University of New England Professorial Superannuation Fund

Transcription

1 University of New England Professorial Superannuation Fund Fund Registration Number R ABN FOR THE YEAR ENDED 31 DECEMBER 2017 Important information: The issuer and Trustee of the University of New England Professorial Superannuation Fund (ABN , RSE Registration No. R ) is Equity Trustees Superannuation Limited (ABN , AFSL No , RSE Licence No L ). Address: GPO Box 2307, Melbourne VIC Ph: (03) Fax: (03) The Administrator of the University of New England Professorial Superannuation Fund is KPMG Superannuation Services Pty Limited (ABN , AFSL No ). Address: PO Box 67, Australia Square NSW Ph: (02) Fax: (02)

2 General Disclaimer This Annual Report is issued by Equity Trustees Superannuation Limited ABN , AFSL No , Registrable Superannuation Entity ( RSE ) License L , as the current trustee of the University of New England Professorial Superannuation Fund ( the Fund ) ABN , RSE Registration No. R Equity Trustees Superannuation Limited, any underlying investment manager and any other service provider to the Fund do not guarantee the investment performance of any investment offered or the repayment of capital. Investment in the Fund may be subject to investment risk, including loss of income and capital invested. The information provided in this report is in accordance with the requirements of the Corporations Act The information does not and is not intended to contain any recommendations, statements of opinion or financial advice. Any information is of a general nature only and has been prepared without taking into account your investment objectives, financial situation and needs. Before making any investment decisions in relation to the Fund, you should consider obtaining professional financial advice from a licensed or authorised financial adviser. Whilst all reasonable care has been taken in the preparation of this report, Equity Trustees Superannuation Limited reserves its right to correct any errors or omissions. The terms of your membership in the Fund are set out in the Fund s Trust Deed. Should there be any inconsistency between this report and the Fund s Trust Deed, the terms of the Fund s Trust Deed will prevail. 2

3 Message from Equity Trustees Superannuation Limited We present the Annual Report for the University of New England Professorial Superannuation Fund ( the Fund ) for the year ended 31 December Please take the time to read this Annual Report and if you have any queries or require further information, please contact the Fund Administrator (details provided on page 10). Summary of the year Total University contributions: Benefits paid: $907 Net Fund assets at 31 December 2017: Membership at December 2017: - $6,063 - Pensioners It is with regret that we advise the deaths of Emeritus Professor Gregson on 29 September 2017 and Emeritus Professor Falkus on 28 November Who runs the Fund? The Fund is set up as a trust and is governed by a legal document called a Trust Deed. The Trustee of the Fund is Equity Trustees Superannuation Limited (ABN , AFSL No ). Equity Trustees Superannuation Limited is responsible for running the Fund in accordance with the Trust Deed. The Directors of Equity Trustees Superannuation Limited during the period 1 January 2017 to 31 December 2017 were: Mr John Lewis Crocker (Chairman) Mr Mark Blair (Executive Director) Mr Michael O Brien (Managing Director) Mr Ellis Varejes Ms Catherine Robson Policy Committee Superannuation legislation provides for Policy Committees to be formed for certain types of superannuation funds (such as the Fund) to facilitate effective communication between a superannuation trustee and its members. Policy Committees provide an avenue for members to enquire into and express their opinions about the Fund s investments, administration and communications. The Fund s Policy Committee consists of an equal number of member elected and employer nominated representatives. Appendix A sets out the guidelines for the appointment and removal of Policy Committee members. The representatives of the Fund s Policy Committee as at 31 December 2017 were: Member Representatives Professor Peter Forrest Emeritus Professor Malcolm Treadgold Employer Representatives Mr Kris Kauffman Mr Taniela Waqa 3

4 Trustee indemnity insurance Equity Trustees Superannuation Limited has taken out trustee indemnity insurance to help protect it, its Directors and the Fund against certain liabilities that is consistent with the size and nature of its business and industry standards. As with any insurance, the indemnity is subject to the terms and conditions of the relevant insurance policy. Service providers During the year to 31 December 2017 a number of appointed service providers assisted in the management of the Fund, including: Administrator, General Consultant and Asset Consultant KPMG Superannuation Services Pty Limited (AFSL No ) Auditor UHY Haines Norton (AFSL No ) Actuary ALEA Actuarial Consulting Pty Limited (AFSL No ) Underlying Fund Managers Vanguard Investments Australia Ltd (ABN , AFSL No ) Schroders Investment Management Australia Limited (ABN , AFSL No ) Equity Trustees Limited (ABN , AFSL No ) Notes: The underlying fund managers utilised for the Fund s investments may be changed from time to time at our discretion. They are shown in this report to provide historical information about the investments of the Fund during the year ended 31 December You have no ability to choose the underlying fund managers utilised by the Fund. Equity Trustees Limited is the issuer of the EQT Cash Management Account in which the Fund invests. Transactions between Equity Trustees Superannuation Limited in its capacity as trustee of the Fund and Equity Trustees Limited in its capacity as issuer of the EQT Cash Management Account are conducted on normal commercial terms and involve conditions no more or less favourable than those available to other parties unless otherwise stated. On 26 February 2018, KPMG announced the sale of its subsidiary, KPMG Superannuation Services Pty Limited, to the financial services firm, OneVue Holdings Limited ABN OneVue Holdings Limited will provide administration and general consulting services to the Fund. KPMG, through its wholly owned subsidiary, KPMG Financial Services Consulting Pty Limited (AFSL No ) will continue to provide asset consulting services to the Fund. General investment market overview Note: This market overview has been provided by the Fund s Asset Consultant. It provides general information only about the performance of the investment market during the year to 31 December Past performance is not a reliable indicator of future performance. Investments performed well in the 12 months to 31 December 2017 with positive returns experienced across all major asset classes. Over the year to 31 December 2017, Hedged International shares returned 16.6% while Unhedged International shares returned 11.3%, with the difference being explained by a rallying in the Australian dollar buoyed by the strength in base metal prices and demand for commodities. Australian shares also delivered strong returns of 11.8% over the year to 31 December Australian Fixed Interest and International Fixed Interest performed well, returning 3.7% and 2.8% respectively; Listed Property fared marginally better returning 5.7%. For information about the Fund s performance, see the Investment returns section on page 6. Investments The Fund represents assets relating to the current and future pensioners and/or spouses in respect of pension benefits payable upon retirement. There are three types of pensions offered by the Fund: 1. Non-Contributory Pension ( NCP ) The NCP is based on 25% of the Professorial Salary increased from time to time. It is fully funded by the University. 4

5 2. Additional Contributory Pension ( ACP ) The ACP (where applicable) is a pension of 5% of Professorial Salary. It is partially funded by the University and partially funded by the member. 3. Voluntary Spouse Pension ( VSP ) The investments initially held with Schroder Balanced Fund and subsequently in the Vanguard Growth Index Fund, exceeded 5% of the Fund s assets. Note: The actual asset allocations may vary from time to time from the approximate benchmarks shown above. The VSP is funded equally by both the member and the University. For every dollar contributed by the member, the University matches the contribution towards the VSP. This pension is also referred to as a Contributory Pension in this report. You should note that your pension benefit from the Fund is not dependent on the Fund s investment earnings (the pensions are increased periodically in accordance with any increase in the Professorial Salary). The following pages provide a description of the Fund s pension investments. This has been provided to you for information purposes only. Investment objectives The investment objectives for the Fund s assets are: To achieve returns (gross of tax and investment fees) that exceed inflation (as measured by the CPI) by at least 4% per annum over rolling seven-year periods; and To achieve returns (gross of tax and investment fees) that are above average performance versus comparable surveyed investments. The investment objectives are not a promise or guarantee of any particular benefit or return. The objectives are used to measure the performance of the Fund s investments. Investment strategy To achieve the stated objectives, the Fund s investment strategy is to invest the Fund s Pension assets in a nonsuperannuation distributing trust. The trust should hold between 40% and 90% of its assets in growth assets and between 10% and 60 % of its assets in defensive assets. At the beginning of the year, the Fund s pension assets were predominantly invested in the Schroders Balanced Fund, with any cash held in the Fund s operating account invested in the EQT Cash Management Account. After conducting an Investment Manager Review, which looked at performance and suitability based on the Fund s Investment Strategy and performance against objectives, the Fund s pension assets were divested out of the Schroder Balanced Fund and invested into the Vanguard Growth Index Fund effective from June

6 Asset Allocation The dollar and percentage asset allocation of the Fund at 31 December 2017 and 2016 were as follows: 31 December 2017 Asset class ($) (%) Australian shares 1,657, International shares 2,465, Property Alternatives Total Growth assets 4,123, Fixed interest 1,775, Cash 221, Total Defensive assets 1,997, Total 6,120, December 2016 Asset class ($) (%) Australian shares 2,038, International shares 1,424, Property Alternatives 1 580, Total Growth assets 4,043, Fixed interest 1,176, Cash 889, Total Defensive assets 2,065, Total 6,108, Alternatives held in the Fund directly relate to growth investments initially held in the Schroder Balanced Fund - Diversified (Real Return) and subsequently in the Vanguard Growth Index Fund investment holdings. If you would like further information about Alternatives, please contact the Fund Administrator. Investment returns For the year ended 31 December 2017 the return (before the deduction of tax and investment fees) on the Fund s Pension assets was 9.08% p.a. Your pension benefit from the Fund is not dependant on the Fund s investment earnings. The pensions are increased periodically in accordance with any increase in the Professorial Salary. Performance against objectives CPI plus 4% p.a. over the seven-years to 31 December 2017 was 6.2% p.a. The Pension assets seven-year return to 31 December 2017 was 9.0% p.a. Therefore, the Pension assets met its first investment objective. The return for the Fund s Pension assets outperformed the average comparable growth product (as measured by Morningstar s Multisector Growth investment products survey) over all periods under consideration to 31 December Therefore, the Pension assets met the second investment objective. We closely monitor the Fund s investments to ensure that each fund manager and their underlying investments continue to meet the Fund s long-term investment objectives. Note: Past performance is not a reliable indicator of future performance. Contributory Pension information Following commencement of your pension from the Fund, if you predecease your spouse and you have an entitlement to the VSP, the pension payments will automatically revert to your spouse. If your spouse predeceases you or you are divorced, contributions you made towards the VSP (if any) will be returned to you with any investment earnings. Please contact the Fund Administrator if this reflects your current situation. The earning rates shown below are applicable to members VSP accounts and represent the Fund s pension earnings, before the deduction of tax and investment fees, of the Contributory Pension assets. 6

7 Year ended 31 December Gross earning rate % pa year compound average year compound average Derivatives We do not directly invest any of the assets of the Fund in derivative securities such as options, futures or swaps. The fund managers utilised by the Fund may utilise derivatives to manage the risk and liquidity of their portfolios. They do not invest in derivatives for speculative purposes. Asset consultant We utilise an independent Asset Consultant to provide advice regarding the investments of the Fund. During the year to 31 December 2017 the Asset Consultant to the Fund was KPMG Superannuation Services Pty Limited (ABN ; AFSL No ). Following the announcement of the sale of KPMG Superannuation Services Pty Limited to OneVue Holdings Limited, KPMG will continue to provide asset consulting services to the Fund through its wholly owned subsidiary KPMG Financial Services Consulting Pty Limited (AFSL No ). The investments of the Fund are monitored by the Asset Consultant via quarterly investment reports, which are reviewed by us and our Investment Committee. These reports and the Fund s investments are discussed at Policy Committee meetings. Fund managers may be appointed and removed by us upon the recommendation of the Asset Consultant. Any decision to appoint/remove a manager is based on an assessment of the underlying fund manager s style and performance, as well as its fit with any other managers utilised by the Fund. Actuarial review An Actuary must be appointed to conduct annual actuarial valuations of the Fund to investigate the financial position of the Fund and make recommendations regarding the level of contributions to be made by the University. This is the result of reforms and APRA s Prudential Standards which require the Fund s financial strength to be monitored more regularly. As a result, annual solvency calculations have been superseded by full actuarial valuations in respect of the Fund. The University makes regular contributions towards the Fund s pensions in accordance with the Actuary s recommendations from time to time. In any particular year, the University may not make contributions where this is recommended by the Actuary. The most recent actuarial valuation was completed effective 31 December Fees and costs As provided in the Trust Deed and rules governing the Fund, other than taxation, the University meets all the expenses in relation to the management and operation of the Fund. The Actuary s recommended contribution rate (where applicable) makes an allowance for all Fund expenses. General Information Taxation of your pension The taxation treatment of the NCP depends on whether it is received from a taxed source or an untaxed source. Accordingly, pensioners have the option to receive the NCP as either: A pension from a taxed source in which case the NCP is excluded from assessable income and is therefore tax-free; or A pension from an untaxed source in this case, the NCP is taxed as assessable income in your hands, however you will be entitled to a 10% taxation offset. However, if you fail to make an election, your NCP will be paid as a pension from a taxed source until you instruct us otherwise. You may change your election at any time. Please contact the Fund Administrator (details provided on page 11) if wish to alter your preference. Please note that if you are over age 60 and receiving an Additional Contributory or Voluntary Spouse Pension, this will always be paid to you from a taxed source and is therefore tax-free. From 1 July 2017, there were changes to the tax laws. A general summary of these changes is included in the section below "Superannuation changes from July 2017". 7

8 You should seek advice about how the changes impact you. Proof of identity Under Government legislation designed to counteract money laundering and terrorism financing you may be required to provide proof of identity prior to being able to access your benefits in cash (e.g. pension payments) or purchase a superannuation pension (called customer identification and verification requirements). These requirements may also be applied from time to time in relation to the administration of your superannuation benefits as required or considered appropriate under the Government s legislation. You will be notified of any requirements when applicable. If you do not comply with these requirements there may be consequences for you, for example, a delay in the payment of your benefits. We are the subject of regulation by Australian Transaction Reports and Analysis Centre ( AUSTRAC ) which has responsibility for the Government s legislation. We are required to provide yearly compliance reports to AUSTRAC and notify AUSTRAC of suspicious transactions. This may involve the provision of personal information about you to AUSTRAC. Enquiries and complaints The Superannuation Industry (Supervision) Act 1993 ( SIS ) requires us to take all reasonable steps to ensure that there are arrangements in place under which: Members or their beneficiaries have the right to enquire into, or complain about, the operation or management of the Fund; and These enquiries or complaints will be properly considered and dealt with within 90 days. It is important to distinguish between enquiries and complaints. Enquiries are requests for information about the Fund or your benefits. Complaints are expressions of dissatisfaction. Enquiries If you have an enquiry about the Fund, you should contact the Fund Administrator (details provided on page 11). Enquiries can be made by , telephone or in writing. If you do not receive a satisfactory response within 28 days, you should immediately contact us (details provided below). Complaints Complaints should generally be made in writing. We have a dispute resolution procedure to ensure that all complaints are answered within 90 days. Our contact details are as follows: The Complaints Officer C/- KPMG Superannuation Services Pty ltd PO Box 67 Australia Square NSW 1215 (02) Superannuation Complaints Tribunal If you are not satisfied with our handling of your complaint or our decision, or you do not receive a reply within 90 days from when we first receive your complaint, you may contact the Superannuation Complaints Tribunal. The Tribunal is an independent body set up by the Federal Government to assist members or beneficiaries to resolve certain types of disputes with fund trustees. The Tribunal may be able to assist you to resolve your complaint but only if you are not satisfied with the response received from our handling of your complaint. If the Tribunal accepts your complaint, it may attempt to resolve the matter through conciliation, which involves assisting you and us to come to a mutual agreement. If conciliation is unsuccessful, the complaint is referred to the Tribunal for a determination which is binding. You should be aware, however, that a party may appeal a decision of the Tribunal to the Federal Court. If you wish to find out whether the Tribunal can handle your complaint and the type of information you would need to provide, phone the following number for the cost of a local call from a landline anywhere in Australia: Postal address Superannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC See information below about changes to the Superannuation Complaints Tribunal. Legislative update Note: This update was compiled as at February 2018 and is subject to change. For up to date information go to or contact the Fund Administrator. 8

9 This section contains changes announced by the Government (but may still yet to be law) as well as changes that have recently been implemented. Superannuation changes from July 2017 As advised in the 2016 Annual Report the May 2016 Federal Budget included a number of significant reform proposals in relation to superannuation, most of which have since been legislated and have taken effect (generally) from 1 July Some of these changes, which may be relevant to some members of the Fund and/or their spouses, either in relation to Fund benefits or benefits held in other superannuation funds, are: A reduction in the annual concessional contributions cap to $25,000 pa in 2017/18 (indexed annually), regardless of age (for 2016/17 there was a cap of $30,000 or $35,000, depending on a person s age); A reduction in the annual non-concessional contributions cap from $180,000 to $100,000 pa in 2017/18 (indexed annually); A person s ability to make non-concessional contributions is also affected by a new transfer balance cap. The cap ($1.6 million for the 2017/18 financial year, subject to indexation and transitional arrangements) is a new limit on the amount of superannuation that can be transferred to commence a retirement pension; Even before retirement, if the value of a person s total superannuation savings is greater than or equal to the transfer balance cap at the end of 30 June of the previous financial year, then their nonconcessional contributions cap will be nil for the current financial year. This means that any nonconcessional contributions made in that year will be excess non-concessional contributions and will be subject to additional tax. Exceeding the transfer balance cap will also affect a person s ability to access other superannuation initiatives (like the Government co-contribution and spouse contribution tax offset); A requirement to commute any excess of any existing superannuation account-based pensions which are above the transfer balance cap and the imposition of taxation on any earnings before commutation on any excess above the cap; The introduction of new taxation rules for defined benefit pensions (for example, lifetime pensions including those paid from the Fund) that qualify as capped defined benefit income streams because they cannot be commuted to a lump sum. Half of any defined benefit pension income above a defined benefit income cap ($100,000 in the 2017/18 income year, subject to indexation) will need to be included in a person s assessable income and taxed at their marginal tax rate (provided the pension income is from a taxed source); Removal of the requirement that an individual must earn less than 10% of their income from employment-related activities to be able to claim a tax deduction for a personal (after-tax) member contribution to super and make it a concessional contribution. However, the ability to claim deductions on personal member contributions may be restricted where the contributions are to a defined benefit fund (such as the Fund); An increase in the spouse income threshold for eligibility for a tax offset on contributions made on behalf of a spouse to up to $40,000 per annum (for the 2016/17 year this threshold was $13,800); A reduction in the threshold for the additional 15% tax (Division 293 tax) on concessional contributions (from $300,000 to $250,000, comprising income and concessional contributions); and Introduction of a 5 year rolling catch-up for members with balances less than $500,000 who have not utilised the full $25,000 concessional contribution cap in prior years from [Note: The first year in which a person can use the carry-forward for any unused amounts is the 2019/20 year.] We note that further information in relation to the 1 July 2017 changes was provided to all members of the Fund in March Superannuation changes announced in the 2017 Federal Budget Superannuation related changes in the May 2017 Federal Budget (some of which have since been legislated) include: First home buyers are now able to withdraw voluntary superannuation contributions made from 1 July 2017 for a first home deposit. From 1 July 2017, individuals can make such contributions of up to $15,000 per year (subject to the general contribution caps). They will be able to withdraw up to $30,000 9

10 (plus associated earnings) per person in total under the scheme. Withdrawals of contributions (and any associated earnings) may be made from 1 July 2018; and A person aged 65 or over can contribute up to $300,000 from the proceeds of the sale of their home as a non-concessional contribution into superannuation, from 1 July This is in addition to the maximum contribution otherwise permitted in super. This measure will apply to sales of a principal residence owned for the past 10 or more years and both members of a couple will be able to take advantage of this measure for the same home. Other superannuation changes: The Medicare levy will be increased from 2.0% to 2.5% of taxable income from 1 July 2019 subject to passing of the legislation); Reforms to dispute handling arrangements have been legislated where the current external dispute resolution body for superannuation, the Superannuation Complaints Tribunal will be replaced with the Australian Financial Complaints Authority. This is a summary for general information purposes only. The application of some of these legislative changes, particularly to members of defined benefit funds, can be complex. We recommend that you speak to your financial adviser about how these and any other relevant superannuation changes may affect you. The implications depend on your personal circumstances. Other information Conflicts of Interest Our approach to conflict s management is governed by a Conflicts of Interest Policy which sets out the obligations of Equity Trustees Superannuation Limited and establishes formal procedures to identify, avoid, manage, record and monitor conflicts of interest and duty that arise within our business. Conflicts identified are recorded and managed on an ongoing basis via a Register of Relevant Duties and Interests and via other relevant policies, systems and processes. Review of our Conflicts Management Framework is undertaken annually. Operational Risk Reserve To satisfy a requirement under the Federal Government s Stronger Super reforms, the Fund has established (and maintains) an Operational Risk Reserve ( ORR ) to cover potential losses arising from operational risks that may affect the Fund s business operations. An operational risk is the risk of a loss resulting from inadequate or failed internal processes, people and systems, or from external events. The ORR may be drawn upon to assist in compensating members or the Fund in the event of an operational risk having materialised. The ORR within the Fund was to be built up to the defined target percentage of 0.25% of funds under management (FUM) within a 3 year transition period. The target date for this to be achieved was 31 December The ORR defined target percentage of 0.25% of FUM was met at 31 December The ORR is held with the EQT Cash Management Account (EQT CMA). Interest is allocated each year based on EQT CMA s annual earnings. The Fund s ORR over the past 3 years was as follows: Year 31 December December December 2017 Information on request Value $17,715 $17,934 $18,125 You can request additional information by contacting the Fund Administrator (contact details on page 12), including the following: The Fund s Trust Deed and Rules; The latest actuarial report; The latest audited accounts and reports; All member forms; Information about your benefit entitlements; and Any other information that may help you understand particular investments of the Fund or the management, financial condition and performance of the Fund. 10

11 Contact details For further information regarding the management of the University of New England Professorial Superannuation Fund, please contact the Fund as follows: Fund Administrator KPMG Superannuation Services Pty Limited PO Box 67 Australia Square NSW 1215 (02) Note, these contact details continue to apply, despite the sale of KPMG Superannuation Services Pty Limited to OneVue Holdings Limited ABN New contact details will be advised to all members ahead of any changes. Trustee Equity Trustees Superannuation Limited GPO Box 2307 Melbourne VIC 3001 (03) (03) RSE License No. L , ABN , ASFL no

12 Summary of financial performance A summary of the Fund s audited accounts for the year ended 31 December 2017 is shown below. The full audited accounts and auditor s report are available for inspection by contacting the Fund Administrator (details provided on page 10). STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER Restated ASSETS Cash and cash equivalents GST receivable 2 4 Income receivable 38 0 Income tax receivable 0 4 Contributions receivable Units in wholesale trusts 5,861 5,837 Pensions paid in advance 8 11 Prepayments 6 6 Deferred tax assets 9 8 TOTAL ASSETS 6,146 6,257 LIABILITIES Current tax liabilities 21 0 Deferred tax liabilities 0 17 Accruals TOTAL LIABILITIES NET ASSETS AVAILABLE FOR MEMBERS 6,063 6,182 Member benefits 5,284 6,066 TOTAL NET ASSETS EQUITY Operational risk reserve Other reserves 0 0 Defined benefits that are over funded TOTAL EQUITY

13 INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER Restated* REVENUE Interest 3 3 Trust distributions Net changes in fair value of financial instruments TOTAL REVENUE EXPENSES Investment expenses (68) (3) General administration expenses (120) (225) TOTAL EXPENSE/Plus (188) (227) PROFIT FROM OPERATING ACTIVITIES Less/Plus: net change in defined benefit members accrued benefits 301 (336) OPERATING RESULT BEFORE INCOME TAX Income tax expense /(gain) OPERATING RESULT AFTER INCOME TAX EXPENSE/(GAIN) STATEMENT OF CHANGES IN MEMBER BENEFITS FOR THE YEAR ENDED 31 DECEMBER Restated OPENING BALANCE OF MEMBER BENEFITS 6,066 6,285 Contributions: Employer Income tax on contributions (45) (69) NET AFTER TAX CONTRIBUTIONS Benefit payments (907) (943) Net change in defined benefit member accrued accounts (301) 336 CLOSING BALANCE OF MEMBER BENEFITS 5,284 6,066 13

14 STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 31 DECEMBER 2017 Operational Risk Reserve Unallocated Surplus Total Equity Opening balance as at 1 January Profit after income tax Closing balance as at 31 December Opening balance as at 1 January (9) 9 Profit after income tax Closing balance as at 31 December The Fund s accounts have been prepared in accordance with the new accounting standard AASB1056 Superannuation Entities. This standard applies to the preparation of financial statements for superannuation funds from annual reporting periods beginning on or after 1 July 2016 and includes a number of changes to how information on the Fund s assets and liabilities are presented. As a result the Fund has restated amounts previously reported under AAS 25 Financial Reporting by Superannuation Plans for the year ended 31 December

15 UNIVERSITY OF NEW ENGLAND PROFESSORIAL SUPERANNUATION FUND Guidelines for appointment and removal of Policy Committee members How are Representatives selected? Appendix A Employer Representatives are appointed by the Employer. Member Representatives are elected using a secret ballot, on a first past the post basis using the following procedure. There will always be equal numbers of Member and Employer Representatives. 1 The Trustee and /or the employer should appoint a Returning Officer to be responsible for the process of electing Member Representatives. 2 Not less than 4 weeks notice should be given to members of the Fund of an election. 3 Members should be invited to put forward their nominations. The deadline for submitting nominations should be not less than three weeks prior to the election. 4 Nominations must be in writing and signed by the candidate, nominator, and a seconder. 5 If the number of candidates equals the number of positions to be filled, then the Returning Officer shall declare the candidates elected unopposed. 6 Where the number of candidates is less than the number of positions to be filled, the Returning Officer must declare the nominated candidates to have been elected, and must appoint further Member Representatives from amongst the members who are willing and able to act, as are necessary to ensure that the number of positions are filled. 7 Where the number of candidates exceeds the number of positions to be filled, the Returning Officer must call an election. 8 Each member is able to vote for as many candidates as there are vacancies, i.e. if there are three vacancies, they can vote for three candidates. 9 The candidate who receives the most number of votes will be appointed to the first vacancy, and the candidate who receives the second largest number of votes will be appointed to the second vacancy and so on. 10 The outcome of the appointment or election needs to be advised to the Trustee in writing within 7 days of the appointment or election. 11 The Trustee is required to hold and keep the polling cards secure and confidential for at least twelve months following the election. Issued by Equity Trustees Superannuation Limited (ABN , AFSL No , RSE Licence No L ) as trustee for the University of New England Professorial Superannuation Fund (ABN , Registration No. R ) GPO Box 2307 Melbourne VIC 3000 (03) , (03)

16 How long does a Member Representative stay on a Policy Committee? Member elected representatives of the Policy Committee will serve on the Policy Committee indefinitely, provided that Policy Committee membership shall cease on the earliest of: The member s disqualification; The member s resignation from the Policy Committee; The member s cessation of membership of the Fund; Subsequent to the completion of three (3) years of Policy Committee membership, any five (5) or more Fund members requisitioning an election to replace the member representative; The member becoming insolvent; The member becoming incapable of exercising that office by reason of mental or physical incapacity; If in the opinion of the other Policy Committee members, the member becoming mentally ill or incapable of carrying out the responsibilities of a Policy Committee member; and The member being convicted of an offence involving fraud or misconduct. On expiration of the term of office of the Member Representative, an election for a replacement Member Representative must be held within 90 days of that vacancy. How long does an Employer Representative stay on a Policy Committee? The term of an Employer Representative shall be until either: They cease employment with the Employer; or They are removed by the Employer. Issued by Equity Trustees Superannuation Limited (ABN , AFSL No , RSE Licence No L ) as trustee for the University of New England Professorial Superannuation Fund (ABN , Registration No. R ) GPO Box 2307 Melbourne VIC 3000 (03) , (03)