A guide to your superannuation Product Disclosure Statement Eective 30 September 2017 Pensions Alcoa of Australia Retirement Plan www.alcoasuper.com.au Helpline 1800 355 028
Pension Section Alcoa of Australia Retirement Plan Application for an account based pension About this form We need you to fill out this form to let us know: your personal details how much you d like to invest which investment options you d like your money invested in the preservation status of your super your pension amount your payment method who you d prefer to receive your super if you die while you re a member of the Alcoa of Australia Retirement Plan Once you ve finished the form, don t forget to sign it and return it to Alcoa of Australia Retirement Plan, GPO Box 4303, Melbourne, VIC 3001. If you re unsure of your decisions, we recommend that you see a licensed or appropriately authorised financial adviser. Step 1 Complete your personal details Please print in black or blue pen, in uppercase, one character per box. A Title Mr Mrs Ms Miss Other Date of birth / / Given names Surname Residential address (must be provided) Suburb State Postcode Postal address (if dierent to above) Suburb State Postcode Telephone Mobile - - E-mail - see note below Providing your email address In the future the Trustee anticipates providing information such as annual reports, member statements, exit statements and notices of any material changes or occurrence of significant events electronically, rather than in written form as we do at the moment. If this format becomes available and you d like to receive this information electronically please advise your email address. Step 2 Transition to Retirement Pension (TRP) Do you wish to transition to retirement by continuing your current membership in the Alcoa of Australia Retirement Plan and using part of your accumulated superannuation balance to establish a TRP account? See the PDS for details on the Transition to Retirement Pension and an explanation of restrictions which may apply to your pension. Yes No Issued by Alcoa of Australia Retirement Plan Pty Ltd ABN 80 065 702 454 RSE Licence L000294 as Trustee for Alcoa of Australia Retirement Plan ABN 80 928 800 255 Registration R105 7058. *ALCOC.705DI1*
Step 3 Preservation status of your super ( not applicable for Transition to Retirement Pensions) I declare that I am: (Select one option only) 55 years of age or older and I am no longer gainfully employed. I am not intending to rejoin the workforce either full-time or part-time at any time in the future. At least 60 years of age and I have ceased gainful employment since turning 60. At least 65 years of age. Step 4 Make your initial investment I wish to invest the following amounts: Approx value of transfer Policy number Transfer from $, Transfer from $, Transfer from $, Total initial investment (minimum $25,000 TRP only) $, Note: Your pension will not commence until all of your listed transfers have been received. Step 5 Choose your investment options 0 0 You can choose up to four investment options in any percentage. Please ensure the total adds to 100%. I wish to have my initial investment allocated between the following investment option(s): Percentage to be invested Equity % Growth % Capital Stable % Cash % Total 1 0 % Investment option(s) for your pension payments You can choose to have your pension payments made from one or more of the investment options you have chosen above for your account balance. For example, if your account is invested 80% Equity and 20% Growth, you could choose to have your payments made from the Growth option only. If you don t choose, payments will be drawn proportionately from each of your investment options. Once there s no longer enough money in your chosen option(s), payments will automatically be deducted from the account balance invested in your other option(s). You ll be notified at the time, and can adjust your investment choice if desired. I would like my payments to be drawn from my investment options in the following proportion(s): Percentage Equity % Growth % Capital Stable % Cash % Total 1 0 % *ALCOC.705DI2*
Step 6 Your pension payment details 1. Select your payment frequency How often do you wish to receive income payments? Monthly Annually * * For annual payments, please nominate the first month in which your payment is to commence. M M / Y Y 2. Select your payment amount I wish to receive pension payments as follows: (Select one option only) Minimum amount permitted Nominated amount * of $, per period as indicated above. Maximum amount permitted (Transition to Retirement Pension only) * This amount must be at least the minimum amount permitted and will be gross of tax where applicable. For TRP s only the nominated amount must not exceed the maximum pension allowable (gross of tax). Please note: If you have not ticked an option above, payments will be made at the minimum amount permitted Your first pension payment will be paid on the first available pay period after your Pension Account has been established. We require 10 business days prior to your first pension payment in order to complete the transfer of your superannuation and establish your Pension Account. Step 7 Complete your payment details My bank account details are as follows: Name of Institution Branch Name BSB Account Number Account Name Step 8 Nominate your beneficiaries Who ll get your super if you die while you re in the Alcoa of Australia Retirement Plan? If you die while there is money in your Alcoa of Australia Retirement Plan account, this money will be paid out to your spouse, dependants or estate. You have the option of: (1) nominating a reversionary beneficiary (see Step 9) OR (2) making a non-binding or binding death benefit nomination (see Step 10) If you do not nominate a reversionary beneficiary or make a binding death benefit nomination, the Trustee of the Alcoa of Australia Retirement Plan ( the Trustee ) will determine to which of your dependants and/or your estate the benefit will be paid. However, your non-binding Nomination of beneficiaries will be taken into account should you complete that form, when the Trustee makes its determination. *ALCOC.705DI3*
Step 9 Reversionary beneficiary nomination Before your pension starts, you can nominate your spouse as a reversionary beneficiary. This means that if you die with money in your account, your spouse will continue to receive your pension (or have the option of cashing out your account as a lump sum), as long as he or she is your spouse at the time of your death. You cannot change your reversionary beneficiary once your pension starts. If you do not wish to nominate a reversionary beneficiary (or the nominated reversionary beneficiary dies before you or ceases to be your spouse) you may make a death benefit nomination (Step 10). If you wish to nominate a reversionary beneficiary please provide details below. Family name Given name Birth date [DD/MM/YYYY] / / Step 10 Nominate your beneficiaries Who ll get your super if you die while you re in the Alcoa of Australia Retirement Plan? Should I die while a member of the Alcoa of Australia Retirement Plan, I d prefer my death payout to be paid to the following people in the proportions shown. This is only an indication of your preference for the distribution of your Death payout, unless you make a binding death nomination. The Trustee of the Alcoa of Australia Retirement Plan is not legally bound by your wishes but will take them into account. Alternatively, you can make a binding death nomination. For more information about a binding death nomination, call the Helpline or refer to the Making a binding death nomination form available at www.alcoasuper.com.au If your personal circumstances change, it is important that you update your nomination. This nomination may be revoked at any time and will be cancelled automatically by any subsequent nominations. Name Relationship to you* Proportion of payout % Name Relationship to you* Proportion of payout % Name Relationship to you* Proportion of payout % Name Relationship to you* Proportion of payout % Name Relationship to you* Proportion of payout % Total 1 0 0 % * Your nominee/s must be a dependant or be your legal personal representative (the Trustee requires production of probate or letter of administration). A dependant is defined as: your spouse (including de-facto) your children including step, adopted, ex-nuptial or posthumous children any person you have interdependency relationship with. Two people have an interdependency relationship if: 1. they have a close personal relationship; 2. they live together; 3. one or each of them provides the other with financial support; and 4. one or each of them provides the other with domestic support and personal care. An interdependency relationship will also exist between two people if they have a close personal relationship but do not meet the other criteria as listed above (2, 3 & 4) because either or both of them suer from a physical, intellectual or psychiatric disability. any other person who the Trustee may in its absolute discretion determine to be dependent on you either wholly or in part or to have a legally enforceable right to look to you for financial support at the date of your death. *ALCOC.705DI4*
Step 11 Attach proof of identity For identification purposes, you MUST attach a certified copy of either your Driver s Licence or Passport (or acceptable alternatives). See the Completing proof of identity section for details of certification and acceptable alternative documents. Failure to provide appropriate proof of identification may result in delays in the processing of your payment(s). Step 12 Provide Tax File Number Declaration Your TFN is confidential and it not an oence to not provide your TFN. However in line with the Superannuation Industry (Supervision) Act 1993, the Trustee of Alcoa of Australia Retirement Plan is authorised to ask for your TFN. The Trustee will only use your TFN for lawful purposes. These purposes may change in the future if there are changes to legislation. You should note that if you are under age 60 and you don t provide your TFN, you may pay more tax than you have to. To minimize any extra tax being withheld from your pension payments, you will need to complete and return an ATO Tax File Number Declaration form. I have completed and attached the Tax File Number Declaration Form available from the Australian Tax Oice or the Helpline on 1800 355 028. I am over the age of 60 and a completed Tax File Number Declaration Form is not required. Step 13 Adviser details (if required) Adviser Details I give authority for my adviser (named below) to access any information in relation to my account in the Alcoa of Australia Retirement Plan. Adviser name Member Signature Adviser phone Advisor number Date / / I request that a Centrelink schedule be sent to my adviser. Advisor Stamp Oice location Adviser Signature Date / / Your Privacy The Plan is administered by us along with our service provider, Mercer Outsourcing (Australia) Pty Ltd. We collect, use and disclose personal information about you in order to manage your superannuation benefits and give you information about your super. We may also use it to supply you with information about the other products and services oered by us and our related companies. If you do not wish to receive marketing material, please contact us on 1800 355 028. Our Privacy Policies are available to view at alcoasuper.com.au or you can obtain a copy by contacting us on 1800 355 028. If you do not provide the personal information requested, we may not be able to manage your superannuation. We may sometimes collect information about you from third parties such as your employer, a previous super fund, your financial adviser, our related entities and publicly available sources. We may disclose your information to various organisations in order to manage your super, including your employer, our professional advisors, insurers, our related companies which provide services or products relevant to the provision of your super, any relevant government authority that requires your personal information to be disclosed, and our other service providers used to assist with managing your super. In managing your super your personal information will be disclosed to service providers in another country, most likely to Mercer s processing centre in India. Our Privacy Policies list all other relevant oshore locations. Our Privacy Policies set out in more detail how we deal with your personal information and who you can to talk to if you wish to access and seek correction of the information we hold about you. It also provides detail about how you may lodge a complaint about the way we have dealt with your information and how that complaint will be handled. If you have any other queries in relation to privacy issues, you may contact us on 1800 355 028 or write to our Alcoa of Australia Superannuation Plan, Privacy Oicer, GPO Box 4303, Melbourne VIC 3001. *ALCOC.705DI5*
Step 14 Sign the form Your application will not be accepted unless you have signed this declaration. By signing this form I: apply to become a member of the Pension Section of the Alcoa of Australia Retirement Plan acknowledge that I have read and understood the attached Product Disclosure Statement dated 30 September 2017 and agree to be bound by it acknowledge that I have received all information I require in order to exercise the choices I have made accept that I will be bound by the provisions of the Trust Deed and rules which govern the operation of the Alcoa of Australia Retirement Plan understand that my personal information will be handled by the Trustee to provide and manage my super. Without this information it may not be able to provide my super and choices. For this purpose, my personal information may pass between the Trustee of the Alcoa of Australia Retirement Plan and its administrator, professional advisers, insurers, government agencies and other parties as required, including the trustee of any other super fund that my super is transferred to consent to my information being collected, disclosed and used in the manner set out in this form. agree that if I ve provided my email address details in this application form, the Trustee may, at its discretion, use that email address to send information, including any annual reports, member and exit statements and notices of any material changes or the occurrence of significant events, by electronic means. Signature Date / / Please return your completed form together with your proof of identity to Alcoa of Australia Retirement Plan, GPO Box 4303, Melbourne, VIC 3001. *ALCOC.705DI5*
Completing proof of identity Completing proof of identity Primary photographic identification You will need to provide a copy of one of the following primary identification documents: Current Australian or foreign driver s licence (including the back of the driver s licence if your address has changed) Australian passport Current foreign passport 1, or similar document issued for the purpose of international travel 1 Current card issued under a State or Territory for the purpose of proving a person s age Current national identity card issued by a foreign government for the purpose of identification 1 Identification documents must not be expired (excepting an Australian passport which may be expired within 2 years). Alternative identification If you are unable to provide any primary photographic identification, you will need to provide two identification documents, one from each of the following lists: Birth certificate or birth extract 1 Citizenship certificate issued by the Commonwealth Pension card issued by the Department of Human Services (Centrelink) that entitles the person to financial benefits Name change AND Letter from the Department of Human Services (Centrelink) or other Government body in the last 12 months regarding a Government assistance payment Tax Oice Notice of Assessment issued in the last 12 months Rates notice from local council issued in the last 3 months Electricity, gas or water bill issued in the last 3 months Landline phone bill issued in the last 3 months (mobile phone bills will not be accepted) If you have changed your name, you must provide a certified copy of the relevant name change document 1, for example, a Marriage Certificate issued by the Registry of Births Deaths & Marriages, Decree Nisi or Deed Poll (in addition to the above identification). If your legal name or date of birth does not match exactly to our records (excluding aforementioned name changes), please contact us for further instructions. Signing on behalf of another person If you are signing on behalf of the applicant you will need to provide the following: A certified copy of the Guardianship papers or Power of Attorney; and A certified copy of the appropriate proof of identity for the holder of the Guardianship or Power of Attorney. Note: Certified ID is also required for the member 1 Translation If your identification is written in a language other than English, the identification must be accompanied by an English translation prepared by a translator accredited by the National Accreditation Authority for Translators and Interpreters Ltd. (NAATI) at the level of Professional Translator or higher (or an equivalent accreditation), to translate from a language other than English into English. How to certify documents After sighting the original and the copy and making sure both documents are identical, the certifier must include on EACH page: Written or stamped certified true copy Signature and printed full name Qualification (such as Justice of the Peace, Australia Post employee, etc) Date (the date of certification must be within the 12 months prior to our receipt) IDENTIFICATION Certified true copy J. Sample Mr John Sample Justice of Peace Registration No.123456789 Date: 01/02/2012 A clear copy of the document that identifies you (i.e. your driver s licence (front and back) or passport) Write or stamp certified true copy of the original document The authorised person s signature Full name, qualification and registration number (if applicable) of the authorised person Date of certification (within 12 months of receipt) Verification A verification of the certifying party may be performed. If a discrepancy arises, you may be requested to re-certify documentation. Important Note The information in this document is a guide only and we may request additional documentation prior to any payment. V7.1 *ALCOC.705DI6*
Completing proof of identity Who can certify documents in Australia? Permanent employee of the Australian Postal Corporation with 2 or more years of continuous service who is employed in an oice supplying postal services to the public Agent of the Australian Postal Commission who is in charge of an oice supplying postal services to the public Australian Consular Oicer or Australian Diplomatic Oicer (within the meaning of the Consular Fees Act 1955) Baili Bank oicer, building society oicer or credit union oicer (with two or more continuous years of service) Commissioner for Aidavits or Declarations Court Oicer, Registrar or Deputy Registrar of a Court, Judge, Clerk, Magistrate, Master of a Court, Chief Executive Oicer of a Commonwealth Court Fellow of the National Tax Accountant s Association Finance Company Oicer (with two or more continuous years of service with one or more finance companies) Justice of the Peace Legal practitioner Marriage celebrant (registered under Subdivision C of Division 1 of Part IV of the Marriage Act 1961) Medical practitioner, chiropractor, dentist, nurse, optometrist, physiotherapist, psychologist Member of Chartered Secretaries Australia Member of Engineers Australia (other than at the grade of student) Member of the Association of Taxation and Management Accountants Member of the Australasian Institute of Mining and Metallurgy Member of the Australian Defence Force (who is an oicer; or a non-commissioned oicer within the meaning of the Defence Force Discipline Act 1982 with two or more years of continuous service or a warrant oicer within the meaning of that Act) Member of the Institute of Chartered Accountants in Australia, the Australian Society of Certified Practising Accountants or Member of the Institute of Public Accountants Member of Commonwealth Parliament, State Parliament, Territory Legislature or a Local Government Authority (State or Territory) Minister of Religion (under Subdivision A of Division 1 of Part IV of the Marriage Act 1961) Notary Public Oicer with, or Authorised Representative of an Australian Financial Services Licensee (who has had at least two years of continuous service with one or more licensees) Oicer with, or a credit representative of, a holder of an Australian credit licence (who has had at least two years of continuous service with one or more licensees). Permanent employee of the Commonwealth (or Commonwealth Authority) or a State or Territory (or State or Territory Authority) or a Local Government Authority with two or more years of continuous service Person before whom a statutory declaration may be made under the law of the State or Territory in which the declaration is made Pharmacist Police Oicer, Sheri or Sheri s Oicer Senior Executive Service Employee of the Commonwealth (or Commonwealth Authority) or a State or Territory (or State or Territory Authority) Teacher employed on a full-time basis at a school or tertiary education institution Trade marks attorney Veterinary surgeon Who can certify documents outside of Australia an authorised sta member of an Australian Embassy, High Commission or Consulate an authorised employee of the Australian Trade Commission who is in a country or place outside Australia an authorised employee of the Commonwealth of Australia who is in a country or place outside Australia a Member of the Australian Defence Force who is an oicer or a non-commissioned oicer with 5 or more years of continuous service a Notary Public from a country ranked 129 or below in the latest Transparency International Corruptions Perception Index: http://www.transparency.org V7.1 *ALCOC.705DI7* 20170901
About this Product Disclosure Statement This Product Disclosure Statement (PDS) is eective 30 September 2017. It relates to the Allocated Pension and Transition to Retirement Pension facilities provided by the Alcoa of Australia Retirement Plan (Plan) ABN 80 928 800 255, RSE R1057058, and has been developed to help you understand the benefits and conditions of membership of these facilities. This PDS provides important information about the features, costs, benefits and risks of investing your superannuation benefits in the Plan s Allocated Pension and Transition to Retirement Pension facilities. This document is intended to provide information and not advice. It should not be relied upon as advice or take the place of professional advice. This document has been prepared without taking into account your individual objectives, financial situation or needs. Accordingly, before acting on the contents of this document, you should consider whether it is appropriate to you, having regard to your objectives, financial situation and needs. It s easy to join Firstly, make sure you re eligible to join the Allocated Pension Facility or Transition to Retirement Pension Facility. You need to meet the set criteria relating to each facility outlined in the Are you eligible to join? section on page 4. From there, all you need to do is follow the steps below and forward the completed application form to Mercer Outsourcing (Australia) Pty Limited ( Mercer ) (see contact details on page 2). Step 1: Calculate your pension payment minimum (and maximum if selecting a Transition to Retirement Pension), using the information provided on page 7. Step 2: Complete the Application for an account based pension form provided at the front of this PDS, indicating your desired payment amount and frequency, subject to the limits calculated in Step 1. Step 3: Ensure you provide a Tax File Number Declaration form if required, see Step 12 of the application form. This enables us to determine the tax rate applicable to your pension payments if you are under age 60. Please note that this form is available from the Australian Taxation Oice (ATO) or the Helpline on 1800 355 028. If you wish to select or change the investment option(s) that apply to your account, please complete Step 5 of the application form. If you have any further queries, you can contact the Plan Helpline on 1800 355 028 (free call). Before completing this form though, you should carefully read this PDS. Benefits and risks By joining the Allocated Pension Facility or Transition to Retirement Pension Facility, you ll benefit from a whole range of features available to you. However, there are also some risks of which you need to be aware. With an Allocated Pension and Transition to Retirement Pension, rather than having a set, or indexed payment amount for the life of your pension, you have the flexibility to choose how much income you wish to receive each year. You can choose to have your payments paid to you on a monthly or annual basis. However, the amount you can draw from your Pension Account is subject to minimum limits set by the Government (and maximum limits for Transition to Retirement Pensions) please see page 7 for more details on these limits. The Allocated Pension and Transition to Retirement Pension may not provide a pension for the rest of your life. Payments will only continue to be made until the balance of your Pension Account is exhausted. The balance of your Pension Account is determined by the amount of your initial investment, the investment returns earned by your investment choice option (which may be positive or negative), the fees and charges, and how much pension has already been paid to you. If you leave the Allocated Pension Facility or Transition to Retirement Pension Facility, the amount you get back will be the balance of your account at that time, less any withdrawal fees and tax payable (refer to Fees and other costs on page 18 in this PDS). This may be less than what you paid in. In the event of your death, the total amount remaining in your Pension Account is paid to your beneficiaries, or legal personal representative, or your reversionary beneficiary (if you have nominated one) less any applicable charges and tax. Need advice? The Trustee of the Plan and Alcoa of Australia Limited ( Alcoa ) are not licensed to provide financial product advice about this Plan or other superannuation products. However, you can contact the Plan s Helpline on 1800 355 028 for limited financial advice at no cost to you. If you would like advice that takes into account your specific financial situation, needs and objectives, you will need to contact a person or organisation licensed to provide personal advice (such as a licensed financial adviser) or an authorised representative of a licensee. As a member of the Plan you are entitled to a free evaluation meeting with a financial adviser from Mercer. All you need to do is call the Helpline on 1800 355 028 and make an appointment. 1
Contents Enquiries and complaints service The Plan has an internal dispute resolution facility in place. Please read Enquiries and complaints in the Other Information section on page 27 for details. Keeping up to date Access to a copy of the Plan s Privacy Policy, Trust Deed, latest actuarial report, annual Plan accounts, list of Plan service providers and other Plan related documents, can be found on the Plan s Website www.alcoasuper.com.au Looking for more information? If you would like more information about the Plan s Allocated Pension or Transition to Retirement facilities, please contact the Plan administrator: Mercer Outsourcing (Australia) Pty Ltd GPO Box 4303 Melbourne Vic 3001 Freecall: 1800 355 028 Mercer Outsourcing (Australia) Pty Ltd (Mercer) administers many large corporate superannuation funds and has been appointed by the Trustee to manage the day-to-day operations of the Plan. This includes maintaining members details, allocating contributions to members accounts and making benefit payments. Employees of Mercer are not representatives of the Plan s Trustee and any general financial product advice they provide is provided under Mercer s Australian Financial Service Licence No. 411980. You may also contact: Plan Secretary Alcoa of Australia Retirement Plan Collins Square, Tower 1 727 Collins Street Melbourne VIC 3008 Tel: 1800 355 028 Fax: (03) 8640 0800 You may be charged a fee for the provision of some types of information. Mercer or the Plan Secretary will advise if any charges apply for the information. The Plan s website can be found at www.alcoasuper.com.au This Product Disclosure Statement (PDS) was prepared eective 30 September 2017 by Alcoa of Australia Retirement Plan Pty Ltd (ABN 80 065 702 454, RSE licence L0002974). It relates to the Pension Section of the Alcoa of Australia Retirement Plan (Plan) ABN 80 928 800 255, RSE R1057058, and has been developed to help you understand the benefits and conditions of membership of the Plan. This PDS provides information about the features, costs, benefits and risks of investing your superannuation in the Pension Section of the Plan. About this Product Disclosure Statement...1 Who looks after the Plan?...3 The Trust Deed...3 How do the Plan s sections work...3 Are you eligible to join?...4 Adding to your pension...4 Where you money is invested...5 Your pension options at a glance...5 Your pension payment...6 Minimum and maximum pension payment...7 Pension or lump sum payment...8 Timing and method of payment...8 How long your pension payments will last...8 Commutations from your Pension Account...9 Death benefit...10 The Plan s Investments...11 Equity Option... 14 Growth Option... 14 Capital Stable Option... 15 Cash Option... 15 Fees and other Costs...18 Taxation...23 Anti-Money Laundering Legislation...25 Bankruptcy & Super Contributions...25 Other Information...26 This document is intended to provide general information only. It should not be relied upon as advice or take the place of professional advice. This PDS is not intended to contain any recommendations, statements of opinion or advice. This document has been prepared without taking into account your individual objectives, financial situation or needs. Accordingly, before acting on the contents of this document, you should consider whether it is appropriate to you, having regard to your objectives, financial situation and needs. 2
Who looks after the Plan? The Plan is managed by the Trustee. The Plan s Trustee is the Alcoa of Australia Retirement Plan Pty Ltd ABN 80 065 702 454, RSE Licence number L0002974. The Trustee has a legal and fiduciary duty to look after the interests of members and ensure that the Plan is maintained in accordance with the Trust Deed governing the Plan and all relevant Government legislation. To help the Trustee in fulfilling its obligations and responsibilities, professional service providers such as investment managers, auditors, administrators, actuaries, lawyers and consultants may be appointed. The Trustee operates independently of Alcoa, and consists of six Directors. Three of the Directors are elected by the Plan s membership, and three of the Directors are nominated by Alcoa. The Trust Deed The Trust Deed is a formal document that sets out the rights and duties of all participants in the Plan and outlines the rules under which the Plan is administered and benefits are paid. This PDS and other documents provided by the Plan may describe your rights and entitlements in general terms, but the Trust Deed is the final authority. As circumstances change, it may be necessary to amend the Trust Deed (eg, to reflect changes in legislation). Amendments generally cannot reduce the amount of your benefit up to the date of the amendment without your consent, unless otherwise allowed by Government legislation. A copy of the Trust Deed is available from the Plan Secretary on request, or on the Plan website at www.alcoasuper.com.au How do the Plan s sections work? Allocated Pensions and Transition to Retirement Pensions provide you with a regular income stream in retirement while potentially enabling you to pay less tax than you might otherwise pay. For both pensions, your lump sum benefit is deposited into a Pension Account in your name, which works as an accumulation account and is used to pay you a regular pension payment. Your Pension Account is credited with investment returns (either positive or negative) and payments and fees are generally deducted from your account. In some circumstances fees may be deducted from investment returns before they are declared to the Plan. For more information see the Fees and Other Costs section on page 18. Transition to Retirement Pensioners will also maintain a separate superannuation account within the Plan until retirement. A Transition to Retirement Pension is paid as a Non Commutable Allocated Pension (for more information, please see page 9). Please note that for Transition to Retirement Pensioners, the minimum investment required for a Pension Account is $25,000 while a minimum balance of $1,000 must be maintained in your existing super account to cover the cost of insurance and administration expenses. If you are an existing Defined Benefit member, any amount that you nominate to be paid as a Transition to Retirement Pension will be transferred to the Plan s 3
Are you eligible to join? Accumulation section with a corresponding reduction to your defined benefit component. All members of the Plan* are eligible to become allocated pensioners or transition to retirement pensioners, so long as the eligibility rules outlined below are met. * excluding members who are temporary residents, unless they hold a Subclass 405 (Investor Retirement) or a Subclass 410 (Retirement) visa. Joining the Allocated Pension Facility To be eligible to join the Allocated Pension Facility, you must have left employment with Alcoa. Your benefit must also be available to you as cash at the time you choose your pension. In other words, none of your benefit can be subject to preservation (see the next column for information about preservation). Generally, this means that you: have permanently retired from the workforce and are over your preservation age (55 or over depending on your date of birth please see the table in the next column); or have become totally and permanently disabled at any age; or are between the ages of 60 and 65 and have changed jobs; or have reached age 65 (even if you are still working). Joining the Transition to Retirement Pension Facility To be eligible to use the Transition to Retirement Pension Facility you must be over your preservation age (55 or over depending on your date of birth please see the table below) but you do not have to be retired from the workforce. To be eligible to use this facility you must still be employed by Alcoa. What s my preservation age? Your preservation age is determined by the following table: Date of birth Preservation age Before 1 July 1960 55 1 July 1960 to 30 June 1961 56 1 July 1961 to 30 June 1962 57 1 July 1962 to 30 June 1963 58 1 July 1963 to 30 June 1964 59 After 30 June 1964 60 Remember, you must complete the Application for an account based pension form at the front of this PDS to be accepted in the Allocated Pension or Transition to Retirement Pension facilities. Adding to your pension Once your pension begins, you cannot add any additional contributions or superannuation fund rollovers to your Allocated Pension or Transition to Retirement Pension Account. If you wish to rollover an additional superannuation fund payment, a new Pension Account will be set up in your name for the amount transferred, payable as a new and separate pension. Subsequent rollovers cannot be added to this Pension Account. You will instead need to complete an application form for each new investment. If you have multiple lump sum payments or rollovers from dierent sources it may be in your interest to first combine them in your membership in the Plan (before joining the Allocated Pension Facility or Transition to Retirement Pension Facility) or another superannuation fund before transferring this combined amount to the Plan s Allocated Pension Facility or Transition to Retirement Pension Facility. However, it is recommended that you seek advice from a licensed or appropriately authorised financial adviser in relation to such matters. For Transition to Retirement Pensioners, employer and member contributions will continue to be remitted to your existing superannuation account. These cannot be accepted into your Pension Account. You may be eligible to rollover your Pension Account to a super account in the Alcoa of Australia Retirement Plan if you wish to combine accounts. For further information please contact the Helpline on 1800 355 028. 4
Where your money is invested Your savings, along with those of other Plan members, are invested by carefully selected specialist managers. The managers have a responsibility for the investment of Plan assets within specified constraints. The Trustee does not take into account labour standards or environmental, social and ethical considerations in selecting, retaining or realising the investments of the Plan. The Trustee regularly reviews the performance of the selected investment managers, with the assistance of the investment adviser. Details of recent investment performance are available on page 16. Your pension options at a glance The following table shows the main features of, and the dierences between, the two pensions. What are some of the advantages of the Allocated Pension and Transition to Retirement Pension? Advantage Tax advantages Investment options Plan membership Flexibility Features Investment earnings on your Allocated Pension Account are tax free. Pension payments and lump sum withdrawals are generally tax free when paid from age 60. You may be entitled to a tax rebate of up to 15% if you are at least age 55 and under age 60. You have access to the Plan s member investment choice options. You continue to be a member of the Plan and enjoy the benefits of this membership. You can roll your Pension Account back into super if your circumstances change. What are the main dierences between the Allocated Pension and Transition to Retirement Pension? Starting a pension Allocated Pension You can start an Allocated Pension if none of your super payout is subject to preservation. Transition to Retirement Pension You can use your super to start a Transition to Retirement Pension even if you are still working, provided you have reached your preservation age. Minimum investment No minimum applies. An investment of at least $25,000 is required. Pension term Your pension does not have a fixed term; it will last as long as you have money in your Pension Account. Pension payments You can choose how much you receive each year, subject You can choose how much you receive each year, to the minimum amount set by the Government. subject to the minimum and maximum amounts set by the Government. Frequency of payment Your pension will be paid monthly or annually on the 1st of the month, as selected by you. Lump sum withdrawals You can make lump sum withdrawals at any time subject to receiving pension payments of at least the minimum amount in a financial year. Lump sum withdrawals can only be made in limited circumstances (see page 9 for details). Tax on pension payments You may receive concessional tax treatment see the Taxation section of this PDS for details on page 23. Payments on your death Your Reversionary Beneficiary can continue to receive the pension payments or your remaining Pension Account can be paid as a lump sum to your dependants or estate. 5
Your pension payment Pension payments start on the 1 st of the month, once your account has been established in the Allocated Pension Facility or Transition to Retirement Pension Facility of the Plan. You must provide all required documentation and allow 10 business days to set up your Pension Account before the first payment is made. Generally, payments from your Pension Account are made on the 1 st day of the month in accordance with the following rules: Allocated Pension at least one pension payment must be made each year; pension payments in a financial year (i.e. 1 July 30 June) must at least equal the minimum amount set by the Government; and if a pension commences after 31 May, no minimum payment is required in that financial year. Transition to Retirement Pension at least one pension payment must be made each year; The unrestricted non-preserved amount (if any) is the part of your super that is payable in cash at any time. Preserved and restricted non-preserved amounts must be kept in a super fund or other approved arrangement and are only accessible when you satisfy a condition of release which includes: when you have reached your preservation age (as described earlier in this PDS) and, except in the case of a Transition to Retirement Pension, have retired permanently from the workforce; when you terminate employment with your current employer after age 60; when you reach age 65; if you become permanently incapacitated; if you die; or when the amount is paid as a pension payment from a Transition to Retirement Pension Facility. pension payments in a financial year (i.e. 1 July 30 June) must at least equal the minimum amount set by the Government; pension payments in a financial year must not be greater than the maximum amount set by the Government; if a pension commences after 31 May no minimum payment is required in that financial year; and any pension payments must be taken first from any unrestricted non-preserved amount you transferred to your Transition to Retirement Pension Account until this amount is exhausted, then from any restricted non-preserved amount and finally from any preserved amount transferred. 6
Minimum and maximum options at a glance The Trustee will continue to pay you a pension from your Pension Account until the earlier of your death or when your account balance is exhausted. The amount of the pension payments will be a percentage of your account balance as selected by you, and must be in accordance with the following rules: Allocated Pension your annual pension payments must be at least equal to the minimum level set by the Government (refer to the table opposite). No maximum applies to your pension payments. Transition to Retirement Pension your annual pension payments must be at least equal to the minimum level (refer to the table opposite) and must be no more than the maximum level set by the Government. The maximum pension amount you may receive in any financial year is calculated as 10% of your Pension Account balance at the previous 1 July, or at the commencement of your pension if this is after the last 1 July. Your annual pension payment will be calculated based on your age and your Pension Account balance on commencement of your pension and at 1 July each year. We will advise you in writing annually of the minimum (and maximum, if applicable) pension payment required. You will be asked to nominate the level of your pension payments for the financial year within those limits. If you don t nominate your pension payment level for the financial year, your pension payments will be equal to the dollar value of your pension payments in the previous year, unless the Trustee has to adjust your pension payments so that it meets the minimum (or maximum if applicable) payment required. You may change the amount of your pension payments anytime provided the amount you choose is at least the minimum level required (and, if applicable, less than the maximum amount allowed). To make a change complete the Request to vary your Pension Payment form available on the website www.alcoasuper.com.au or call the Helpline on 1800 355 028 and request a copy. The minimum pension amount you may receive in any financial year is calculated as your Pension Account balance at 1 July multiplied by the minimum percentage set out in the table opposite. Minimum pension factor table Age* Percentage of account balance^ Under 65 4% 65 74 5% 75 79 6% 80 84 7% 85 89 9% 90 94 11% 95+ 14% * Age is your age as at the start of the financial year (i.e. 1 July) or when you start a pension in the case of the first year. ^ Your applicable minimum payment for the year your pension begins is based on the number of days remaining in that financial year (see the example below). No minimum payment is required for a financial year in which the pension commences after 31 May. If your pension starts part way through a year, the minimum payment will be based on your Pension Account balance at commencement and will be pro-rated accordingly. The minimum annual pension amount will be rounded to the nearest $10. Here s an example of how the minimum and maximum pension levels work: Peter is aged 65 and has a benefit of $200,000, which he invests in an Allocated Pension on 1 July 2017. Peter s minimum percentage is 5%, therefore his minimum pension for the first year (1 July 2017 to 30 June 2018) is 5% of $200,000 which equals $10,000. If Peter started his pension after 1 July, the minimum amount would be adjusted to take account of the number of days from the date the pension commenced to the next 30 June. If Peter had invested in a Transition to Retirement Pension, the maximum pension for the first year would be 10% of $200,000 which equals $20,000. At the next 1 July, the minimum (and maximum if applicable) pension levels would be re-calculated. 7
Pension or lump sum payment Under the legislation governing pensions you can choose, before a payment is made, to have a particular payment treated as a lump sum payment rather than a pension payment. If you choose a lump sum, the payment will then be taxed as a lump sum and not a pension payment. Taking a payment as a pension or a lump sum could have taxation implications and may also have implications for any social security payments you may be entitled to. The Trustee recommends that you speak to a licensed, or appropriately authorised, financial adviser, to find out how this decision might impact on you. The Trustee will treat all payments as pension payments unless you choose otherwise when requesting a payment from the Plan. In some cases, legislative requirements may mean that it will not be possible to treat a payment as a lump sum. Please note that the restrictions outlined under the section Commutations from your Pension Account (see page 9) will apply to any lump sum payment requested. Timing and method of payment Your pension payments will be made by direct credit to your bank, building society or credit union account, generally by the first day of the relevant month. How long your pension payments will last It s important to understand that there is no guarantee that pension payments will continue for any particular period, or for the rest of your life. Pension payments will cease once your Pension Account is exhausted. The length of time over which payments continue depends primarily on three factors: the amount of the pension payments you receive each year; the amount of investment earnings (after fees) earned by your account each year (including any negative earnings); and any lump sum commutations you make. 8
Commutations from your Pension Account Allocated Pension You can commute (i.e. withdraw) all or part of your Pension Account balance as a lump sum cash payment or transfer it to another complying superannuation fund at any time, including to the Retained Benefit Facility of the Plan, subject to the following: Prior to the full or partial commutation of your allocated pension, a payment of at least a pro-rata portion of the minimum annual payment must be made*. This must take place in the financial year (i.e. 1 July 30 June) in which the commutation is to occur. Withdrawal requests must be in writing and directed to the Plan. As proof of identity, you need to quote your member number when requesting a commutation. You must complete a Request for Partial/Full Commutation form available from the Plan website www.alcoasuper.com.au Commutations can only be made payable to the member. * The requirement to pay a minimum payment does not apply to a commutation resulting from the death of a member or reversionary pensioner. Nor does it apply to a commutation for the sole purpose of paying a superannuation contributions surcharge, a payment split under the Family Law provisions or an excess contributions tax assessment. Transition to Retirement Pension The Transition to Retirement Pension is non commutable. This means that you are not permitted to make any lump sum withdrawals except in the following circumstances: to cash any unrestricted non-preserved component of your Pension Account; to pay a family law split; You can also transfer the balance of your Pension Account back into your non-pension super account or roll it over to another pension product that has the same restrictions on when you can make lump sum withdrawals. When you satisfy a condition of release (as described earlier in this PDS under the heading Transition to Retirement Pension in the Your pension payments section), the above restrictions no longer apply and your Transition to Retirement Pension will be converted to an Allocated Pension. You can then make lump sum withdrawals at any time as described above under Allocated Pension. Your Transition to Retirement Pension will be converted to an Allocated Pension at age 65, unless you provide Mercer with details earlier that you have satisfied a condition of release. Other information on commutations If you make a commutation as set out above, the following will also apply: The proportion of your ongoing pension payments that are taxable, and tax-free if any, will not change; Your annual tax oset amount (see the Taxation section on page 23 for further details) may be aected; Your minimum (and, if applicable, maximum) pension limits will change in future financial years, but not in the current year; and The amount you have withdrawn will be split between taxable and tax-free components, if any, in the same proportion as your Pension Account. Commutation is a complex issue. You should consult a licensed, or appropriately authorised, financial adviser before you decide to withdraw any part of your pension. For further information, please contact the Plan Helpline on 1800 355 028. to pay a superannuation surcharge debt; or to pay an excess contributions tax assessment. 9