allow the above eligibility changes to claiming a tax deduction on personal contributions for members in defined benefit accounts o Defined benefit income stream cap limits the tax free amount at $100,000 per annum. For anything in excess of this, 50% will be included as taxable income and taxed at the marginal rate Federal Budget reforms commencing 1 July 2018 o Carry forward portion of the concessional contribution cap that has not been used for up to 5 years Changes to super thresholds for /2018 Changes to insurance definitions Termination of investment options o AMP Capital Asian Equity Growth o Goldman Sachs Global Strategic Bond Move to electronic disclosure Intra-fund consolidation project Increase EasyDraw limit to $20,000 From 1 July this year the government is introducing new rules that apply to superannuation. On 23 June the Trustee advised members of with defined benefits, the following changes that may impact their plan: 1. Claiming tax deductions for personal contributions. 2. A reduction of the concessional contributions cap for everyone to $25,000 per year. 3. A reduction of the non-concessional (after tax) contributions cap to $100,000 per year. The letter describes the new rules, how they may apply to the member, and any action they may need to take. AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 3

4 2 June Flexible Lifetime Allocated Pension Allocated Pension Federal government superannuation reforms On 02 June, the Trustee advised Master Trust pension members with pension balances of $1M or higher about the following changes to their pensions product resulting from super law changes: transfer balance cap of $1.6 million that applies to the total amount that can be transferred into the tax-exempt pension phase. For balances between $1.6 million and $1.7 million on 1 July, to avoid tax penalties. he government is allowing six months to transfer the excess amount out of the account. 16 May Flexible Lifetime Allocated Pension (FLAP) Signature Super Allocated Pension (SNAP) Federal government superannuation reforms Important information about your Transition to retirement (TTR)arrangement. Increase of tax on earnings generated by assets supporting your transition to retirement from 0% to 15%. Investments maybe effected in 3 ways: In July AMP will switch tax exempt investment options in tax free options TTR account investment options to the equivalent taxed investment options. During the period of 1 July and the switch date there will be a tax adjustment applied to ensure TTR options are correctly taxed. Possible tax adjustment for receiving a pension payment, making a withdrawal, or switching investment options in TTR account investment options during the period of 1 July and the date we switch investments into taxed options For customers with term deposits that mature after 30 June 2018, we ll need to break the term deposit shortly before this date and will contact them. Customers starting a retirement income stream after 1 July need to ensure that account based pension balances do not exceed the $1.6 million transfer cap. AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 4

5 12 April Custom Super Select - Allocated Pension Flexible Lifetime Super Flexible Lifetime Super - Allocated Pension Fee change On 22 May the AMP Master Trust will be updated. This update includes manager replacements in two investment options which will result in fee differences to members. The Manager replacements - Platinum International to Antipodes Global and Man AHL Alpha to Winton Global Alpha include the introduction of a performance based fee (Antipodes Global only) and changes to estimated transaction costs and investment fees. Members are notified at least 30 days in advance of the transition with details of the changes to fees and details of the new investment option/s to give them an opportunity to ask questions and to make alternative arrangements if they wish. 31 March Custom Super Metcash Superannuation Plan - Allocated Pension SuperLeader Flexible Lifetime Super Flexible Lifetime Super - Allocated Pension Fee change On 5 May the AMP Master Trust will be updated. This update includes an investment fee update on the Specialist Geared Australian Share option. The investment fee has been incorrectly disclosed and will be brought in line with what is currently being charged on the option. Members are notified at least 30 days in advance of the update of fees and have been advised the further investigations are currently underway to determine if compensation is applicable. 14 March 8 January Flexible Lifetime Protection Premium rate changes From March for a period of 12 months, members will receive notification that their premium rate has been reviewed and will be updated on their plan anniversary. The premium rate updates are effective for policies renewing from 1 May onwards. Premium rate changes include both rate increases and rate decreases, and vary by plan type and premium type. Flexible Lifetime Protection Updates to medical definitions Members with TPD insurance cover were notified of updates to medical definitions for Alzheimer's disease and other dementias, Multiple sclerosis, and Severe rheumatoid arthritis. The changes are applicable from 19 November, to claims where the TPD waiting period is waived due to one of these conditions. AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 5

6 28 Oct to 2 Nov Custom Super Transfer of accrued default amounts (ADAs) to MySuper The Trustee is required to transition all remaining balances in default investment options (balances prior to 1 January 2014) to an AMP MySuper investment option by 1 July. As part of AMP s transition plan, the Custom Super transfer will happen automatically between 21 and 23 April. By taking no action, members can: have AMP move their default investment balance automatically to the relevant age cohort in the AMP MySuper lifecycle investment option; choose to stay in their existing default investment option by providing AMP with investment direction by COB 14 April. All members can, at any time, move their money out of their ADA or AMP MySuper to any other investment option (s). From 11 Oct Allocated Pension Select Woolworths Group Superannuation Plan A plan in Signature Super Annual Product Update covering product changes The following changes are described in the Annual Product Update: Annual indexation of Member Fees and the MySuper Exit Fee these fees increased in line with the Consumer Price Index (CPI) on 1 July (which occurs on 1 July each year). Please refer to your plan summary for the member fees that apply to you. Federal Budget Announcements the Government has announced a number of proposed superannuation reforms. These superannuation reforms were proposals only and are subject to change or abandonment. Changes to Stamp Duty on insurance the stamp duty rate on insurance premiums varies by state and by type of insurance benefit and is included in the base premium rates charged to members. The stamp duty rate reduced for ACT residents from 4% to 2%. The NT government announced that new linked policies with commencement date on or after 1 July 2015 will have the additional 10% stamp duty payable. The WA government clarified that linked policies will have the additional 10% stamp duty payable. Performance Based Fees and other indirect costs are changing in the way they are communicated and are available at amp.com.au/pdsupdates, now on a financial year basis. New investment options including fees and costs are now available Renamed investment options for some investment options from 1 July. AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 6

7 Strategic asset allocation and/or range changes for some investment options during the year. Benchmark index changes for some investment options. Closure of the following investment options to new investors from 1 July : AMP Capital Australian Equity Concentrated AMP Capital Australian Equity Opportunities Changes to existing Standard Risk Measures - some investment options have been assessed to have a change in their respective Standard Risk Measures (SRMs) for, with changes noted from previous years. Changes to non-lapsing nominations - non-lapsing nominations which do not expire (and so do not need to be renewed) are now available. Intra-fund consolidation - aims to reduce the number of superannuation accounts that members hold within the same Fund, helping reduce the multiple sets of fees members pay. Information regarding moving to electronic disclosure - AMP may communicate with members electronically or make communications available online (such as from our secure website My AMP), instead of sending paper copies. Changes to lost super thresholds the lost super threshold will increase from less than $4,000 to $6,000 effective 31 December. Super stream changes - a comprehensive range of measures will be introduced intended to increase the efficiency of super transactions by improving data, processes and timeliness of super rollovers, employer contributions and member registrations. AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 7

8 10 October Custom Super Annual Product Update covering product changes The following changes are described in the Annual Product Update: Annual indexation of the following fees: Member Fees MySuper Exit Fee These fees increased in line with the Consumer Price Index (CPI) on 1 July. Federal Budget Announcements the Government has announced a number of proposed superannuation reforms. These superannuation reforms were proposals only and are subject to change or abandonment. Changes to Stamp Duty on insurance the stamp duty rate on insurance premiums varies by state and by type of insurance benefit and is included in the base premium rates charged to members. The stamp duty rate reduced for ACT residents from 4% to 2%. The NT government announced that new linked policies with commencement date on or after 1 July 2015 will have the additional 10% stamp duty payable. The WA government clarified that linked policies will have the additional 10% stamp duty payable. Performance Based Fees and other indirect costs are changing in the way they are communicated and are available at amp.com.au/pdsupdates, now on a financial year basis. New investment options including fees and costs are now available Renamed investment options for some investment options from 1 July. Strategic asset allocation and/or range changes for some investment options during the year. Benchmark index changes for some investment options. Closure of the following investment options to new investors from 1 July : AMP Capital Australian Equity Concentrated AMP Capital Australian Equity Opportunities AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 8

9 Changes to existing Standard Risk Measures - some investment options have been assessed to have a change in their respective Standard Risk Measures (SRMs) for, with changes noted from previous years. Changes to non-lapsing nominations - non-lapsing nominations which do not expire (and so do not need to be renewed) are now available. Intra-fund consolidation - aims to reduce the number of superannuation accounts that members hold within the same Fund, helping reduce the multiple sets of fees members pay. Information regarding moving to electronic disclosure - AMP may communicate with members electronically or make communications available online (such as from our secure website My AMP), instead of sending paper copies. Changes to lost super thresholds the lost super threshold will increase from less than $4,000 to $6,000 effective 31 December. Super stream changes - a comprehensive range of measures will be introduced intended to increase the efficiency of super transactions by improving data, processes and timeliness of super rollovers, employer contributions and member registrations. 14 September SuperLeader Annual Product Update covering product changes The following changes are described in the Annual Product Update: Annual indexation of the following fees: Member Fees MySuper Exit Fee These fees increased in line with the Consumer Price Index (CPI) on 1 July. Federal Budget Announcements the Government has announced a number of proposed superannuation reforms. These superannuation reforms were proposals only and are subject to change or abandonment. Changes to Stamp Duty on insurance the stamp duty rate on insurance premiums varies by state and by type of insurance benefit and is included in the base premium rates charged to members. The stamp duty rate reduced for ACT residents from 4% to 2%. The NT government announced that new linked policies with commencement date on or after 1 July 2015 will have the AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 9

10 additional 10% stamp duty payable. The WA government clarified that linked policies will have the additional 10% stamp duty payable. Performance Based Fees and other indirect costs are changing in the way they are communicated and are available at amp.com.au/pdsupdates, now on a financial year basis. New investment options including fees and costs are now available Renamed investment options for some investment options from 1 July. Strategic asset allocation and/or range changes for some investment options during the year. Benchmark index changes for some investment options. Closure of the following investment options to new investors from 1 July : AMP Capital Australian Equity Concentrated AMP Capital Australian Equity Opportunities Changes to existing Standard Risk Measures - some investment options have been assessed to have a change in their respective Standard Risk Measures (SRMs) for, with changes noted from previous years. Changes to non-lapsing nominations - non-lapsing nominations which do not expire (and so do not need to be renewed) are now available. Intra-fund consolidation - aims to reduce the number of superannuation accounts that members hold within the same Fund, helping reduce the multiple sets of fees members pay. Information regarding moving to electronic disclosure - AMP may communicate with members electronically or make communications available online (such as from our secure website My AMP), instead of sending paper copies. Changes to lost super thresholds the lost super threshold will increase from less than $4,000 to $6,000 effective 31 December. AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 10

11 Super stream changes - a comprehensive range of measures will be introduced intended to increase the efficiency of super transactions by improving data, processes and timeliness of super rollovers, employer contributions and member registrations. 17 August From 25 July Super Rollover Plan Personal Super Bond, Investment Linked Personal Super Bond, MultiFund Rollover Personal Super Bond, MultiFund Superannuation Bond, MultiFund Flexible Income Plan - Allocated Pension. Flexible Lifetime Super Flexible Lifetime Allocated Pension Flexible Lifetime Term Pension Change to annual statement issue date Annual Product Update covering product changes Periodic statements are currently issued six-monthly (30 June and 31 December). In an effort to streamline the business the statements will be issued effective 30 June only (from 30 June ). The following changes are described in the Annual Product Update: Annual indexation of the following fees: Member Fees MySuper Exit Fee Insurance flat premium amount Insurance benefit These fees increased in line with the Consumer Price Index (CPI) on 1 July. Federal Budget Announcements the Government has announced a number of proposed superannuation reforms. These superannuation reforms were proposals only and are subject to change or abandonment. Changes to Stamp Duty on insurance the stamp duty rate on insurance premiums varies by state and by type of insurance benefit and is included in the base premium rates charged to members. The stamp duty rate reduced for ACT residents from 4% to 2%. The NT government announced that new linked policies with commencement date on or after 1 July 2015 will have the additional 10% stamp duty payable. The WA government clarified that linked policies will have the additional 10% stamp duty payable. Performance Based Fees and other indirect costs are changing in the way they are communicated and are available at amp.com.au/pdsupdates, now on a financial year basis. New investment options including fees and costs are now available Renamed investment options for some investment options from 1 July. AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 11

12 Strategic asset allocation and/or range changes for some investment options during the year. Benchmark index changes for some investment options. Closure of the following investment options to new investors from 1 July : AMP Capital Australian Equity Concentrated AMP Capital Australian Equity Opportunities AMP Active Balanced AMP Capital Dynamic Markets Changes to existing Standard Risk Measures - some investment options have been assessed to have a change in their respective Standard Risk Measures (SRMs) for, with changes noted from previous years. Changes to non-lapsing nominations - non-lapsing nominations which do not expire (and so do not need to be renewed) are now available. Intra-fund consolidation - aims to reduce the number of superannuation accounts that members hold within the same Fund, helping reduce the multiple sets of fees members pay. Information regarding moving to electronic disclosure - AMP may communicate with members electronically or make communications available online (such as from our secure website My AMP), instead of sending paper copies. Changes to lost super thresholds the lost super threshold will increase from less than $4,000 to $6,000 effective 31 December. Super stream changes - a comprehensive range of measures will be introduced intended to increase the efficiency of super transactions by improving data, processes and timeliness of super rollovers, employer contributions and member registrations. 1 July Flexible Lifetime - Protection Stamp duty changes Members residing in VIC were notified that the VIC government announced that new linked policies (i.e. linked TPD) with a commencement date on or after 1 July 2014 will have an additional 10% stamp duty payable, from their next premium payment date. AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 12

13 6 May 2 May Flexible Lifetime Super Retirement Savings Account Select SuperLeader CustomSuper CustomSuper Flexible Lifetime Super Flexible Lifetime Allocated Pension Allocated Pension Intra-fund Consolidation Fee change for BlackRock Australian Equity Absolute Return investment option Each year the trustee will identify members who have multiple accounts within the fund and will merge the accounts if the trustee reasonably believes it is in the best interests of the member to do so. If the accounts are consolidated, the member will receive an exit statement. Depending on the circumstances, members may be given prior notice and provided the opportunity to choose not to consolidate their accounts. There s been a change to the performance based fee arrangements members holding units in the BlackRock Australian Equity Absolute Return investment option. From 6th June members will commence paying a Performance Based Fee (PBF) of 30% on any performance which exceeds the options performance target (8% per annum above the RBA cash rate, before fees, over rolling 3-year periods). We had previously advised this fee was capped at 25%. In line with ASIC Class Order CO14/509, this summary does not include significant events or material changes that only affect members in employer sponsored sub-plans. Any advice in this document is general in nature and does not take into account your personal objectives, financial situation or needs. Before making a decision about a product you should consider the relevant Product Disclosure Statement and other related material (available from AMP at amp.com.au, by calling or ing askamp@amp.com.au), and talk to your financial adviser. AMP Superannuation Savings Trust (ABN ) Register of significant event notifications 13