This document is for permanent employees of BOC Limited. Retained and Spouse members should refer to their version of the Other information document. BOCSUPER
Contents 3 How super works 7 Your benefits in BOC Super 10 Fees and other costs 16 How super is taxed 19 If you leave the Company 21 Who runs BOC Super 23 More help 25 Some super terms explained This document, for members who are Permanent BOC Employees (Category A), forms part of the BOC Super Product Disclosure Statement for BOC Employees dated 25 October 2018. There is a separate Other information document for other members. Contact us BOC Super GPO Box 4303 Melbourne VIC 3001 1300 136 829 (03) 9245 5827 BOCSuperAdministration@mercer.com Important information This information should be read in conjunction with the other documents which form part of the Product Disclosure Statement (PDS). Information in the PDS is general information only and does not take account of your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances before making a decision about the product. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. Neither the Trustee, BOC Super nor BOC Limited (the Company) can provide you with financial advice. The Trustee can only provide factual information or general superannuation advice. Information contained in this document that is not materially adverse is subject to change from time to time and may be updated if it changes. Updated information can be found at. In addition, we will provide a hardcopy free of charge on request, by contacting the Helpline on 1300 136 829. Many people do not spend much time thinking about superannuation or retirement. While retirement may be a long way off, your superannuation is an important financial asset. For many people it is their largest asset at retirement aside from their family home. This alone is reason enough for you to take control of your superannuation. Issued by BOC Superannuation Pty Ltd ABN 83 080 598 821, AFS Licence No 287131 as Trustee of the BOC Gases Superannuation Fund ABN 49 620 344 668 (BOC Super). MySuper Authorisation number 49620344668116. 2
This section explains: z Company contributions z The Superannuation Guarantee z Contributions from other employers z Additional personal contributions z Making contributions before or after tax z Contributing by BPAY z Rolling over super from other super accounts z Splitting your contributions with your partner z Government co-contributions z Contributions if you work after age 65 z Preservation of super z Choice of fund Contributing to your super Contributions to your super account can come from a number of sources. Company contributions The total contributions made for you by the Company should be outlined in your terms of employment whether you are covered under an enterprise agreement or otherwise. Contributions vary between employees, particularly depending upon whether you are a permanent or casual employee. The Superannuation Guarantee The Government has passed legislation to make sure employers provide employees with at least a minimum level of superannuation contributions. This minimum level is known as the Superannuation Guarantee (SG). From 1 July 2014, it is an amount equal to 9.5% of your ordinary time earnings (OTE). All employees will be entitled to receive this as the minimum Company contribution. If you are not sure of the amount the Company contributes for you, ask your manager. Registered to BPAY Pty Ltd ABN 69 079 137 518 Contributions from other employers BOC Super will accept contributions from employers other than BOC, a facility allowing you to keep all of your super together in the Fund. This is useful for anyone with a second job. To use this facility, your employer needs to register online at as a new employer with BOC Super. They can then use the Super Pay facility, which generates information for the employer to arrange contributions to your super account via BPAY. Additional personal contributions You can also choose to make additional personal contributions if BOC Super has been advised of your Tax File Number (see page 16). Additional personal contributions can be a percentage of your after-tax salary and, in some cases, your before- tax salary. You can make personal contributions using income you gained from other sources. Your account can also accept contributions from your spouse (see Splitting your contributions with your partner on page 4). You can make personal contributions either via a regular payroll deduction or by lump sum payments by cheque (made out to BOC Super). The Lump sum contributions form is available from or you can ring BOC Super and request a copy. There is no minimum amount for personal contributions. However, the Government has set a maximum level of contributions you can make to superannuation each year without incurring an additional tax liability. (See Contribution limits on page 17). The maximum applies to your contributions to all superannuation funds, not just BOC Super. You may be able to contribute from your before-tax salary if this is provided for in your employment agreement. If you contribute from before-tax salary, these contributions are treated as employer contributions for tax purposes. Your before-tax income will be lower and the additional superannuation contributions will be paid by the Company on your behalf. You can reduce, increase or stop your additional contributions at any time (however, it is preferred that frequent changes are not made). Please ensure that the pay office receives reasonable notice. In this document, a reference to your employer, the Company or BOC means BOC Limited ABN 95 000 029 729 and reference to we or the Trustee means BOC Superannuation Pty Ltd. Contributions you make from after- tax salary for which you do not claim a tax deduction are non- concessional contributions. Employer contributions, personal contributions for which you claim a tax deduction and any contributions you make from before-tax salary are concessional contributions. The Government has annual limits on the amount of each type of contributions you can make which receive concessional tax treatment. See page 17 for details. 1300 136 829 3
Making contributions before or after tax There are advantages and disadvantages to making additional contributions from before-tax and after-tax salary. Depending on your income, if you make additional contributions from before- tax salary, you may pay less tax now but will be subject to benefits payment tax if you eventually take your benefit before age 60. Conversely, if you make after-tax contributions, you may pay more tax now but less if you take your benefit before age 60. Personal contributions for which you claim a tax deduction are generally treated in the same way as before-tax contributions. Benefits from both before-tax and after-tax contributions are tax-free after age 60. In addition, only after-tax contributions for which you do not claim a tax deduction are eligible for the Government co-contribution (see page 5). More details are provided in Contribution limits on page 17. You should also speak with a licensed, or appropriately authorised, financial adviser to work out which method best suits your particular circumstances. Contributing by BPAY You can make personal contributions to your BOC Super account at any time using BPAY. To arrange these, you should log in to your account at. You need to select Contributions and click on Contribute via BPAY. This will provide you with a Biller Code and Reference Number which you can use with your bank, credit union or building society to arrange payment by phone or internet. Please allow three days for your contributions to be processed. Rolling over super from other super accounts You can also transfer any other super benefits you may have from another regulated fund into BOC Super. This is called making a rollover. Any amount you transfer into BOC Super is paid into your account in BOC Super, and is characterised according to the type of amount it is (for example, it may be entirely a preserved amount, see Preservation rules on page 5). 4 BOC Super doesn t charge you to rollover money from other funds. You should, however, check if the other funds would charge you an exit fee to roll over your money into BOC Super and whether there would be any effect on insurance cover (or any other valuable benefits you might lose) in the other funds. If you want to make a rollover when you join BOC Super, please complete the Rollover (transfer) form included with this PDS. If you would like additional copies of the form, you can make a photocopy or go to the website and download a copy or ring the BOC Super Helpline (see page 2 for contact details). Once you have joined BOC Super, you can also arrange rollovers easily by accessing your account on BOC Super s website and making an online rollover request. Splitting your contributions with your partner With BOC Super, you can split employer and salary sacrifice superannuation contributions with your partner. The actual splitting of contributions can be done after the end of each financial year. Who can split contributions? You will normally be able to split contributions with your spouse or partner if you are a married or de facto couple (including same-sex couples) except if: z your partner is aged 65 or more z your partner has ceased employment with an employer since reaching age 60, or z your partner is between their preservation age (please refer to the table on page 6) and age 60 and has retired permanently from the workforce. A person is in a de facto relationship when they are not legally married to their partner but living with them on a bona fide domestic basis as a couple (including same-sex couples). Why split your contributions? Splitting enables partners to share their superannuation benefits. It may also improve the tax position for couples when they retire. Splitting contributions during your working life may allow you to make better use of the tax-free thresholds that apply to superannuation benefits paid at retirement between preservation age and age 60. For example, in 2018/19, each partner generally pays no tax on the tax-free component or the first $205,000 of the taxable component of their lump sum superannuation benefits. How does splitting work? You can elect to split your contributions once for a given financial year. You will need to make this election after the end of the financial year. You can split up to 85% (i.e. after deduction of contributions tax) of your concessional contributions, such as employer contributions and salary sacrifice contributions (these contributions are taxed at 15% when they enter the Fund). You cannot split your non-concessional (e.g. post-tax) contributions, the Government co-contribution, existing account balances or rollovers of existing account balances. If you are intending to claim a tax deduction for your contributions you should do this before lodging your splitting election. You cannot claim a tax deduction for contributions for which BOC Super has accepted your splitting election. The split contribution can be made into a BOC Super account held by your partner or into an account they have with another fund. If the split contribution is transferred into an account your partner has with another fund, you will be charged an exit fee (see Fees and other costs on page 10). Accessing split contributions The partner receiving the split contributions can only access these amounts from their superannuation account once they have met a condition of release, such as permanent incapacity, retirement or reaching age 65 (see pages 5 and 6 for more information about when benefits can be accessed).
How to split your contributions If you want to split your contributions with your partner, you can complete a Contribution splitting application form once a year for the previous financial year s contributions and return it to BOC Super. Low income super tax offset This scheme refunds the 15% contributions tax paid on concessional contributions for members earning less than $37,000 p.a. up to a maximum of $500 per year. If you qualify, the payment will normally be made directly to your super account by the ATO. The refund ranges from $10 to $500 a year. Government co-contributions Currently, if your income is up to $52,697* a year, you may be eligible for a Government co-contribution to your super. (Income for co-contribution purposes is your assessable income plus your reportable fringe benefits plus certain employer super contributions including salary sacrifice contributions.) If you are eligible, the Government will add up to $0.50 for every after-tax $1 you contribute to your super, with a maximum of $500 for people earning less than $37,697* per annum. The $500 maximum phases down by 3.333 cents for every dollar of income over $37,697* and reaches zero for incomes of $52,697* or more. The scheme is designed to encourage people to add to their super and help people on lower incomes save for retirement. If you meet the eligibility requirements, the Government co- contribution will normally be automatically added to your account by the ATO after processing your tax return and will appear on your next annual Benefit Statement. If you have any questions please contact BOC Super on 1300 136 829. * For the 2018/19 tax year and indexed annually. Contributions if you work after age 65 Company contributions If you are still working after age 65, the Company will maintain its SG contributions until your 75th birthday. Salary sacrifice contributions and any voluntary Company contributions agreed in your terms of employment can continue until your 75th birthday. You must be employed for at least 40 hours in any period of 30 consecutive days in the financial year to which the contribution relates. After your 75th birthday, the Company is permitted to contribute only amounts required under the SG legislation or the terms of any award or certified agreement that may apply. (Note that any award provisions that may relate to superannuation may change.) Your contributions If you are between age 65 and 70, you can continue to make additional personal contributions or your spouse can contribute for you provided you are employed at least 40 hours in any period of 30 consecutive days in the financial year to which the contribution relates. If you are between age 70 and 75, you can only make additional personal contributions provided you are employed at least 40 hours in any period of 30 consecutive days in the financial year to which the contribution relates. However, contributions from your spouse cannot be accepted past age 70. After your 75th birthday, BOC Super is not permitted to accept any contributions from you. Preservation of super Preservation rules For most of us, super is a long-term investment. The aim of the preservation rules is to ensure that superannuation benefits are kept for use in retirement. Generally, members cannot withdraw from BOC Super and receive cash benefits while employed at the Company, except for any money that has been rolled over into BOC Super and is unrestricted non-preserved. If any part of your benefit is affected by preservation you will not be able to take that part of your benefit as cash until you satisfy one of the conditions that allows your benefit to be paid in cash for example, you permanently retire after your preservation age see the table on page 6. Instead, you must retain that part of your benefit subject to preservation rules in BOC Super or another complying superannuation fund. However, the law permits certain payments to be made out of the preserved part of your benefit if you are suffering financial hardship or on compassionate grounds. From 1 July 1999, all contributions to superannuation (including any voluntary contributions you make) are preserved. Your latest Benefit Statement will show how preservation affects your benefit. 1300 136 829 5
If you receive a benefit from BOC Super, the preserved part of your benefit can generally be paid only if: z you retire permanently from the workforce after your preservation age (please refer to the table below) and the Trustee is satisfied that you intend never to work again more than 10 hours per week, or z you reach age 60 and either leave your employer after that date or the Trustee is satisfied that you intend never to work again more than 10 hours per week, or z you become permanently incapacitated* or die, or z you have a terminal medical condition**, or z in some circumstances, some or all of a preserved benefit may also be paid due to severe financial hardship* or on compassionate grounds*, or z any other event allowed under super law including, in some cases, permanent overseas departure for temporary residents. * You must meet the stringent definitions that are specified in the law to satisfy these grounds. ** A terminal medical condition exists if two registered medical practitioners (one of whom is a specialist practising in the area related to the illness or injury) have certified that you suffer from an illness or have incurred an injury that is likely to result in death within a period of not more than 24 months. No tax will be withheld from the lump sum benefit in this case even if you are under age 60 (see pages 16 to 18 for more information on tax). Date of birth Preservation age Before 1 July 1960 55 Between 1 July 1960 and 30 June 1961 Between 1 July 1961 and 30 June 1962 Between 1 July 1962 and 30 June 1963 Between 1 July 1963 and 30 June 1964 56 57 58 59 After 30 June 1964 60 Temporary Australian residents If you are a temporary Australian resident you may be able to access your super when you leave the country permanently. You will need to complete a form (the Application for a departing Australia superannuation payment for temporary residents) available from the ATO s website www.ato.gov.au. You can also complete an application online. You can send the form to BOC Super along with the required documentation (see the form for details of the documentation requirements). Tax will apply to the taxable component of any lump sum that you withdraw, regardless of your age. The rate of tax applied will be either 35% or 45% depending on whether the funds have been taxed in the Fund or not. If you were a working holiday maker, the taxable component of your benefit will be taxed at 65%. If you do not access all your super benefit within six months of permanently departing Australia, BOC Super may be required to pay your benefit to the ATO. If this occurs, you will need to contact the ATO directly to claim your super. Interest will only be applied to your super by the ATO in limited circumstances. For further information about eligibility to claim your super, how the payment will be taxed and the application process, go to the ATO website and put the words Temporary resident in the site s search engine. Choice of fund Government legislation requires that the Company pay its SG contributions to the complying superannuation fund of your choice (there are some exemptions). Commonly, if you do not choose a fund, the Company will make these contributions to its selected default fund, which in this case is BOC Super. If you are just starting with the Company, you should also have received a Standard Choice Form. The form indicates BOC Super as the Company s default fund but you can choose another fund if you wish. If you join BOC Super and subsequently decide to have your SG contributions paid to another fund, you will become a Retained member (provided your account balance is over $5,000), otherwise you will need to leave BOC Super. Your death and total and permanent disablement (TPD) insurance cover will continue automatically in the Retained Benefit section of BOC Super unless you choose otherwise, but your disability income cover will cease. The costs of your ongoing death and TPD cover will be deducted from your BOC Super account. You would also be able to apply for further additional voluntary death and TPD insurance cover which is available to BOC Super Retained members. If you choose another fund on starting employment with BOC, or if you remain employed by BOC and choose to leave BOC Super and then later re-join BOC Super, you will be required to complete a full health questionnaire before any insurance cover can be made available. For further information on how super works visit the ATO website at www.ato.gov.au. 6
This section explains: z How your account works z Your super benefit payments z Who receives your death benefit? z Family law and your super z Bankruptcy and your super z Super and housing How your account works Your account with BOC Super is an accumulation style account. This means that your account works much the same way as a bank account does. The contributions the Company makes for you, and any contributions you make, accumulate in an account held in your name (see Contributing to your super on page 3). Your money is invested into the investment option(s) that you nominate. If you do not nominate an option, your money is invested in the Fund s default option, which is the High Growth option* (see Making your investment choice in the Investment information leaflet available on the website at under Product Disclosure Statement Permanent employees on the Documents & forms page). Earnings are added if investment returns are positive, or deducted if returns are negative (see How your investment returns are calculated in the Investment information leaflet available on the website at under Product Disclosure Statement Permanent employees on the Documents & forms page). Fees and taxes (including the fees for any additional voluntary insurance) are deducted from your account (see Fees and other costs on page 10 and How super is taxed on page 16). You bear the investment risks that your account balance is subject to. For details on the investment risks, refer to the Investment information leaflet available on the website at under Product Disclosure Statement Permanent employees on the Documents & forms page). Your total account balance and how your money has been allocated to the investment options will be shown on your annual Benefit Statement. You can also access information about your account balance and investment allocations at any time at. Your super benefit payments How much will my benefit payment be? Your benefit payment will be a lump sum equal to your total account balance at the time of payment. This is shown on your annual Benefit Statement and is typically made up of the elements shown below: Employer contributions the amount that BOC Limited (or any other employer) contributes for you according to your terms of employment. These contributions should be at least in line with the requirements of the Superannuation Guarantee legislation plus Additional contributions (including rollovers you make to BOC Super), if any. Any additional contributions you make will normally increase the value of your retirement benefit. The amount you contribute will depend on your financial situation and your savings goals plus or minus Investment returns calculated on the net investment earnings of your investment option(s), which can be either positive or negative minus Tax any tax that has been deducted from your contributions and account balances minus Fees including any additional voluntary insurance fees When can I access my super benefits? When you leave the Company (e.g. by resigning, retiring or if you re retrenched), you will be entitled to a super benefit payment equal to your super account balance. However, based on Government regulations, most of your super will be preserved, which means you will usually not be able to access it until you retire after your preservation age (see Preservation rules on page 5). If you reach your preservation age, you may be able to access some of your super while you are still working by taking a Transition to Retirement pension. For details, refer to the BOC Super Pension Product Disclosure Statement available at or from the Helpline on 1300 136 829. If you are a temporary Australian resident you may be able to access your super when you leave the country permanently see Temporary Australian residents on page 6. * The High Growth option is the investment option for MySuper members. 1300 136 829 7
What additional benefits are paid if I die or become disabled? If you die before age 70 while you are a BOC Super member, you will be entitled to a super benefit payment equal to your super account balance plus any death insurance cover you are entitled to. If you become disabled before age 60 while you are a BOC Super member and you are a full-time or permanent part-time employee (i.e. a Category A member), you may be entitled to a monthly payment of up to 75% of your monthly salary while disabled. If you are a TRP employee, the maximum benefit is 75% of your monthly [TRP less employer super contributions]. For this purpose, you need to meet the definition of Disablement in the Trust Deed (see the Insurance Information leaflet available on the website at under Product Disclosure Statement Permanent employees on the Documents & forms page for more information). If you satisfy the definition of total and permanent disablement, (TPD) you will be entitled to a super benefit payment equal to your super account balance plus any TPD insurance cover you are entitled to and you will continue to be entitled to receive disability income benefits (if applicable) and have ongoing death insurance cover while you remain a member of BOC Super. Who receives your death benefit? Any death benefit will normally be paid to your dependants and/or your estate. BOC Super allows you to nominate your preferred beneficiaries and allows you to decide whether to make your nomination binding on the Trustee. By nominating your preferred beneficiaries, you advise the Trustee how your death benefit should be shared among them. If you prefer, or if you have no dependants, you can nominate your estate. A payment to your estate should mean distribution according to your will, or according to law if you do not have a will. 8 A binding nomination obliges the Trustee to pay your death benefit according to your stated wishes (provided the nomination is valid at the time of your death) regardless of your personal circumstances at the date of your death. Your nomination is valid for three years and must be witnessed by two adult witnesses who are not your beneficiaries. A non-binding nomination is not legally binding but will act as a guide for the Trustee, who will investigate your circumstances at the time of your death and take your wishes into account when it makes its decision. You can make a non-binding nomination of dependants online or by completing the Nominate your beneficiaries section on your Application for membership form. If you wish to make a binding nomination you should complete the separate Nominating your beneficiaries form available from the website or by calling BOC Super (see page 2 for contact details). Tax on death benefits A death benefit paid to a spouse or financial dependant is generally not taxed. Tax applies if payment is made to a non-dependant. See Your death benefit and tax on page 18 for more information. Updating your nomination of beneficiaries It is very important that you keep your nomination up to date if your circumstances change, for example as a result of a divorce, a new child or a marriage. Your nomination can be changed at any time online or by completing a new Nominating your beneficiaries form, which is available from BOC Super or at. What happens to my nomination if I change my membership category? If you change your membership category within BOC Super, for instance you become a Retained or Pension member, any nomination you have made will continue to apply. If you have made a binding nomination, it Who are your dependants? Dependants may include your spouse (including a de facto spouse or same-sex partner), child of any age (including a step child, adopted child, ex-nuptial child, child of your spouse, member s child born after the death of the member and someone who is a child of a person as defined in the Family Law Act 1975), and any other person who is wholly or partially financially dependent on you or in an interdependency relationship with you at the time of death (as defined in legislation) or who is or was a person with a right to look to you for financial support, whether enforceable by law or not. Generally, two people are in an interdependency relationship if they have a close personal relationship, live together, and one or each of them provides the other with financial support, domestic support and personal care. If the two people have a close personal relationship but do not meet the other criteria because either or both of them suffer from a disability they may still be regarded as having an interdependent relationship. Superannuation regulations allow super funds to treat same-sex partners the same as opposite-sex partners for super contributions and payments. The legislation means that a fund s governing rules can treat same-sex couples the same as married couples and opposite-sex de facto couples when paying death benefits. If you don t have any dependants at the date of your death, the Trustee will generally pay the death benefit to your estate. will need to be remade after three years to continue to be binding. You also need to ensure that it is valid see the leaflet, A guide to nominating your beneficiaries, available on the website at for details. You can update your nomination at any time as explained above.
Family law and your super Government legislation allows married and de facto couples (including same-sex couples) to make binding agreements or obtain Court orders from a relevant court (e.g. the Family Court) in respect of how each partner s super will be divided upon marriage or relationship breakdown. Your super benefit may need to be adjusted to reflect any agreements or Court orders that may be binding on the Trustee. Splitting super entitlements with your partner will also affect the preservation components of your super and may have tax consequences. You should seek professional advice as to the consequences of separation on your super. Under the Family Law Act, the Trustee is also required to provide certain information about a member s super benefit in BOC Super to eligible persons where the information is required to negotiate a superannuation agreement or to assist with a Court order. For the purposes of the Family Law Act, an eligible person means a member, the partner of a member or a person who intends to enter a superannuation agreement with the member. The Trustee may charge an activity fee when a request is made for actions to be taken under the Family Law Act in respect of your super benefit. Any current fees applicable are shown in Fees and other costs on page 12. Former spouse and BOC Super Your former spouse cannot become a member of BOC Super in their own right and their portion of the benefit must be transferred to another approved superannuation fund. Your former spouse will receive information that outlines their options prior to the splitting of the benefit. More information For more information about family law legislation and how it may affect your super, contact BOC Super. Bankruptcy and your super Any personal contributions to super made on or after 27 July 2006 (excluding the Company s minimum contributions) may be recoverable by creditors in the event of your bankruptcy if these contributions are demonstrated to have been made with the specific intention of defeating creditors. You will be advised if this affects you. Super and housing First Home Super Saver Scheme This scheme allows first home buyers to make voluntary concessional or non-concessional contributions to superannuation and later access some of the funds towards the purchase of your first home. Voluntary contributions made after 1 July 2017 qualify and withdrawals can be made from 1 July 2018. Up to $15,000 of voluntary contributions can be counted per year towards this scheme, up to a total of no more than $30,000 over all years. Contributions tax will be deducted by the Fund from any concessional contributions that are counted towards the scheme, so a maximum of 85% of those eligible contributions can be withdrawn. The ATO will also calculate an amount of earnings that can be withdrawn with the eligible contributions. To find out how much of your contributions and earnings can be released you can apply for a determination from the ATO. You can apply multiple times for a determination. There are a number of eligibility and other conditions that apply to this scheme. There are also rules around when you can apply to the ATO to withdraw the contributions and earnings and how long you then have to purchase your first home. You can only ever apply to the ATO once to release an amount under the scheme, so you should be sure you are ready and comply with all the conditions before you apply. The ATO will then calculate your earnings before authorising your super fund to release your funds. They will be paid by your super fund to the ATO, which will deduct relevant taxes and pay the remainder to you. You should also note that the ATO must have released your funds under the scheme before you sign the contract to purchase or build your first home, or else you may have to pay extra tax called a FHSS tax. The ATO estimates that it can take around 25 business days for you to receive your money after they approve its release. For more information, refer to the First Home Super Savers Scheme Fact Sheet on the website or contact the BOC Super Helpline (see page 2 for contact details). Contributing money from home sale to super Homeowners aged 65 and over are allowed to contribute some of the proceeds of the sale of their principal home into super. This is designed to encourage older people to downsize their homes. If you or your spouse have owned the home for at least 10 years you can make a downsizer contribution of up to $300,000 into your superannuation fund from the sale proceeds. Couples are able to transfer up to $600,000 into super. The contract of sale must have been exchanged on or after 1 July 2018. Eligible downsizer contributions will not count towards your annual non-concessional contribution cap and can be made even if you do not meet the work test (see page 5 for details). However, they will count towards the $1.6 million cap on the amount that can be held in pensions where earnings are exempt from tax. If the ATO determines that you were ineligible to make downsizer contributions or you exceed the $300,000 cap, your contributions will count as personal contributions, which may result in you exceeding your non-concessional contribution cap. The contributions also count towards your total superannuation balance, which may affect whether you can make non-concessional contributions in future years. Other conditions also apply. To make downsizer contributions you need to complete a Downsizer contribution into superannuation form available on the website. For more information, contact the BOC Super Helpline (see page 2 for contact details). 1300 136 829 9
This section explains: z Fees and other costs z Example of annual fees and costs z Additional explanation of fees and costs z Fee definitions CONSUMER ADVISORY WARNING DID YOU KNOW? Small differences in both investment performance and fees and costs can have a substantial impact on your long term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30 year period (for example reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You or your employer, as applicable, may be able to negotiate to pay lower fees. Ask the fund or your financial adviser. TO FIND OUT MORE If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.moneysmart.gov.au) has a superannuation calculator to help you check out different fee options. Note: this is a Government-prescribed Consumer Advisory Warning. BOC Super is a not-for-profit fund. Fees are not negotiable. Fees and other costs This section shows fees and other costs that you may be charged. These fees and other costs may be deducted from your money, from the returns on your investment or from the Fund assets as a whole. Other fees, such as activity fees, advice fees for personal advice and insurance fees for voluntary insurance, may also be charged, but these will depend on the nature of the activity, advice or insurance chosen by you. You can find more about tax in How super is taxed on page 16. BOC Super does not charge fees for standard death, TPD and disability income cover for permanent employees. Refer to the Insurance information leaflet available on the website at under Product Disclosure Statement Permanent employees on the Documents & forms page for details of the fees for additional voluntary insurance. You should read all the information about fees and other costs because it is important to understand their impact on your investment. The fees and other costs for BOC Super s High Growth option, which is the investment option for MySuper members, and each of the other investment options are set out on pages 11 to 14. 10
Type of fee Amount How and when paid Investment fee Administration fee Buy-sell spread A percentage-based investment fee that depends on the investment option(s) selected. The fee for each investment option is: Option Range Expected fee Aggressive Growth High Growth (MySuper) Low Growth Cash Plus 0.60% 0.64% p.a. ($6.00 $6.40 per $1,000) 0.64% 0.68% p.a. ($6.40 $6.80 per $1,000) 0.51% 0.55% p.a. ($5.10 $5.50 per $1,000) 0.13% 0.15% p.a. ($1.30 $1.50 per $1,000) 0.62% p.a. ($6.20 per $1,000) 0.66% p.a. ($6.60 per $1,000) 0.53% p.a. ($5.30 per $1,000) 0.14% p.a. ($1.40 per $1,000) A flat amount of $124.08 ($2.38 per week) (indexed to Average Weekly Ordinary Time Earnings annually on 1 July) plus A percentage based fee of 0.2% p.a. ($2.00 per $1,000) of your account balance (up to a maximum account balance of $500,000). Option Buy-sell spread Aggressive Growth 0.20% High Growth 0.15% Low Growth 0.10% Cash Plus Nil The percentage-based investment fees are not deducted directly or separately from your account. The expected fee is an estimate and fees deducted are determined daily based on the actual asset allocation of each option. They are deducted proportionately from the investment earnings of each investment option prior to determining the crediting rate for that investment option. The flat amount is paid by BOC and is not deducted from your account. The percentage-based fee is also paid by BOC and is not deducted from your account. If you are depositing or switching money, the buy-sell spread is deducted from your BOC Super account. It is a percentage of the money being moved based on the option your money is moving to. Switching fee Exit fee The first switch in any financial year is free. The fee for each additional switch is $62.31 per switch. $179.14 (indexed to Average Weekly Ordinary Time Earnings each 1 July). Advice fees 1 Nil Not applicable. Other fees and costs Activity fees may apply 2. Indirect cost ratio Option Indirect cost ratio Aggressive Growth 0.04% p.a. ($0.40 per $1,000) High Growth 0.18% p.a. ($1.80 per $1,000) Low Growth 0.11% p.a. ($1.10 per $1,000) Cash Plus Nil 1 Relating to all members investing in a particular MySuper product or investment option. 2 Activity fees and insurance fees may apply (see Additional explanation of fees and costs on page 12). The switching fee (if applicable) is deducted from your BOC Super account if you change investment options. This fee is deducted from your account when you withdraw or transfer money out of BOC Super. You pay this fee if you: z rollover benefits into a fund other than BOC Super z make a full or partial withdrawal of benefits, or z split your contributions with your partner into a non-boc Super account. This fee does not apply to transfers between any BOC Super accounts held by you or your partner. Deducted proportionately from investment earnings prior to determining the crediting rate for that investment option. The amount shown is an estimate. 1300 136 829 11
Example of annual fees and costs The table gives an example of how the fees and costs for the High Growth option for this product can affect your superannuation investment over a one-year period. You should use this table to compare this product with other superannuation products. EXAMPLE High Growth option* BALANCE OF $50,000 Investment fees 0.68% p.a.** For every $50,000 you have in the superannuation product you will be charged $340 each year** PLUS Administration fees PLUS Indirect costs for the High Growth option EQUALS Cost of product $124.08 ($2.38 per week) plus 0.2% p.a. of account balance (up to a maximum account balance of $500,000) And, you will be charged $124.08 in administration fees regardless of your balance plus a further $100 each year for every $50,000 you have in the superannuation product (up to a maximum account balance of $500,000)*** 0.18% p.a. And, indirect costs of $90 each year will be deducted from your investment If your balance was $50,000, then for that year you will be charged fees of $654.08 for the superannuation product.**** # * The High Growth option is the investment option for MySuper members. ** The top of the range fee is required to be quoted. (Refer to pages 10 to 13 for more details.) *** Administration fees are paid for you by BOC and are not deducted from your account. **** As an Employee member, the fees that would apply to you in the example above are the investment fee of up to $340 and the indirect cost of $90 as the administration fees are paid by BOC. BOC Super is a not-for-profit fund. Fees are not negotiable. # Additional fees may apply. And, if you leave the Fund, you may also be charged an exit fee of $179.14 and a buy-sell spread which also applies whenever you make a contribution, rollover or investment switch. The buy-sell spread for exiting is 0% (this will equal to $0 for every $50,000 you withdraw). Additional explanation of fees and costs Investment fees The investment fees are the fees charged by investment managers for managing the assets in each investment option and may vary from time to time. The fees are influenced by factors such as the performance of the investment managers and the asset balances being managed by them. These fees are calculated as a percentage of your account balance. The investment fee does not include indirect costs or transactional and operational costs. Investment fee percentages are inclusive of GST after taking into account any expected tax credits or reduced input tax credits. The investment fee percentages shown are rounded to two decimal places, but in practice the rates are calculated and applied at more than two decimal places. The investment fees have been estimated based on the current fees being levied by the investment managers of the investment portfolios intended to underlie the relevant investment option(s). 12 Indirect cost ratio As noted on page 15, the indirect cost ratio of each investment option is the ratio of the indirect costs attributable to that option to the average net assets invested in that option. It is deducted proportionately from investment earnings prior to determining the crediting rate for that investment option which is applied to your account. Indirect costs include certain transactional and operational costs, such as explicit transaction costs and the costs of over the counter derivatives, and performance-related costs incurred in the previous financial year. Indirect costs are reduced by the buy-sell spreads charged to members. Buy-sell spreads In addition to the investment fees shown above, certain costs are also incurred by the Fund s investment managers when they buy and sell investments. New investments may be bought when contributions or rollover amounts are paid into the Fund and existing investments may be sold when members benefits are paid from the Fund. Investments may also need to be bought and sold when a member switches from one investment option to another. To cover these costs, the Fund applies buy-sell spreads which are shown on page 11. They apply when you make contributions, roll money into the Fund or change investment options. The buy-sell spread that applies to any transaction is the one for the investment option that your money is going into. Any buy-sell spread is in addition to the switching fee which also applies when you change investment option (excluding the first switch in any financial year). For example, if you re depositing or switching money into the High Growth option the buy-sell spread is 0.15% (regardless of where the money comes from). The buy-sell spread may be varied depending on the underlying assets in each investment option and the current rates are shown in the table on page 11. Note that the buy-sell spreads for the Aggressive Growth and High Growth options are higher than the others. This is because the Aggressive Growth and High Growth options have a greater investment in property and shares than the other options and these investments have higher buying and selling costs.
1 Switching 2 Depositing 3 Withdrawing Examples funds between investment options If you request that $1,000 be transferred from the Low Growth option to the Aggressive Growth option then the Aggressive Growth buy-sell spread will apply. Deduction from your account balance in the Low Growth option $1,000.00 Less buy-sell spread = 0.20% x $1,000 = -$2.00 Deposit into the Aggressive Growth option $998.00 funds into BOC Super If you currently have $65,000 in your account in the High Growth option and make a pre-tax contribution of $1,000 into BOC Super and request it be invested in the High Growth option, then the High Growth buy-sell spread will apply. Opening account balance = $65,000.00 Plus further pre-tax contribution = $1,000.00 Less contributions tax = 15% x $1,000 = -$150.00 (i.e. net contribution is $850.00) Less buy-sell spread = 0.15% x $850.00 = -$1.28 New account balance = $65,848.72 As illustrated in this example, the buy-sell spread only applies to the new contribution (net of tax). funds from BOC Super No buy-sell spread applies if you withdraw your money from BOC Super, regardless of which investment option your money is in. However, an exit fee will be deducted from the amount you request to be withdrawn. Transactional and operational costs These costs are incurred by the Fund and its investment managers, and may include brokerage, settlement and custody costs, market impact and bid/ask spreads, property operating costs, clearing costs, costs associated with currency hedging and stamp duty on investment transactions. These additional fees are only charged on the portion of the assets of the relevant investment option held by the manager. Part of these costs is recovered by the buy-sell spread charged when you switch investment options. Transactional and operational costs related to explicit transaction costs (eg brokerage and settlement costs) and over the counter derivative costs are included in the indirect cost ratio. Implicit transaction costs (eg bid/ ask spreads) make up the estimated transactional and operational costs (net of indirect costs) for each investment option shown in the table on page 14. All costs are based on the amount of these costs incurred by the Fund or its investment managers during the financial year prior to the date of this PDS. Borrowing costs and direct property operational costs In accordance with ASIC relief, these costs have been excluded from the investment fees and indirect costs disclosed in this PDS. Borrowing costs may be incurred by the Fund s investment managers and relate to the use of credit facilities that are not derivatives by the managers. Direct property operational costs include rates and utilities, maintenance costs and other property operations costs to the extent that the costs are not recouped from tenants. These costs are calculated based on the amount of those costs incurred in the previous financial year, and represent an additional cost to you. See the table on page 14 for the amounts of these costs for each option. These amounts are estimates. These costs are deducted from the investment earnings of each investment option prior to determining the crediting rate for that option. Fee and cost changes All fees and costs are current as at the date of this PDS unless otherwise noted and may be revised or adjusted by the Trustee from time to time. We may also introduce new fees. We will notify you of changes to fees and costs according to the time required by law, which is generally not less than 30 days prior to any increased or new fee. Change to fees if you leave BOC If you leave BOC and do not advise BOC Super of your intention to roll your benefit out, your benefit will automatically be transferred to either: z the Retained member category of BOC Super (Category C) if your benefit is $5,000 or over (see Keep your money in BOC Super as a Retained member on page 19 or the Product Disclosure Statement for Retained members), or z after 90 days, to our Eligible Rollover Fund (ERF) if your benefit is under $5,000 (see page 19). If your benefit is transferred to the ERF, a different fee structure to that detailed in this PDS applies. You will be able to roll out of the ERF with no exit fees. Call the ERF (see page 19) for information on its fee structure. 1300 136 829 13