Significant Event Notice It s official! Asset and CareSuper are merging Changes to your Asset superannuation account Effective from 27 October 2012 Issued by A.S.S.E.T. Limited, ABN 13 003 257 190, AFSL No. 230070, as trustee of Asset Super, ABN 98 061 665 900.
Contents Why merge? 2 Bigger and stronger together 3 What happens now? 3 What you need to do 4 We ll still be looking after you 5 What the independent experts say 6 Investment more options to choose from 7 Insurance default cover will automatically increase 9 Fees and charges 12 Blackout period for transactions after the merger 14 Action required by some members 15 Additional information for certain members 17 Access to quality financial planning advice 18 Stay up to date with the merger 19 Contact Us 19 Table Comparing default Death Only insurance cover 20 Table Comparing default Death and TPD insurance cover 21-22 This document is issued by A.S.S.E.T. Limited (ABN 13 003 257 190) as the trustee of the superannuation fund known as Asset Super (ABN 98 061 665 900) (Fund). The information contained in this document is about the merger of the Fund with the superannuation fund known as CARE Super (ABN 98 172 275 725) (CareSuper) and is general information only. The trustee of CareSuper is CARE Super Pty Ltd (ABN 91 006 670 060). This document has been prepared without taking into account your personal investment objectives, financial situation or needs. It should not be considered as a substitute for reading the CareSuper Product Disclosure Statement (PDS) that sets out in detail information about the services and features of CareSuper. A copy of the PDS can be obtained by calling 1300 360 149. This document is not intended to be, and should not be construed in any way as, investment, legal or financial advice. 1 Bigger and stronger together
The Trustee Board of Asset is pleased to announce that Asset will merge with CareSuper effective from 27 October 2012. After an extensive review and thorough investigation, we strongly believe this merger to be in the best interests of members. We are excited about the enhanced range of benefits and services that will be made available to Asset members as a result of the merger. Merger puts members first Continue to deliver value for money A bigger fund means cost efficiencies and greater purchasing power for member services and investments. Deliver strong long-term investment returns CareSuper has a proven track record of consistently strong investment returns and offers 13 investment options. A bigger fund will create more investment opportunities across a range of asset classes. Improve member benefits and services The merged fund will offer higher insurance cover, plus access to an expanded range of member education and advice services. CareSuper is committed to delivering high levels of customer service to help members achieve the lifestyle they want in the future. One fund with more members and assets will be able to offer more to members. More investment opportunities, more services, improved benefits and even better value for money. Why merge? While Asset has provided competitive returns for nearly 25 years, with a longer-term view in mind, we believe a merger with the right super fund is in the best interests of our members. That s why we have carefully chosen a like-minded, high-performing and larger super fund to merge with. The super landscape is changing. The Government s Stronger Super reforms will place new requirements on super fund Trustees when it comes to governance, risk management, reporting and how funds manage default members. According to the industry Regulator (the Australian Prudential Regulatory Authority), these reforms are encouraging Trustees to actively consider the scale of their operations. That s why it makes good sense for small and medium-sized funds to merge now in order to continue to be able to deliver member benefits in a cost-effective way. Take a look at CareSuper and you ll soon see why we chose them as our merger partner. go to www.caresuper.com.au read Meet CareSuper. You ll find it in this pack. CareSuper is a leading super fund with top ratings and strong investment returns. Like Asset, CareSuper is a not-for-profit industry super fund run purely for the benefit of its members. 2
Bigger and stronger together Our merger with CareSuper will see members and employers of both funds gain from greater economies of scale. 80,000 members $1.6 billion in assets 187,000 members $4.9 billion in assets Bigger and stronger together 267,000 members $6.5 billion in assets By coming together as one fund we ll be bigger, stronger and better placed to deliver more for members and offer even better value for money. What happens now? You receive this Significant Event Notice Last day to: switch investment option supply your Tax File Number Your account transfers to CareSuper You receive an exit statement from Asset You receive a welcome pack from CareSuper mid September 19 October 26 October 27 October to 19 November 11.59 pm late November early December Blackout period for transactions and online access 27 October to 19 November 2012 You don t need to do anything to transfer into CareSuper. As part of the merger agreement, known as a Successor Fund Transfer Deed, your full account in Asset will transfer into CareSuper automatically. From 27 October 2012 you will be a member of CareSuper. For most members, there are no forms or paperwork to fill out we will take care of everything for you. However, for legal reasons some members will need to complete new paperwork to continue certain arrangements already in place, such as binding beneficiary nominations, direct debit and third party authorities. If we do need any further details from you, you will be contacted separately. 3 Bigger and stronger together
What you need to do Right now, most members don t need to do anything. You DO need to take action if: You want to switch investment options ahead of the merger so that your account will transfer to a different investment option prior to the merger. See page 8 You are planning to rollover money into Asset or withdraw some or all of your benefit so that you don t get caught out by the restrictions on accessing your account during the period from 27 October to 19 November. See page 14 We don t have your Tax File Number so you can claim back overpaid tax before we merge. See page 15 Make contributions to Asset via BPAY, direct debit or cheque so your contributions will continue to be processed in a timely manner. See page 15 You have a Binding Beneficiary Nomination so CareSuper can act on your instructions. See page 16 You have a third party authority in place so your nominated representative/s can continue to access your account details. See page 16 4
We ll still be looking after you After the merger, four Trustee Directors from Asset will join the existing nine Trustee Directors on the Board of CareSuper. This means Asset members will still be actively represented in the management of the merged fund. Garry Brack Australian Federation of Employers and Industries Chris Christodoulou Unions NSW David Michaelis NSW Business Chamber Alisha Wilde Unions NSW Local, personal services strengthened Both Asset and CareSuper have Client Relationship Managers who look after employers and visit members at their workplace. When the funds merge, these teams will come together to form an even stronger team, providing members and employers with local, personalised service. Same administrator Both Asset and CareSuper use the same administrator, Australian Administration Services, to administer your super account, so there will still be a highly knowledgeable and professional team using the same systems you re familiar with to look after your super. Your online access will be familiar, too. to know Merger passes strict legal test For the merger to go ahead it had to pass a strict test to ensure it is in members best interests. This means that after much analysis and consideration of independent legal advice, the Trustee Directors of Asset have determined that members will have equivalent or better rights to benefits in the new merged fund. Super package that s at least as good, if not better Equivalent rights means that as an overall package members rights and benefits in CareSuper after the merger must be at least as good as or better than members rights currently in Asset. It doesn t mean the rights and benefits in CareSuper have to be exactly the same as before. 5 Bigger and stronger together
What the independent experts say SuperRatings Pty Limited (SuperRatings) is an independent research and ratings agency that evaluates superannuation funds across the industry. SuperRatings rates Asset Gold. Even better it rates CareSuper Platinum. A good value for money superannuation fund strong in nearly all assessment areas. A best value for money superannuation fund. Well balanced across all key assessment criteria. SuperRatings rating system is based on an assessment of six areas: investment, fees and charges, insurance cover and costs, advice and education, administration and governance. While Asset is stronger in some areas and CareSuper in others, overall both funds rate very well. Scores are average, good or excellent. There are no below average scores. Asset CareSuper Investment Performance* Variety of Options Process *Past performance is not a reliable indicator of future performance. Average Excellent Excellent Fees & Charges Small Account Medium Account Large Account Insurance Cover and Costs Death Insurance Death & Disablement Income Protection Excellent Excellent Average Average Average Average Excellent Excellent With the merger members are moving from a good fund to an even better one. Advice & Education Member Education Advice Services Administration Structure & Service Employer Servicing Excellent Governance Trustee Structure & Risk Excellent Source: RateMySuper report prepared by SuperRatings and valid May 2012. SuperRatings rating methodology seeks to cover over 300 individual parts of a superannuation fund s offering. The data assessed covers information both in the public domain as well as aspects which are sourced directly from funds (questionnaires). For more information on the SuperRatings methodology refer to the full text of the SuperRatings methodology at www. superratings.com.au/ratingsawards/ explained-ratings 6
Investment more options to choose from From 27 October 2012 your Asset account balance will transfer into the CareSuper investment option/s that most closely matches your current Asset investment option/s, as shown below. If your super is currently invested in more than one investment option, your account balance will transfer into the CareSuper options that most closely match your current investment options, in the same proportions. Investment Options Asset CareSuper High Growth will transfer to Growth Medium Growth will transfer to Balanced Stable Growth will transfer to Capital Stable Socially Responsible will transfer to Sustainable Balanced Australian Shares will transfer to Australian Shares International Shares will transfer to Overseas Shares Property will transfer to Direct Property Australian Bonds will transfer to Fixed Interest International Bonds will transfer to Fixed Interest Cash will transfer to Capital Secure Important note for members invested in: Australian Bonds or International Bonds CareSuper offers one Fixed Interest option which holds 65% Australian and 35% Overseas government and corporate bonds. If you are currently invested in Australian Bonds and/or International Bonds with Asset, these holdings will be transferred entirely to CareSuper s blended Fixed Interest option. Property The CareSuper Direct Property option is quite different from the Asset Property option. While both Asset and CareSuper invest in property trusts, CareSuper invests in trusts that are unlisted (commonly referred to as Direct Property Trusts), whereas the Asset portfolio consists of a mix of trusts that are listed on the ASX (commonly referred to as Listed Property Trusts) and unlisted trusts. Listed Property Trusts are traded on the ASX and, as a result, have greater liquidity and attract smaller buy/sell spreads than Direct Property Trusts or unlisted trusts. Consequently, the buy/sell spread of the CareSuper Direct Property option is higher than the Asset Property option. In 2011/12 the CareSuper buy/sell spread was 1.10% and the Asset buy/sell spread was 0.34%. Default option where most members are invested Detailed information regarding the risk profile, investment strategy and investment managers for CareSuper s investment options can be found in CareSuper s Investment Guide available on the CareSuper website at www.caresuper.com.au/pds If you are currently in Asset s Property option and you don t want to be invested in CareSuper s Direct Property option after the merger, you may want to consider switching now, ahead of the merger. If you do not wish to remain in the CareSuper Direct Property option, and choose to switch into another CareSuper investment option after the merger but before 31 December 2012, the sell spread incurred will be rebated in the form of additional units credited to your account. You will just pay the buy spread cost of the option you switch into. For further information regarding the CareSuper Direct Property option, including recent performance, please go to www.caresuper.com.au/investments 7 Bigger and stronger together
More choice As well as the options shown, CareSuper has another three options to choose from: Capital Guaranteed, Alternative Growth and Conservative Balanced. CareSuper also offers a Direct Investment option in which you can invest a portion of your super in your choice of companies listed in the S&P/ASX 300 Index. Further information on these options can be found at www.caresuper.com.au/pds CareSuper also plans to introduce term deposits into the Direct Investment option from December 2012, allowing you to choose the term and know the rate of return up front, as well a range of exchange traded funds. Thinking of switching? If you wish to switch your current investment option with Asset prior to the merger, you must do so by close of business on Friday 19 October 2012. The deadline is 5 pm AEST for receipt of Investment Choice forms and midnight for online switches. You can change the way your super is invested after the merger if you think one or more of the other CareSuper options would suit you better. You will find an Investment Guide and an Investment Choice form at www.caresuper.com.au/pds As explained on page 14, a blackout period will be in place to enable the merge of fund data to occur. Please note that no switching will be available from 20 October to 19 November 2012. Strong investment returns CareSuper has a proven track record of superior investment returns compared to most other super funds including Asset. Here s how the past performance of the two funds default options compares: Investment performance to 30 June 2012* Asset Medium Growth % CareSuper Balanced % 10 year ** 4.58% 6.57% 5 year ** -0.69% 1.15% 1 year 0.56% 2.08% * Past performance does not guarantee the future performance or the future rates of return of the default option. Investment in the CareSuper and Asset Super default options carry some form of risk, including market risk, interest rate risk, credit risk, company risk, liquidity risk, currency risk, derivatives risk and inflation risk. ** Compound average annual returns after tax and investment fees. to know CareSuper s performance higher than average While past performance doesn t guarantee future performance, it is reassuring to know CareSuper s Balanced option has consistently outperformed the median balanced option return for industry super funds and master trusts (retail funds) over the past 10 years.* CareSuper s consistent long-term returns and flexible investment options are just some of the reasons it has achieved top ratings by the experts. Read Meet CareSuper to find out more. * Super Ratings Pty Limited SF50 Survey, June 2012, which measures returns for 50 large super funds. 8
Insurance default cover will automatically increase CareSuper s default insurance cover for death and total and permanent disablement (TPD) is higher than Asset s. This means that when you transfer to CareSuper your insurance cover will automatically increase, without any need for you to provide medical evidence. Your default death and TPD cover on transfer depends on your age: If you are under 30 you will receive the higher of the CareSuper default cover amount of 1 unit of death cover and 4 units of TPD cover, or your current units of Asset cover. If you are 30 to 64 you will receive the higher CareSuper default cover amount of 4 units of death and TPD cover, instead of your default 3 units of Asset cover. If you are 65 to 69 you will receive the higher CareSuper default cover amount of 4 units of death cover, instead of your default 3 units of Asset cover. Because your cover will be significantly improved, the premium cost of your cover will also increase. Although you will pay more for your higher cover, the cost per dollar of your cover will either remain the same or be cheaper than before. CareSuper deducts the cost of your insurance cover from your super contributions before 15% contributions tax is deducted, making it a tax effective way of paying for your cover. Higher cover means better protection for you and your family. We expect most members will want the increased protection of higher default insurance cover. It is reassuring to know your insurance cover will soon be significantly higher, especially if you have a family that relies on your income. For members who want to upgrade their cover further, there will be a special one-time Transferring Member Option after the merger. You ll be able to increase your death and TPD cover up to a level of 10 times your salary, to a maximum of $1.55 million, with no medical evidence required. After that offer ends you can still increase your cover up to a maximum of $10 million for death cover and $3 million for TPD, subject to assessment by CareSuper s insurer. Please note that if you have previously applied for additional insurance cover and been declined, you may not be eligible for the special Transferring Member Option offers. If you don t want the increased default cover, you can opt to fix your cover at the current Asset level and continue to pay the same premium, or in some cases a lower premium, with annual increases in line with your age. Or you can opt to reduce your cover from 4 units to 3, 2, 1 or nil units. 9 Bigger and stronger together
In December 2012 CareSuper will contact you with full details of the new insurance arrangements, including information about how to increase or reduce your cover if you wish. In the meantime if you have default cover with Asset, you will automatically move to the new increased default cover with CareSuper from 27 October 2012. The table below shows you how much default cover will increase and the new cost: Age Attained Asset CareSuper Asset CareSuper Changes to cover and cost Existing units New units Current cost New cost % increase in cover % change Death TPD Death TPD (per week) (per week) Death TPD in cost 15-22 1 1 1 4 $1.15 $3.51 30.4% 421.7% +205.2% 23-27 2 2 2 4 $2.30 $4.34 30.4% 160.9% +88.7% 28-29 3 3 3 4 $3.45 $5.17 30.4% 73.9% +49.9% 30-64 3 3 4 4 $3.45 $6.00 73.9-151.0% 73.9-151.0% +73.9% 65-69 3 nil 4 nil $3.45 $3.32 74.0% n/a -3.8% Members under 30 will have much higher cover, and the cost is the same per dollar of cover as they pay now. Members 30 to 64 will have higher levels of cover, and the cost is the same or less per dollar of cover as they pay now. Members 65 and over will have higher levels of cover at a lower cost per dollar of cover than they pay now. See pages 21-22 for the full comparative insurance cover table which shows the new level of cover and new cost at every age. CareSuper occupational categories can mean more cover at the same cost To reflect the different levels of risk associated with different roles and occupations CareSuper has three different occupational categories General, Office and Professional. Most Asset members will transfer into the General category to start. Then, if you qualify for insurance cover at the Office or Professional occupational category, you can apply to be recategorised. If you meet the requirements you could receive more cover for the same money. CareSuper will let you know how to determine your occupational category and how to change your category after the merger. Example Kathy is 37 years old. This table shows how her death and TPD insurance cover as an Asset member compares with her cover when she becomes a member of CareSuper. Asset CareSuper (General category) Death & TPD Cover $196,470 $341,720 No of units 3 4 Cost per week $3.45 $6.00 Kathy will transfer to CareSuper as a General category member increasing her death and TPD cover from $196,470 to $341,720. Let s say she meets the requirements of the Office occupational category and applies to be recategorised. Her cover will increase to $387,120 at the same cost of $6.00 per week. If she meets the requirements of the Professional occupational category and applies to be recategorised it will increase to $425,840 at the same cost. 10
Do you have Asset cover that is currently different to the default? Higher cover If your Asset cover is higher than the default, your cover under CareSuper will be the higher of your existing cover or the CareSuper default cover. Fixed cover If you currently have Fixed cover with Asset, you will retain your Fixed cover in CareSuper. Death Only cover If you currently have Death Only cover with Asset, you will retain Death Only cover in CareSuper. You will be provided with sufficient units of CareSuper Death Only cover to ensure you receive the higher of the default CareSuper Death Only cover that applies for your age or your existing Asset Super Death Only cover. The new CareSuper Death Only default cover, how much it costs and how it compares with the current Asset Death Only default cover is shown in the table on page 20. No cover If you opted out of insurance cover with Asset, you will have no insurance cover in CareSuper. Income protection insurance CareSuper offers income protection insurance just like Asset does. If you currently have income protection insurance with Asset, you will transfer across to the equivalent CareSuper Income Protection insurance category. We ll write to you separately with details. No income protection cover? This optional cover can provide you with a regular income so you can pay bills and meet the normal costs of living if you are sick or injured and cannot work. There will be a special one-time Transferring Member Option to access CareSuper income protection cover after we merge. Watch out for details. to know CareSuper s increased cover is automatic Because the increase in default insurance cover is part of the merger you won t have to go through any medicals or fill in any paperwork to qualify for increased cover. CareSuper s cover drives your dollar further Members under 30 will get more cover at the same cost per dollar of cover as they had before. Members who are between 30 and 64 will get either the same or more cover for their money with CareSuper. If you re between 65 and 69, you will get more cover and pay less than before. Insurance provided by CommInsure When you become a member of CareSuper, your insurance will be provided by CommInsure, a leader in the Australian insurance industry and part of the Commonwealth Bank Group. 11 Bigger and stronger together
Fees and charges Like Asset, CareSuper is an industry super fund and fees are charged only to cover the costs of managing the fund. Here are Asset s fees compared to your new fees with CareSuper from 27 October 2012. Fees when your money moves into or out of the fund Asset CareSuper Establishment fee $0 $0 Contribution fee $0 $0 Withdrawal fee # $44 or nil if you transfer to the Asset Flexible Pension Termination fee $0 $0 Management costs Account-keeping fee $1.50 per week (active member) $1.50 per week Administration fee $0 0.15% per year with a cap of $500 per year. Investment costs* The amount you pay depends on your chosen investment option(s) Investment switches Investment-related charges range from 0.05% to 0.74% of the amount of your account balance invested in the option, plus Member protection costs ranging from 0.01% to 0.10% of the amount of your account invested in the option. Nil for the first switch and $22 for any subsequent switches per financial year, up to a maximum of 4. * These costs are estimates only and may vary from year to year. # This fee will not apply at the merger date. $0 Investment-related charges range from 0.09% to 1.56% of the amount of your account balance invested in the option. When investment returns are insufficient to cover the total administration costs you may be charged an amount equal to the investment return plus a fee of up to $10 per year. During 2011/12 the cost of this member benefit protection to CareSuper was approximately 0.039% of total fund assets. If you choose the Direct Investment option there is an additional administration fee of $25 per month. Nil No fees or costs on merger No withdrawal fee applies when your account transfers to CareSuper due to the merger. Different buy/sell spread costs apply in both funds when you change investment options but no buy/sell spread costs will apply when your account transfers into the CareSuper option that most closely matches your current Asset investment option when we merge. When you calculate investment costs it pays to look at returns and costs together so that you get the full picture. Historically, CareSuper s strong investment returns and competitive fees have created a higher net benefit for members compared to the average super fund. 12
CareSuper is best value for money Although some of Asset s fees are lower than CareSuper s, overall SuperRatings rates CareSuper a best value for money superannuation fund. Their rating is based on a thorough assessment of six aspects of the fund, including fees and charges. By comparison Asset is rated a good value for money fund. See page 6 for details. You ll pay less tax with CareSuper Asset, like many other funds, calculates contributions tax before making any other deductions. CareSuper however deducts account-keeping fees and insurance premiums, and then calculates the net tax on super contributions. This means less tax is deducted and more money is invested for your future. Example Let s take as an example a member with an account balance of $50,000, annual employer contributions of $5,000 and insurance premiums of $312. This example also assumes an account-keeping fee of $1.50 per week = $78 per annum. In the case of Asset, the amount of tax payable would be 15% on $5,000 = $750. By comparison, in CareSuper the contributions tax would be calculated on $5,000 less $390 = $4,610 (employer contributions less account-keeping fees and insurance premiums), so the contributions tax would be $4,610 x 15% = $691.50. The tax saving is $58.50, which means more money invested for you. A bigger fund will be better able to keep long-term costs low A bigger CareSuper will be better placed to negotiate lower long-term costs and pass savings on to members in the form of increased services and benefits and/or lower long-term costs. to know CareSuper fees lower than average According to independent ratings agency SuperRatings, CareSuper s fees are lower than the average super fund, based on the total fee comparison for a member in the default option with $50,000 invested in super.* *SuperRatings Pty Ltd RateMySuper report, May 2012. 13 Bigger and stronger together
Blackout period for transactions after the merger It s important we make sure your full entitlements are credited to your account and transferred with you to CareSuper. Preparing final accounts and transferring your entitlements is a complex task and may take up to two months to fully complete. As a result, there will be a three-week blackout period from 27 October to 19 November 2012 while we re transferring your account. This will mean no processing of: contributions rollovers full and partial benefit withdrawals. If you have an urgent or hardship claim during the blackout period, please contact the CareSuper Line on 1300 360 149 as it may be possible for you to access part of your account. You will not be able to access your account online via Member Access from 27 October to 19 November 2012. Full account access will resume on Monday 19 November 2012. No switching investments after Friday 19 October You will not be able to make an investment switch from 20 October to 19 November 2012. Get any account transaction requests in now Get your account transaction request in by 26 October 2012. Blackout Period from 27 October to 19 November. To have your request processed before the blackout period, we need to receive it by close of business on 26 October (with the exception of investment switching requests which cannot be made after 19 October 2012). After that date requests cannot be processed until after 19 November 2012. CareSuper will not be able to update your account details during October and November. Any contributions received during the blackout period will be banked, and then processed after 19 November 2012, effective from the date of receipt. Online access If you currently use Asset s secure online access, Member Access, you ll be pleased to know that CareSuper has a similar facility. You ll be able to access your CareSuper account from the CareSuper website at www.caresuper.com.au, using your existing member number and password from 19 November 2012. 14
Action required by some members For some members, action is required because of the merger. If you have not yet provided Asset with your Tax File Number If we don t have your Tax File Number, you re being hit with extra tax. This is your last chance to get it back. If Asset does not have a record of your Tax File Number (TFN) all of your employer super contributions and any salary sacrifice contributions made to your account are being hit with an extra 31.5% tax. Act now to be eligible for a refund of this extra tax. If you provide Asset with your Tax File Number before the merger date, we will be able to claim on the Australian Taxation Office and credit to your super account any No TFN Tax that has been charged over the last three financial years. Over the phone Online Form Simply call our Client Service team on 1800 805 981 Use Member Access or complete our Tax File Number Notification form online at www.assetsuper.com.au Complete and return a Notification of Tax File Number (TFN) form, which you can download from the Tools & Forms section at www.assetsuper.com.au Provide your Tax File Number to Asset by 19 October 2012 to be eligible for a tax refund. If you make BPAY or direct debit contributions to Asset BPAY You can continue to BPAY contributions to CareSuper. The CareSuper biller code is 929 893. You will be sent your BPAY personal reference number with your welcome pack from CareSuper in early December 2012. Direct Debit You will need to complete a CareSuper direct debit authority form as soon as possible after 27 October 2012 and lodge it with CareSuper. You can download a form at www.caresuper.com.au/forms and publications If you make personal contributions by cheque If you wish to make contributions prior to the merger your cheque must be received by 3pm on 26 October 2012. From 27 October, cheques will need to be made payable to CareSuper. 15 Bigger and stronger together
If you have a Binding Death Benefit Nomination If you currently have a valid Binding Beneficiary Nomination with Asset, it will lapse at 11.59 pm on 26 October 2012. You will need to complete and lodge a new form with CareSuper after we merge. CareSuper will send you a form to complete after the merger or you can download a form at www.caresuper. com.au/forms and publications Until CareSuper receives a new Binding Beneficiary Nomination from you it will treat your binding Asset nomination as a non-binding nomination. We would therefore encourage you to lodge a CareSuper Binding Beneficiary Nomination form as soon as possible after 27 October 2012. If you have made a non-binding nomination with Asset, it will carry over to CareSuper and CareSuper will take this into account when determining death benefit payments. If you have a third party authority in place If you currently have a third party authority in place that allows other persons, such as a financial planner, to access your account details, please note that it will lapse at the date of the merger. You will need to complete and lodge a new third party authority with CareSuper after we merge. You can download an Authority to access information form at www.caresuper.com.au/forms and publications 16
Additional information for certain members If you have super in both Asset and CareSuper If you re a member of both Asset and CareSuper now, your accounts will be combined when we merge. You ll receive a combination of your insurance cover under both funds, at an appropriate cost, but you will pay only one set of administration fees. After the merger CareSuper will write to you about your consolidated account and advise you of your new insurance cover. If you have an insurance claim, benefit payment, family law matter or complaint in progress Where possible claims, payments and other matters will be finalised by Asset prior to the merger date. Where this isn t possible: Insurance claims will transfer to CareSuper and the insurance underwriting will transfer across to CareSuper s insurer, CommInsure. Any claim in progress at the merger date will continue to be assessed by MLC. The Trustee will determine which insurer is responsible for assessing and paying your claim post merger. Benefit payments in progress as at the merger date will be paid by CareSuper after the blackout period ends on 19 November. Unresolved family law matters and/or unresolved complaints will transfer across to CareSuper and be attended to after the blackout period ends on 19 November. to know A smooth transition With Asset and CareSuper both using the same administration platform, we re expecting a smooth transition. Both Asset and CareSuper will be working hard to ensure minimum disruption for members. Asset will be working hard to finalise as many matters in progress as possible before the merger and CareSuper will be working hard to pick up any matters transferred across as quickly and smoothly as possible. 17 Bigger and stronger together
Access to quality financial planning advice Both Asset and CareSuper understand that there are different times in your life when you may benefit from obtaining quality financial advice. Currently Asset offers personal financial planning advice through Money Solutions Pty Ltd, ABN 36 105 811 836, AFSL No. 258145. After the merger you ll be able to access financial planning advice through CareSuper s provider, Industry Fund Financial Planning, a division of Industry Fund Services Pty Ltd (IFS), ABN 54 007 016 195, AFSL 232514. If you already receive financial planning advice from Money Solutions, you can continue to do so after the merger. to know No commissions Neither Asset nor CareSuper uses financial planners who charge a commission. Industry Fund Financial Planning will provide members with financial advice over the phone on super topics for free, while more complex advice will be provided after a meeting with a financial planner on a fee-for-service basis. 18
Stay up to date with the merger Visit the merger information page on our website at www.assetsuper.com.au, which has a comprehensive list of questions and answers regarding the merger. You can also visit the CareSuper website at www.caresuper.com.au Do you have a question or want to know more? If you can t find the answer you re looking for there, please call our Client Service team on 1800 805 981 or email us at asset@assetsuper.com.au More information on the way Your Exit Statement from Asset, detailing what was transferred across to CareSuper, the investment earnings credited to your account and a wrap up from Asset will be sent to you in November 2012. A welcome pack from CareSuper, including your welcome statement, details of your new insurance cover and Transferring Member Options, a CareSuper member guide, and more will be sent to you in early December 2012. Contact us Up to 26 October 2012 Asset Freecall: 1800 805 981 Email: Web: Mail: asset@assetsuper.com.au www.assetsuper.com.au Asset Super Locked Bag 5088 Parramatta NSW 2124 From 27 October 2012 CareSuper Freecall: 1300 360 149 Email: Web: Mail: admin@caresuper.com.au www.caresuper.com.au CareSuper Locked Bag 5087 Parramatta NSW 2124 The contact phone numbers, email and postal addresses for Asset will redirect to CareSuper for a limited period only from 27 October 2012. 19 Bigger and stronger together
Comparing default Death Only insurance cover If you currently have default Death Only cover with Asset, this table shows you how your default Death Only cover will increase with CareSuper and what you will pay for your default Death Only cover with CareSuper after we merge. Whether the cost of cover will increase or not depends on your current age: If you are 27 or under, the cost of your default Death Only cover with CareSuper will increase. While you will pay more in total for your cover, the cost per dollar of cover will decrease you receive a bigger percentage increase in cover than the percentage increase in cost. If you are 28 or over, the cost of your Death Only cover will be less with CareSuper. You will receive more cover and pay less for it. Age attained (current age) Asset default Death Only cover Units of Cover Cost per cover week CareSuper allocated cover Death Only cover Units of Cover Cost per cover week Change in cover and cost Cover Cost per week 15 1 123,000 $1.15 2 200,560 $1.66 63.1% 44.3% 16 1 123,000 $1.15 2 200,560 $1.66 63.1% 44.3% 17 1 123,000 $1.15 2 200,560 $1.66 63.1% 44.3% 18 1 123,000 $1.15 2 200,560 $1.66 63.1% 44.3% 19 1 123,000 $1.15 2 200,560 $1.66 63.1% 44.3% 20 1 123,000 $1.15 2 200,560 $1.66 63.1% 44.3% 21 1 123,000 $1.15 2 200,560 $1.66 63.1% 44.3% 22 1 123,000 $1.15 2 200,560 $1.66 63.1% 44.3% 23 2 246,000 $2.30 3 300,840 $2.49 22.3% 8.3% 24 2 246,000 $2.30 3 300,840 $2.49 22.3% 8.3% 25 2 246,000 $2.30 3 300,840 $2.49 22.3% 8.3% 26 2 246,000 $2.30 3 300,840 $2.49 22.3% 8.3% 27 2 246,000 $2.30 3 300,840 $2.49 22.3% 8.3% 28 3 369,000 $3.45 4 401,120 $3.32 8.7% -3.8% 29 3 369,000 $3.45 4 401,120 $3.32 8.7% -3.8% 30 3 369,000 $3.45 4 401,120 $3.32 8.7% -3.8% 31 3 369,000 $3.45 4 401,120 $3.32 8.7% -3.8% 32 3 369,000 $3.45 4 401,120 $3.32 8.7% -3.8% 33 3 369,000 $3.45 4 394,760 $3.32 7.0% -3.8% 34 3 365,850 $3.45 4 381,760 $3.32 4.3% -3.8% 35 3 353,460 $3.45 4 368,840 $3.32 4.4% -3.8% 36 3 340,440 $3.45 4 355,280 $3.32 4.4% -3.8% 37 3 327,420 $3.45 4 341,720 $3.32 4.4% -3.8% 38 3 311,700 $3.45 4 325,280 $3.32 4.4% -3.8% 39 3 295,890 $3.45 4 308,800 $3.32 4.4% -3.8% 40 3 280,170 $3.45 4 292,400 $3.32 4.4% -3.8% 41 3 264,540 $3.45 4 275,920 $3.32 4.3% -3.8% 42 3 248,550 $3.45 4 259,480 $3.32 4.4% -3.8% 43 3 231,660 $3.45 4 245,320 $3.32 5.9% -3.8% 44 3 214,680 $3.45 4 233,560 $3.32 8.8% -3.8% 45 3 197,460 $3.45 4 223,440 $3.32 13.2% -3.8% 46 3 180,870 $3.45 4 211,640 $3.32 17.0% -3.8% 47 3 163,800 $3.45 4 199,880 $3.32 22.0% -3.8% 48 3 150,420 $3.45 4 188,920 $3.32 25.6% -3.8% 49 3 137,070 $3.45 4 177,560 $3.32 29.5% -3.8% 50 3 124,320 $3.45 4 167,480 $3.32 34.7% -3.8% 51 3 110,970 $3.45 4 155,280 $3.32 39.9% -3.8% 52 3 98,100 $3.45 4 143,920 $3.32 46.7% -3.8% 53 3 88,440 $3.45 4 132,120 $3.32 49.4% -3.8% 54 3 80,940 $3.45 4 122,040 $3.32 50.8% -3.8% 55 3 73,800 $3.45 4 109,840 $3.32 48.8% -3.8% 56 3 66,300 $3.45 4 99,320 $3.32 49.8% -3.8% 57 3 58,860 $3.45 4 87,960 $3.32 49.4% -3.8% 58 3 51,300 $3.45 4 76,160 $3.32 48.5% -3.8% 59 3 44,250 $3.45 4 66,080 $3.32 49.3% -3.8% 60 3 36,690 $3.45 4 54,280 $3.32 47.9% -3.8% 61 3 29,640 $3.45 4 42,920 $3.32 44.8% -3.8% 62 3 22,080 $3.45 4 34,520 $3.32 56.3% -3.8% 63 3 19,170 $3.45 4 34,520 $3.32 80.1% -3.8% 64 3 19,170 $3.45 4 34,520 $3.32 80.1% -3.8% 65 3 19,170 $3.45 4 33,360 $3.32 74.0% -3.8% 66 3 19,170 $3.45 4 33,360 $3.32 74.0% -3.8% 67 3 19,170 $3.45 4 33,360 $3.32 74.0% -3.8% 68 3 19,170 $3.45 4 33,360 $3.32 74.0% -3.8% 69 3 19,170 $3.45 4 33,360 $3.32 74.0% -3.8% 20
Comparing default death and TPD insurance cover If you currently have default death and TPD cover with Asset, this table shows you how your default death and TPD cover will increase and what you will pay for your default death and TPD cover with CareSuper after we merge. Asset default death and TPD cover Age attained Units of cover Default cover Cost (current age) Death TPD Death TPD Total Cost per week 15 1 1 76,880 76,880 $1.15 16 1 1 76,880 76,880 $1.15 17 1 1 76,880 76,880 $1.15 18 1 1 76,880 76,880 $1.15 19 1 1 76,880 76,880 $1.15 20 1 1 76,880 76,880 $1.15 21 1 1 76,880 76,880 $1.15 22 1 1 76,880 76,880 $1.15 23 2 2 153,760 153,760 $2.30 24 2 2 153,760 153,760 $2.30 25 2 2 153,760 153,760 $2.30 26 2 2 153,760 153,760 $2.30 27 2 2 153,760 153,760 $2.30 28 3 3 230,640 230,640 $3.45 29 3 3 230,640 230,640 $3.45 30 3 3 230,640 230,640 $3.45 31 3 3 230,640 230,640 $3.45 32 3 3 230,640 230,640 $3.45 33 3 3 226,980 226,980 $3.45 34 3 3 219,510 219,510 $3.45 35 3 3 212,070 212,070 $3.45 36 3 3 204,270 204,270 $3.45 37 3 3 196,470 196,470 $3.45 38 3 3 187,020 187,020 $3.45 39 3 3 177,540 177,540 $3.45 40 3 3 168,120 168,120 $3.45 41 3 3 158,640 158,640 $3.45 42 3 3 149,190 149,190 $3.45 43 3 3 139,020 139,020 $3.45 44 3 3 128,820 128,820 $3.45 45 3 3 118,620 118,620 $3.45 46 3 3 108,420 108,420 $3.45 47 3 3 98,220 98,220 $3.45 48 3 3 90,360 90,360 $3.45 49 3 3 82,470 82,470 $3.45 50 3 3 74,550 74,550 $3.45 51 3 3 66,660 66,660 $3.45 52 3 3 58,800 58,800 $3.45 53 3 3 53,070 53,070 $3.45 54 3 3 48,630 48,630 $3.45 55 3 3 44,250 44,250 $3.45 56 3 3 39,780 39,780 $3.45 57 3 3 35,370 35,370 $3.45 58 3 3 30,960 30,960 $3.45 59 3 3 26,520 26,520 $3.45 60 3 3 22,080 22,080 $3.45 61 3 3 19,170 19,170 $3.45 62 3 3 19,170 19,170 $3.45 63 3 3 19,170 19,170 $3.45 64 3 3 19,170 19,170 $3.45 65 3 0 19,170 0 $3.45 66 3 0 19,170 0 $3.45 67 3 0 19,170 0 $3.45 68 3 0 19,170 0 $3.45 69 3 0 19,170 0 $3.45 21 Bigger and stronger together
CareSuper default death and TPD cover Age attained Units of cover New default cover Cost Change in cover and cost (current age) Death TPD Death TPD Total Cost per week Death TPD Total Cost 15 1 4 100,280 401,120 $3.51 30.4% 421.7% 205.2% 16 1 4 100,280 401,120 $3.51 30.4% 421.7% 205.2% 17 1 4 100,280 401,120 $3.51 30.4% 421.7% 205.2% 18 1 4 100,280 401,120 $3.51 30.4% 421.7% 205.2% 19 1 4 100,280 401,120 $3.51 30.4% 421.7% 205.2% 20 1 4 100,280 401,120 $3.51 30.4% 421.7% 205.2% 21 1 4 100,280 401,120 $3.51 30.4% 421.7% 205.2% 22 1 4 100,280 401,120 $3.51 30.4% 421.7% 205.2% 23 2 4 200,560 401,120 $4.34 30.4% 160.9% 88.7% 24 2 4 200,560 401,120 $4.34 30.4% 160.9% 88.7% 25 2 4 200,560 401,120 $4.34 30.4% 160.9% 88.7% 26 2 4 200,560 401,120 $4.34 30.4% 160.9% 88.7% 27 2 4 200,560 401,120 $4.34 30.4% 160.9% 88.7% 28 3 4 300,840 401,120 $5.17 30.4% 73.9% 49.9% 29 3 4 300,840 401,120 $5.17 30.4% 73.9% 49.9% 30 4 4 401,120 401,120 $6.00 73.9% 73.9% 73.9% 31 4 4 401,120 401,120 $6.00 73.9% 73.9% 73.9% 32 4 4 401,120 401,120 $6.00 73.9% 73.9% 73.9% 33 4 4 394,760 394,760 $6.00 73.9% 73.9% 73.9% 34 4 4 381,760 381,760 $6.00 73.9% 73.9% 73.9% 35 4 4 368,840 368,840 $6.00 73.9% 73.9% 73.9% 36 4 4 355,280 355,280 $6.00 73.9% 73.9% 73.9% 37 4 4 341,720 341,720 $6.00 73.9% 73.9% 73.9% 38 4 4 325,280 325,280 $6.00 73.9% 73.9% 73.9% 39 4 4 308,800 308,800 $6.00 73.9% 73.9% 73.9% 40 4 4 292,400 292,400 $6.00 73.9% 73.9% 73.9% 41 4 4 275,920 275,920 $6.00 73.9% 73.9% 73.9% 42 4 4 259,480 259,480 $6.00 73.9% 73.9% 73.9% 43 4 4 245,320 245,320 $6.00 76.5% 76.5% 73.9% 44 4 4 233,560 233,560 $6.00 81.3% 81.3% 73.9% 45 4 4 223,440 223,440 $6.00 88.4% 88.4% 73.9% 46 4 4 211,640 211,640 $6.00 95.2% 95.2% 73.9% 47 4 4 199,880 199,880 $6.00 103.5% 103.5% 73.9% 48 4 4 188,920 188,920 $6.00 109.1% 109.1% 73.9% 49 4 4 177,560 177,560 $6.00 115.3% 115.3% 73.9% 50 4 4 167,480 167,480 $6.00 124.7% 124.7% 73.9% 51 4 4 155,280 155,280 $6.00 132.9% 132.9% 73.9% 52 4 4 143,920 143,920 $6.00 144.8% 144.8% 73.9% 53 4 4 132,120 132,120 $6.00 149.0% 149.0% 73.9% 54 4 4 122,040 122,040 $6.00 151.0% 151.0% 73.9% 55 4 4 109,840 109,840 $6.00 148.2% 148.2% 73.9% 56 4 4 99,320 99,320 $6.00 149.7% 149.7% 73.9% 57 4 4 87,960 87,960 $6.00 148.7% 148.7% 73.9% 58 4 4 76,160 76,160 $6.00 146.0% 146.0% 73.9% 59 4 4 66,080 66,080 $6.00 149.2% 149.2% 73.9% 60 4 4 54,280 54,280 $6.00 145.8% 145.8% 73.9% 61 4 4 42,920 42,920 $6.00 123.9% 123.9% 73.9% 62 4 4 34,520 34,520 $6.00 80.1% 80.1% 73.9% 63 4 4 34,520 34,520 $6.00 80.1% 80.1% 73.9% 64 4 4 34,520 34,520 $6.00 80.1% 80.1% 73.9% 65 4 0 33,360 0 $3.32 74.0% 0.0% -3.8% 66 4 0 33,360 0 $3.32 74.0% 0.0% -3.8% 67 4 0 33,360 0 $3.32 74.0% 0.0% -3.8% 68 4 0 33,360 0 $3.32 74.0% 0.0% -3.8% 69 4 0 33,360 0 $3.32 74.0% 0.0% -3.8% 22
Fund: Asset Super, ABN 98 061 665 900, SFN 131 944 944. Trustee: A.S.S.E.T. Limited, ABN 13 003 257 190, AFSL No. 230070. AB/MBR SEN 912.1 08/12 ISS1