Your APSS Pension. Date of Preparation 1 July Product Disclosure Statement for APSS Pensions

Transcription

1 AUSTRALIA POST SUPER SCHEME PDS Date of Preparation 1 July 2015 Your APSS Pension Product Disclosure Statement for APSS Pensions Australia Post Superannuation Scheme (ABN ) Issuer: PostSuper Pty Ltd (ABN ) RSE Licence Number L APSS Registration Number R Scan this image using your smartphone s camera to go directly to apss.com.au to learn more about your super in the APSS and check your current APSS balance. You may first need to download a free barcode reader app that suits your brand of smartphone.

2 About this document This document is a comprehensive guide to APSS Pensions. It is designed to give you information you need about becoming an APSS Pensions member. This Product Disclosure Statement (PDS) has been prepared for existing members of the APSS who are considering commencing an Allocated or Pre-Retirement Pension. You should read this PDS in its entirety before making a decision. For a simple overview of how APSS Pensions work, their features and benefits, refer to a separate document called A simple guide to APSS Pensions available online at apss.com.au or call SuperPhone on to have one sent out to you. A word from your Trustee We ve designed our APSS Pensions to offer members flexibility and choice, allowing you to receive income payments on a monthly, quarterly or annual basis. We offer a choice of investment options and two different types of pension, geared to suit your age and lifestyle. An APSS Allocated Pension allows you to take your benefit as a series of income payments, rather than as a lump sum, when you retire. If you are not yet ready to retire and have reached your Preservation Age, a Pre-Retirement Pension enables you to start taking some of your APSS benefit as income as you transition to retirement. Both types of Pension offer you the ability to accumulate tax-free investment earnings whilst paying no administration fees. This PDS takes you through the features and benefits of having an APSS Allocated Pension or Pre-Retirement Pension. We hope you find it useful. When reading this document Words and expressions capitalised in this PDS are defined in the Glossary of Terms in this document, on pages Any references to APSS means the Australia Post Superannuation Scheme. Any references to the Trustee, Us / us, We / we or Our / our are references to PostSuper Pty Limited, the Trustee of the APSS. References to Pension(s) or a Pension are, where applicable, a reference to both APSS Allocated Pensions and APSS Pre-Retirement Pensions. Keeping you up to date Information contained in this document may change from time to time. Updated information can be found at apss.com.au or you can have a hard copy mailed to you free of charge by calling SuperPhone on If changes are materially adverse to readers of this document, we will update or replace this document to reflect the changes.! Important This PDS contains general information about APSS Pensions. It is not financial product advice, and should not be relied upon as such. Before making any decisions on the basis of the information contained in this PDS, you should obtain independent advice that takes into account your particular circumstances. The Trustee of the APSS, and the issuer of interests in the APSS, is PostSuper Pty Limited. PostSuper Pty Limited is not required to and does not hold an Australian Financial Services Licence. Therefore, it is not licensed to provide you with financial product advice regarding your investment in the APSS. Neither Australia Post nor any Associated Employer holds an Australian Financial Services Licence. Page 2 Australia Post Superannuation Scheme PDS: Your APSS Pension

3 Contents 1. How APSS Pensions work a snapshot 4 2. How APSS Pensions work the detail 7 3. Investments Significant risks Fees and other costs Taxation information Applying to commence a Pension Additional information Glossary of terms 38 Form: APSS Pension Application Form: Provide your Tax File Number (TFN) Do you need help? Call SuperPhone Monday Friday 9.00am 5.30pm (AEST) or visit us online at apss.com.au Write to APSS, Locked Bag A5005, Sydney South NSW 1235 or Fax (02) Australia Post Superannuation Scheme PDS: Your APSS Pension Page 3

4 1. How APSS Pensions work a snapshot The APSS is a superannuation scheme that provides superannuation benefits to eligible employees of Australia Post and employees of companies associated with Australia Post ( Associated Employers ) and their Spouses. The Allocated Pension and the Pre-Retirement Pension form part of the benefits offered in the APSS. Page 4 Australia Post Superannuation Scheme PDS: Your APSS Pension

5 Allocated Pension The Allocated Pension allows you to: draw your required level of income from your Pension account balance (subject to a Government minimum) and adjust your income level every July choose the frequency of payment monthly, quarterly or yearly receive tax-free income and lump sums from your Pension account from age 60 withdraw lump sums of $1,000 or more whenever you need to accumulate tax-free investment earnings. An Allocated Pension can only be commenced with at least $20,000 of: unrestricted non-preserved APSS benefits; for Employee members who have attained age 65 and are still employed by Australia Post or an Associated Employer - up to 50% of your accrued APSS Defined Benefit (net of any existing offset accounts such as surcharge) provided that you have also transferred all of your APSS Member Savings (including those in an APSS Rollover Account) into your APSS Pension account; rollovers of unrestricted non-preserved benefits from other superannuation funds; or an additional non-concessional contribution (subject to satisfying the criteria set out on page 35). For Employee members who have attained age 65 and are still employed by Australia Post or an Associated Employer, your Defined Benefit in the APSS will continue to accrue, provided you meet eligibility requirements (refer to your Defined Benefit PDS or call SuperPhone for further details). However, if you use any of your Defined Benefit to commence an Allocated Pension, an Offset Account will be established and its balance deducted from your Defined Benefit when it is paid to you (refer to pages that explain how this works). Crediting Rates are used to allocate investment returns to APSS Allocated Pension accounts. Once you have opened an Allocated Pension account, you cannot make additional contributions or rollovers into it. However, you can commence another Allocated Pension. Pre-Retirement Pension The Pre-Retirement Pension works much like the Allocated Pension the major differences being that: you can commence a Pre-Retirement Pension while you are still employed rather than when you retire as long as you have reached your Preservation Age the Pre-Retirement Pension can be commenced with restricted non-preserved benefits and preserved benefits rather than just unrestricted non-preserved benefits there is a maximum amount of income you can elect to receive each year from your Pension account balance specified by law. You cannot receive more than 10% of your Pension account balance in any financial year generally, your Pre-Retirement Pension account balance cannot be commuted to a lump sum before you retire except for any amount that was sourced from unrestricted non-preserved benefits (or another condition of release is satisfied, as explained on page 13). However, it can be commuted to make a Family Law split, pay a superannuation surcharge debt or to transfer your account balance back to your accruing superannuation (eg. Member Savings account). A Pre-Retirement Pension can be commenced with at least $20,000 of either: APSS Member Savings (up to 100% of your Employee Member Savings Account, Rollover Account or Spouse Account) up to 50% of your accrued APSS Defined Benefit (net of any existing offset accounts such as surcharge), provided that you also transfer all of your APSS Member Savings (including any Rollover Account) into the Pension Account. If you have a Defined Benefit in the APSS, it will generally continue to accrue with your additional years of service and salary increases. However, if you use any of your Defined Benefit to commence a Pre-Retirement Pension, a Pre-Retirement Pension Offset Account will generally be established and its balance deducted from your Defined Benefit when it is paid to you (refer to pages that explain how this works). Depending upon your personal circumstances, there may be tax advantages in commencing a Australia Post Superannuation Scheme PDS: Your APSS Pension Page 5

6 How APSS Pensions work a snapshot (continued) Pre-Retirement Pension (see a qualified, professional tax advisor for details). If you would also like to transition to retirement by working part time, this will depend upon arrangements you agree with your employer. If you re receiving a Pre-Retirement Pension, once you satisfy a condition of release (refer to page 13), your pension will become an Allocated Pension. Because it is then an Allocated Pension, the Government restriction on the maximum amount of income to be received each year and on commutations to lump sums will cease to apply. Cooling off period You are entitled to a 14-day cooling off period. This means that within 14 days of becoming an APSS Pension member, you can cancel your Pension membership. In this situation, any unrestricted nonpreserved benefits can be paid to you but any restricted non-preserved benefits or preserved benefits must remain within the APSS (refer to the section titled Cancelling your Pre-Retirement Pension on page 13). This 14-day period commences on the earlier of: you receiving confirmation of your acquisition of an interest in a Pension; or the end of the fifth business day after your interest in a Pension was issued. You may exercise your cooling-off rights by sending us a letter by mail or by fax. Your letter should include your full name and address, your member number and the date of your application. The amount that will be returned upon cancellation will be based on your account balance on the date of cancellation. Your account balance will reflect Crediting Rate fluctuations since your interest in a Pension was issued and may also take into account management and transaction costs, which are deducted from the assets of the APSS before Crediting Rates are set. We may make adjustments for reasonable transaction costs incurred by us. We may also deduct any tax or duty paid or payable by us as a result of your investment in a Pension. We will only make this deduction if we are unable to obtain a refund for amounts paid or the tax or duty does not cease to be payable as a result of your cancellation. Dedicated member services The APSS is at your service. Our member contacts are: a website that allows you to obtain information about the APSS and your APSS Pension online at apss.com.au a dedicated phone line SuperPhone to attend to any queries you have on You can speak with our Service Representatives between the hours of 9am and 5.30pm (AEST) Monday to Friday. by mail at: APSS, Locked Bag A5005, Sydney South, NSW 1235 by fax: (02) It s a good idea to have your member number and Personal Identification Number (PIN) handy when contacting us online or by phone. The Trustee does not hold an Australian Financial Services Licence. You will receive from us: Benefit Statements regular communications. The APSS website at apss.com.au includes trustee and executive remuneration details and other APSS documents and information that must be disclosed under superannuation legislation. Refer to the Governance page in the About the Scheme section of the APSS website for details and links to this information and documents. Information available on request You have access to the following: the Trust Deed and Rules of the APSS the APSS Audited Financial Statements and Approved Auditor s Report relevant extracts from the most recent report prepared by the Actuary of the APSS the APSS Annual Report. If you would like access to any of these documents please call SuperPhone on or visit apss.com.au. Page 6 Australia Post Superannuation Scheme PDS: Your APSS Pension

7 2. How APSS Pensions work the detail Here is more detail on the eligibility requirements for APSS Pensions, how APSS Pensions work and an outline of Crediting Rates. There is also information on Pension limits, accessing your benefits and what happens to your Pension if you die. Who this PDS is prepared for This PDS is prepared for APSS members: who are about to start retirement, or are otherwise eligible, and want to keep their unrestricted nonpreserved APSS benefits in the APSS by commencing an Allocated Pension who have reached the Preservation Age and want to start taking their unrestricted and/or restricted non-preserved or preserved APSS benefits as income before retirement (i.e. as they transition to retirement while still working) by commencing a Pre- Retirement Pension. Eligibility requirements To commence a Pension, you need to satisfy the following eligibility requirements: you must be an APSS member; you must have at least $20,000; and for a Pre-Retirement Pension, you must have reached your Preservation Age. Allocated Pensions can be commenced using either: unrestricted non-preserved APSS benefits (i.e. Member Savings or your Defined Benefit that has become payable) for Employee members who have attained age 65 and are still employed by Australia Post or an Associated Employer - up to 50% of your accrued APSS Defined Benefit* provided that you have also transferred all of your APSS Member Savings (including those in an APSS Rollover Account) into your APSS Pension Account rollovers of unrestricted non-preserved benefits from other superannuation funds an additional non-concessional contribution (if you satisfy the conditions set out on page 35). Pre-Retirement Pensions can be commenced using either: APSS Member Savings up to 50% of your accrued APSS Defined Benefit* provided that you have also transferred all of your Member Savings (including APSS Rollover Accounts) into the APSS Pension rollovers from other funds an additional non-concessional contribution (if the conditions set out on page 35 have been satisfied). No further contributions or rollovers can be made into a Pension account after it has commenced. However, you may commence another Pension. * This is the accrued Defined Benefit net of any existing offset accounts such as surcharge. All these amounts will go into an Accumulation Account where Crediting Rates are used to allocate investment returns to Member Savings. To transfer APSS benefits to an Allocated Pension or Pre-Retirement Pension you will need to complete all sections of the APSS Pension Application form attached to this PDS. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 7

8 How APSS Pensions work the detail (continued) How it works Crediting Rates in the APSS Crediting Rates are used to allocate investment returns in the APSS. You can choose between Cash Return Member Savings and Market Return Member Savings (as described on pages 17-19). There are different Crediting Rates for Cash Return Member Savings and Market Return Member Savings. The Crediting Rates for Market Return Member Savings are determined by reference to the investment returns of the Market Return Portfolio, a widely diversified portfolio of assets that are mainly invested for the long-term. Crediting Rates for Market Return Member Savings can be positive or negative, depending on investment market movements. The Crediting Rates for Cash Return Member Savings are determined by reference to the investment returns of the Cash Portfolio, which may include bank deposits or bills and short-term interest-bearing securities with very high credit quality held either directly or through a managed investment trust. The Crediting Rates for Cash Return Member Savings cannot be negative because Cash Return Member Savings are protected by the Capital Guarantee. Fortnightly Crediting Rate The fortnightly Crediting Rate is the return for the particular fortnight in which it is being calculated. It is not the annual return to the end of that fortnight. The fortnightly Crediting Rate cannot be compared to investment returns quoted in the media because the media generally report investment returns for different time periods and often only for particular groups of investments such as Australian shares. The Crediting Rate fortnights are aligned with Australia Post s payroll dates. Each new fortnight starts on a pay date (i.e. fortnights begin on Wednesday and end on the Tuesday immediately prior to the next payroll date). APSS Crediting Rates compounded for longer periods, taking multiple fortnights into account, are available at apss.com.au. Interim Crediting Rates Interim Crediting Rates are applied when the entire balance of your APSS Pension is paid or commuted (if eligible). This is to reflect investment earnings earned since the last fortnightly Crediting Rate was declared. The interim Crediting Rate for Market Return Member Savings is the Trustee s estimate of the investment return of the Market Return Portfolio for the part of the fortnight for which it applies. The interim Crediting Rate for Cash Return Member Savings is the Trustee s estimate of the investment return of the Cash Portfolio for the part of the fortnight for which it applies subject to the Capital Guarantee. Generally, a new interim Crediting Rate is struck each business day based on the most up-to-date information available to the Trustee. APSS Crediting Rates for longer periods, taking multiple fortnights into account, are available at apss.com.au (click on Crediting Rates). Additional contributions Once you have started a Pension, you cannot make additional contributions to it. If you want to make a lump sum contribution, you can commence another Pension for which the same rules will apply. For more information refer to page 34. Pension income payments By law, at least one income payment must be made from your Pension account each year. This applies unless you commence your APSS Pension after 31 May in any year. If you commence your Pension on or after 1 June you are not required to receive any pension payments for that financial year. Your income payments can be made monthly, quarterly or yearly. You can choose whether to have the payments made: entirely from Cash Return Member Savings until that balance is reduced to zero and then from Market Return Member Savings; or proportionally from both Market Return Member Savings and Cash Return Member Savings based on the allocation at the date of the last declared Crediting Rates. Page 8 Australia Post Superannuation Scheme PDS: Your APSS Pension

9 How APSS Pensions work the detail (continued) If you have a combination of Cash Return Member Savings and Market Return Member Savings and you choose to have payments made from Cash Return Member Savings, at the end of the fortnight in which the last of that balance is paid out the fortnightly Cash Return Crediting Rate will be used to allocate investment returns for the period from the beginning of the fortnight to the date the payment was made. This amount will be automatically transferred into your Market Return Member Savings. An example of how Crediting Rates are used To calculate your Member Savings balance, Crediting Rates and interim Crediting Rates are used. This example shows how your balance is calculated. Suppose that you had a balance of $200,000 in Market Return Member Savings at 30 June, and the following has occurred since then: on 8 July: switched fully to Cash Return Member Savings on 25 July: received monthly income payment of $750 on 1 August: commuted your remaining pension to a lump sum. Assume the following fortnightly Crediting Rates and interim Crediting Rates applied during this period. Fortnight 25 June to 8 July Market Return Member Savings 0.76% 0.08% 9 July to 22 July 0.30% 0.10% 23 July to 1 August* 0.15% 0.07% Cash Return Member Savings * Because this is part of a fortnight, Interim Crediting Rates apply First we calculate how much to switch to Cash Return Member Savings by calculating your Member Savings on 8 July. Your 30 June Market Return Member Savings balance of $200,000 will decrease for the 8 days to 8 July at the rate of 0.43% (i.e. the 0.76% Market Return Member Savings Crediting Rate for that fortnight applies for 8 days). This gives an amount of $199, to switch to Cash Return Member Savings. Next we calculate the amount of the Pension balance you will receive as a lump sum on 1 August after allowing for your monthly income payment of $750 on 25 July. This calculation is made on 1 August using the interim Crediting Rate on that date. Your $199, Cash Return Member Savings would increase at the rate of 0.10% for the fortnight ended 22 July and then at 0.01% for the two days until your income payment is made on 25 July (i.e. the Cash Return Member Savings 0.07% interim Crediting Rate for 10 days applies for 2 days). This gives $199, Subtracting the $750 income payment gives $198, This amount increases for the 8 days to 1 August at 0.06% (i.e. the Cash Return Member Savings 0.07% interim Crediting Rate for 10 days applies for 8 days). This gives an amount of $198, that you would receive as a lump sum. Each year the 30 June balance of your Member Savings is included on your annual APSS Benefit Statement. Your 30 June Member Savings balance is calculated consistent with the above method. The above example is intended only to illustrate the way Crediting Rates and interim Crediting Rates are applied to your Member Savings. The example Crediting Rates are not necessarily indicative of future Crediting Rates. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 9

10 How APSS Pensions work the detail (continued) Minimum limit Allocated Pension and Pre-Retirement Pension By law, your annual income from a pension must be at least the minimum limit. Each July we will write to you and ask if you wish to vary your regular pension amount above this limit. The minimum income that must be paid each financial year is calculated on 1 July each year by multiplying the balance of your Pension account by a Pension Factor. Pension Factors change each year according to your age, as shown here: Age of Beneficiary Pension factor (%) Under or more 14 Example Let s look at a 64-year-old with a $100,000 balance as at 1 July In this case, the Pension Factor would be 4% during Here s how the Pension Factor would be used to calculate the minimum income for : Minimum Income: $100,000 x 4% = $4,000. This limit will change each year in line with your age and Pension account balance. You will be advised of the limit that applies to you when you commence your Pension and each year thereafter. Maximum limit Pre-Retirement Pension only Unlike an Allocated Pension, there is a maximum limit for a Pre-Retirement Pension. The maximum pension that can be paid each financial year is calculated on 1 July by multiplying the balance of your Pension account by 10%. Example In our example, our 64 year-old with a balance of $100,000 at 1 July 2014 would have a maximum income of: $100,000 x 10% = $10,000 for Remember, that once you satisfy a condition of release (refer page 13) your Pre-Retirement Pension will become an Allocated Pension and the maximum limit will then cease to apply. Reducing your APSS benefit to commence a Pre-Retirement Pension When an amount is transferred from a Member Savings account to commence a Pre-Retirement Pension, the balance of the Member Savings account will be reduced by the amount transferred. Employee members with an APSS Defined Benefit must use all of their Member Savings, including those in the APSS Rollover, prior to using any of their Defined Benefit to commence a Pension. If you are an Employee member using any part of your Defined Benefit to commence a Pre-Retirement Pension, you will have a Pre-Retirement Pension Offset Account. The opening balance of this offset account will equal the Defined Benefit amount used to commence your Pension. Its balance will then increase or decrease depending upon the Crediting Rate that applies to Market Return Member Savings. When your Defined Benefit becomes payable, the balance of your Pre- Retirement Pension Offset Account will be deducted from your Defined Benefit at that time. The effect of using your Defined Benefit to commence a Pre-Retirement Pension is that it removes some of the money that is available for investment to finance APSS Defined Benefits. The Market Return Crediting Rate is applied to your Pre-Retirement Pension Offset Account to compensate for this effect. Page 10 Australia Post Superannuation Scheme PDS: Your APSS Pension

11 How APSS Pensions work the detail (continued) By applying the Market Return Crediting Rate, the balance of your Pre-Retirement Pension Offset Account can be expected to increase beyond the initial amount of Defined Benefit used to commence your Pre- Retirement Pension. While you are receiving your Pre-Retirement Pension your Defined Benefit will generally continue to accrue with your years of service and your Final Average Salary (FAS). However, remember that your Pre-Retirement Pension Offset Account will also increase (or decrease) at the Market Return Crediting Rate. This creates a risk that the balance of your Pre-Retirement Pension Offset Account might increase faster than your Defined Benefit. The potential reduction in your Defined Benefit caused by an increase in the Pre-Retirement Offset Account may be partially offset by the return that you receive on your Pre-Retirement Pension. If your Pre-Retirement Pension is in Market Return Member Savings, it will increase, or decrease if Crediting Rates are negative, at a similar rate to the increase or decrease in the Pre-Retirement Offset Account. The Crediting Rates declared for Market Return Member Savings Pre-Retirement Pensions and Pre-Retirement Offset Accounts will differ slightly because no investment tax applies to the Pre-Retirement Pension Crediting Rates. If your Pre-Retirement Pension is in Cash Return Member Savings, it is expected to increase at a lower rate than the Pre-Retirement Offset Account because in the long term Market Return Crediting Rates are expected to be higher than Cash Return Crediting Rates. If you make additional contributions to your Market Return Member Savings while you are receiving your Pre-Retirement Pension, the Crediting Rates applied will be the same as are applied to the Pre-Retirement Pension Offset Account. To contribute to your Member Savings, just complete a Make an after-tax contribution to your super form or log on to apss.com.au to change how you save. (Click on My APSS Information and then Change how I save super). Example of a Pre-Retirement Pension sourced from an APSS Defined Benefit Suppose that you were nearing retirement following 30 years of full time service at your employer, which included a three-month probationary period* during which you received an SG Defined Benefit with a defined benefit accrual rate of 9%, and that your FAS was $50,000. Your Defined Benefit would be $213,838 (assuming no existing offset accounts such as surcharge and no Superannuation Guarantee top-up benefits apply). In addition, suppose that you also had Member Savings of $50,000, giving you a total retirement benefit of $263,838: Example A Accrual Rate x FAS x Years of full-time service = Defined Benefit SG (at 9%) x $50,000 x 0.25 = $1,125 PLUS 14.3% x $50,000 x = $212,713 Total Defined Benefit = $213,838 Total Member Savings = $50,000 Total APSS Benefit (before receiving Pre-Retirement Pension) = $263,838 *Assumes probationary period was sometime between 1 July 2002 and 30 June Australia Post Superannuation Scheme PDS: Your APSS Pension Page 11

12 How APSS Pensions work the detail (continued) Now suppose you were starting full time retirement in five years and wanted to draw a Pre-Retirement Pension of about $10,000 a year prior to starting your retirement. This would require that you start your Pre-Retirement Pension with approximately $120,000 of your total APSS benefit. This would enable annual income of $10,000 to be between the minimum and maximum incomes allowed by the Government as set out above. The first $50,000 of the $120,000 that you would need to transfer would be your Member Savings. You would then need an additional $70,000 from your Defined Benefit leaving $143,838 ($213,838 less $70,000). The maximum amount of your Defined Benefit that could be transferred to your Pre-Retirement Pension would be $106,919 (i.e. 50% of the Defined Benefit, which, in this example, is half of $213,838). While receiving the Pre-Retirement Pension, your Defined Benefit would continue to grow with your FAS increases and years of service. However, to reduce your Defined Benefit, the $70,000 transferred becomes the opening balance of your Pre-Retirement Pension Offset Account. This account will increase (or decrease) with the Market Return Crediting Rate and may increase more quickly than your Defined Benefit. This is why only 50% of the Defined Benefit can be taken as a Pre-Retirement Pension (i.e. to reduce the effect on members). The change in your Pre-Retirement Pension Offset Account may be partially offset by the change in the balance of your Pension. So, what does the total APSS benefit look like when starting full time retirement five years later? The following table demonstrates one possible scenario where, during the five years: your FAS increased from $50,000 to $60,000 you worked 3 out of 5 days a week you contributed nothing to your Member Savings the applicable Market Return Crediting Rate was approximately 8% p.a., which would increase the Pre-Retirement Pension Offset Account from $70,000 to $102,853 your Pre-Retirement Pension was entirely in Market Return Member Savings the applicable return of the Pre-Retirement Pension was approximately 8% p.a., which would leave the balance of your Pre-Retirement Pension at $115,352 after allowing for income payments (the return on the Pre-Retirement Pension is partially offset by the return on the Pre-Retirement Pension Offset Account). Over the five years your APSS benefit has increased from $263,838 to $294,844. You will have also received $50,000 of income payments: Example B Accrual Rate x FAS x Years of full-time service = Defined Benefit SG (at 9%) x $60,000 x 0.25 = $1,350 PLUS 14.3% x $60,000 x = $255,255 PLUS 14.3% x $60,000 x 3/5 x 5 = $25,740 LESS Offset account = ($102,853) Total Defined Benefit = $179,492 Total Member Savings = 0 Balance of APSS Pre-Retirement Pension = $115,352 Total APSS Benefit (after five years of Pre-Retirement Pension at 10% p.a.) = $294,844 Page 12 Australia Post Superannuation Scheme PDS: Your APSS Pension

13 How APSS Pensions work the detail (continued) Can you still get a Government pension? You may be eligible to receive the Government s Age Pension or other social security benefits in addition to your APSS Pension income. This will depend on what other income and assets you have. APSS Pensions are taken into account under the Assets Test and Income Test. The Government has introduced new rules for assessing the social security benefits of members with account-based pensions, such as the APSS Pension Account. When applying the income test, Pension Accounts established on or after 1 January 2015 are subject to the same deeming rules that apply to financial investments such as shares and cash. In certain circumstances, APSS Pension Accounts established before 1 January 2015 may also be subject to the deeming rules for income test purposes. Contact Centrelink on for more information. Accessing your benefits You must receive income payments each year within the relevant income limit(s) set by law (see page 10). You can withdraw or commute a lump sum from an Allocated Pension in addition to your regular income payments as explained on page 14 (e.g. to pay an unexpected expense). No withdrawal fees or account closure fees will apply in the APSS if you choose to do this. You can also withdraw any unrestricted nonpreserved component of a Pre-Retirement Pension (if applicable). The Crediting Rates for Market Return Member Savings may be positive or negative, and it is expected that the number of negative annual returns for Market Return Member Savings will be 4 to less than 6 out of every 20 years. Therefore, if you have Market Return Member Savings, your Pension balance may have decreased on withdrawal, even if you have received no income payments. To make a withdrawal, please call SuperPhone In certain circumstances the Trustee may temporarily suspend payments or withdrawals for example, if it believed that to continue to make benefit payments or withdrawals would materially disadvantage some members relative to other members. Cancelling your Pre-Retirement Pension Although you can cease a Pre-Retirement Pension, any preserved or restricted non-preserved amounts cannot be withdrawn. They are able to be converted back to your APSS Defined Benefit or Member Savings account (including Member Savings in an APSS Rollover or APSS Spouse Account). If you have a Pre-Retirement Pension Offset Account, your Pre-Retirement Pension would first need to be applied to reducing this balance. Any part of your benefit that is converted back to your Member Savings account will be allocated as per your future Member Savings allocation. If you wish to cancel your Pre-Retirement Pension, you must use the prescribed APSS Cancellation of Pre-Retirement Pension form. You can obtain a copy of this form by calling SuperPhone on Pre-Retirement Pensions can also be commuted to make a Family Law split or pay a superannuation surcharge debt. Conditions of release Preserved amounts become non-preserved (either unrestricted non-preserved or restricted nonpreserved) upon satisfying a condition of release. Conditions of release include: Permanent retirement from the workforce on or after Preservation Age Death Terminal Medical Condition Permanent incapacity Attaining age 65 (whether you are retired or not) Specific compassionate grounds approved by Department of Human Services* Severe financial hardship (as defined by superannuation law)* Ceasing gainful employment on or after reaching age 60 Permanent departure from Australia if you are a temporary resident (except citizens of New Zealand)* * Superannuation law limits the amount that can be released and/ or generally requires this to be paid as a lump sum. For Employee members, even if you have met one of these conditions of release, your APSS Defined Benefit generally cannot be paid to you in cash under the APSS Trust Deed while you are employed by Australia Post or an Associated Employer, although exceptions apply (including if you want to commence an APSS Australia Post Superannuation Scheme PDS: Your APSS Pension Page 13

14 How APSS Pensions work the detail (continued) Pension or you meet the severe financial hardship or compassionate grounds conditions of release). However, any unrestricted non-preserved Benefits in your Member Savings Account can be accessed at any time. Lump Sum Withdrawals ( Commutations ) Lump sum withdrawals are generally only permitted from Allocated Pensions. The minimum lump sum withdrawal or commutation from a Pension account is $1,000 and the minimum balance is also $1,000. Therefore, if you have less than $2,000 left in your Pension account and want to make a lump sum withdrawal, you would need to withdraw the entire balance of your Pension. These minimums only apply to lump sum withdrawals and not to regular pension payments (i.e. your balance can be less than $1,000 if you are just taking your APSS Pension account in the form of pension payments). By law, either a minimum pro-rata income payment must be made by the APSS before paying out full or partial lump sum withdrawals or the remaining balance must be sufficient so that you can receive at least the Minimum Income Amount in the financial year (if you haven t already done so). The minimum pro-rata income payment is calculated using the formula: Minimum Income Amount* x Days in Payment Period* Example Bill opened an Allocated Pension account on 2 October (with a required minimum income of $2,730 for the 272 days left in the financial year) and had yet to receive an income payment. Fifteen days after opening the account, Bill requested a withdrawal of $5,000. In this case, the $5,000 could not be withdrawn unless either a pro-rata income of $151 had been paid or there remained $2,730 in the Pension to provide the minimum income for the year. This pro-rated amount was calculated as follows: $2,730 x 15 = $ Had Bill already received income payments of at least $151, the $5,000 could be withdrawn without first paying a pro-rata income payment. Where the APSS is required to make a minimum prorata payment, your remaining regular income payments for the current financial year will be adjusted. Your lump sum will be withdrawn from your Cash Return Member Savings and/or Market Return Member Savings according to the election you have made for your income payments. Days in Financial Year* (from Pension commencement) LESS Income Already Paid In Financial Year *We define these terms in the Glossary of terms.! Important Remember, if you have a Pre-Retirement Pension, only unrestricted non-preserved amounts may be commuted. Page 14 Australia Post Superannuation Scheme PDS: Your APSS Pension

15 How APSS Pensions work the detail (continued) What happens to your APSS Pension if you die? It may be paid to a Reversionary Beneficiary either as income or as a lump sum You can nominate a Reversionary Beneficiary on the APSS Pension Application form. A Reversionary Beneficiary is someone to whom the Trustee will continue paying income from your Pension in the event of your death. If they prefer, Reversionary Beneficiaries can choose to receive a lump sum of whatever is left in the Pension account instead of taking income payments after they have received at least one pension payment. (This is to satisfy the minimum pension requirements.) By law, you can only nominate one of the following people to be your Reversionary Beneficiary to receive income payments: your Spouse as at the date of your death; your Child as at the date of your death, but only if the Child meets the definition of Eligible Child; any other person with whom you had an Interdependent Relationship as at the date of your death; or any other person who is in any way financially dependent upon you on the date of your death. We define Spouse, Child, Eligible Child and Interdependent Relationship in the Glossary. If your Reversionary Beneficiary is a Child they must receive the balance of their Pension account as a lump sum when they cease to meet the definition of Eligible Child. To update your Reversionary Beneficiary nomination, just complete the Nomination of Reversionary Beneficiary form available by contacting SuperPhone on It may be paid to Beneficiaries as a lump sum The person that you want to leave your Pension to in the event of your death may not qualify as a Reversionary Beneficiary, or you may want to nominate someone other than a person who does qualify. In this case, you may wish to nominate a Beneficiary. You can do this by completing the Nomination of Beneficiaries form that is available online at apss.com.au or by calling SuperPhone on A Beneficiary is someone who must be your Dependant or legal personal representative. Dependants include your Spouse and Child(ren) as at the date of your death, regardless of their age. If you have nominated a Reversionary Beneficiary the Trustee will act on your instruction. However, nominating a Beneficiary only provides the Trustee with a guide as to whom you would like your death benefit paid to in the event of your death. If your death benefit is paid to anyone other than a Reversionary Beneficiary (including to a Beneficiary you have nominated) it must be paid as a lump sum. In certain circumstances, the Trustee may apply the balance of your Pension to, or for the benefit of, one or more of the following persons: your Dependants legal personal representative of your estate any other person permitted by law. This will happen if, at the time of your death: you have not nominated a Reversionary Beneficiary the Reversionary Beneficiary nominated has died before you, and you have not updated your nomination(s) a defective nomination(s) has been submitted by you. The Trustee will be guided by the purposes of the APSS, which include providing superannuation benefits for members upon their retirement from service and, on the death of members, for their Dependants. To update your Beneficiary nomination(s), just complete and submit another Nomination of Beneficiaries form. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 15

16 How APSS Pensions work the detail (continued) Change in Member Savings upon Notification of Death If the APSS is notified of your death and you have not nominated a Reversionary Beneficiary, any Market Return Member Savings you have will be automatically switched to Cash Return Member Savings at the end of the fortnight in accordance with the normal APSS switching timeframe (which is usually the next fortnight, based on Australia Post s payroll dates, but in some instances may be the following fortnight). This means that from that point on these Member Savings will be allocated investment returns using the Cash Return Crediting Rate that cannot be negative and will preserve the dollar value of your Member Savings. Providing proof of identity The security of your super entitlements in the APSS is a key priority for the Trustee. We have procedures in place to manage risks associated with fraud and other illegal activities. At times, these procedures may cause inconvenience to you. Please remember that they are being applied to protect your entitlements. In addition, under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006, superannuation funds are required to have an anti-money laundering and counter-terrorism financing program in place. A key element of this program is customer identification and verification procedures. Typically, you will be required to provide proof of your identity before you withdraw benefits from the APSS or commence a pension. As a result, some requested transactions cannot proceed until we receive and verify the necessary identification documents. The Trustee does not accept liability for any loss you may incur as a result of circumstances such as a delay in payment of a benefit or commencement of an income stream where the delay arises from our need to comply with legislative requirements. We may be required to request additional customer identification or related information from you at other times.! Important If we cannot obtain the required information from you, we may be unable to process your requested transaction. The Trustee must also report specified matters to the regulator, AUSTRAC, and this may include the provision of personal information about you. If this happens, the Trustee is not permitted to advise you that such a report has been made. Page 16 Australia Post Superannuation Scheme PDS: Your APSS Pension

17 3. Investments All investments involve some risk. These risks include the chance that: the dollar value of the investments could fall the rate of return could be less than expected the investments may not be able to be sold when needed. The Trustee realises you may face a bewildering array of superannuation products outside the APSS for your pension savings. For your Member Savings in the APSS Pension you simply have a choice between: Market Return Member Savings; Cash Return Member Savings; or a combination of both to suit your retirement savings goals. Before you make your choice, you should understand the differences between Market Return Member Savings and Cash Return Member Savings. The following pages provide some background information about Market Return Member Savings and Cash Return Member Savings. Because personal circumstances differ, you should consider seeking appropriate advice from a qualified financial adviser before making your decision.! Important If you do not provide instructions about your choice of investment option(s), the default option of Market Return Member Savings will automatically apply to your entire Pension account until you advise us of your choice. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 17

18 Investments (continued) Trustee s objectives Market Return Member Savings: The Trustee s objective for Market Return Member Savings is to credit returns over the long-term that both exceed the rate of inflation and exceed the rate of return credited to Cash Return Member Savings after any taxes and all costs are allowed for, while accepting that the annual return will be relatively volatile. The Crediting Rates for Market Return Member Savings are determined by reference to a diverse portfolio of assets in the APSS, known as the Market Return Portfolio. The Trustee expects that the Market Return Crediting Rates will exceed the Cash Return Crediting Rates by a margin of 3-4% per annum in the long-term. The Trustee cannot guarantee that its long-term expectation will be met because investment markets are unpredictable. Historically the markets for longterm investments like those in the Market Return Portfolio have had greater rises than falls in the long run. Of course, history is not necessarily a guide to what may happen from year to year in the future. You should consider whether you have enough time before you need to access your savings, to withstand periods when the investment markets may go down. Strategic asset allocation for the Market Return Portfolio: The target asset allocation of the Market Return Portfolio is 20% Bonds, 55% Shares, 17.5% Private Market Assets, 7.5% Property. The actual allocation may differ from time to time according to market conditions. Cash Return Member Savings: The Trustee s objective for Cash Return Member Savings is to avoid any reduction in the dollar value of your Member Savings at all times, while also earning a rate of return that lets the value of your Member Savings at least keep up with inflation over the longer term. The Crediting Rates for Cash Return Member Savings are determined by reference to the investment returns of the Cash Portfolio. The Trustee expects Crediting Rates for Cash Return Member Savings to be similar to the cash interest rate set by the Reserve Bank of Australia, less investment costs. Cash Return Member Savings are protected by the Capital Guarantee, which means that the Crediting Rates and interim Crediting Rates for Cash Return Member Savings cannot be negative. However, the Capital Guarantee does not cover the risk of inflation reducing the purchasing power of your Member Savings. Strategic asset allocation for the Cash Portfolio: The target asset allocation of the Cash Portfolio is 100% Cash. The actual allocation may differ from time to time according to market conditions. The allocation of Member Savings between the Market Return Portfolio and the Cash Return Portfolio may vary from time to time, at the Trustee s discretion. For the most up to date asset allocation go to apss.com.au or call SuperPhone on Page 18 Australia Post Superannuation Scheme PDS: Your APSS Pension

19 Investments (continued) How the Trustee invests The funds in the APSS are divided into two investment portfolios: the Market Return Portfolio the Cash Portfolio. Member Savings are allocated between these two portfolios. The Market Return Portfolio also includes the funds held to pay Defined Benefits. The actual allocation of Member Savings between these two portfolios depends on many things including the value of employer-financed assets, the investment environment and the amounts that members elect to save in Market Return Member Savings and Cash Return Member Savings. Regardless of the actual allocation of Member Savings between the Market Return Portfolio and the Cash Portfolio at any particular time, the Market Return Member Savings Crediting Rates are determined by reference to the investment returns of the Market Return Portfolio and the Cash Return Member Savings Crediting Rates are determined by reference to the investment returns of the Cash Portfolio. The Market Return Portfolio is a diversified portfolio of assets that are mainly invested for the long term. The way that the Trustee invests the Market Return Portfolio rests on some simple but important beliefs. The Trustee believes that: economic activity in the world is creating wealth investors can participate in and benefit from this wealth creation by investing in Financial Assets the total stock of Financial Assets can t be lost even though some Financial Assets may fail (resulting in the loss of money invested in them) because investors require higher expected returns as compensation for accepting higher expected risks, investing in riskier assets results in higher returns in the long term. In line with these beliefs, the Trustee s investment strategy for the Market Return Portfolio involves making allocations between classes of the world s Financial Assets that have different degrees of risk (and therefore different levels of expected return) and ensuring that each allocation includes a wide array of Financial Assets in that asset class to reduce the overall impact if some investments fail. The main asset classes that the APSS recognises are: Bonds Shares Private Market Assets Property. The Trustee s investment strategy for the Cash Portfolio is different from its strategy for the Market Return Portfolio. It may include bank deposits or bills and short-term interest-bearing securities with very high credit quality. These may be held directly or via a managed investment trust. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 19

20 Investments (continued) Comparing investment returns in the APSS with other super funds the Standard Risk Measure The Standard Risk Measure is based on industry guidance and allows members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period. The Standard Risk Measure for Cash Return Member Savings and Market Return Member Savings are shown in the table below. The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be, or the potential for a positive return to be less than a member may require to meet their objectives. It also does not take into account the impact of administration fees and tax on the likelihood of a negative return. You should still ensure that you are comfortable with the risks and potential losses associated with your chosen investment option(s). Risk Band Risk Label Estimated number of negative annual returns over any 20 year period 1 Very low Less than 0.5* 2 Low 0.5 to less than 1 3 Low to medium 1 to less than 2 4 Medium 2 to less than 3 5 Medium to high 3 to less than 4 6 High 4 to less than 6** 7 Very high 6 or greater * APSS Cash Return Member Savings ** APSS Market Return Member Savings Implementing the Trustee s strategy The investment strategy for Market Return Member Savings and the defined benefit assets consists of target allocations to four asset classes shown in the table below: Asset Class Target Allocation Normal range* Bonds 20% 18-22% Shares 55% 50-60% Private market assets 17.5% 15-20% Property 7.5% 5-10% * The actual asset allocation is normally expected to fluctuate (go up or down) within these ranges over time. If it moves outside the normal ranges, the Trustee will take prudent and commercially responsible steps to re-balance to the target allocation. Bonds The APSS Bond assets may be invested in government and semi-government debt, high-grade corporate debt and cash. Debt and cash is invested in indexed portfolios in the Public Market. The Trustee believes that it is unlikely that it will have reliable information about these assets that other investors won t have. Without more information than other investors, it is very difficult to pick the investments that will do better in the future than others - it is difficult to beat the market. Indexed portfolios are a low cost way for the Trustee to invest in these markets. The Trustee s high-grade debt investment manager is Vanguard Investments Australia Ltd. Vanguard is also appointed to manage the Cash Portfolio. Shares This includes Public Market Shares as well as Private Market equity instruments (through funds that invest in private market companies). The Trustee intends to scale down the private equity investments in the Market Return Portfolio over the 3-5 years from June 2013 and this asset class will ultimately consist of Public Market Shares only. Page 20 Australia Post Superannuation Scheme PDS: Your APSS Pension

21 Investments (continued) Like government debt, the Public Market Shares are currently invested in indexed portfolios. This means that investments are made in a way designed to give the same return as the whole market, measured by commonly recognised market indexes, such as the ASX200 index for the Australian share market. The Trustee may introduce other forms of investment management as the allocation to public market shares increases, where it is considered likely that they will add value or reduce risk to the investment return, after allowing for fees and transaction costs. The Trustee s Public Market Shares investment manager is Vanguard Investments Australia Ltd. Private Market investment involves the purchase of privately-traded assets such as companies and buildings. Core Private Market equity involves investing in established and start-up privately traded companies. More detail on how the Trustee invests in Private Market investments is provided below under Private Market Assets. The Trustee expects to make no further commitments to core Private Market equity. Over time more and more of the assets in the Shares asset class will become Public Market Shares. Private Market assets This will include Private Market investments that are not included in Shares or Property asset types. In particular, it includes privately-traded debt and privately-traded non-core equity. Information about privately traded investment opportunities and access to them is quite restricted. Very few people or groups have the resources, business relationships, skills and money to make a bid for a privately-traded asset. Privately-traded assets within Shares, Property and Private Market Assets are invested by the Trustee on the advice of APSS Management, who retains advisers with specialist expertise and access to privatelytraded assets around the globe. The Trustee has made investments in investment vehicles, most of which invest in a number of individual assets, resulting in a globally diversified portfolio for the APSS. Property This includes Private Market Property and Infrastructure investments. Private Market Property includes privately-traded buildings, including building developments. Infrastructure includes privately-traded assets. More detail on how the Trustee invests in Private Market investments is provided below under Private Market Assets. Managing currency risk The APSS investments cover all major financial regions of the world as well as Australia. This introduces currency risk the risk that the value of overseas investments will be affected by movements in exchange rates. The Trustee has appointed a currency risk manager Macquarie Investment Management Limited to manage the effect of exchange rate movements. Labour standards and environmental, social and ethical issues The Trustee does not take into account labour standards, environmental, social or ethical considerations ( SRI ) in the selection, retention or realisation of the APSS investments or in the appointment or termination of the APSS investment managers. The APSS investment managers do not take into account SRI considerations in the selection, retention or realisation of investments. These considerations may be taken into account if they have the potential to materially affect the value of investment, but no specific methodology is applied. Investment option changes The Trustee may change the existing Member Savings investment options at any time, including the Trustee s investment strategy, objectives or asset allocation. It may also add new investment options or close existing options at any time. As required by law, we will always notify you of any significant changes that may affect you. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 21

22 Investments (continued) Deciding between Market Return and Cash Return When you open an APSS Pension Account, you will need to choose between Market Return Member Savings or Cash Return Member Savings or a combination of both. Combination of Market Return and Cash Return You can choose to put your Member Savings in any combination of Market Return Member Savings and Cash Return Member Savings. You might decide to use one for drawing your regular income payments and leave some savings in the other. If you decide on a combination of Market Return and Cash Return Member Savings you should consider the characteristics of both and how they might work together. The more you put in Market Return Member Savings, the more your savings are expected to grow in the long term if you are prepared to ride out the ups and downs. The more you put in Cash Return Member Savings, the more your savings will be protected by the Capital Guarantee, but you should not expect your savings to grow as much as the Market Return Member Savings in the long term. Switching your Member Savings You can switch all (or part) of your Member Savings between Market Return and Cash Return fortnightly if you wish. The APSS must receive your completed form on the Thursday prior to the start of the fortnight (if there are public holidays the APSS may need to receive the form earlier). However, if you make a switch on the APSS website, the cut off time for making your switch is extended to the Friday prior to the start of the fortnight. If you make more than one switch in the same fortnight, only your last switch will be effective. Crediting Rates are applied to update your Member Savings when they are moved between Cash Return Member Savings and Market Return Member Savings. It takes several days from the end of the fortnight for the Crediting Rates to become available. Therefore, if you request a current pension estimate (for example at apss.com.au or by calling SuperPhone on ) within a few days of the end of the fortnight it will give you the best available estimate of the value of your APSS Pension account but it will not precisely match the actual amount of your Member Savings when your switch is subsequently made. The fortnights are aligned with Australia Post s payroll dates. Each new fortnight starts on a pay date (i.e. fortnights begin on Wednesday and end on the Tuesday immediately prior to the next payroll date). To find out the exact dates contact SuperPhone on To change your combination of Member Savings, use the APSS Pension Change Member Savings form available from apss.com.au. Suspension of switches Subject to superannuation law, in certain circumstances the Trustee may temporarily suspend switches between Market Return Member Savings and Cash Return Member Savings. For example, this may happen if it is believed that to continue to make switches would materially disadvantage some members relative to other members. Making your decision Before deciding between Market Return Member Savings and Cash Return Member Savings, or a combination of both you need to consider all of the following: your investment timeframe, that is, when you expect to need your Member Savings your tolerance to investment risk any other investments you have and the nature of those investments your investment goals.! Important Even after considering all these things, you should consider speaking to a licensed financial adviser before making your choice. Page 22 Australia Post Superannuation Scheme PDS: Your APSS Pension

23 Investments (continued) Investment timeframe Your timeframe will be relevant to your investment decision. For instance, the longer your timeframe, the more time you have to cope with the highs and lows that can be associated with Market Return Member Savings. Market Return Member Savings may not be suitable if you intend to commute to a lump sum in the short term. Risk tolerance Having determined the investment timeframe, the next step is to consider how much the risk of varying investment returns from one period to the next can be tolerated, recognising that the variation can result in a negative return in some periods. The relationship between risk and return is fundamental to investing. Generally, increased expected returns are achieved only by accepting increased risk. Over the long term the Trustee expects that if you choose Cash Return Member Savings you can anticipate less variation in returns but also lower returns than if you choose Market Return Member Savings. Remember that inflation is also a risk, especially in the long run, because it reduces the purchasing power of your retirement savings. A strategy with a higher longterm expected return, such as Market Return Member Savings, gives a better chance of building up your retirement savings, even if it involves greater variability in returns along the way. Other investments You may also need to think about any money you have invested in other investments or superannuation benefits you have elsewhere. Other investments and benefits might mean that you can tolerate more risk of variations in returns on your Member Savings. Tell us where you want to save You need to decide whether to save in Market Return Member Savings, Cash Return Member Savings, or a combination of both, when completing the APSS Pension Application form. Before you complete an application form, please read and understand the differences between Market Return Member Savings and Cash Return Member Savings. If you do not indicate where you want your savings to go, then your APSS Pension Account will be held in Market Return Member Savings until we are advised otherwise. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 23

24 Investments (continued) Past investment returns The Crediting Rates for Market Return Member Savings and Cash Return Member Savings are determined by reference to the investment returns of the Market Return Portfolio and Cash Portfolio respectively subject to the Capital Guarantee for Cash Return Member Savings. The compounded Market Return Crediting Rate for the year to 30 June 2014 was 10.70% for APSS Pensions. The compounded Cash Return Crediting Rate for the year to 30 June 2014 was 2.52% for APSS Pensions. Because Crediting Rates are declared fortnightly (refer page 8) the returns credited to your Member Savings will depend on when pension income payments, withdrawals or switches between Market Return Member Savings and Cash Return Member Savings are made. The table below provides past returns of the APSS over the 15 years ended 30 June Prior to 1 July 2008, the APSS Pension was invested in the Market Return Portfolio and had unit pricing rather than Crediting Rates. Actual compounded Crediting Rates for Market Return Member Savings are shown for periods from 1 July 2008 onwards. For periods prior to 1 July 2008, the returns are based on the difference between the unit price for APSS Pension accounts as at 30 June each year. Because Cash Return Member Savings commenced for APSS Pensions from 5 August 2009, Crediting Rates are only available for the period since 5 August However, because the Trustee expects that the Crediting Rates for Cash Return Member Savings will be similar to the cash interest rate set by the Reserve Bank of Australia (reduced by investment costs), the RBA cash interest rate has been included as an approximate guide to the Crediting Rates that might have applied to Cash Return Member Savings had it existed before 5 August Past investment returns Cash Return Member Savings / Market Return Member Savings RBA Cash Rate Period** Return %ˆ Return % above CPI Return %* Return % above CPI 1 year to 30 June % 7.7% 2.5% -0.5% 3 years to 30 June % 7.2% 3.4% 1.2% 5 years to 30 June % 4.9% 3.8% 1.1% 7 years to 30 June % 1.3% 4.3% 1.6% 10 years to 30 June % 4.9% 4.7% 2.0% 15 years to 30 June % 4.3% 4.9% 1.8% ^ The actual compounded Crediting Rate for Market Return Member Savings is shown for one year, three years and five years. Prior to 1 July 2008, the APSS Pension had unit pricing rather than Crediting Rates. Therefore, the compounded average returns for periods longer than five years are calculated based on the actual Crediting Rates for Market Return Member Savings for periods after 1 July 2008 and, in respect of periods prior to 1 July 2008, are based on the difference between the unit price for APSS Pension accounts as at 30 June each year. * The actual compounded Crediting Rate for Cash Return Member Savings is shown for one and three years to 30 June Cash Return Member Savings for the APSS Pension was only introduced from 5 August Therefore, the compounded average returns for periods longer than three years are calculated based on the actual Crediting Rates for APSS Pension Cash Return Member Savings for periods after 5 August 2009 and, in respect of periods prior to 5 August 2009, are based on the RBA cash interest rate. The RBA cash interest rate is used to indicate the Crediting Rates that might have applied to Cash Return Member Savings had it been available for APSS Pensions before 5 August ** Annualised rates are shown for all periods. The figures above have been rounded to one decimal place. Important reminder: Past investment returns are not necessarily indicative of future investment returns. Page 24 Australia Post Superannuation Scheme PDS: Your APSS Pension

25 Investments (continued) What if? If you had invested $10,000 in cash 17 years ago and it had been credited with interest equal to the Crediting Rates for Cash Return Member Savings in the APSS Pensions and Reserve Bank of Australia s Cash Rate for the period prior to 5 August 2009, it would now be worth around $22,000. If you had invested the same amount over the same period and it had been credited with returns equal to those achieved by Market Return Member Savings in the APSS Pension, then that $10,000 would now be worth around $37,000. As it shows, there were times when there was a fall in value for a period of time when investment markets went down. There were also times when this strategy achieved returns that were higher than can be expected over the long term. This is just an illustration of past experience. Past investment returns are not necessarily indicative of future investment returns. The Trustee does not expect future investment returns to be exactly the same as the past returns illustrated in the chart. However, the Trustee does expect the Cash Portfolio to earn a lower and smoother return than the expected return for the Market Return Portfolio in the long run. The following chart shows a comparison of the value of $10,000 invested in the Market Return Member Savings and Cash Return Member Savings (using interest equal to the Reserve Bank of Australia s Cash Rate for period prior to 5 August 2009) over 17 years (not including any Pension draw downs). Dollar Amount ($) 40,000 35,000 30,000 25,000 20,000 15,000 10, Years Value achieved for Market Return Member Savings in the APSS Pension. Value achieved if the money earned the Reserve Bank of Australia Cash Interest Rate. The 17-year period shown in this graph is from 1 July 1997 to 30 June 2014.! Important reminder Past investment returns are not necessarily indicative of future investment returns. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 25

26 4. Significant risks There are four main categories of risks associated with investing in the APSS: Pension related risks APSS-specific risks Changes in superannuation regulation Investment risks. Pension related risks There is no guarantee that your Pension balance will be sufficient to last for the rest of your life. Depending on how long you live, expense levels, investment earnings, your level of income chosen and whether you make lump sum withdrawals, this may not be the case. APSS-specific risks The Trustee may change the Member Savings investment options, objectives and investment strategy applicable to Member Savings and/or our Crediting Rate policy in whole or in part at any time. There is a risk that such changes will alter the expected future Crediting Rates of Member Savings from the date the changes take effect. Many of the costs of running the APSS are borne by Australia Post or Associated Employers. There is a risk that this arrangement may be modified or discontinued in future. Australia Post provides a Capital Guarantee for Cash Return Member Savings, which means that the Crediting Rates and interim Crediting Rates cannot be negative. There is a risk that this arrangement may be discontinued or amended in the future. The APSS governing rules or our policies may also change from time to time and this may impact your membership and benefits. There is also the risk that the APSS may terminate in accordance with the procedures of the Trust Deed. Risk of changes in superannuation regulation Superannuation and taxation laws change often. These changes can impact on the value of your superannuation, your ability to access your benefits, or your entitlement to social security. Page 26 Australia Post Superannuation Scheme PDS: Your APSS Pension

27 Investment risks Your Member Savings will be affected by the investment returns of the APSS. Investing for the future involves different sorts of risks that may be more or less important to people with different circumstances. When considering your choice between Cash Return Member Savings and Market Return Member Savings it is necessary to decide which risks are more or less important. Here are some important risks to be aware of: Inflation Inflation increases the cost of living, so it reduces the power of your savings to purchase the things you need and want in retirement. Remember, inflation is a key risk to the future purchasing power of your savings whether you select Cash Return Member Savings or Market Return Member Savings. The Market Return Portfolio is expected to achieve higher returns above inflation than the Cash Return Portfolio is expected to deliver in the long run, provided that you have enough time before you need to access them to ride out periods when the value of the investments may go down. Investment losses (Market Return Member Savings only) There is a risk that Member Savings may experience investment losses. This risk is only relevant to Market Return Member Savings, not Cash Return Member Savings because Cash Return Member Savings are protected by the Capital Guarantee. Individual investment risk individual assets in which the APSS invests can (and do) fall in value either temporarily or sometimes permanently for many reasons, such as changes in the internal operations or management of a fund or company, or in its business environment. That is why the Trustee invests in a diverse range of Financial Assets in Australia and overseas to avoid the entire return on APSS assets being materially affected by individual investment risk. Market risk economic, technological, political or legal conditions, or even market sentiment, can (and do) change, affecting the value of investment markets and the value of the investments of the APSS. Changes in these conditions can be adverse but they can also be very positive if they improve the productivity or stability of those economies that have an impact on APSS investments. Interest rate risk changes in interest rates can have a positive or negative impact directly or indirectly on investment value or returns for example, the cost of a company s borrowing can decrease or increase or the income return on a fixed interest security can become more or less favourable. Currency risk the APSS invests in overseas investments and if the currencies of those countries rise or fall against the Australian dollar, the value of the investment measured in Australian dollars will change. The Trustee manages currency risk to limit the effect of rises and falls of currencies on the Australian dollar value of the APSS investments. Derivatives risk the Trustee uses derivatives to reduce risk or gain exposure to particular types of investments when it thinks it appropriate. Risks associated with these derivatives include losses from speculation and failure of counterparties to meet their payments to the APSS. The Trustee does not allow its investment managers or delegates to use derivatives for speculation and requires them to deal only with creditworthy counterparties. Liquidity risk some types of investments can t be sold quickly at their fair market value and this makes them illiquid. Some of the assets included in the Shares assets class and most of the assets invested in Private Market Assets and Property asset classes shown on pages are illiquid. The Trustee has liquidity management procedures designed to manage the sufficiency of cash available to pay member benefits. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 27

28 5. Fees and other costs! Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns. For example, total annual fees and costs of 2% of your account balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example, reduce it from $ to $80 000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. Your employer may be able to negotiate to pay lower administration fees. Ask the fund or your financial adviser. To find out more: If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website moneysmart.gov.au has a superannuation fee calculator to help you check out different fee options. Fees and other costs This document shows fees and other costs that you may be charged. These fees and other costs may be deducted from your money, from the returns on your investment or from the assets of the superannuation entity as a whole. Other fees, such as activity fees, may also be charged, but these will depend on the nature of the activity chosen by you. Taxes are set out in another part of this document (see page 32). You should read all the information about fees and other costs because it is important to understand their impact on your investment. The fees and other costs for each investment option offered by the APSS, are set out in the table on the next page. Page 28 Australia Post Superannuation Scheme PDS: Your APSS Pension

29 Fees and costs for APSS Pensions Type of fee Amount How and when paid Investment fee Nil Not applicable Administration fee Nil Not applicable Buy-sell spread Nil Not applicable Switching fee Nil Not applicable Exit fee Nil Not applicable Advice fees relating to all members investing in a particular investment option Nil Other fees and costs 1 Not applicable Indirect cost ratio Market Return Member Savings estimate 1.15% of assets in Market Return Portfolio 2 Cash Return Member Savings estimate 0.15% of assets in Cash Portfolio 2 Deducted from the returns of the relevant APSS investment portfolio (i.e. Market Return Portfolio and Cash Portfolio) before interim and final Crediting Rates are set. 1 Family Law fees may apply (refer to the Family Law Fees section). 2 These figures are estimates of the indirect costs incurred by the APSS for each investment option for the financial year (including transaction costs where applicable), plus amounts deducted for the Operational Risk Reserve. Example of annual fees and costs for APSS Pensions This table gives an example of how the fees and costs for this product can affect your investment over a 1 year period. You should use this table to compare this product with other products. Fee or cost Amount BALANCE OF $50,000 (assumes balance unchanged for entire year) Investment fee Nil For every $50,000 you have in the product you will be charged nil each year PLUS Administration fees PLUS Indirect costs for the product EQUALS Cost of product Nil 1.15% (Market Return) 0.15% (Cash Return) And, you will be charged nil in administration fees regardless of your balance And, indirect costs of $575 (for the Market Return investment option) or $75 (for the Cash Return investment option) each year will be deducted from your investment If your balance was $50,000, then for that year you will be charged fees of $575 (for the Market Return investment option) or $75 (for the Cash Return investment option) for the product. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 29

30 Fees and other costs (continued) Additional explanation of fees and costs Indirect costs The indirect costs applicable to you depends on the investment option(s) applicable to your Pension Account and the amount allocated to each option. These costs include administration, investment management, custodial and investment-related fees and expenses that, directly or indirectly, reduce the return on investments of the relevant APSS investment portfolio. These costs also include transaction costs incurred by the APSS when investments are bought or sold (refer Transaction costs below). These costs cannot be calculated precisely in advance, so the indirect cost ratio figures shown in the table are an estimate based on the indirect costs for each APSS investment option for the financial year. The actual indirect costs for each investment option are likely to vary from year to year. The indirect cost ratio figures shown in the table are the ratio of the total estimated indirect costs for each investment option to the total average net assets attributable to that investment option. Operational Risk Reserve Legislative amendments have been made that impose new obligations on all superannuation fund trustees from 1 July 2013 to maintain and manage financial resources to cover operational risks. To comply with these requirements, the Trustee will establish and maintain a single segregated reserve within the APSS, known as the Operational Risk Reserve (ORR). The ORR is expected to initially be funded over a three-year period (in line with APRA s prudential standard) partially by amounts deducted from the investment returns of the APSS before Crediting Rates for Member Savings are determined. These amounts are not deducted directly from members account balances but are instead deducted from the assets of each APSS investment portfolio (ie. Market Return Portfolio and Cash Portfolio) before interim and final Crediting Rates are set. These amounts form part of the indirect cost ratio of the APSS investment options. Transaction costs The APSS may incur transaction costs, such as brokerage, settlement costs, clearing costs and stamp duty when the investments of the APSS are bought or sold. These expenses are not deducted directly from members account balances but are instead deducted from the assets of the relevant APSS investment portfolio(s) before Crediting Rates and interim Crediting Rates are set. The estimated transaction costs of each investment option (based on the costs for the financial year) are 0.03% of the net assets of the Market Return Portfolio and 0.0% of the net assets of the Cash Portfolio. These costs form part of the indirect cost ratio of each APSS investment option. Family Law Fees Family Law legislation allows for superannuation benefits to be divided between couples upon their separation or divorce. A request for information about a member s benefits can be made by the member, the member s spouse (whether or not the spouse is a member) or a person considering entering into a superannuation agreement with a member. APSS members will not be charged fees in relation to activities regarding their own benefits in the APSS. However, where an eligible person (including another APSS member) makes a request for information about another person s benefits in the APSS in relation to Family Law matters, that person will be charged $220 (inclusive of GST). Neither members nor their spouses will be charged a fee for splitting a superannuation payment upon receipt of a splitting agreement or court order. Can the fees change? Yes, all fees, charges and expenses may change. The indirect cost ratio figures for each APSS investment option provided in this section are estimates based on the indirect costs incurred by the APSS for the financial year. However, the actual fees and expenses incurred by the APSS (and therefore, the amount of these indirect costs) will vary from year to year. The Trustee can change the amount of fees charged to members at any time without obtaining member consent. We will, however, provide you with at least Page 30 Australia Post Superannuation Scheme PDS: Your APSS Pension

31 Fees and other costs (continued) 30 days notice of any proposed increase to the fees charged to members of the APSS, as required by law. Member protection Member protection requirements have been removed from super legislation. Defined fees The following fee definitions are prescribed by superannuation laws and are used in this PDS. Activity fees A fee is an activity fee if: (a) the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee: (i) that is engaged in at the request, or with the consent, of a member; or (ii) that relates to a member and is required by law; and (b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee. Administration fees An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that: (a) relate to the administration or operation of the entity; and (b) are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Advice fees A fee is an advice fee if: (a) the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by: (i) a trustee of the entity; or (ii) another person acting as an employee of, or under an arrangement with, the trustee of the entity; and (b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee. Buy-sell spreads A buy-sell spread is a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity. Exit fees An exit fee is a fee to recover the costs of disposing of all or part of members interests in the superannuation entity. Indirect cost ratio The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option. Note: A dollar-based fee deducted directly from a member s account is not included in the indirect cost ratio. Investment fees An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes: (a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and (b) costs incurred by the trustee of the entity that: (i) relate to the investment of assets of the entity; and (ii) are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee. Switching fees A switching fee is a fee to recover the costs of switching all or part of a member s interest in the superannuation entity from one class of beneficial interest in the entity to another. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 31

32 6. Taxation information How is your superannuation taxed? Tax applies on four main components: on contributions/rollovers on pension payments on lump sum withdrawals investment returns on your Pension Account. Tax laws are complex and are governed by legislation that is subject to change. This section provides only an overview of the tax laws in force and proposed tax changes that the Trustee is aware of as at the date of this PDS and does not constitute tax advice. For further information, contact the ATO Superannuation Infoline on , visit the ATO s website at ato.gov.au. You could also speak to your taxation adviser for more information and advice that is tailored to meet your circumstances. Tax on contributions/rollovers You may be able to supplement your Pension by making an after-tax contribution prior to your Pension commencing (refer page 35 of this PDS). No tax is usually paid on contributions prior to commencing the APSS Pension from after-tax income and for which no tax deduction has been claimed (i.e. non-concessional contributions). The amount of nonconcessional contributions that can be made each year without incurring additional tax is limited. Contribution limits The Government imposes limits on the amount of contributions that you can make to super in each financial year that are taxed at concessional rates. If you exceed these limits you could potentially pay extra tax. The tables below details the limits and how they apply). The concessional (before-tax) contributions limits are: financial year Age under 50 Age 50+ $30,000 $35,000 Note: Age refers to your age as at the end of the relevant financial year. The non-concessional (after-tax) contributions limit is: financial year Any age Under age 65: bring forward option (over 3 years ) $180,000 $540,000 Note: If you are under age 65 on 1 July in a financial year, you can bring forward up to two years worth of non-concessional contributions. If you are considering making contributions in excess of the annual limit, please call SuperPhone on for further information about how this bring forward provision operates.! Important WARNING: If you exceed these contribution limits, there will be tax consequences and you may pay additional tax. If a member s total non-concessional contributions exceed the cap, they will have to pay tax at the top marginal rate plus the Medicare levy on the excess contributions. An additional 2% temporary budget repair levy applies to this excess contributions tax for the three years commencing in The ATO will issue an assessment to them and they will be required to provide this along with a release authority to their superannuation fund, who will pay the tax on their behalf and deduct the amount from their super (exceptions apply for Defined Benefit interests). Contributions from before-tax income (i.e. concessional contributions) ordinarily attract 15% contributions tax but you may incur additional tax if you have excess contributions, or the APSS does not have your Tax File Number, or you are a very high income earner. Please refer to the Your Member Savings at a glance PDS for more information. An individual s excess concessional contributions also count towards their non-concessional contributions limit for the relevant year. No tax is usually paid on rollovers to commence an APSS Pension from another superannuation fund, unless the amount transferred contains an element Page 32 Australia Post Superannuation Scheme PDS: Your APSS Pension

33 untaxed in the fund from which it is transferred or a payment from certain superannuation funds for Government employees. Tax on income payments Each income payment you receive after age 60 will generally be tax free. Prior to age 60, each regular income payment you receive may include a tax free component and a taxable component. Before age 60, the taxable component will be included in your assessable income and will be subject to tax at your marginal rate, plus the Medicare Levy. In certain circumstances (generally when you have reached your Preservation Age), a 15% tax offset applies. The Trustee is required to withhold Pay As You Go (PAYG) tax from that part of the income that is required to be included in your assessable income. In the event of your death, the Trustee will pay the balance of your Pension as described on pages of this PDS. If your pension is paid to a Death Benefit Dependant as an income stream it will be tax free if either you are aged over 60 at the time of your death or the Death Benefit Dependant is aged over 60 at the time of receipt. If you are aged under 60 at the time of your death and your Death Benefit Dependant is aged less than 60 at the time of receipt, your Death Benefit Dependant will be subject to tax on the taxable component of the income stream at their marginal rate of tax, plus the Medicare Levy, but a 15% tax offset applies. If the balance of your Pension account is paid as a lump sum it will be tax free if paid to a Death Benefit Dependant. If paid to someone who is not a Death Benefit Dependant (e.g. if paid to a non-dependent adult child), tax may apply to the taxable component at 15% plus the Medicare Levy. For more information on superannuation taxes, visit the ATO s website at ato.gov.au or speak to your taxation or financial adviser. More details on how your APSS benefits will be taxed will be provided when your benefit is paid. Tax on lump sum withdrawals In addition to receiving your specified pension amount, you may choose to make cash withdrawals from either: your APSS Allocated Pension; or any unrestricted non-preserved portion of your Pre-Retirement Pension. Once you are aged over 60 any lump sum withdrawals you make will generally be tax free. However, prior to age 60, tax may apply. A lump sum benefit paid to you because you suffer a Terminal Medical Condition is tax free. Tax on investment returns Currently, no tax is payable on the investment earnings of your APSS Pension account. In addition, franking credits that are earned from Market Return investments are included in the calculation of Crediting Rates and interim Crediting Rates. Tax File Number When you commence a Pension, you should complete the ATO s Tax File Declaration Form to provide the APSS with your TFN. If you do not complete the form, the APSS may be required to deduct tax from your regular income payment at the highest marginal tax rate. Also, you will not be able to make non-concessional contributions to supplement your Pension prior to commencement if you have not supplied your TFN. The APSS requires that you complete a TFN Declaration Form before you are able to open an APSS Pension Account if you are under the age of 60. This is because the Pension is considered to be a new source of income and you may be required to pay tax on it. The APSS provides the information from this form to the ATO and also uses it to create your Pension account. If you are under 60, refer to page 1 of 8 of the APSS Pension Application form in this document. Australia Post Superannuation Scheme PDS: Your APSS Pension Page 33

34 7. Applying to commence a pension To open an APSS Pension Account Having read this PDS, if you wish to commence a Pension, you need to: Step 1: Complete all sections of the APSS Pension Application form attached to this PDS (attach a copy of a recent bank statement as instructed on page 4 of the APSS Pension Application form). Step 2: Complete the Australian Taxation Office s Tax File Number Declaration form which accompanies but is separate to this PDS. You are not required to provide your tax file number, but if you do not, the Trustee may be required to deduct additional tax from payments from you. Step 3: Ensure you have completed all necessary sections by using the checklist located in the APSS Pension Application form. Step 4: Return your form(s) to the APSS at: APSS, Locked Bag A5005, Sydney South NSW 1235 If you want to top up your Pension Savings Once you have started a Pension Account in the APSS, you cannot make additional contributions to it. If you want to make a lump sum contribution, you can commence another Pension. To set up an additional Pension Account using money that is not in the superannuation system, you will need to set up a Rollover Account first before converting to a Pension Account. Please contact SuperPhone on for instructions. If you are an APSS Spouse Account holder The process for starting a Pension, as summarised in this section, also applies if you are a Spouse Account holder and you meet the criteria for being able to invest in a Pension as explained on page 7. If you have an APSS Rollover account You may have left Australia Post or an Associated Employer some time ago but elected to retain your benefits in the APSS by investing in the APSS Rollover. If so, you might now want to use your Member Savings in the APSS Rollover to start a Pension. To do this, simply complete all sections of the APSS Pension Application form attached to this PDS (remember to attach a copy of a recent bank statement as instructed on page 4 of the APSS Pension Application form). Remember, you must have at least $20,000 to start your Pension as described on page 7. Page 34 Australia Post Superannuation Scheme PDS: Your APSS Pension

35 Supplementing your APSS benefits before your APSS Pension commences You can supplement your APSS benefits with amounts you have in other superannuation funds by rolling them over. To find out how to do this please call SuperPhone on You can also supplement your APSS benefits with non-concessional contributions if: you fall within one of the following categories: you are under age 65; or you are above age 65 and under age 75 and are currently employed in the paid workforce on at least a part-time basis (i.e. at least 40 hours in a period of 30 consecutive days during the most recent financial year); your contribution is a personal contribution and not from an employer or third party, and tax has already been paid on your contribution; your non-concessional contribution is less than the limit for the financial year in which you are making the contribution (refer page 32); and you have supplied your TFN to the APSS.! Important We will not be able to accept any additional contributions to open your Pension Account unless you have nominated your chosen APSS investment option(s). In addition, for members commencing an Allocated Pension, you must have satisfied a relevant condition of release that ensures this contribution is unrestricted non-preserved (explained further on page 13) before this additional contribution can be used to commence your Allocated Pension. To make a non-concessional contribution, you can either: attach a bank or personal cheque in your name out to the APSS, or make a payment using BPAY. To transfer money to your APSS Member Savings account using BPAY, contact your bank and provide the APSS BPAY biller code (237628), and our unique Customer Reference Number (CRN). To obtain your unique CRN, you can either call SuperPhone on or login to your APSS account, click on BPAY under the Contributions tab and your unique details will be shown on screen. (Please note that there is a maximum BPAY transaction limit of $100,000 per day, and BPAY payments may take up to three business days to process.) If you are starting a Pre-Retirement Pension you may be able to supplement your Member Savings prior to their transfer to commence your Pension by either a nonconcessional contribution or a concessional (i.e. salary sacrifice) contribution to your Member Savings. Refer to the Your Member Savings at a glance PDS for more information. You cannot make additional contributions or rollovers to your Pension after it has commenced. To start another Pension in the future (i.e. after your initial application), you will need to complete the relevant form(s) contained in the most recent APSS Pension PDS, which is available online at apss.com.au in the Publications & Forms section, or by calling SuperPhone on Australia Post Superannuation Scheme PDS: Your APSS Pension Page 35

36 8. Additional information Your Trustee The legal entity responsible for operating a superannuation fund is known as the Trustee. Your Trustee is required to act and operate only with the interests of members in mind. The Trustee is PostSuper Pty Limited ABN , a company established specifically for the purpose of acting as the trustee of the APSS. Ownership of the Trustee is held for the benefit of APSS members. The Trustee has three directors appointed by union organisations and three appointed by Australia Post. These directors, together, appoint a seventh independent director who is also Chairman of PostSuper Pty Limited. Directors meet the requirements of Superannuation Industry (Supervision) ( SIS ) legislation and the Corporations Act. The APSS is registered with APRA as a Registrable Superannuation Entity (RSE) with Registration Number R and ABN APRA has granted the Trustee a (non-public offer entity class) licence. The Trustee s RSE Licence Number is L Appointment and removal of Trustee Directors All directors are appointed for a term of no more than three years, at which time they are eligible for reappointment. All directors may resign or retire from office at any time. Directors appointed by Australia Post may be removed or replaced at any time at the discretion of Australia Post. Directors nominated by the sponsoring unions may be removed or replaced at any time at the discretion of the relevant union organisation. The sponsoring unions are: Community and Public Sector Union (CPSU) Communications Electrical Plumbing Union of Australia (CEPU) Australian Council of Trade Unions (ACTU). The directors appoint the Independent Director who, as provided in the Trust Deed, is the Chairman. The removal or replacement of the Independent Director requires a resolution passed by at least a twothirds majority of the directors. Trustee indemnity insurance Indemnity insurance has been taken out to protect the Trustee Directors and their officers against certain financial losses arising from claims which may be lodged against the Trustee. The cost of this insurance is effectively borne by Australia Post and the Associated Employers through their contribution obligations to the APSS. Resolving complaints The SuperPhone service representatives may be able to resolve your complaint over the phone. If they can t or you are not satisfied with the outcome or response you have received, you may wish to make a complaint in writing. This may be done by using the APSS complaint form obtained by contacting SuperPhone, or you can write directly to the APSS. To make a complaint in writing, call SuperPhone on to obtain a complaint form and return it to the APSS. We will work to resolve your complaint as quickly as possible. All complaints will be brought to the attention of the APSS Inquiry and Complaints Officer, whose contact details are: Inquiries and Complaints Officer, APSS Locked Bag A5005, Sydney South NSW 1235 If we have not resolved your complaint to your satisfaction within 90 days, you may have a right to lodge a complaint about the decision with the Superannuation Complaints Tribunal (SCT). The SCT is an independent body established by the Federal Government to review Trustee decisions relating to members (as opposed to Trustee decisions relating to the management of the APSS as a whole). The Tribunal can be contacted: By phone: By info@sct.gov.au By mail: Superannuation Complaints Tribunal Locked Bag 3060, Melbourne VIC Page 36 Australia Post Superannuation Scheme PDS: Your APSS Pension

37 Protecting your privacy The APSS respects the privacy of its members, and has policies in place to ensure that you and your Spouse s personal information is kept private and confidential. These policies are aligned with the Australian Privacy Principles in the Privacy Act To access the Trustee s Privacy Policy: Go online at apss.com.au; or Call SuperPhone on Lost members It is important that you keep the APSS updated with your address details. Once listed as a lost member, they will not receive communications from the APSS such as their annual Benefit Statement. In certain circumstances, the Trustee may also be required to transfer the benefits of lost members to the ATO. The Trustee may also be required to transfer the benefits of lost members who have small or inactive accounts (as defined in super law) to the ATO. If you have reason to believe you have lost superannuation, visit the ATO website at ato.gov.au for more information about help with finding your lost superannuation money.! Important If the APSS receives two pieces of returned mail from a member s address for whom we haven t received a contribution for 12 months and we are unable to locate a new address, we will notify the ATO that the member is a lost member. 9.3 Consents Where applicable, any person mentioned within this PDS has consented to their inclusion in this PDS and the statements they have made in the manner in which they have made them. Do you need help? Call SuperPhone Monday Friday 9.00am 5.30pm (AEST) or visit us online at apss.com.au Write to APSS, Locked Bag A5005, Sydney South NSW 1235 or Fax (02) Australia Post Superannuation Scheme PDS: Your APSS Pension Page 37