Your super when you leave your job. Issued July 2017 by UniSuper Limited ABN , AFSL Nadia Radice, University of South Australia

Your super when you leave your job Issued July 2017 by UniSuper Limited ABN 54 006 027 121, AFSL 492806 Nadia Radice, University of South Australia

Prepared by UniSuper Management Pty Ltd (ABN 91 006 961 799, AFSL No. 235907) on behalf of UniSuper Limited, ABN 54 006 027 121, AFSL No. 492806, the Trustee of UniSuper (ABN 91 385 943 850). UniSuper Management Pty Ltd is the Administrator of the Fund and is licensed to provide financial advice, which is provided under the name of UniSuper Advice. UniSuper s MySuper authorisation number is 91385943850448. This information is of a general nature only and includes general advice. It has been prepared without taking into account your individual objectives, financial situation or needs. Before making any decision in relation to your UniSuper membership, you should consider your personal circumstances, the relevant product disclosure statement (PDS) for your membership category, and whether to consult a qualified financial adviser. To obtain a copy of the PDS relevant to your membership category, visit unisuper.com.au/pds or contact us on 1800 331 685. UniSuper Advice is a service dedicated to UniSuper members and their spouses which is provided by UniSuper Management Pty Ltd, the entity licensed to provide financial advice. For more information about UniSuper Advice or to download the Financial Services Guide, please visit unisuper.com.au/advice. For any further enquiries, please contact 1800 331 685. We ve heard you re moving on Whether you re staying within the higher education or research sector, changing careers or leaving work altogether, we know you ve got a lot going on right now. So your super s probably the last thing on your mind. This booklet helps make the decision of what to do with your super easier. The good news is no matter what your next move, you can always stay with UniSuper and continue to enjoy the benefits of being with one of Australia s leading super funds. PROPOSED CHANGES TO SUPER: FEDERAL BUDGET 2017 The 2017 Federal Budget included several announcements related to super. At the time of preparation, none of these proposals have been legislated. You can read more about Budget proposals affecting super at unisuper.com.au/budget-2017. If you re thinking about making a change to your super, we encourage you to consider the proposed changes and to seek advice from a qualified financial adviser. You can contact UniSuper Advice on 1800 UADVICE (1800 823 842).

Contents Defined Benefit Division (DBD) 13 Accumulation 2 23 Accumulation 1 25 WHERE TO BEGIN? We suggest you start with the section that relates to the UniSuper product you currently have. The front and back sections give you some useful information about UniSuper, including a glossary of common terms on pages 11 and 12. NOT SURE WHICH UNISUPER PRODUCT YOU HAVE? If you re not sure which UniSuper product you have, check the welcome pack you received when you first became a UniSuper member, or your latest benefit statement. Both of these list the product you re in (also known as your membership category ).

3 Staying with UniSuper Now that you re in, you re welcome to stay. In fact, you can stay with us as long as you like. That s because when you joined UniSuper, you entered a partnership that can continue for life. So no matter where your future takes you, you can always rely on us to help you build and manage your super.

Your super when you leave your job STAYING WITH UNISUPER 4 When you leave your job, your employer will stop making compulsory super contributions into UniSuper for you. What happens to your super account depends on which UniSuper product you have. Unless you instruct us otherwise, your super will stay in UniSuper which means you will continue to enjoy the benefits of being a UniSuper member. By remaining a UniSuper member you can: continue contributing to UniSuper 1 A A defer your defined benefit component if you re in the DBD (see page 14 for what it means to defer) nominate UniSuper as the fund to receive your future compulsory employer contributions (as long as your new employer offers you Choice of Fund see pages 5 and 6) transfer any other super you may have into UniSuper start a UniSuper pension (if you re eligible) access our many features and benefits (see pages 8 to 10). Alternatively, you may choose to transfer your benefit to another fund altogether. What s best for you depends on your personal circumstances, financial needs, and goals. You can find out more about your options in the section relevant to your UniSuper product. Leaving your job because of illness or injury? If you ve left your job due to illness or injury, you may be eligible to claim a disablement benefit. Please note: if you re eligible, you need to claim the disablement benefit promptly after leaving your job or you may not be able to claim that type of benefit later. Please contact us immediately on 1800 331 685 for more information. WEHI SUPER FUND MEMBERS If you re a UniSuper member whose benefits were transferred from the former Walter & Eliza Hall Institute (WEHI) of Medical Research Superannuation Fund, your membership is subject to special conditions and some of the material in this booklet may not apply to you. We recommend you contact us on 1800 331 685 for details of the special conditions that apply to you. 1 For members aged 65 or older, some restrictions (known as the Work Test ) apply to the types of contributions we can receive. There are also limits on the amount you can contribute to your super. Read about the Work Test and contribution caps at unisuper.com.au/glossary or call us on 1800 331 685 to find out more.

5 Nominating UniSuper as your chosen fund Under Choice of Fund legislation, many employees can nominate the super fund into which their compulsory Superannuation Guarantee (SG) contributions are paid. Eligibility depends on your terms of employment.

Your super when you leave your job NOMINATING UNISUPER AS YOUR CHOSEN FUND 6 Choice of Fund isn t available to employees under certain types of industrial agreements or awards (which specify which super fund employer contributions must be paid into). This applies to most employees in the higher education and research sector. However, if you re eligible for Choice of Fund, you can nominate UniSuper as your chosen fund. Simply complete a Super Choice Fund nomination form and provide it to your new employer within 28 days of starting your new job. This form and the Trustee Compliance Letter, contain all the information your new employer needs in order to contribute to UniSuper on your behalf. Both the form and letter are enclosed in this booklet. You can also: download the Choice of Fund Kit from the Forms and Documents section of our website. call us on 1800 331 685 to request a copy. What happens if UNISUPER IS YOUR NEW EMPLOYER S DEFAULT SUPER FUND? If UniSuper is your new employer s default super fund, all you have to do is advise your new employer of your existing UniSuper member number. They can then automatically pay your contributions into your existing UniSuper account. UNISUPER IS NOT YOUR NEW EMPLOYER S DEFAULT SUPER FUND, BUT YOU ARE ELIGIBLE FOR CHOICE OF FUND? If UniSuper isn t your new employer s default super fund but you are eligible for Choice of Fund, you can nominate UniSuper as your chosen fund for your new employer to contribute to. UNISUPER IS NOT YOUR NEW EMPLOYER S DEFAULT SUPER FUND AND YOU ARE NOT ELIGIBLE FOR CHOICE OF FUND? If you re not eligible for Choice of Fund with your new employer, your future Super Guarantee (SG) contributions will be made to another super fund. However, you can still transfer the super you accrue in your other super fund into your UniSuper account. Contact your other fund for details on how to transfer your super contributions to your UniSuper account.

7 Your super when you leave your job FUND PERFORMANCE

8 Benefits of being a UniSuper member Since 1983, UniSuper has been Australia s only super fund dedicated to higher education and research sector professionals. We re proud to offer competitive fees, high quality products and services, and a diverse range of investment options to fulfil the super and retirement needs of our members. Why stay with UniSuper? 1 A RECORD OF STRONG LONG-TERM INVESTMENT PERFORMANCE Investing your money well to achieve greater retirement outcomes is at the heart of what we do. It s because we know strong investment returns helps you reach your retirement goals sooner. You can rely on our in-house investment team recognised to be one of the best in Australia and experience, to manage your money wisely. That s why our Accumulation Balanced option where most of our members invest has delivered consistently strong returns for the past 10 years.* Stay with us and feel more confident about your financial future. 2 VALUE FOR MONEY We re a large value-for-money fund offering competitive fees. All our profits go to our members or are reinvested to improve our products and services. We don t pay commissions to our financial advisers and we don t pay dividends to external shareholders. 3 COMPETITIVE FEES As a UniSuper member, you won t be charged: A any entry or withdrawal fees A make each financial year A A A for the first investment option switch you A for selecting your own mix of investment options when you first join UniSuper A for changing the options your future contributions or transfers are invested in. Our fees are often among the most competitive in Australia for an industry super fund (refer to See for yourself on page 9). * Past performance is not an indication of future performance. For our Balanced option 10 year performance results see www.superratings.com.au. SuperRatings does not issue, sell, guarantee or underwrite UniSuper products.

9 Your super when you leave your job BENEFITS OF BEING A UNISUPER MEMBER 4 EXCLUSIVE MEMBERSHIP We specialise in super for people who work in higher education and research, just like you. And you can choose to stay with us right through to retirement and beyond even if you leave the sector. 5 CONTROL AND CHOICE OVER YOUR INVESTMENTS Everyone has different needs and preferences, so it s good to know you have the flexibility to tailor your own investment strategy or leave it to our team of experts. Find out more about our investment options, including suggested investing timeframes and the types of assets we invest in, by reading How we invest your money at unisuper.com.au. 6 QUALITY FINANCIAL ADVICE With UniSuper Advice, you can feel confident that you ll get the information you need to grow your super and other finances, from an organisation you know and trust. Our advisers offer financial plans and advice on super as well as a broad range of insurance, investment and retirement strategies and products. Plus you ll benefit from their knowledge of the unique workings of UniSuper products as well as the industry you work in. To find out more about what UniSuper Advice can do for you, see pages 27 and 28. SEE FOR YOURSELF Don t just take our word for it. See how our fees and investment returns for our Accumulation 1 and Accumulation 2 accounts stack up against other funds using the Chant West Apple Check tool via MemberOnline (which you can access at unisuper.com.au/memberonline).

An award-winning super fund With a string of awards and high ratings from top Australian ratings agencies SuperRatings, Chant West and Selecting Super, we re one of Australia s most award-winning super funds. Chant West awarded UniSuper Super Fund of the Year in both 2015 and 2016, and Pension Fund of the Year in 2017. UniSuper was also awarded Best Fund: Advice Services in 2017. UniSuper s Accumulation 2 product has received a 5 Apples rating. For information about the methodology used, see www.chantwest.com.au. Chant West has consented to the inclusion in this document of the references to Chant West and the inclusion of its logos in the form and context in which they are included. SuperRatings, a superannuation research company, has awarded UniSuper a Platinum Choice rating for its accumulation products, something only the best value for money funds receive. Our Accumulation products have also achieved a 10-year Platinum Performance rating. Go to www.superratings.com.au for details of its rating criteria. SuperRatings doesn t issue, sell, guarantee or underwrite this product. SuperRatings has consented to the inclusion in this document of the references to SuperRatings and the inclusion of its logos in the form and context in which they are included.

11 Important definitions Here are the meanings of terms commonly used in this booklet. ACCUMULATION 1 An accumulation-style account in which your super balance accumulates through contributions, transfers from other funds, and investment returns. ACCUMULATION 2 An accumulation-style account in which your super balance accumulates through contributions, transfers from other funds, and investment returns. Employer contributions to your Accumulation 2 account are generally 14% or 17%, and you re also required to make member contributions (although you may be able to choose to reduce your contributions). ACCUMULATION COMPONENT An accumulation-style component of Defined Benefit Division (DBD) accounts that is made up of 3% additional employer contributions (if these apply) and any voluntary contributions you make as well as transfers from other funds. The value of this component is not determined by a formula, but by the performance of your investment options. For more information, see the Defined Benefit Division and Accumulation 2 Product Disclosure Statement. CHOICE OF FUND Superannuation legislation that allows eligible employees to nominate which super fund their employer pays compulsory Superannuation Guarantee contributions into on their behalf. CONTRIBUTING MEMBER You stop being a contributing member in the DBD or Accumulation 2 if you stop working for a UniSuper participating employer, or your employment conditions change and you re no longer eligible for employer contributions of either 14% or 17%. DEFINED BENEFIT COMPONENT The part of your Defined Benefit Division (DBD) benefit that s calculated in accordance with the defined benefit formula. For more information, see the Defined Benefit Division and Accumulation 2 Product Disclosure Statement.

12 DEFINED BENEFIT FORMULAS The defined benefit component of your benefit is based on formulas that take into account a number of factors and vary depending on when you joined the DBD. For more information on the DBD formula that applies to you, refer to your latest benefit statement or call us on 1800 331 685. FUTURE CONTRIBUTIONS STRATEGY As a UniSuper member, you can choose which investment option(s) all future contributions to your accumulation account/component are invested in. This is known as a future contributions strategy, and it can be different from the investment options you ve selected for your existing account balance. INBUILT BENEFITS Benefits that are provided to DBD members by UniSuper, not an external insurance provider. They are payable on disablement, temporary incapacity, terminal medical condition and death. You cannot opt out of these benefits. LUMP SUM A benefit payable as cash rather than as an income stream (e.g. a pension). A lump-sum benefit can include a taxable component and tax-free component. MEMBER CONTRIBUTIONS Contributions paid by you. DBD and Accumulation 2 members are generally required to make standard member contributions of 7% of salary (if paid on an after- tax basis). However, you can reduce your standard member contributions under UniSuper s contribution flexibility requirements. To find out more, see the Contribution flexibility fact sheet and application forms, which are available at unisuper.com.au or by calling 1800 331 685. NOTIONAL TAXED CONTRIBUTION (NTC) A notional amount of contributions that relate to a DBD member s defined benefit component and count towards a member s concessional contributions cap. OPTION PERIOD The period during which a DBD member who has ceased to be a contributing member of the DBD has to elect whether to defer their defined benefit component or transfer it to Accumulation 1. Your option period commences on the date you stop being a contributing member to the DBD and ends on the latter of a) the 90th day after you cease to be a contributing member, or b) the 30th day after we write to you about your options. PARTICIPATING EMPLOYER An employer who has signed a participation agreement with UniSuper. To find out if your employer is a UniSuper participating employer, call us on 1800 331 685. UNISUPER TRUST DEED AND REGULATIONS The rules and regulations for the establishment and operation of the UniSuper Fund. TRUSTEE The body that is responsible for managing the UniSuper Fund in accordance with superannuation law and the Fund s governing rules.

A A... 13 Defined Benefit Division members If you re a Defined Benefit Division (DBD) member, you generally must decide what to do with your defined benefit component within 90 days of leaving your employer. What if you don t make a decision? If you don t elect to defer your defined benefit component within the option period, your defined benefit and accumulation components will be converted into a lump sum and transferred to an Accumulation 1 account, provided you haven t already recommenced as a contributing member of the DBD. The meaning of common terms used in this section are explained on pages 11 and 12. Your options In most cases, your defined benefit has two components a defined benefit component and an accumulation component. 4 During your option period you can: defer your defined benefit component in the DBD, or transfer your defined benefit component to an Accumulation 1 account. You might also be eligible to access your benefit. To find out more, refer to page 29. Before you make a decision regarding your defined benefit component, you should consider obtaining advice from a qualified financial adviser to help determine the right option for you. It s important to consider your options carefully as your decision could impact your future retirement benefit.

Your super when you leave your job DEFINED BENEFIT DIVISION MEMBERS 14 You should also consider the funding risks associated with defined benefits (see page 17) as well as the investment risks associated with accumulation benefits (see page 18). WHAT IT MEANS TO DEFER YOUR DEFINED BENEFIT If you elect to defer your defined benefit component in the DBD within the option period, your defined benefit component will remain in the DBD and you will become a deferred DBD member. 5 Your defined benefit will continue to accrue, even if you don t receive any employer contributions, but the rate of accrual is likely to be significantly lower than it was while you were a contributing member. If you start a new job with a UniSuper participating employer within the option period and are eligible for DBD membership with your new job, you will continue to be a DBD member so long as you a) haven t already transferred your defined benefit component to Accumulation 1, or b) claimed your benefit. 4 To see how the components work, refer to the Defined Benefit Division and Accumulation 2 Product Disclosure Statement available from unisuper.com.au. 5 If you elect to defer, you can request to transfer your benefit to an Accumulation 1 account at any time.

15 Your super when you leave your job DEFINED BENEFIT DIVISION MEMBERS

Your super when you leave your job DEFINED BENEFIT DIVISION MEMBERS 16 WHAT HAPPENS IF YOU DEFER YOUR COMPONENT IN THE DBD If you elect to defer your defined benefit component: you ll maintain your membership in the DBD, which may be useful if you are planning to work in a role which allows you to join the DBD in the future. your defined benefit will increase in line with inflation, as measured by the Consumer Price Index (CPI), and age-related factors. However, depending on the date you joined the DBD, during deferral your benefit may increase at a rate slightly lower than inflation because of the effect of the Average Service Fraction (ASF) on your benefit formula. your defined benefit component will generally be protected from investment market volatility, subject to risks associated with defined benefits and Clause 34 of UniSuper s Trust Deed (see page 17). if you joined the DBD prior to 1 July 1998 and have continuously been a DBD member since then, you ll still be eligible to purchase a Defined Benefit Indexed Pension. 6 BECOMING A CONTRIBUTING DBD MEMBER AFTER DEFERRING If you defer your defined benefit component and are later employed in a role where you re eligible to join the DBD, you ll again become a contributing member of the DBD. Your deferred benefit component will cease to be deferred and will again accrue at the rates applicable to a contributing member. WHAT IT MEANS TO TRANSFER TO ACCUMULATION 1 If you elect to transfer your defined benefit component (together with your accumulation component) to an Accumulation 1 account 7, it will be converted to a lump sum in accordance with the applicable defined benefit formula before being transferred. 8 In the period between ceasing to be a contributing member of the DBD to the date of processing the transfer to Accumulation 1, your defined benefit will generally continue to accrue in the same way it would have if you chose to defer your defined benefit component in the DBD. 9 Here s an example of how a transfer from the DBD to Accumulation works: 6 If you elect to convert your defined benefit component into an accumulation benefit and transfer it to Accumulation 1, you will no longer be eligible for a Defined Benefit Indexed Pension. 7 For more information on Accumulation 1, see the Accumulation 1 Product Disclosure Statement (PDS). The PDS includes information about MySuper. If you transfer to Accumulation 1, any part of your account held in the Balanced investment option will form part of our MySuper offering. 8 The defined benefit formula used to calculate the lump sum depends on a number of factors and when you joined the Fund. For more information, refer to your latest benefit statement. Your final DBD calculation will be produced once we receive final contributions from your employer and confirmation of your termination date. This process may take some time depending on your employer s payroll and administration systems. 9 Different rules apply if you elect to receive part of your defined benefit component as a Defined Benefit Indexed Pension.

17 Example: Bob s leaving service/retirement benefit Bob is 61 years old and stopped working on 30 June 2017. He has been a UniSuper member for 10 component and 3% to his accumulation component. His three year Benefit Salary is $55,000, his service benefit will be made up of the sum of his defined benefit component and his accumulation BOB S LEAVING SERVICE BENEFIT AT 30 JUNE 2017* As Bob worked full time with the same employer, his average service fraction (ASF) is 100% at 30 June 2017. Having always made 7% standard member contributions, Bob s average contribution factor (ACF) is 100%. $55,000 THREE YEAR BENEFIT SALARY 7.5 BENEFIT SERVICE BEFORE 1 JANUARY 2015 22.2% LUMP SUM FACTOR 100% AVERAGE SERVICE FRACTION 100% AVERAGE CONTRIBUTION FACTOR BOB S RETIREMENT BENEFIT AT 30 JUNE 2018 AFTER ONE YEAR IN DEFERRAL* If Bob elected to defer his benefit on 30 June 2017 and remains in deferral for one year, his retirement benefit at 30 June 2018 is calculated using: A his three year and five year benefit salary at 30 June 2017 increased by one an updated Lump Sum Factor as he is one year older, and A an extra year s Benefit Service with 0% service fraction (which gives an ASF of A A year of CPI (assuming CPI of 2.1%). 90.91%). The effect of being in deferral for one year on Bob s retirement benefit is shown in the following example. $56,155 THREE YEAR BENEFIT SALARY 7.5 BENEFIT SERVICE BEFORE 1 JANUARY 2015 22.4% LUMP SUM FACTOR 90.91% AVERAGE SERVICE FRACTION 100% AVERAGE CONTRIBUTION FACTOR * The formula for a leaving service/retirement benefit varies depending on the date you joined the DBD.

18 years and is receiving 17% employer contributions, with 14% paid into the defined benefit five year Benefit Salary is $52,500, and his accumulation component is $20,000. Bob s leaving component. As he is older than 60, no tax applies to his benefit when it is withdrawn. $120,712.50 DEFINED BENEFIT COMPONENT $20,000 ACCUMULATION COMPONENT $140,712.50 TOTAL LEAVING SERVICES BENEFIT $52,500 FIVE YEAR BENEFIT SALARY 2.5 BENEFIT SERVICE FROM 1 JANUARY 2015 22.2% LUMP SUM FACTOR 100% AVERAGE SERVICE FRACTION 100% AVERAGE CONTRIBUTION FACTOR $120,712.50 DEFINED BENEFIT COMPONENT $123,969.20 DEFINED BENEFIT COMPONENT $20,000 ACCUMULATION COMPONENT $143,969.20 TOTAL LEAVING SERVICES BENEFIT $53,602.50 FIVE YEAR BENEFIT SALARY 3.5 BENEFIT SERVICE FROM 1 JANUARY 2015 22.4% LUMP SUM FACTOR 90.91% AVERAGE SERVICE FRACTION 100% AVERAGE CONTRIBUTION FACTOR $123,969.20 DEFINED BENEFIT COMPONENT

19 Your super when you leave your job DEFINED BENEFIT DIVISION MEMBERS Your transferred benefits INVESTMENT STRATEGY Your transferred defined benefit component and any future contributions will be invested according to the future contributions strategy for your accumulation component. If you don t have an accumulation component, your transferred defined benefit component and future contributions will be invested in our default investment option, the Balanced option, and form part of our MySuper offering. If you have not chosen a future contributions strategy, your transferred defined benefit component and any future contributions will be invested in the same way as current contributions to your accumulation component.

Your super when you leave your job DEFINED BENEFIT DIVISION MEMBERS 20 Things to consider RISKS ASSOCIATED WITH DEFINED BENEFITS In the event of a shortfall of assets caused by a prolonged market downturn or other factors, the Trustee, under Clause 34 of the Trust Deed, may reduce defined benefits. Therefore members must consider this risk. Clause 34 of the Trust Deed provides a process to manage the DBD s financial position, including a mechanism to reduce benefits if necessary. The Trustee uses two key actuarial measures to track the financial position of the fund; the Vested Benefits Index (VBI) and the Accrued Benefits Index (ABI). Under Clause 34, if the Actuary s report of its annual investigation and valuation of the DBD advises that those measures have fallen below particular levels (or the level of contributions is such that those measures are likely to fall below those levels), we must notify members and employers. Four years after receiving this advice, if the Actuary s subsequent report advises that the Fund s position has not improved sufficiently, the Trustee must consider whether it is in the interests of all DBD members to reduce benefits payable. The four-year monitoring periods mean that the Trustee can make decisions in DBD members best interests. If benefit reductions are required, the Trustee must do this on a fair and equitable basis for all DBD members. There is currently a Clause 34 monitoring period in place which will end when the first Actuarial Report has been presented to the Trustee after 30 June 2017. The Trustee may then consider if defined benefit reductions are required. If benefit reductions are required, the approach would depend on the circumstances after the monitoring period concludes. However, it could include changes to the rate at which your defined benefits accrue, reductions to the accrued value of your defined benefit, or a combination of both. For more information, go to unisuper.com.au/dbdupdate. Clause 34 doesn t apply to accumulationstyle super, such as our Accumulation 1 and 2 products, Spouse Accounts and Flexi Pensions. Super benefits for members of the DBD are largely determined by a formula, part of which changed for benefits that accrue from 1 January 2015. As a result, most DBD members who joined before 1 January 2015 will have their leaving service benefit calculated using a combination of the old and new formulas. For more detailed information about the change under Clause 34 of the Trust Deed and its effects, including several examples, go to unisuper.com.au/dbdupdate.

21 Your super when you leave your job YOUR INSURANCE COVER AND INBUILT BENEFITS RISKS ASSOCIATED WITH ACCUMULATION BENEFITS In choosing to transfer your benefits to Accumulation 1, you re exposing all of your benefit directly to positive or negative investment performance (from the date of transfer to Accumulation 1). For more information on investment risk, see the How we invest your money booklet available at unisuper.com.au/pds, or by calling 1800 331 685. GRANDFATHERING OF NOTIONAL TAXED CONTRIBUTIONS If you cease to be a contributing member of the DBD and defer your defined benefit component, you retain the benefit of any grandfathering arrangements you may have regarding the calculation of notional taxed contributions. This means that these arrangements will still apply if you become a contributing member of the DBD again (provided you continue to be eligible under the rules of the grandfathering arrangements). However, if your defined benefit component is transferred to Accumulation 1 (regardless of whether you ve chosen this option), you ll lose the benefit of any grandfathering arrangements you have. This means that if you return to the DBD as a contributing member, you will not have the benefit of the grandfathering arrangements. What are grandfathering arrangements? Although contributions caps apply to you as a DBD member, the level of concessional contributions made to your defined benefit component is calculated using a Notional Taxed Contribution (NTC) amount, rather than the actual amount of concessional contributions. Special arrangements apply when determining the NTCs for eligible members who were in the DBD before 12 May 2009. These arrangements often called grandfathering arrangements mean that where a member s NTC amount exceeds the concessional contributions cap, the NTC amount is deemed to be at the concessional contributions cap, and no additional tax is payable on contributions made to the DBD component. For more information on the taxation of contributions and NTCs, please refer to the relevant fact sheet available at unisuper.com.au.

Your super when you leave your job YOUR INSURANCE COVER AND INBUILT BENEFITS 22 Your insurance cover and inbuilt benefits As a DBD member you re entitled to inbuilt benefits and insurance cover. Ceasing to be a contributing member of the DBD may affect your entitlements. INBUILT BENEFITS When you stop being a contributing member of the DBD, you re no longer entitled to inbuilt benefits unless you re eligible to claim a benefit under the Fund s continued inbuilt benefit provisions. This applies within the 90-day period from the date you ceased being a contributing member (in the context of inbuilt benefits, this is known as the 90-day continuation period), regardless of whether you defer your benefit in the DBD or transfer to Accumulation 1. EXTERNAL INSURANCE COVER As a DBD member, in addition to the inbuilt death and disablement benefits provided, you can also take out insurance cover through a group life policy held with our Insurer 10 (if you re eligible). Any external insurance cover you have as part of your UniSuper membership will generally continue as long as you have a sufficient balance in your accumulation component or account to pay your premiums, and meet the policy terms and conditions. Your external insurance cover will cease if your: accumulation component doesn t have enough funds to pay the premiums, or super benefit is less than $2,000 and you haven t received any contributions or transfers for 12 consecutive months. In this case, your cover will cease from the date you have been advised in writing that your cover has ceased. MORE INFORMATION For more information on insurance, reinstatement of cover, eligibility conditions and other events that may lead to your cover ceasing, please refer to the Insurance in your super booklet, which is available at unisuper.com.au/pds or call us on 1800 331 685. 10 TAL Life Limited, ABN 70 050 109 450, AFSL No. 237848.

23 Accumulation 2 members If you re an Accumulation 2 member and you stop working for a UniSuper participating employer, your Accumulation 2 benefit will automatically be transferred to an Accumulation 1 account. The meaning of common terms used in this section are explained on pages 11 and 12. Your accumulation account When you stop being a contributing member of Accumulation 2, your benefit will automatically be transferred to an Accumulation 1 account, unless you have already started a new job that makes you eligible for Accumulation 2 membership. The future contributions investment strategy applicable to your account won t change when you transfer from Accumulation 2 to Accumulation 1, unless you make a change. When your Accumulation 2 benefit is transferred to an Accumulation 1 account, you re no longer required to make standard member contributions. Your benefit will be your account balance less any fees, charges and taxes that apply.

Your super when you leave your job ACCUMULATION 2 MEMBERS 24 Your insurance cover INSURANCE COVER Any insurance cover you have as part of your UniSuper membership will generally continue as long as you continue to have a sufficient balance in your accumulation account to pay your premiums and meet the policy terms and conditions. Your cover will cease if your: account has insufficient funds to pay the premiums, or super benefit is less than $2,000 and you haven t received any contributions or transfers for 12 consecutive months. In this case, your cover will stop from the date you have been advised in writing that your cover has ceased. MORE INFORMATION For more information, including events that will lead to ceasing or reinstating your insurance cover, eligibility conditions and reinstatement of cover, please refer to Insurance in your super booklet, available at unisuper.com.au/pds or call 1800 331 685.

25 Accumulation 1 members As an Accumulation 1 member, your super entitlements are held in an Accumulation 1 account, where your balance is maintained, net of fees and costs. The meaning of common terms used in this section are explained on pages 11 and 12. Your accumulation account If you were an Accumulation 1 member before leaving your job, your account will stay open and your account balance will remain invested in the same investment options. Your Accumulation 1 account will earn the investment returns of your chosen investment option(s). The investment returns of each investment option are affected by movements in the investment markets and may be positive or negative in any given period. Your Accumulation 1 benefit will be your account balance less any applicable fees, costs and taxes (plus any death or disablement benefit, if applicable). Effective from the date you leave employment and until you instruct UniSuper otherwise, your benefit will remain in the investment option(s) you have chosen for your account. What happens if YOU START A NEW JOB WITH A UNISUPER PARTICIPATING EMPLOYER AND ARE ELIGIBLE FOR ACCUMULATION 1 MEMBERSHIP? Nothing changes your Accumulation 1 membership continues. Simply advise your new employer of your existing UniSuper member number and they will make contributions into your account. Your balance will remain invested in your existing investment option(s) (unless you choose new ones). YOUR NEW JOB QUALIFIES YOU FOR DEFINED BENEFIT DIVISION (DBD) OR ACCUMULATION 2 MEMBERSHIP? If your job qualifies you for DBD or Accumulation 2 membership, you will become a DBD or Accumulation 2 member.

Your super when you leave your job ACCUMULATION 1 MEMBERS 26 IF YOUR NEW EMPLOYER OFFERS YOU CHOICE OF FUND? You can ask them to pay your compulsory Superannuation Guarantee (SG) contributions into your UniSuper Accumulation 1 account. All you have to do is fill out the Super choice fund nomination form in this booklet (which includes the Trustee Compliance letter), and give it to your new employer s HR or payroll department (whoever looks after super). It s that simple. For more information on nominating us as your chosen fund, see pages 5 and 6. YOU RE NOT ELIGIBLE FOR CHOICE OF FUND? Even if you re not eligible to choose which super fund your compulsory super contributions are paid into, you can still keep your existing Accumulation 1 balance in UniSuper. This means you can continue to enjoy the range of benefits that UniSuper provides. Your account will remain invested in the same investment option(s) as at the time you left your job. The investment returns of each investment option are affected by movements in the investment markets and may be positive or negative in any given period. Your insurance cover Any insurance cover you have as part of your UniSuper membership will continue, as long as you keep your Accumulation 1 account open and meet the policy terms and conditions. Your insurance cover will cease if your: account has insufficient funds to pay the insurance premiums, or your super benefit is less than $2,000 and you have not received any contributions or transfers for 12 consecutive months. MORE INFORMATION To find out about insurance cover including other events that will lead to ceasing or reinstating your insurance cover, eligibility conditions and reinstatement of cover, please refer to Insurance in your super booklet, available at unisuper.com.au/pds or call 1800 331 685.

27 Need help making the right decision? Making decisions about your super can feel daunting, especially if you re not confident about how your choice will impact your future savings and bigger financial picture. Wherever you are in your journey whether you re just starting out, nearing retirement, or somewhere in between UniSuper Advice 11 can help you with the decisions you re facing. Our advisers are solely dedicated to helping you and your spouse with your finances, which means you get personal financial advice from a team with unique, in-depth knowledge of UniSuper and the higher education and research sector. Come see us on campus You might find it useful to speak to one of our on-campus consultants about your membership and work out your options. Visit unisuper.com.au/campusbookings to make a booking near you. We operate Australia-wide, providing phone-based and face-to-face advice, and can help with a variety of financial issues including: superannuation strategies beyond superannuation, such as: transitioning to retirement investment strategies debt management redundancy advice income planning wealth accumulation insurance estate planning social security planning. No matter what your stage of life, it s never too late to plan your financial future 11 Not all estate planning services are available through UniSuper Advice. A UniSuper Advice financial adviser may refer you to a third part to receive specialist advice, including legal advice.

Your super when you leave your job NEED HELP MAKING THE RIGHT DECISION? 28 Advice fees There s a general misconception that financial advice is only for the wealthy. At UniSuper, we understand our members have diverse financial situations, so we provide different financial advice options to make it as accessible and affordable for all our members, regardless of how much you earn or have saved. General information is provided at no additional charge to UniSuper members, while phone-based advice and face-toface advice are provided at either fixed or hourly rates, depending on the extent of your requirements. After assessing your needs during your first meeting, we will provide you with a quote detailing any potential fees before you decide to proceed. Keep in mind all or part of the advice fees may be deducted from an eligible account. 12 You can learn more about our fees in our Financial Services Guide, which is available at unisuper.com.au. MORE INFORMATION To contact UniSuper Advice, please call 1800 UADVICE (1800 823 842) or email advice@unisuper.com.au. Plan your retirement with us You may be considering retirement after years of saving and hard work. Whatever you want to be and whatever you want to do in retirement, you ll need a regular flow of income for the years ahead. UniSuper offers a range of options to suit your retirement income needs. Whether you want investment choice, flexibility in the level of income you receive each year, the ability to make lump-sum withdrawals or nominate who ll receive the balance of your pension when you re gone, we have a pension to suit you. And the good news is that the income you receive from any UniSuper pension could be tax free from age 60. For more information, refer to the Your income when you retire booklet available on our website. UniSuper Advice is operated by UniSuper Management Pty Ltd, which is licensed to provide financial advice. 12 Any advice paid for from your UniSuper account must be related to your super and/or super-related retirement planning.

29 Accessing your benefit Super is a long-term investment with government restrictions on when you can access your super benefit. Generally, your super must remain in the super system until you permanently retire from the workforce on or after reaching your preservation age. From 1 July 1999, all super contributions and investment earnings must be preserved. Your super benefits are classified into three components known as preservation components that determine when you can access them. The preservation components are: preserved restricted non-preserved unrestricted non-preserved. Accessing your benefit Before you decide whether to access your benefit, we can provide you with a benefit entitlement statement detailing your estimated benefit entitlements. This may be useful when considering your options. Please call us on 1800 331 685 if you would like to obtain a benefit entitlement statement. Preserved benefits Generally, you cannot withdraw your preserved benefits until you have met what s known as a condition of release. CONDITIONS OF RELEASE The conditions of release include: permanently retiring from the workforce on or after reaching your preservation age, terminating employment after you reach 60, reaching age 65, becoming permanently incapacitated, being eligible for the Departing Australia Superannuation Payment (DASP), terminating employment with an employer who contributed to UniSuper on your behalf, and having a preserved benefit of less than $200, death, or a terminal medical condition.

Your super when you leave your job ACCESSING YOUR BENEFIT 30 YOUR DATE OF BIRTH PRESERVATION AGE Before 1 July 1960 55 1 July 1960 30 June 1961 56 1 July 1961 30 June 1962 57 1 July 1962 30 June 1963 58 1 July 1963 30 June 1964 59 1 July 1964 or after 60 Your preservation age varies depending on when you were born (see table above). Accessing your preserved benefits before you retire Under the preservation rules, you may also be able to access preserved benefits early, in the following limited circumstances, provided you satisfy the eligibility criteria: Specified compassionate grounds You must apply directly to the Department of Human Services (DHS). Severe financial hardship grounds You must apply to the Trustee and you must be receiving eligible Commonwealth Government income support benefits. However, there are limits on how much you can withdraw from your super on the above two grounds. Contact DHS or UniSuper for more information. Restricted non-preserved benefits Generally, you can access restricted non-preserved benefits when you cease employment with an employer who contributed to UniSuper on your behalf. You can also access these benefits if you meet a condition of release. Unrestricted non-preserved benefits Unrestricted non-preserved benefits are benefits that you re no longer required to keep within the super system. You can generally access unrestricted nonpreserved benefits at any time, regardless of your age, employment situation or financial position.

31 Your super when you leave your job ACCESSING YOUR BENEFIT Additional restrictions for DBD members In addition to the preservation rules, if you re a DBD member, the UniSuper Trust Deed and Regulations impose further restrictions under the Fund s governing rules that limit when you can access your defined benefit component. Generally, if you re a contributing member of the DBD, you may only withdraw or transfer all or part of your defined benefit component if it s entirely made up of unrestricted non-preserved benefits. If you choose to withdraw or transfer your defined benefit component to another super fund, you will cease to be a DBD member, and any remaining defined benefit component you have will be converted into an accumulation benefit and transferred to an Accumulation 1 account. 13 Any future contributions will be made into this account. Different rules also apply to requests for early access of benefits on severe financial hardship or compassionate grounds. Temporary residents Government legislation places restrictions on temporary residents accessing their benefits. An eligible temporary resident whose visa has expired or been cancelled is able to claim their super benefit directly from UniSuper within six months of departing Australia, or from the ATO at any time. They can also claim their benefit upon permanent incapacity, terminal medical condition or death. Refer to our Departing Australia superannuation payment fact sheet, which is available at unisuper.com.au or by calling 1800 331 685, or visit the ATO website at www.ato.gov.au. New Zealanders If you re a New Zealander and are permanently emigrating from Australia to New Zealand, you may be eligible to transfer your UniSuper benefit to an authorised KiwiSaver scheme provider. To check the eligibility criteria, refer to the Transfer your UniSuper account to KiwiSaver fact sheet, which is available at unisuper.com.au or by calling us on 1800 331 685. 13 Different rules apply if you establish a Transition to Retirement (TTR) pension.

Your super when you leave your job ACCESSING YOUR BENEFIT 32 Providing proof of identity Anti-money laundering and counter terrorism financing legislation requires super funds to identify, monitor and have measures in place to reduce the risk that the fund may be used as a vehicle to launder money or finance terrorism. This means you will be required to prove you are the person to whom the superannuation entitlements belong. By law, you are required to provide certified copies of proof of identity documents in certain circumstances, e.g. when withdrawing your benefit, receiving a death benefit, starting a pension and, in some circumstances, transferring your super to another fund. Transferring your benefit to another super fund You can transfer all or part of your benefit to another complying super fund. We recommend that you speak to a qualified financial adviser before doing so. Keep in mind that UniSuper membership is not open to the public. If you close your UniSuper account you won t be able to become a member again unless you start working for another UniSuper participating employer. You also won t be able to purchase a UniSuper pension in the future. Leaving UniSuper may also have implications for any insurance cover you have through the Fund. Do you have to withdraw your super? You can choose to keep your super in UniSuper indefinitely while you continue working. Also, even if you have stopped making contributions and have retired from the workforce, you don t have to withdraw your benefit if you don t wish to you can keep your money with us. TAX IMPLICATIONS OF ACCESSING YOUR BENEFIT If you re thinking of taking some or all of your super benefit or transferring it to another super fund, it s important to consider the tax implications before making any decision. Tax on your benefit You may have to pay tax when you withdraw your benefit from UniSuper. Any applicable tax will normally be deducted from your benefit before it is paid. IF YOU RE AGED LESS THAN 60 Tax may be deducted from your benefit. The amount of tax payable will depend on a number of factors, including your age and the preservation components of your benefit. IF YOU RE AGED 60 OR OLDER Tax may be deducted depending on your account balance or your annual income amount. Otherwise, your benefit will be generally tax free.

33 Your super when you leave your job ACCESSING YOUR BENEFIT Your benefit generally comprises a tax-free and taxable component. No tax is payable on the tax-free component, irrespective of your age. Different tax rates apply on death benefits, and the of benefits taken as a pension or paid to temporary residents. When you make a lump-sum withdrawal, the amount you receive will be drawn down from these components in proportion to the amount in each. TAX ON TRANSFERS No tax is payable if you transfer your super from one complying fund to another, unless the transfer is from an untaxed source, e.g. certain public sector super funds or an eligible termination payment. TAXATION ADVICE The taxation of super is complex. Before you access your benefit, UniSuper recommends you obtain taxation advice from a registered taxation agent. If you have any outstanding superannuation-related tax liabilities to the ATO, such as a Division 293 tax deferred account, you should also speak to the ATO and seek appropriate advice. PROVIDING YOUR TAX FILE NUMBER (TFN) It is not an offence if you do not quote your TFN to us. However, providing your TFN will have the following advantages which may not otherwise apply: we will generally be able to accept all types of contributions to your account (legislated contributions caps apply) the tax on contributions to your account will not increase due to failure to provide your TFN other than the tax that may ordinarily apply, no additional tax will be deducted when you start drawing down your super benefits it will be easier to trace all the super accounts in your name, including in other super funds, to ensure you receive all of your benefits when you retire. If you provide us with your TFN, we can only use it for lawful purposes under superannuation and tax law. However, these lawful purposes and the consequences of not providing your TFN are subject to legislative changes. If you would like to provide us with your TFN, please visit MemberOnline, call us on 1800 331 685 or download the Tax file number collection form from our website. MORE INFORMATION For more information on the taxation of super, refer to the How super is taxed booklet (for Accumulation 1 and Spouse Account members) or the Defined Benefit and Accumulation 2 Product Disclosure Statement (PDS). Both are available at unisuper.com.au/pds or by calling 1800 331 685.