TOWER ENTERPRISE PLAN INVESTMENT STATEMENT. NZ RDA Member Superannuation Plan

Transcription

1 TOWER ENTERPRISE PLAN INVESTMENT STATEMENT NZ RDA Member Superannuation Plan 3 July 2003 Page 1

2 Investment Statement Important information (The information in this section is required under the Securities Act 1978) Investment decisions are very important. They often have long-term consequences. Read all documents carefully. Ask questions. Seek advice before committing yourself. Choosing an Investment When deciding whether to invest, consider carefully the answers to the following questions that can be found on the pages noted below and under the corresponding headings in the Supplement: What sort of investment is this?... 3 and Supplement Who is involved in providing it for me?... 3 How much do I pay?... 4 and Supplement What are the charges?... 5 and Supplement What returns will I get?... 6 and Supplement What are my risks? Can the investment be altered? How do I cash in my investment? Who do I contact with enquiries about my investment? Is there anyone to whom I can complain if I have problems with the investment? What other information can I obtain about this investment? In addition to the information in this document, important information can be found in the current registered prospectus for the investment. You are entitled to a copy of that prospectus on request. Choosing an Investment Adviser You have the right to request from any investment adviser a written disclosure statement stating his or her experience and qualifications to give advice. That document will tell you: whether the adviser gives advice only about particular types of investments; and whether the advice is limited to the investments offered by 1 or more particular financial organisations; and whether the adviser will receive a commission or other Benefit from advising you. You are strongly encouraged to request that statement. An investment adviser commits an offence if he or she does not provide you with a written disclosure statement within 5 working days of your request. You must make the request at the time the advice is given or within 1 month of receiving the advice. In addition if an investment adviser has any conviction for dishonesty or has been adjudged bankrupt, he or she must tell you this in writing; and if an investment adviser receives any money or assets on your behalf, he or she must tell you in writing the methods employed for this purpose. Page 2

3 Tell the adviser what the purpose of your investment is. This is important because different investments are suitable for different purposes. This is an Investment Statement for the purposes of the Securities Act This Investment Statement is prepared in accordance with the requirements of the Securities Act (Multiple Participants Superannuation Schemes) Exemption Notice What sort of investment is this? The TOWER Enterprise Plan (the Plan) is a defined Contribution, multiple Employer superannuation scheme registered under the Superannuation Schemes Act To apply to join the Plan, you must complete the Application for Membership Form included with this Investment Statement and meet the eligibility criteria set out in the Supplement. You will become a Member of the Plan from the first day of the next available payroll period unless otherwise agreed between you and the Trustee. The Trust Deed for the Plan allows your Employer to tailor certain provisions which apply only to you and other Employees of that company. These provisions are set out in a Participating Agreement signed by the Trustee and your Employer. The date of this Participating Agreement and of any amendments to the Participating Agreement and the specific terms applicable to your Employer s scheme are detailed in the Supplement at the back of this Investment Statement. You must read this Investment Statement, including the Supplement, thoroughly before you make the decision to invest. It is a condition of offering you Membership of the Plan that the Participating Agreement has been registered by or filed with the Registrar of Companies, and is available for public inspection. Certain terms used in this Investment Statement are defined in the Glossary on page 17 and in the Supplement. Who is involved in providing it for me? The name of the scheme is the TOWER Enterprise Plan. It is a defined Contribution multiple-employer superannuation scheme, which means that the Benefits it pays are based on the contributions you and your Employer make to the Plan, together with any investment earnings. It was established on 17 May The names and addresses of the Trustee, the Administration Manager, Investment Manager and the Promoters of the Plan are set out below. Trustee Lighthouse Superannuation Nominees Limited Level 1, Customhouse Quay P O Box 3222 Wellington Tel: Fax: Promoter/Administration Manager/Investment Manager TOWER Employee Benefits Limited (TOWER) Customhouse Quay PO Box 590 Wellington Tel: Fax: Page 3

4 The directors of TOWER who are also deemed to be Promoters of the Plan are: Keith Bruce Taylor of Wellington; Richard Peter Baker of Wellington; Paul Rodney Hunt of Auckland; and Wilhemus Leonardus Giesbers of Wellington. The promoters can be contacted at TOWER at the above address. How much do I pay? Member Contributions The Supplement specifies how much you are required to pay. Your regular contributions are deducted directly from your Salary each pay day by your Employer and direct credited to a bank account in the name of the Trustee at Level 1, Customhouse Quay, Wellington. The Trustee credits your Contribution(s) to a Member Account in your name. The Supplement also details any additional voluntary contributions (if any) you are entitled to make. All voluntary contributions will be credited to a Voluntary Account in your name. From time to time, the Trustee may state a minimum or maximum voluntary amount that can be contributed. As at the date of this Investment Statement, no minimum or maximum voluntary amounts apply. By giving written notice to your Employer you may reduce, suspend or terminate the payment of your contributions. In that event, your Employer may also reduce, suspend, terminate or continue its contributions. Employer Contributions The Supplement specifies the level of contributions your Employer has chosen to make. Your Employer s contributions are passed to the Trustee (at the same time as your own contributions) and are credited to an Employer Account in your name. Under current legislation, any contributions made on your behalf by your Employer must have specified superannuation contribution withholding tax (SSCWT) deducted and paid to the Government before they are credited to your Employer Account. If you earn over $60,000 per annum, you may enter into a salary sacrifice option. If this feature is available to you, it will be detailed in the Supplement. This option enables you to save all or some of your income above the $60,000 threshold by way of Employer contributions directly into the Plan at the SSCWT rate of 33% instead of paying tax at the rate of 39% (note that a 39% withholding tax rate can be elected instead). Such contributions will be passed to the Trustee and will be credited to an Employer Special Purpose Account in your name. Your Employer may elect to continue, reduce or terminate its contributions once you reach your Normal Retirement Date. Leave of Absence With your Employer s approval, you may apply to take Leave of Absence from Employment for a period specified in the Supplement. During this time, you will remain a Member of the Plan. You may, but are not required to, continue to pay Contributions while you are on leave. During your Leave of Absence, Contributions made by your Employer on your behalf and insurance cover (if applicable) may be suspended at the discretion of your Employer, by giving notice in writing to you and the Trustee. This means that you will not be entitled to receive any Insured Benefits while you are on Leave of Absence. Refer to the Supplement to ascertain whether this applies to you. Page 4

5 In respect of any separate insurance arrangements made on your behalf by your Employer, the position may be different. Either contact your Employer or refer to the Supplement for further details. Transfers into the Plan You may transfer into your account any funds from another registered superannuation scheme or any other lump sum payment, as agreed by the Trustee. The amount transferred will be credited to your Member Account, Voluntary Account (if any), Employer Account, Employer Special Purpose Account, or the Reserve Fund, in such proportions as agreed between the Trustee, the trustee of the transferor superannuation scheme or you, as the case requires. What are the charges? Trustee and Administration Charges The Trustee and the Administration Manager are entitled to the following fees and expenses: Trustee Fees Administration Fees Service Fee Contribution Fee Fund Access Fee, as detailed under the heading What are the Charges? in the Supplement. Reimbursement of Trustee expenses The Trustee will also be reimbursed in respect of all costs, expenses, fees, duties and other liabilities properly incurred in carrying out its obligations under the Trust Deed. Where a general cost or expense to be recovered is incurred in respect of the Plan, it is applied against all Employers of the Plan. Some of these expenses will represent fees payable to the Administration Manager, the Investment Manager, fund managers and the Insurer for services they provide to the Plan. The amount of such costs which are paid each year can be found in the financial statements for the Plan. Unless specifically stated, there is no limitation on the expenses that can be reimbursed. The Trustee is authorised to realise all or any interest of any account in the Plan for payment for costs, expenses, fees, duties, premiums and other liabilities. Increase in Trustee and Administration fees The Trustee may increase any fees at 1 July each year, or such other date as agreed with TOWER by a percentage that does not exceed the percentage increase during the preceding year in the Consumer Price Index or such other equivalent measure determined by TOWER. Investment Management Fees Please note: the investment management fees applicable to you will depend on the Investment Funds made available to you by your Employer (as detailed in the Supplement) and the Investment Funds you then choose to invest your contributions into. The fund managers of each Investment Fund currently earn investment management fees from each Investment Fund at the rates set out in the Supplement. These fees are deducted directly from each Investment Fund by the fund manager responsible for managing that Investment Fund. Page 5

6 Voluntary Insurance Premiums If any of the following voluntary insurance options are offered to you through your Employer s Participating Agreement, the Supplement will detail these: Voluntary Life insurance; Voluntary Life and Total and Permanent Disablement insurance; Voluntary Income Protection insurance; Voluntary Crisis cover. If you elect to take any voluntary insurance cover, the relevant premium will be deducted automatically from your Member Account or Employer Account each month as determined by your Employer. Please refer to the Supplement. Separate Insurance Cover Your Employer may choose to establish separate insurance cover for you and your fellow Employees. If this is the case further information will be obtained from the Supplement or from your Employer. If you have elected to take separate insurance cover you must pay the required premiums otherwise your insurance will lapse. What returns will I get? The returns from the Plan are paid out in the form of a cash lump sum Benefit. Under current legislation, Benefits are tax paid. Generally speaking you are not entitled to a Benefit until you leave the service of your Employer. The type of Benefit you receive will vary depending on why you left service. This is explained below. Your Benefit will always include the balance of your Member Account and your Voluntary Account (if any). Depending on the nature of the Benefit paid, it may also include some or all of your Employer Account, your Employer Special Purpose Account and any insured amount if your Employer offers this option to you and if you elect to accept voluntary insurance cover. It will depend on such factors as the amount of contributions you and your Employer have paid, the amount of returns achieved on the Plan s investments (which may vary), and which Investment Funds you choose to invest in. The amount of your Benefit is not quantifiable as at the date of this Investment Statement. Because the payment of your Benefit depends on when you become eligible for a Benefit, the dates on which the returns will be paid to you are unknown as at the date of this Investment Statement. The Trustee of the Plan, Lighthouse Superannuation Nominees Limited, is legally liable to pay any returns to you. The Capital Preservation Fund policy has an annual declared rate of return, which is determined after 30 September for the previous year. TOWER Life (NZ) Limited will credit interest to your account as at the end of each policy period. The interest will accrue and be calculated on the daily balance of your account during the policy period. If you withdraw from the Capital Preservation Fund Policy at any time between anniversary dates, you will be credited accrued interest at an interim rate of return determined by TOWER Life (NZ) Limited. The rate of interest may take into account such other factors deemed pertinent to achieving equity between the policy and other policies issued by TOWER Limited. Once the final declared rate of return is determined, if the declared rate is either greater or less than the interim rate, the difference will be credited or debited to your account (whichever is applicable). TOWER Life (NZ) Limited may vary the terms of the Capital Preservation Fund Policy by giving at least one month s notice in writing to the Trustee. Any changes to this policy will be implemented on 1 October in any year. Page 6

7 Neither the Trustee, the Administration Manager, the Investment Manager, the fund managers nor any other person guarantees or promises the return of capital or income from the Plan. Types of Benefits Generally, you will be entitled to receive any amounts credited into accounts that are in your name that have been provided as part of your scheme. The Benefits that may be available to you are detailed below. For information regarding the specific Benefits that are relevant to your Employer s scheme, please refer to the Supplement. Retirement Benefit You are eligible to receive a Retirement Benefit if you retire on or after your Normal Retirement Date or, with the consent of your Employer, if you retire on or after your Early Retirement Date. Your Retirement Benefit is equal to the value of your: Member Account; Voluntary Account (if any); Employer Account; and Employer Special Purpose Account, or such other sum as provided in the Supplement, provided that the Benefit payable will always include your Member Account and Voluntary Account (if any). Refer to the Supplement to confirm any Benefit applicable to you and to ascertain your Normal Retirement Date and Early Retirement Date. Resignation Benefit If you leave Employment and you are not entitled to any other Benefit, you will be entitled to a Benefit equal to the value of your: Member Account; Voluntary Account (if any); a percentage of your Employer Account as set out in the vesting schedule in the Supplement; a percentage of your Employer Special Purpose Account (if applicable) as set out in the vesting schedule in the Supplement; any insured Benefit applicable to you; and such further amount as the Trustee in its discretion shall determine (which amount shall not exceed the balance of your Employer Account and Employer Special Purpose Account). To confirm any Benefit applicable to you refer to the Supplement. Leave of absence If you do not return to work immediately after your Leave of Absence has expired, you will receive the appropriate Benefit payable under the Trust Deed, as is applicable to your circumstances at the time. The Benefit is calculated either: at the date of expiry of the period of your Leave of Absence; or the date you left Employment, whichever is earlier. Page 7

8 Redundancy or Ill Health Benefit If you leave Employment due to redundancy or ill health (as certified to the Trustee by your Employer) you will be entitled to the value of your: Member Account; Voluntary Account (if any); Employer Account; Employer Special Purpose Account, or such other sum as provided in the Supplement, provided that the Benefit payable will always include your Member Account and Voluntary Account (if any). Dismissal for Misconduct If you are dismissed from Employment for reasons of misconduct, dishonesty, theft or fraud or you resign to avoid dismissal, you are not automatically entitled to any share of your Employer Account or Employer Special Purpose Account. The Benefit payable will be the value of your: Member Account; Voluntary Account (if any); such proportion of your Employer Account and your Employer Special Purpose Account as your Employer and the Trustee decide at their absolute discretion, or such other sum as provided in the Supplement, provided the Benefit payable will always include your Member Account and Voluntary Account (if any). If you owe any money to your Employer as a result of misconduct, dishonesty, theft or fraud, the Trustee will reimburse your Employer first before any Benefit is paid to you. Death Benefit If you die while in the Employment of your Employer, before your Normal Retirement Date, you will be entitled to the value of your: Member Account; Voluntary Account (if any); Employer Account; Employer Special Purpose Account; and any Insured Benefits applicable to you, or such other sum as provided in the Supplement, provided that the Benefit payable will always include your Member Account and Voluntary Account (if any). Your death Benefit will be paid to the executors and administrators of your estate, or for the Benefit of any of your dependants, or for such one or more of your nominated beneficiaries, as the Trustee decides. If you die whilst you are still employed by your Employer, but after your Normal Retirement Date, you will be deemed to have retired on the day before your death and you will be entitled to a Benefit equal to your Retirement Benefit. Total and Permanent Disablement Benefit If your Employer has established access to Total and Permanent Disablement insurance through the Plan and you suffer Total and Permanent Disablement, and you leave your Employer, you will be entitled to the value of your: Member Account; Page 8

9 Voluntary Account (if any), Employer Account; Employer Special Purpose Account; and any insurance cover applicable to you as set out in the Supplement, or such other sum as provided in the Supplement, provided that the Benefit payable will always include your Member Account and Voluntary Account (if any). Voluntary Insurance Benefits If any of the following voluntary insurance options are offered to you through your Employer s Participating Agreement, the Supplement will detail these: Voluntary Life insurance; Voluntary Life and Total and Permanent Disablement insurance; Voluntary Income Protection insurance; and Voluntary Crisis cover. In some cases, death cover may also be available to your Spouse or Partner. Separate Insurance Benefits The Trustee may enter into any insurance arrangements at the request of your Employer to make Insured Benefits available for its Employees under a Group Insurance Policy. If your Employer has established separate insurance cover for you, you may obtain information about the applicable Benefits from the Supplement or your Employer. Such insurance will be subject to the conditions imposed by the Insurer. Annuity option If you request, the Trustee shall arrange for an annuity to be purchased from a life insurance company in lieu of payment of a Benefit. The terms and conditions of the annuity shall be agreed between you, the Trustee and the life insurance company. Factors that may affect returns Your Choice of Investment When you apply to join the Plan, in completing your application, you must make an investment election and choose one or more of the investment options available to you. The Plan offers a variety of investment choices. The investment choices that have been made available to you are outlined in the Supplement under the heading Your choice of investment The contributions in your Member Account, your Voluntary Account (if any), your Employer Special Purpose Account, and your Employer Account will then be invested on your behalf according to your Investment Direction. If you do not make an Investment Direction, contributions will be invested in the Default Fund selected by your Employer until such time as you make an Investment Direction. It is up to your Employer to contact you to arrange completion of your Investment Direction. Until your Investment Direction is completed and lodged with TOWER your contributions will not be invested. If your Employer has not selected a Default Fund, your contributions will be returned to your Employer, until such time as you make an Investment Direction. The investment return you receive depends on the Investment Funds you choose, the individual investment performance, returns of each of the Investment Funds and the taxes, fees and expenses deducted from the Plan. The investment management fee for each Investment Fund is also deducted before any returns are credited to your accounts. The returns from each Investment Fund are not guaranteed and may vary significantly from year to year. There may be times when the Investment Funds you have chosen do not perform as expected or could even be negative, despite the skill and care of the fund managers. This could be due to the state of the economy Page 9

10 (international and domestic), world markets, interest rate movements, the performance of individual companies contained in your portfolio, or Government policy. Taxation Under current taxation law, the earnings of a superannuation fund are taxed at 33% within the Plan itself and the benefits are paid tax-free to the investor. Therefore, you do not have to include income from the Plan on your income tax return. Taxation law is subject to change and we recommend you seek advice from your tax adviser. Fund Withdrawal Tax (applies to Employer contributions only) If the contributions you withdraw are Employer contributions, a fund withdrawal tax may apply. The fund withdrawal tax does not apply to withdrawals of Employer contributions if you: cease Employment with that Employer and have been in their Employment for more than two years and your Employer's contributions for either of the two previous years have not increased by more than 50%; are suffering significant financial hardship (see Glossary on page 17); are withdrawing to settle the division of matrimonial property; certify that you have not earned $60,000 or more during any of the four previous income years to be exempt from the fund withdrawal tax for that income year. If during any of the four years prior to a withdrawal you earned over $60,000, then 25% of the fund withdrawal tax would be payable for each of those years; are partially retired (see Glossary on page 17); are using it to purchase a life annuity, or are to receive an annuity or pension to be paid over 10 or more years; are transferring from one registered superannuation fund to another; are withdrawing contributions existing as at 1 April 2000 and contributions that have continued to the level/s documented at 1 April The tax does not apply to any increases in Employer contributions that were agreed and documented prior to 1 April 2000 or if the Contribution has not changed as a percentage of Salary since 1 April 2000; have had the contributions made with the 39% withholding tax rate applied; have been working with your current Employer for more than two years (subject to the 2-year rule described in the Glossary on page 17); cease Employment (other than for reason of injury, disablement, or death) and defer receipt of your Employer's contributions for two years from that date; and/or are withdrawing to pay administration costs, and certain Insurers' premiums and costs. The fund withdrawal tax does not apply to the withdrawal of funds due to the death of a Member. The exemptions to the fund withdrawal tax are detailed and complex, and the above outline is only a summary. Please see your tax adviser for more information. Reserve Fund The Trustee shall establish a Reserve Fund for each Employer which shall be credited with any amounts forfeited. The Reserve Fund may be applied on an equitable basis to increase Members Accounts, pay fees, costs and charges of the Plan, pay insurance premiums, Employer contributions and for any other purpose considered appropriate by the Trustee, with the consent of your Employer. Suspension of Benefit Payments It is possible for the Trustee of the Plan, or the Trustee of an Investment Fund, to suspend or defer payment from the Plan or the Investment Fund if the Trustee of the Plan or the Trustee of an Investment Fund believe conditions exist which would make the payment of Benefits impracticable or may materially prejudice the interest of Members. In this event your right to a Benefit payment will also be suspended or deferred until the Trustee gives notices to the Members to the effect that their suspension or deferral notice is cancelled, either in whole or in part, Page 10

11 or 6 months from the date of the notice, or the date on which the suspension or deferral notice is lifted, whichever is the later. What are my risks? A number of laws and rules apply to the Plan which are designed to ensure the correct management of your contributions and the Plan s investments. In addition, the Plan is overseen by a professional corporate Trustee who must act in the best interests of Members and ensure that these laws and rules are complied with. Despite this, there are a number of unavoidable risks which affect your investment in the Plan. Any of these could mean that you do not receive the full amount of returns specified under What returns will I get?, or that you may receive less from the Plan than you contributed. The main risk affecting your contributions to the Plan is that they are invested in investments which will fluctuate in value. Each investment option available to you has a different level of risk of these fluctuations occurring. When you choose an investment, it is important that you have clear objectives and that you understand the amount of risk you are comfortable in taking. In simple terms, risk means how much the value of your investment is likely to fluctuate (move up or down in value) over the course of your investment. In general, the greater the percentage each investment option has in shares and property, the greater the impact of any fluctuations will be. These fluctuations will affect the value of the assets in each investment option and may increase or decrease the value of the assets in the short term. As a result, it is possible that you could receive a negative return. In that event, you would not be required to pay any additional money into the Plan, but it would affect the amount of any Benefit payable to you from the Plan. The sales brochure relating to the Plan and this Investment Statement aim to help you to understand the level of risk associated with each investment option being made available to you, and to choose an option, which suits your particular circumstances. If in doubt, we recommend that you seek independent financial advice on which are the most appropriate investments for you. If you withdraw your investment shortly after it is made and the returns on the investment are insufficient to meet fees and any insurance premiums payable, it is reasonably foreseeable you will receive less than your original investment. Trustee s Power to Borrow The Trustee has the power to borrow against the assets of the Plan. The Trustee has no current intention of exercising this power. However, in the event that the Trustee did exercise the power to borrow, any secured creditors would hold a first charge over the assets of the Plan. This charge would rank ahead of Members rights to the assets of the Plan. Termination of the Plan If the Plan is wound up, the Trustee will convert the investments of the Plan into cash. After all expenses and liabilities of the Plan are paid, the Trustee will pay any Benefits which became due prior to the date of winding up but have not yet been paid. If the Plan is wound up, Members will rank behind all secured and unsecured creditors of the Plan, including the Trustee and TOWER. After repayment of all creditors, Members will rank equally and will receive an amount proportionate to their holdings in the Plan. The amount payable to Members in the event of a wind up of the Plan will depend on the price for which the investments are able to be sold at that time, and the amount of expenses and liabilities payable. Page 11

12 Withdrawal of your Employer from the Plan Your Employer may cease to participate in the Plan in a number of circumstances set out in the Participating Agreement. In that event, the Trustee will realise the investments of the Plan that relate to Members who are Employees of your Employer. The Trustee will then apply the money in the manner outlined above under the heading Termination of the Plan. Insolvency of the Plan In the event that the Trustee, TOWER or the Plan becomes insolvent, you will not be required to pay any further amounts to the Plan. In a situation where the Plan becomes insolvent, it will then be wound up in accordance with the termination procedures under the heading Termination of the Plan'. Claims on the assets of the Plan that will rank ahead of and equally with Members are those detailed under the heading Termination of the Plan. Voluntary Insurance Benefits If you have chosen to take up a voluntary insurance benefit from the options offered by your Employer (if any) either for yourself or, in respect of voluntary life cover, for your Spouse or Partner, it is possible that an insurance Benefit may not be paid if the insurance has lapsed due to the non payment of premiums or if the Insurer declines to accept liability for the claim. Can the investment be altered? There are several ways in which your investment can be altered: You may alter the amount of Contributions you make, subject to any minimum required, or you may make voluntary Contributions as detailed under the question How much do I pay?. You may reduce, suspend or terminate the payment of your Contributions. In that event, your Employer may also reduce, suspend, terminate or continue its Contributions to your Employer Account. Further details are contained under the question How much do I pay?. You may, once during each Plan year, amend or vary your Investment Direction by redirecting your future Contributions by request in writing. You may also, by making a request in writing and at the Trustee s discretion, switch your investment from one Investment Fund to another Investment Fund. If you make more than one redirection of future Contributions or switch from one Investment Fund to another during the Plan year, a fee may apply (see What are the charges? ). The Trustee or your Employer may from time to time change the investment options that are available to you. As a result, additional Investment Funds may be added, or some Investment Funds may be withdrawn. If any Investment Fund is withdrawn, you will be advised of the alternative Investment Fund(s) and you will be able to transfer your accounts. The Investment Manager of each Investment Fund may alter the asset allocation of each Investment Fund, within predetermined policy ranges, at any time to take advantage of any potential which exists within any investment sector. From time to time, the trustee of each Investment Fund or TOWER Life (NZ) Limited in respect of the Capital Preservation Fund policy may also review and change the objectives, investment strategy or the policy ranges of each Investment Fund. The Trustee, with the consent of TOWER, may make changes to the Trust Deed which governs the Plan, or the Trustee and your Employer may agree to amend the Participating Agreement which relates to your participation in the Plan. However, no amendment can be made that will adversely affect your rights and Benefits up to the date the amendment is made, without your consent. Your Employer may choose to cease its participation in the Plan. The Trustee or TOWER may also wind up the Plan, as detailed under the question 'What are my risks?' Page 12

13 The Trustee may increase any fees at 1 July each year, or such other date as agreed with TOWER, by a percentage that does not exceed the percentage increase during the proceeding year of the Consumer Price Index or such other equivalent measure determined by TOWER. How do I cash in my investment? Partial Withdrawal The following partial withdrawal option may apply to you. Please refer to the Supplement to ascertain whether it does or not. You may withdraw part of your Member Account, Voluntary Account (if any), or the vested portion of your Employer Account and Employer Special Purpose Account as provided for in the Supplement, subject to the minimum requirements, at any time. However, we remind you that the Plan has been established to help you save for your Retirement. Therefore you will not be entitled to withdraw funds while in the service of your Employer, unless the Supplement specifies. In respect of permitted partial withdrawals, see page 10 of this Investment Statement for any fund withdrawal tax that may apply. If the Participating Agreement does not make provision for partial withdrawals, you may make one partial withdrawal during your Membership in the Plan provided that the withdrawal is for no more than 50% of the value of your Member Account and Voluntary Account (if any) and at least $1,000. The Trustee may impose requirements at any time governing partial withdrawals. You may also withdraw the entire value of your Member Account, Voluntary Account (if any) or the vested portion of your Employer Account and Employer Special Purpose Account, subject to certain conditions as detailed in the Supplement. The Trustee is authorised to realise all or any interest of any account in the Plan for payment for costs, expenses, fees, duties, premiums and other liabilities. Transfers out of the Plan You may transfer your entitlement to another registered superannuation scheme, subject to the consent of the Trustee of the Plan and the trustee of the other scheme. The amount transferred will be the amount equivalent in value to the Benefit you would have received under the Plan. Receipt of Benefits You are entitled to receive a Benefit from the Plan when you leave Employment. Details of the Benefit types are set out under the question What returns will I get? Charging or Borrowing Against Entitlement You may charge or borrow against the security of your Member Account and Voluntary Account. However, you may not transfer your rights in the Plan, or sell your interest in the Plan. Trustee s Right to Terminate, Cancel or Surrender The Plan can be wound up if the Trustee or TOWER resolves to wind it up or if the Plan reaches its termination date (approximately 15 May 2074). The Government Actuary can also order the Plan to be wound up. The procedures relating to the wind up of the Plan are contained under the question What are my risks? Page 13

14 Bankruptcy Any Member or Beneficiary who becomes bankrupt shall forfeit their entitlement to their Benefit. The Trustee shall hold and may apply the Benefit which would otherwise have been payable had they not been forfeited for the benefit of the Member or Beneficiary (as the case may be) or any one or more of them in such proportions between them and on such terms as the Trustee may in its absolute discretion determine. Withdrawal of your Employer Your Employer can cease to participate in the Plan under a number of circumstances. In that event, your Membership will cease and you will be paid the value of your account balances at that time (see What are my risks? ). Capital Preservation Fund Policy The policy may be terminated either by the Trustee or TOWER Life (NZ) Limited giving three months notice in writing to the other party. TOWER Life (NZ) Limited also has the right to immediately terminate the policy by giving notice in writing to the Trustee in the following circumstances: for non-payment of the instalment of premiums by the Trustee; or if the balance of the Trustee s account is nil. The date specified in the notice is the Termination Date. As at the Termination Date, TOWER Life (NZ) Limited will pay such sum or sums as is agreed between the Trustee and TOWER Life (NZ) Limited. If before Termination Date the Trustee and TOWER Life (NZ) Limited have not reached an agreement as to the manner of settlement, TOWER Life (NZ) Limited shall pay the amount in the account in five instalments at consecutive yearly intervals. The first instalment will be paid on the Termination Date and subsequent instalments will be paid on each anniversary of the Termination Date. Who do I contact with enquiries about my investment? If you have any enquiries about your investment, you can contact TOWER at: TOWER Employee Benefits Limited Customhouse Quay PO Box 590 Wellington Tel: ( TOWER) Fax: enquiries.teb@nz.towerlimited.com Is there anyone to whom I can complain if I have problems with my investment? Any problems or complaints can be directed to: TOWER Employee Benefits Limited Customhouse Quay PO Box 590 Wellington Tel: ( TOWER) Page 14

15 Fax: or you can contact the Trustee directly at: Lighthouse Superannuation Nominees Limited Level 1, Customhouse Quay P O Box 3222 Wellington Tel: Fax: If we cannot resolve your complaint, then you can contact the Insurance and Savings Ombudsman at: Level 7, BDO House Customhouse Quay PO Box Wellington Tel: Directory Trustee Lighthouse Superannuation Nominees Limited Level 1, Customhouse Quay P O Box 3222 Wellington Tel: Fax: Promoter/Administration Manager/ Investment Manager TOWER Employee Benefits Limited Customhouse Quay PO Box 590 Wellington Tel: ( TOWER) Fax enquiries.teb@nz.towerlimited.com TOWER Employee Benefits Limited Regional Offices Auckland Office Christchurch Office TOWER Centre Level 3 DTZ House 45 Queen Street 76 Cashel St PO Box 370 PO Box 2242 Auckland Christchurch Tel: Tel: Fax: Fax: Wellington Office TOWER Building Customhouse Quay PO Box 590 Wellington Tel: Fax: What other information can I obtain about this investment? Further information on the Plan can be found in the registered prospectus, Investment Statement, financial statements, Trust Deed and the Participating Agreement. Copies of these documents, along with any documentation accompanying the prospectus and certificates extending the life of the prospectus can be requested from TOWER and are available for inspection at its office and the office of the Trustee. Page 15

16 Copies of the Trust Deed and Participating Agreement can be read, during normal business hours, at the office of TOWER, or alternatively you can purchase a copy of the Trust Deed and Participating Agreement from TOWER for a fee of $28.00 (inclusive of GST). The other documents can be obtained free of charge. These documents are also filed with the Companies Office at the Ministry of Economic Development and are available for public inspection on the Companies Office website at Where relevant documents are not available on the website, a request for the documents can be made by contacting the Companies Office Contact Centre on A prescribed fee may be payable. A copy of the annual report is prepared within five months of the close of the Plan year (30 June) and will be sent to you. You will also receive a statement setting the value of your Benefit entitlements. You can contact TOWER during normal business hours, to request updated information on your Benefits. This service is provided at no charge. No offer of interests in the Plan made on the basis of the relevant Participating Agreement may be made unless the Participating Agreement has been registered by or filed with the Registrar of Companies and is available for public inspection. Disclaimer As at the date of this Investment Statement, none of the fund managers of the Investment Funds available under this Plan, being ANZ Banking Group (New Zealand) Limited, ING (NZ) Limited, BNZ Investment Management Limited, BT Funds Management (NZ) Limited,, or the relevant trustees of the Investment Funds, the Trustee of the Plan, or TOWER as the Investment Manager of the Plan: guarantee the capital value and performance of the Investment Funds offered; or guarantee or secure in any way the repayment of capital or income from the Investment Funds offered. None of the fund managers of the Investment Funds available under this Plan, namely ANZ Banking Group (New Zealand) Limited, ING (NZ) Limited, BT Funds Management (NZ) Limited, BNZ Investment Management Limited,, the relevant trustees of the Investment Funds or any associated companies or parties (with the exception of Lighthouse Superannuation Nominees Limited in respect of bullet point one): have caused the issue of the Investment Statement and are not responsible for the making or the failure to make any disclosure in the Investment Statement; or endorse or otherwise recommend investment in the Plan nor do they guarantee or warrant the discharge by TOWER and the Trustee of the Plan of their respective duties and obligations in respect of the Plan. No investment in the ANZFM Wholesale Superannuation Scheme, BNZ Future Lifestyle Plan, BT New Zealand Investment Series, the SIL Mutual Fund, TOWER FuturePlan, the TOWER Investment Linked Superannuation Fund, the TOWER Capital Preservation Fund or the TOWER Master Superannuation Trust represents either a deposit or liability with ANZ Banking Group (New Zealand) Limited, ING (NZ) Limited, BNZ Investment Management Limited, BT Funds Management (NZ) Limited, TOWER Asset Management Limited or any associated companies or parties. Investments in any of the Investment Funds offered are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither the Trustee nor TOWER, as Investment and Administration Manager of the Plan, or their respective associates are acting as agent for ANZ Banking Group (New Zealand) Limited, ING (NZ) Limited, BT Funds Management (NZ) Limited, BNZ Investment Management Limited, TOWER Asset Management Limited or the trustee of the respective Investment Funds. The only relationship created by the Member directing that contributions are invested in the ANZFM Wholesale Superannuation Scheme, BT New Zealand Investment Series or BNZ Future Lifestyle Plan, the SIL Mutual Fund, TOWER FuturePlan, the TOWER Investment Linked Page 16

17 Superannuation Fund, the TOWER Capital Preservation Fund or the TOWER Master Superannuation Trust is the relationship between the Trustee of the Plan and the Member of the Plan. Glossary Below are definitions of some of the key terms found in this Investment Statement. Any other key terms in this Investment Statement are defined in the Trust Deed or Participating Agreement. Default Fund Early Retirement Date' Employer Insured Benefits Normal Retirement Date means the Default Fund referred to in the Supplement. means the date specified in the Supplement. means your Employer referred to in the Supplement. means any Insured Benefits that your Employer may make available to you under the Participating Agreement as detailed in the Supplement. means the date specified in the Supplement. Participating Agreement Salary Supplement Total and Permanent Disablement means the relevant Participating Agreement entered into between the Trustee and the relevant Employer. means at any date the annual rate of gross wages or pay received by an Employee from an Employer as more particularly specified in the Participating Agreement. means the schedule at the back of this Investment Statement which sets out the terms and conditions of the Members and Employer s Membership of the Plan. For the purpose of Voluntary Life and Total and Permanent Disablement Cover, in relation to a life insured means: (a) (b) the life insured has suffered the total and permanent loss of use of two limbs or the total and permanent loss of sight of both eyes or the total and permanent loss of use of one limb and the total and permanent loss of sight of one eye, where 'limb' means the whole hand or foot; or the life insured has been continuously absent from work for a period of six consecutive months and is in the opinion of TOWER Life (NZ) Limited after consideration of evidence from a medical practitioner appointed by TOWER Life (NZ) Limited wholly disabled by bodily injury or disease and is rendered permanently and continuously unable to follow his or her own or any other trade profession or occupation for which he or she is reasonably suited by education, training or experience, as defined in Policy Document To determine whether your Employer is offering you Voluntary Life and Total and Permanent Disablement cover, please refer to the Supplement. Below are some definitions that relate to the fund withdrawal tax (for more information, refer to the headings How much do I pay? and Factors that may affect returns ). Significant Financial Hardship withdrawals Significant financial hardship includes significant financial difficulties that arise if you are: (a) unable to carry out your usual occupation because of temporary illness, injury or disability, or permanent illness, injury or disability; Page 17

18 (b) (c) (d) (e) (f) (g) unable to meet minimum living expenses; unable to meet mortgage repayments on your principal family residence to such an extent that the mortgagee is seeking to foreclose; need the funds to meet the cost of modifying a residence to meet special needs arising from a disability of yourself or a dependant; need the funds to meet the cost of medical treatment for an illness or injury to yourself or a dependant; need the funds to meet the cost of palliative care for yourself or a dependant; or need the funds to meet the cost of a funeral for yourself or a dependant. Partial Retirement Partial Retirement is where you: (a) (b) (c) (d) (e) are employed for 30 hours per week or less; and have reduced your working hours because you are nearing full Retirement; and you give notice, in writing, to the Trustee of the Plan that you do not intend to increase your hours in paid Employment in the future; and you stop contributing to the Plan; and your Employer stops making contributions to the Plan on your behalf. Two-Year Rule (Cessation of Employment) If in either of the two income years ending on or before the date on which you cease Employment the Employer Contributions made on your behalf have increased by 50% or more, the fund withdrawal tax applies to those contributions and any growth on those contributions. This does not apply to increases made or agreed prior to 1 April 2000 or where the Contribution has not changed as a percentage of Salary since 1 April You can lock in contributions to the Plan for a further two years as an alternative to the fund withdrawal tax applying. The fund withdrawal tax will not apply if a withdrawal is made on or after the date on which you cease Employment with an Employer because you are injured, disabled or die. Page 18

19 Supplement NZ RDA Member Superannuation Plan Definitions Default Fund 'Early Retirement Date' Employer Fund Joining Date means the TOWER Capital Preservation Fund. means the age of 60 years means as at the date of this investment statement any of: Auckland District Health Board at Auckland Bay of Plenty District Health Board at Tauranga Canterbury District Health Board at Christchurch Capital & Coast District Health Board at Wellington Counties Manukau District Health Board at Auckland Hutt Valley District Health Board at Lower Hutt Lakes District Health Board at Rotorua Nelson Marlborough District Health Board at Nelson Otago District Health Board at Dunedin Tairawhiti District Health Board at Gisborne Taranaki District Health Board at New Plymouth Waikato District Health Board at Hamilton Waitemata District Health Board at Auckland Whanganui District Health Board at Wanganui as appropriate, and includes any associated Employer of the relevant District Health Board. means the NZ RDA Member Superannuation Plan. means 1 July 2003 in relation to the following District Health Boards: Auckland District Health Board at Auckland Bay of Plenty District Health Board at Tauranga Canterbury District Health Board at Christchurch Capital & Coast District Health Board at Wellington Counties Manukau District Health Board at Auckland Hutt Valley District Health Board at Lower Hutt Lakes District Health Board at Rotorua Nelson Marlborough District Health Board at Nelson Otago District Health Board at Dunedin Tairawhiti District Health Board at Gisborne Taranaki District Health Board at New Plymouth Waikato District Health Board at Hamilton Waitemata District Health Board at Auckland Whanganui District Health Board at Wanganui 'Normal Retirement Date' Participating Agreement means the age upon which a Member becomes entitled to payment of a superannuation benefit from a general government provided retirement income scheme. means the relevant Participating Agreement entered into between the Trustee and the relevant Employer. Page 19

20 Salary Salary Sacrifice means at any date the annual rate of gross salary or wages as received by a Member from an Employer, after inclusion of any allowances or overtime payments as determined by the Employer but exclusive of other allowances or payments (Excluded Payments) except to the extent that the Employer determines that any Excluded Payments from part of the Member s remuneration. In the event of any dispute over whether any payment is to be included as salary it shall be determined by the Employer whose decision shall be final. means an arrangement entered into between the Member and the Employer whereby the Member sacrifices all or part of their Salary and such amount is then paid as an Employer Contribution to a registered superannuation scheme. Such arrangement requires the consent of the Employer. What sort of investment is this? Any Dental or Medical Officer employed by a participating District Health Board may apply to join the Plan. Your Employer s plan will be known as NZ RDA Member Superannuation Plan (Fund). The Participating Agreement, established between the Trustee and your Employer was signed on 3 July How much do I pay? Member Contributions You are required to contribute 2% of your Salary from the Joining Date to the first anniversary of the Joining Date, 4% of your Salary from the first anniversary of the Joining Date to the second anniversary of the Joining Date and 6 % of your Salary from the second anniversary of the Joining Date onwards. Your contributions may be deducted from your Salary either weekly, fortnightly, or monthly. Member voluntary contributions If you wish, you may pay voluntary Contributions to the Plan either by: increasing your regular Contributions to a higher percentage of your Salary than the minimum amount (if choosing this option please advise your payroll to separate the regular amount and voluntary amount); and/or lump sum contributions at any time. Employer Contributions Your Employer is required to contribute a gross Contribution (before withholding tax) of 2% of your Salary from the Joining Date to the first anniversary of the Joining Date, 4% of your Salary from the first anniversary of the Joining Date to the second anniversary of the Joining Date and 6 % of your Salary from the second anniversary of the Joining Date onwards. Salary Sacrifice option Your Employer has established a provision for you to elect to credit some or all of your Salary over the $60,000 threshold to an Employer Special Purpose Account in your name. These Contributions are deemed to be Employer Contributions for the purposes of the Plan and attract superannuation scheme contribution withholding tax at 33%. Leave of Absence You are entitled to a period of absence of up to 24 months or longer with Trustee approval. Page 20

21 What are the charges? Trustee and Administration charges The Trustee is entitled to the following fees and expenses and to be reimbursed for certain costs incurred in carrying out its obligations. Type of Fee Amount of Fee Paid to Method of Payment Trustee Fees A maximum of $5,000 to establish the NZ RDA Member Superannuation Plan Participating Agreement An annual fee of $3,500 spread equally across all Members of the Fund TOWER Trust TOWER Trust Paid for separately by your Employer Paid in arrears on the last day of each quarter by deduction from all Employee's Employer Accounts, or if insufficient funds, from Member Accounts Administration Fees $8 per Member month; or $2,000 per annum, whichever is greater. TOWER By deduction from all Employee s Employer Accounts, or if insufficient funds, from Member Accounts. Fund Access Fee 0.20% for investing in any investment fund not managed by TOWER TOWER By deduction from all: Employee's Member Accounts; or Employer Accounts. All the above fees are included in the definition of the Trustee fee in the Trust Deed and the Trustee may increase any fees at 1 July each year, or such other date as agreed with TOWER by a percentage that does not exceed the percentage increase during the preceding year in the Consumer Price Index or such other equivalent measure determined by TOWER. The following fees apply if you choose to redirect your contributions from one investment fund to another or switch your investments from one investment fund to another. Type of Fee Amount of Fee Paid to Method of Payment Redirection The first redirection instruction per TOWER Either by deduction Instruction Fee annum is free with $50 charged from the Employee's for each subsequent redirection Member Account or instruction of future contributions Voluntary Account, as to another investment fund the Employee decides Switching Fee The first switch made between TOWER Either by deduction investment funds per annum is free. from the Employee's $100 for any other subsequent Member Account or switches made within a 12 month Voluntary Account, as period the Employee decides Page 21

22 Investment Management Fees The fees shown are gross annual fees expressed as a percentage of the gross value of the investment in each investment fund. The Trust Deed of the Plan limits the maximum investment management fee, including all costs and liabilities, that can be charged against the Employer s Fund to 1.5% per annum of the gross value of the Fund. Fund Manager Investment Fund Current Fee Charged TOWER TOWER Investment Linked Superannuation Fund TOWER Master Superannuation Trust Focus Cash Fund Focus Fixed Income Fund Focus NZ Share Fund Focus International Share Fund 0.75% Up to 0.08% for custodian and trustee fees 0.40% 0.55% 0.70% 0.95% Each investment fund may also charge up to 0.08% for custodian and trustee fees TOWER Capital Preservation Fund 0.50% TOWER ING (NZ) Limited ANZ Banking Group (New Zealand) Limited BNZ Investment Management Limited FuturePlan Growth Fund 0.80% SIL Mutual Fund SIL Balanced Fund 0.55% ANZFM Wholesale Superannuation Scheme ANZFM Balanced Fund BNZ Future Lifestyle Plan Capital Enhanced Fund Balanced Growth Fund Dynamic Growth Fund 0.65% A margin of 0.50% is added to the unit price in order to cover costs of entry into and exit from the fund 0.55% 0.80% 0.80% BT Funds Management (NZ) Limited BT New Zealand Investment Series Balanced Fund International Share Fund 0.65% 0.65% Each fund may charge up to 0.05% for trustee fees In addition to the above, a fund access fee of 0.20% per annum applies to all non-tower managed funds, with other amounts, as detailed in the prospectuses for the various investment funds, able to be charged as agreed upon between the trustee and the fund manager of the investment fund. Page 22

23 What returns will I get? Types of Benefits Retirement Benefit If you are eligible for a Retirement Benefit, you will receive the full balance of your Member Account and Employer Account. Resignation Benefit If you leave your Employer without qualifying for any other Benefit, you will be entitled to receive a resignation Benefit equal to the full balance of your Member Account and Employer Account. Redundancy or Ill Health Benefit If you leave employment due to redundancy or ill health (as certified to the Trustee by your Employer) you will be entitled to a redundancy or ill health Benefit equal to the full balance of your Member Account and your Employer Account. Dismissal for Misconduct If you are dismissed from employment for reasons of misconduct, dishonesty, theft or fraud or you resigned to avoid dismissal, you are entitled to the full balance of your Member Account and your Employer Account. Death Benefit If you die while in the employment of your Employer you will be entitled to receive the full balance of your Member Account and Employer Account. Your choice of Investments Conservative TOWER Focus Cash Fund Conservative Moderate BNZ Capital Enhanced Fund TOWER Capital Preservation Fund TOWER Focus Fixed Income Fund Moderate TOWER Investment Linked Superannuation Fund ANZFM Balanced Fund BNZ Balanced Growth Fund BT Balanced Fund ING SIL Balanced Fund Moderate Aggressive BNZ Dynamic Growth Fund TOWER Futureplan Growth Fund Page 23

24 Aggressive TOWER Focus NZ Share Fund TOWER Focus International Share Fund BT International Share Fund For more information on the investment funds above please see the investment fund descriptions attached to this Investment Statement. If you do not provide an investment direction, the Default Fund is the TOWER Capital Preservation Fund.. How do I cash in my investment? Partial withdrawals You have access to partial withdrawals. You may withdraw a minimum of $1,000 and a maximum of 50% of the total value of your Member Account once every 5 years. You may also withdraw the entire value of your Member Account, Voluntary Account or Employer Account and Employer Special Purpose Account (if any), if the Trustee is satisfied that you require the money as a result of: permanent emigration from New Zealand; financial hardship; your terminal illness (any illness which in the Trustee s opinion after consideration of medical evidence will result in your death within 12 months, regardless of treatment that might be undertaken); if there is a material change to the operation of the Plan which is considered to be material to your decision to invest in the Plan; or exceptional circumstances that the Trustee considers in its absolute discretion makes it inequitable not to permit payment of such moneys. The Trustee shall determine in its absolute discretion whether you are entitled to withdraw the funds. Withdrawals cannot be made if the Trustee considers that payment of such withdrawal would be prejudicial to the Plan or any Member of the Plan because the Government Actuary is of the opinion that the Plan is not a superannuation scheme operating in accordance with the Superannuation Schemes Act Page 24

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