OPTIMUM CORPORATE SUPER FOR STANDARD PACIFIC PRODUCT GUIDE Issued 31 January 2013 Important information Suncorp Portfolio Services Limited (Trustee) (ABN 61 063 427 958, AFSL 237905, RSE Licence No L0002059), Suncorp Life & Superannuation Limited (Insurer) (SLSL) (ABN 87 073 979 530, AFSL 229880) and Suncorp-Metway Limited (SML) (ABN 66 010 831 722, AFSL 229882), are related bodies corporate of Suncorp Group Limited (Suncorp Group) (ABN 66 145 290 124). The information contained in the PDS, this Product Guide, and any other material incorporated by reference, is of a general nature only and doesn’t constitute financial advice. It has been prepared without taking into account your particular objectives, financial situation or needs. Before deciding to open an account or continuing to hold an interest, you should consider how the information contained in the PDS, the Product Guide, and any other material incorporated by reference, relates to your own situation. We recommend that you speak to an adviser who will be able to help you with your investment and insurance decisions. Various products and services are provided by different entities of the Suncorp Group. The different entities of the Suncorp Group are not responsible for, or liable in respect of, products or services provided by other entities of the Suncorp Group. The obligations of the Trustee and the Insurer aren’t guaranteed by any other company within the Suncorp Group. Except as otherwise stated, Suncorp and its subsidiaries don’t guarantee the repayment of capital invested in or the investment performance of this product. This product is not a bank deposit or other liability and is subject to investment risk including possible delays in repayment and loss of the interest and principal invested. The Product Disclosure Statement (PDS), this Product Guide, and any other material incorporated by reference, were prepared on 30 January 2013. The Trustee is the issuer of the PDS, the Product Guide, and any other material incorporated by reference, and takes responsibility for its contents. Investment option information is provided by Standard Pacific which includes their objectives, strategies, asset allocations, fees and buy/sell spreads. Standard Pacific have consented to the publication of this information in the Product Guide and haven’t withdrawn their consent at the time of its preparation. They take no responsibility for any other information in the PDS, the Product Guide, and any other material incorporated by reference. Optimum Corporate Super for Standard Pacific (Optimum) (SPIN RSA0111AU) is part of the Suncorp Master Trust (Fund) (ABN 98 350 952 022, RSE Fund Registration No. R1056655). Applications can only be accepted from persons receiving the PDS (including electronically) within Australia. If you print an electronic copy, please ensure you print all pages of the PDS and the Product Guide. If you would like a printed version, free of charge, just call us on 1800 819 499 or email us at [email protected] Administration services are provided by Suncorp Life & Superannuation Limited, a wholly owned subsidiary of the Suncorp Group. We reserve the right to refuse or reject an application for membership or insurance. Insurance cover offered through Optimum is provided by the Insurer in a policy issued to us. This policy is a non-participating policy. Definitions of terms used in the Optimum PDS, this Product Guide, and any other material incorporated by reference Throughout the PDS (and any material incorporated by reference, including this Product Guide), unless otherwise specified, references to: ›› ‘we’, ‘us’, ‘our’ and ‘Trustee’ mean Suncorp Portfolio Services Limited ›› ‘adviser’ means a qualified financial adviser ›› ‘Insurer’ and ‘Suncorp Life’ and ‘SLSL’ mean Suncorp Life & Superannuation Limited ›› ‘bank account’ means an Australian bank, building society or credit union account ›› ‘business day’ means a Sydney business day other than a Saturday, Sunday or public holiday in Sydney ›› ‘licensee’ means an organisation that has obtained an Australian Financial Services Licence (AFSL) for the provision of financial services ›› ‘Optimum’ means Optimum Corporate Super for Standard Pacific ›› ‘plan’s adviser’ means the qualified financial adviser for your employer superannuation plan ›› ‘Standard Pacific’ means Standard Pacific Consulting Limited. In the PDS and Part 1 of this Product Guide: ›› ‘you’ and ‘member’ means a member of Optimum (an employee) ›› ‘employer’ means your employer. In Part 2 of this Product Guide: ›› ‘you’ or ‘employer’ means an employer registered as an employer under Optimum ›› ‘clearing house’ means SPSL as holder of the Australian Financial Services Licence 237905 which offers a (non-cash payment) clearing house service to employers for the collection and distribution of contributions to multiple superannuation funds. B Optimum Corporate Super About this Product Guide Changes to the PDS This Product Guide is divided into two parts: In the world of superannuation, as in the real world, things change from time to time. So the information in the Optimum PDS and any material incorporated by reference, such as this Product Guide and it’s underlying Trust Deed, may change at any time. (The Trust Deed is a legal document that sets out the rules within which we have to operate and your rights as an Optimum member.) Part 1 is for employees who joined Optimum as part of their employer’s super plan. Part 2 is for employers who want to learn more about opening an Optimum account, and Asteron EASE. If you’re reading this, we hope you’ve already seen the eight page Product Disclosure Statement (PDS) for Optimum, because the two documents work together. Here’s how: ›› The PDS is a summary of all the best things about Optimum, and some simple information about super generally. It also includes some information that we’re required to tell you about by law, such as the risks of super. If the change isn’t likely to be materially adverse for our Optimum customers, we’ll update the information on our website asteronlife.com.au. If you’d like a free paper copy of the updated information, just call us. ›› This Product Guide picks up where the PDS left off. If you want more detail about Optimum and how it works, this is the first place you should look. This Product Guide contains material that we referred to in the PDS. We have to describe this by the legal expression ‘incorporated by reference’. Having said that, it is very important that before making any investment or insurance decisions, you read: ›› The PDS ›› This Product Guide, and ›› Other material incorporated by reference. If you’ve got any questions or would like a copy of the PDS, this Product Guide or any material incorporated by reference, just call us on 1800 819 499 or email us at [email protected] Optimum Corporate Super for Standard Pacific Product Guide 1 Contents Part 1 Welcome to Optimum Corporate Super for Standard Pacific 3 Product summary 4 Contributions6 Managing your account 9 Accessing your benefits 12 How we invest your money 14 Risks of super 14 Optimum investment menu 21 Insurance31 Fees and other costs 41 Additional explanation of fees and other costs 43 Taxation information 46 Keeping in touch 47 What happens when you leave your employer? 48 Other things you need to know 49 Part 2 Optimum for business and Asteron Ease How to contact us 2 Optimum Corporate Super for Standard Pacific Product Guide 52 back cover PART 1 Welcome to Optimum Corporate Super for Standard Pacific Your employer has chosen Optimum Corporate Super for Standard Pacific (Optimum) as your superannuation fund. Optimum is a super solution to help you invest and save for your retirement. Standard Pacific specialises in providing corporate employers and their employees comprehensive and tailored superannuation solutions. Their services include benefit design, portfolio advice, human resources support, member communications and individual member advice. Standard Pacific is able to offer members of Optimum Corporate Super for Standard Pacific a series of exclusive, specialised investment portfolios. We’d like to welcome you to the plan and invite you to get to know your super account. After all, your super’s going to play a big role in your family’s financial security, and even small decisions now could make a big difference later. What you can expect from us We take the responsibility for your investment very seriously. That’s why we’ll do all we can to support you and help you make the most of your super account. How will we do this? ›› We’ll keep things simple. ›› If you’re unsure about where your super should be invested, we’ll help you with information about how to match your attitude to risk with your investment choice. ›› We’ll help you protect what’s important with insurance within your super. ›› We’ll make it easy for you to manage your account, by giving you a range of contact options – from online, telephone, fax or post. With Optimum and Standard Pacific, you’re on the way to a better future for you and your family. Optimum Corporate Super for Standard Pacific Product Guide 3 Product summary The following sets out key features of Optimum. Take a few moments to get to know your account. The choice is yours Where you invest your superannuation is your choice. ‘Super Choice’ is legislation that allows you (if you're eligible) to choose where you want your compulsory employer contributions paid. If your compulsory employer contributions are currently being paid into another account and you’d like them to be paid into your Optimum account, fill in a ‘Standard Choice Form’, available from our website. Your super account at a glance Features Refer to page Investment minimums Initial investment No minimum – Ongoing account balance No minimum – Regular contribution plan $50 per contribution – Diversified investment options 5 14 Single sector investment options 6 14 Maximum number of investment options Unlimited 14 Default investment option Standard Pacific Growth Fund 14 Investment switching You have the flexibility to switch between investment options at any time 18 Auto rebalancing You can choose to maintain your investment portfolio holdings in line with your future investment selection on a monthly, quarterly, half-yearly or yearly basis 18 Family accounts Your family members can enjoy most of the benefits associated with your plan, including competitive fees, by setting up their own Optimum account 44 Super consolidation service Consolidating your super accounts could reduce the amount of fees you pay and the amount of paperwork you receive 49 Investment choice General features We can help you transfer all your super balances into the one account, or, if you’d prefer to do it yourself, we also have an online super rollover wizard Lost super service We can help you find your missing super benefits by conducting searches on the Australian Taxation Office (ATO) databases on your behalf 49 Binding or non-binding death benefit nomination You can have a binding or non-binding death benefit nomination 10 Contribution methods Making contributions to your Optimum Superannuation account is easy, and you can choose from the following methods: 7 ›› Direct Debit ›› BPay® ›› Cheque ›› transfer from another super fund Insurance options Optimum gives members the option of having the following types of insurance: ›› Death only or ›› Death & Total and Permanent Disability (TPD) ›› Income Protection (IP) 4 Optimum Corporate Super for Standard Pacific Product Guide 31 Features Refer to page General features Online access Log on to WealthSolutions at asteronlife.com.au to access your super account at any time 47 Member education Log on to our website at asteronlife.com.au to access educational tools 47 Email communications By providing us with your email address, you can opt to receive many of the more important communications, such as annual statements, transaction confirmations and confirmations of changes to your account details via email. If your employer gives us your email address, we’ll use this to communicate with you whenever possible – Establishment fee Nil – Contribution fee Up to 4.1% of contributions and transfers for plans that commenced on or after 1 December 20041 41 Fees and costs Up to 4.1% of contributions and 5.0% of transfers for plans that commenced before 1 December 20042 Withdrawal fee $50 for withdrawing your entire balance 41 Termination fee Nil – Asset fee 1.55% pa for members of plans that commenced on or after 5 March 2007 3 41 2.00%4 pa for members of plans that commenced before 5 March 2007 A discount applies for balances over $250,0005 Investment fee Depends on the investment option(s) selected and range from 0.60% pa to 1.98% pa This includes an investment fee of 0.10% pa to 0.350% pa payable to Standard Pacific and a fee of 0.20% payable to the Trustee 41 Performance fees Depends on the investment option(s) selected and range from 0% to 1.00% 42 Member fee $57.60 pa 42 Investment switching fee Nil 42 Adviser Service fee Up to 2% pa of your account balance or a fixed monthly dollar amount 42 Contribution splitting fee and superannuation splitting fee $50 42 Family law enquiry fee $50 – Where cases are complex we may charge a higher fee 42 1 This fee includes an amount paid to your plan’s adviser. Please see Fees and other costs on page 41. 2 Your employer can agree different amounts with your plan’s adviser for contributions and transfers. 3 Up to 0.55% may be paid to your plan’s adviser excl GST. 4 Up to 1% may be paid to your plan’s adviser excl GST. 5 Please see Fees and other costs for more details. Other features of Optimum to suit your lifestyle Continued flexibility, even when you leave your employer If you leave your employer, you can still keep your super account in Optimum. We’ll also provide you with the information you need so that your new employer can contribute to your Optimum account on your behalf. For more information on what happens when you leave your employer, please see page 48 of this Product Guide. Optimum Corporate Super for Standard Pacific Product Guide 5 Contributions Get off to a super start Your super is your key to a life of financial independence. But it’s easy to forget about your super – you probably don’t see the money going in, and for most people there’s no way of getting it out. Until you retire that is. The fact is that your super is likely to be the second largest asset you build in your lifetime, after the family home. Optimum can help you reach your financial goals and achieve the retirement lifestyle you want. By taking advantage of the tax-effective nature of the superannuation environment and investing regularly in Optimum now, you can make saving for your retirement easier. How much is your employer contributing for you? Did you know that unless you are an exempt employee, your employer must make superannuation guarantee (SG) contributions to your account on a quarterly basis? This is the minimum amount your employer must contribute on your behalf (unless you have a specific agreement in place with your employer to contribute more). The SG contribution amount is currently equal to 9% of most employees’ salary. This will gradually increase from 9% to 12% between 1 July 2013 and 1 July 2019. To find out how much is being contributed to your super account on your behalf, check your payslip. Super strategies to boost your savings for your retirement The current level of SG contributions to your super account by your employer is a great start, but the truth is it probably won’t be enough to provide you with the lifestyle you want in retirement. To help you boost your savings for retirement, the Government has put in place a number of initiatives to encourage you to save more for your retirement. The following snapshots give you a flavour of these super boosting strategies. For more information on how these strategies can work for you, speak to your adviser or call us. 6 Optimum Corporate Super for Standard Pacific Product Guide Salary sacrifice Putting a portion of your pre-tax salary into your super is one of the most powerful and tax-efficient ways to boost your Optimum account. Rather than paying income tax which can be up to 46.5%, you’ll generally only pay 15% tax on these contributions. And because these contributions aren’t considered salary for tax purposes, salary sacrificing can potentially reduce your overall taxable income. Government co-contributions If you are eligible to receive the co-contribution, earn less than $31,920 pa (in the 2012/13 financial year) and you make a $1,000 after-tax contribution, the Government has proposed that it will contribute the maximum $500 to your retirement savings. The Government’s co-contribution amount decreases for those on higher incomes, but you can still benefit from the co-contribution scheme if you earn less than $46,920 a year (proposed for the 2012/13 financial year). Low income super contribution From 1 July 2012, the Government will pay a new super contribution to low income earners. Individuals with adjusted taxable income less than $37,000 pa will receive a Government contribution of up to $500 paid automatically to their super fund. The amount paid by the Government will be calculated based on concessional contributions (including SG contributions) made from 1 July 2012 and will be paid after lodgement of the individual’s tax return for the year in which the concessional contributions were made. The amount payable will be 15% of before-tax contributions and capped at a maximum of $500. For example, an employee earning $30,000 pa will have a SG (ie. concessional contribution) of $2,7001 annually. Therefore, the Government contribution will be $4052. Note: This example assumes a 9% SG paid in the 2012/13 financial year. 1 SG of $2,700 calculation: $30,000 x 0.09 = $2,700 2 Government contribution of $405 calculation: $2,700 x 0.15 = $405 Spouse contributions Having your spouse contribute to your super is a great way to work towards your retirement goals. By making a contribution on your behalf, your spouse may be entitled to a tax offset of up to $540 which can be claimed through their personal tax return. The offset is equal to 18% of a maximum contribution of $3,000 pa (that is $540). Contribution splitting You can direct up to 85% of any concessional contributions made in the previous financial year, from your account to your spouse’s account. Your spouse must be under age 65, but if they are between preservation age (currently age 55) and age 60, they must not be retired. Concessional contributions Types accepted ›› Compulsory employer (SG and Award) ›› Salary sacrifice As a self-employed person, you can’t rely on SG contributions to help you save for your retirement. The good news is if you’re self-employed or substantially selfemployed, you may be able to claim a tax deduction for personal contributions if you’re under age 75. All the more reason to contribute extra to your super! ›› Voluntary employer If you’ve made personal contributions into your account and haven’t subsequently withdrawn them, we’ll send you a notice at the end of the financial year. This is known as a ‘section 290-170 notice of intent to claim a tax deduction’. If you wish to claim a tax deduction, simply complete the notice and send it back to us. We’ll take care of the rest and will let you know what information you’ll need to claim a tax deduction. Who can contribute? Personal circumstances, such as your age and employment status, determine who can open an account and contribute to super. You can make contributions into your Optimum account if you’re: ›› under age 65 or ›› age 65 to 74 and have worked at least 40 hours in a consecutive 30-day period within the current financial year. ›› Spouse ›› Personal (after-tax) ›› Personal (deductible) Self-employed? You can claim a tax deduction on all contributions you make. To be eligible for this deduction, less than 10% of your assessable income, plus reportable fringe benefits and reportable employer super contributions may come from an employer. Non-concessional contributions Contribution caps for the 2012/13 and 2013/14 financial years $25,000 (indexed)* $150,000^ or $450,000 over three years What happens if your contributions exceed the caps? Depending on the circumstances, you may pay additional tax or the contributions will be rejected. * The $25,000 concessional contributions cap is reviewed annually for indexation to average weekly ordinary time earnings (AWOTE) but will only increase in $5,000 increments. However, currently the Government has paused the indexation which will resume for the 2014/15 year. ^ The Government has announced changes that, if passed by parliament, will increase the concessional contributions cap from 1 July 2014 to $50,000 for individuals who have total super balances below $500,000 and are aged 50 years or older. The non-concessional contributions cap is three times the concessional contributions cap, which means it will increase whenever the concessional contributions cap increases. For the 2012/13 and 2013/14 financial years the limit is $150,000. However, a person under age 65 is able to bring forward the limit over three years to allow an amount up to $450,000 to be contributed in a single financial year. This $450,000 limit will not increase if the concessional contributions cap increases during the three year period. If the non-concessional contributions cap is exceeded, depending on the circumstances, the contributions will either be rejected or taxed at 46.5% on the excess amount. An excess contributions tax assessment is sent to you by the ATO. This excess tax must be deducted from your fund. What types of contributions are accepted? Contribution methods Contributions made to your super account fit into one of two categories, known as: It’s easy to contribute to your super account, with a range of flexible methods. ›› Concessional contributions or ›› Non-concessional contributions. Both of these contribution categories are subject to caps on the amount you may contribute in a financial year (from 1 July to 30 June). The table below shows what category each type of contribution made into your super account falls into and the contributions caps for the 2012/13 and 2013/14 financial years. Direct debit You, your spouse and your employer can conveniently contribute to your Optimum account on a regular basis by setting up a direct debit facility. The minimum direct debit amount for contributions made by you or your spouse is $50 for each contribution. There is no minimum for direct debit contributions made by your employer. Optimum Corporate Super for Standard Pacific Product Guide 7 Contributions continued Deductions from the nominated bank account are made on or around the 15th of the relevant month. You can change or cancel this arrangement at any time and we must receive your request on or before the 10th of the month for it to be effective for the next scheduled direct debit. Contributing by BPAY® BPAY® allows you to contribute to your super account by phone or internet. You’ll need your Optimum Customer Reference Number (CRN) and the BPAY® code for the type of contribution you wish to make. Your CRN is included in the welcome letter you’ll receive after joining Optimum or you can find it anytime by logging into your account online. If your employer or spouse is contributing to your account by BPAY®, you’ll need to provide them with the relevant biller code and your CRN. The Optimum Biller Codes: Contribution type Biller Code Personal contribution 787218 Spouse contribution 787226 SG employer contribution 787200 Cheque Please make cheques payable to ‘Suncorp Portfolio Services Limited – <your account name>’ and send it with an Additional Investment form to us at: Customer Service Centre GPO Box 1576 Sydney NSW 2000 8 Optimum Corporate Super for Standard Pacific Product Guide Managing your account It’s easy to manage your Optimum account via the following transaction options The table below answers some questions you may have and helps you identify the choice of options available for each transaction. All forms are available from our website at asteronlife.com.au How do you? What form do you need to use? Apply for insurance cover Insurance application form Change your investment options Investment change form Set up or change a regular contribution plan Direct debit request form Change your address Change of details form Change your name Change of details form Change your bank account details Direct debit request form Transfer money from another super fund Transfer authority form Make a withdrawal Withdrawal form Nominate or change your death beneficiary Death benefit nomination form Provide your TFN Change of details form Appoint an authorised representative Cancel a request Transaction options – – – – – – – – – – – – – – – – – – Authorised representative form – – No form – Put your request in writing – – By mail Customer Service Centre GPO Box 1576 SYDNEY NSW 2000 By phone 1800 819 499 By fax 02 8275 3108 Original signature required We must receive an original ink signature Optimum Corporate Super for Standard Pacific Product Guide 9 managing your account continued Our service standards We’re committed to delivering consistent, superior service. Our service standards apply from when we receive your complete instructions. If we receive a complete investment transaction request from you by 12pm (Sydney time) on a business day, you’ll receive the unit price effective for the Optimum investment option for that day. If we receive a completed investment transaction request after 12pm on a business day, we’ll process the request using the investment option unit prices for the following business day. The 12pm cut-off applies to all contributions, switches and withdrawal requests. Generally, we aim to process and pay withdrawals within 3 business days. We process switches on the third business day following receipt of a completed Investment change form. We strive to consistently meet our service standards, however the unit price used to process your transactions may differ from the effective unit price for that day or processing your transactions may be delayed in some circumstances including: ›› incomplete or incorrect information from you ›› we’re not responsible to you for any loss suffered by you because we process a fax that has been corrupted during transmission ›› we won’t compensate you for any losses arising from the use of this facility and ›› we’ll be released and indemnified by you against any liabilities as a result of acting on any faxed communication received in relation to your account. Nominating your beneficiaries Have certainty over who will receive your death benefits by nominating a dependant. Who is a dependant? You can only nominate your estate or your dependants to receive your death benefits. A dependant under super law includes: ›› spouse (legal, de facto, same sex) ›› child (any age) ›› person in an interdependency relationship with you and ›› financial dependant. ›› a delay in confirmation or payment from an external investment manager Choice of binding or non-binding death benefit nomination ›› carrying out the transaction may materially impact other members Optimum offers you the choice of either a binding or a non-binding death benefit nomination. ›› us receiving a direction from a lawful authority to suspend or amend the transaction Binding death benefit nomination ›› the investment manager suspending redemptions from your underlying investment ›› the proximity to the end of the financial year and ›› any other delays in redeeming assets. We may from time to time review our service standards. Please also refer to ‘Unit pricing delays’ on page 18 of this Product Guide. Terms and conditions for accepting faxes We’ll accept faxed instructions on our relevant forms. Before using this option, there are a few things you need to know, like: ›› we’re not responsible to you for any loss resulting from any fraudulently completed request 10 Optimum Corporate Super for Standard Pacific Product Guide A binding death benefit nomination allows you to nominate your dependants and/or your estate to receive part or all of your death benefit (including any insurance benefit). We must pay the benefit to your beneficiaries when you die (provided your nomination is valid at the time). For your nomination to be valid: ›› each beneficiary must be a dependant and/or your legal representative at the time of your death ›› if there is more than one beneficiary, the apportionment of your benefit must be clear and add up to 100% and ›› the nomination must be made, confirmed or amended every three years ›› two adult witnesses who aren’t beneficiaries must witness and sign the nomination. Where a dependant you have nominated as a beneficiary dies before you and your binding nomination is still valid, on your death, the Trustee will divide that dependant’s share equally among your surviving nominated dependants. Where there are no remaining dependants, your binding nomination is invalid or you do not make a binding nomination, the Trustee can use its discretion and will generally pay the death benefit to your dependants and/or to your estate. Non-binding death benefit nomination If you make a non-binding death benefit nomination, the Trustee will consider your nomination and use its discretion to pay any death benefit, generally to your dependants and/or your estate. Unlike a binding nomination, a non-binding nomination does not have to be renewed every 3 years. We recommend you review your nomination whenever you experience a change in circumstances such as marriage, divorce, birth of a child or when a beneficiary ceases to be a dependant. Optimum Corporate Super for Standard Pacific Product Guide 11 Accessing your benefits When can you withdraw from your Optimum account? Super is a long-term investment designed to help you save for your retirement and government legislation defines when you can access your super benefits. While you can only access your super benefits before your preservation age under certain circumstances, you can transfer to another complying super fund at any time. What can you access? Preserved benefits These benefits can only be accessed once you have satisfied a condition of release. Restricted non-preserved benefits These benefits can be accessed under the same conditions of release as your preserved benefits, but can also be paid to you when you leave the employer who made the contributions for you. Generally, restricted non-preserved benefits arise from personal contributions made to an employer fund from 1 July 1983 up to 30 June 1999, and for which you couldn’t claim a tax deduction. Unrestricted non-preserved benefits These benefits are fully accessible at any time. When have you met a condition of release? You’ll be able to access your preserved benefits if you satisfy one of the following conditions of release: Condition of release What you can access Permanent retirement from the workforce (after reaching your preservation age) All Leaving your employer after turning age 60 All Reaching age 65 All Permanent incapacity All Severe financial hardship You may be limited to one lump sum payment between $1,000 and $10,000 within a 12-month period depending on your circumstances. Compassionate grounds You’ll need to make an application to the Department of Human Services (DHS) to have your benefits released. The amount you receive is determined by DHS. Temporary residents departing Australia All Termination of your employment with the employer who contributed for you You can access all your restricted non-preserved benefits. You can access your preserved benefits if the amount is less than $200. Lost member who is found and have less than $200 in your account All Reaching preservation age and using your benefits to start a non-commutable pension (transition to retirement) You’ll need to commence a non-commutable income stream that is limited to a maximum pension payment of 10% of the account balance. Terminal illness All Temporary incapacity You can access an amount as long as it doesn’t exceed your income level before becoming temporarily incapacitated. You can only receive payments as a non-commutable income stream. Death All 12 Optimum Corporate Super for Standard Pacific Product Guide Your preservation age Your preservation age is based on when you were born and determines when you can access some of your benefits. Once you have reached age 60 and retired, your money can be taken out of your super tax free as a pension or a lump sum. Date of birth Preservation age Before 1 July 1960 55 1 July 1960 – 30 June 1961 56 1 July 1961 – 30 June 1962 57 1 July 1962 – 30 June 1963 58 1 July 1963 – 30 June 1964 59 After 30 June 1964 60 Optimum Corporate Super for Standard Pacific Product Guide 13 How we invest your money Make the right investment choice. A few small decisions now could make a big difference to where you’ll end up. Our investment menu Risks of super Optimum makes it simple for you to choose an investment option that’s right for you. Even though the Government makes it partly compulsory, investing in super carries certain risks. One of the biggest is that you won’t end up with enough money to meet your retirement needs. This could happen: As a member of Optimum, you have a choice of 11 investment options, including five diversified investment options and six single sector investment options. ›› Standard Pacific Conservative Fund ›› Standard Pacific Moderate Fund ›› when an investment decreases in value ›› where money is invested conservatively in assets which provide more stable but lower long-term returns. ›› Standard Pacific Growth Fund ›› Standard Pacific High Growth Fund ›› Standard Pacific Aggressive Fund ›› Standard Pacific Cash Fund ›› Standard Pacific Fixed Interest Fund ›› Standard Pacific Property and Infrastructure Fund ›› Standard Pacific Australian Shares Fund General risks that could affect your Optimum account Some of the risks that could affect your investments in your Optimum account are shown below. We regularly monitor these risks for their impact on the investment menu as a whole, but it’s a good idea for you and your adviser to consider what they might mean for you. Risk type What is it? Market risk This can arise due to changes in government or economic policy, interest rates and exchange rates, market sentiment, global events, technological change, environmental conditions or changes in legislation. All these things can adversely affect the financial markets in which your super may be invested. Default investment strategy Investment options risk If your employer hasn’t selected a default investment option, your super will be invested in the Standard Pacific Growth Fund. The Standard Pacific Growth Fund has a diversified investment mix, so you don’t put all your eggs in one basket. Details of your investments are included in your welcome pack. Investment managers and the strategies they adopt may change, which may not be in line with your expectations when you first invested. They may also fail to meet their stated investment objectives. It’s also possible an investment option may be terminated. Liquidity risk This arises where an investment can’t be easily converted into cash or sold at fair value, at a time when you need it. Credit risk This is where someone doesn’t meet their obligations in, or relating to, an investment option. For example, it includes the risk that we or an underlying investment manager are unable to make payments. Inflation risk If inflation exceeds an investment’s return, it will reduce the investment’s purchasing power. Inflation risk is more common in low-risk investments, such as cash, which generally fluctuate less, but potentially provide lower long-term returns. ›› Standard Pacific International Shares Fund ›› Standard Pacific Small Cap Shares Fund. Optimum gives you the flexibility to switch between the investment options at any time. You can also have your current account balance invested differently from how your future contributions are invested, if you want. This could be a perfectly reasonable investment option for you. But no single investment option suits everyone. And the risk you take is that the default investment option won’t deliver what you want, or need, from your investments. Matching your investments to your risk profile, and to your long-term lifestyle goals, is a good start to achieving your retirement goals. With so much choice there’s sure to be an investment option, or a combination of investment options, to suit you. It’s just a matter of finding out what they are and discussing with your adviser the investment strategy that’s right for you. Check out the Optimum investment menu in this Product Guide for details on each investment option. 14 Optimum Corporate Super for Standard Pacific Product Guide Risk type What is it? Currency risk The value of international investments will change with the rise and fall of the Australian dollar. An investment manager can manage currency risk via a strategy referred to as ‘currency hedging’. Generally, if the Australian dollar’s value rises, the value of unhedged investments (those not currency hedged) held in other countries will fall and vice versa. Derivatives risk Derivatives are securities that derive their value from another security. Commonly known derivatives include futures and options. Investment managers may use derivatives to manage risks in a portfolio or to leverage a portfolio in the hope of generating additional returns. The risks of using derivatives include that they may be costly or difficult to reverse and their value may not move in line with that of the underlying security. Gearing risk Gearing involves borrowing money to invest in an asset. Geared investment options are internally geared, meaning the investment option borrows the money, rather than you. The cost of borrowing, including interest rates, and the level of gearing influence returns on a geared investment. Gearing magnifies both the gains and losses of an investment option. Changes in law Super and tax legislation changes frequently. These changes could affect when you can access your benefits and how they’ll be treated upon withdrawal. We’ll tell you about any changes we think are likely to affect your investment. Generally, we do this through the annual report. How can you reduce risk? The most common way to reduce your risk is by diversification, or ‘not putting all your eggs in the one basket’. Optimum can help you diversify your investments: How we can help you diversify your super investment Across asset classes Our diversified investment options are invested across a range of investments, including Australian and international shares, Australian and international fixed interest, Australian and international property, infrastructure, cash and alternative assets. You can also create your own investment mix from our eleven investment options. Within an asset class You can invest in different markets, different industries or different investment styles, within the one asset class. Optimum Corporate Super for Standard Pacific Product Guide 15 How we invest your money continued The relationship between risk and return As a general rule, investments with a higher level of risk will provide a higher potential return. By the same token, the smaller the risk an investment poses, the smaller the potential return it will provide. This is illustrated below: High Shares Property Return Fixed interest Growth assets Cash Income assets Low Risk Balancing this relationship can be tricky. That’s why it’s important to speak to your adviser before making any investment decisions. Your adviser can recommend an investment option or a combination of investment options that suits your own risk tolerance level. APRA Standard Risk Measure The Standard Risk Measure (SRM) is a calculation we do to help make it easier for you to compare the riskiness of investment options. Technically it tells you how many negative annual returns an investment option can be expected to deliver over any 20 year period. The SRM is not a complete assessment of all forms of investment risk. For instance it doesn’t detail what the size of a negative return could be or the potential for a positive return to be less than you may require to meet your objectives. Further, it doesn’t take into account the impact of the administration fee and tax on the likelihood of a negative return. You should still ensure you are comfortable with the risks and potential losses associated with your chosen investment option(s). 16 Optimum Corporate Super for Standard Pacific Product Guide High You can find more information on the methodology we use to calculate the SRM in the Understanding Investment Risk flyer on our website. A description of the SRMs are shown below: Risk band Risk label Estimated number of negative annual returns over any 20 year period 1 Very low Less than 0.5 2 Low 0.5 to less than 1 3 Low to medium 1 to less than 2 4 Medium 2 to less than 3 5 Medium to high 3 to less than 4 6 High 4 to less than 6 7 Very high 6 or greater You’ll find an SRM for each of our investment options either in the PDS or later in this Product Guide. The actual measure for each investment option can change at any time, for example because of market conditions, so you should always check the most up-to-date information before you make a decision. You can find any updates in the Understanding Investment Risk flyer on our website. Understanding the asset classes Each investment option is invested into what are called ‘underlying assets’. These underlying assets have different characteristics and may be either income assets, growth assets or a combination of both. ›› Income assets include such things as cash and fixed interest, which provide income returns in the form of interest. ›› Growth assets include property, shares and alternative assets, which provide investment returns comprising both capital growth (increase in value of the investment) and income. Asset class What is it? Cash generally refers to short-term liquid investments and may include bank deposit securities, such as term deposits. Cash Fixed interest generally refers to debt instruments issued by governments and companies. Investments may include bonds, debentures and other hybrid securities. Fixed interest Property generally refers to direct or indirect property investments in Australian and international property via listed and unlisted real estate trusts (REITs), exchange traded funds (ETFs) and companies. Property Shares represent a part ownership in a company (ie. a ‘share’). Returns from the ownership of shares combine both income received (dividends) and growth (capital gains) through the increase in the share price. The value of international shares may also be affected by fluctuations in the exchange rate. Shares Alternative assets Alternative assets are investments that are not classified or may not be correlated to the traditional asset classes of cash, fixed interest, property or shares. Typically they may involve investments in asset classes (eg. gold, infrastructure or private equity) or investment strategies (eg. financial instruments such as exchange traded or Over The Counter (OTC) derivatives, or trading techniques) that aren’t liquid and require specialised skills to manage. Optimum Corporate Super for Standard Pacific Product Guide 17 How we invest your money continued Can you change your investment options? Because your financial needs may change, you have the flexibility to switch between investment options at any time. You need to fill out an Investment change form and send it to us. You may incur a buy/sell spread, which is charged by the investment manager, depending on the options you select. For more information, please see Buy/sell spreads in the Additional explanation of fees and other costs section of this Product Guide. Auto-rebalancing Keeping track of movements in your investment options can be a time consuming task. Over time, variances in investment performance may result in your investment options moving away from the percentages nominated in your original investment selection. By using the auto-rebalancing service, you can choose to have your investment options rebalanced in line with your future investment selection on a regular basis without having to constantly monitor your account. You can choose to have your account rebalanced each: ›› month ›› quarter (March, June, September, December) ›› half-year (June and December) or ›› year (June). Rebalancing takes effect on or around the 22nd of the month. For example, you invest 50% in Option A and 50% in Option B and you want to maintain this investment strategy. Over time, your actual investment allocation may change to 40% in Option A and 60% in Option B as a result of movements in the unit price. Your account will then be automatically rebalanced to your investment strategy (50% in Option A and 50% in Option B) at the frequency you select. Unit prices For all Optimum investment options, your balance in that investment option is calculated by multiplying the number of units you hold by the investment option’s exit price and moves up or down over time. Your unit balance represents a partial holding in an investment option. 18 Optimum Corporate Super for Standard Pacific Product Guide Buying units When you invest or switch into an investment option, units in your chosen investment option are allocated to you. The number of units allocated will depend on the investment option’s entry price at the time, and the amount you invest. Selling units When we sell units in an investment option, the amount you receive will depend on the exit price of the investment’s units at the time and number of units sold. We can sell units from your investment options to pay for taxes, insurance premiums (if applicable) and certain fees or charges. We also sell units when you switch to another investment option, request a withdrawal or transfer to another super fund. Switching between investment options If you request a switch, we’ll sell units from one investment option and use the proceeds to buy units in the other investment option. A buy/sell spread may also be applied to cover transaction costs. How are unit prices calculated? Unit prices are usually calculated daily and reflect the value of the underlying assets of the investment option. This takes into account income entitlements, investment fees, taxes and other expenses and liabilities. The underlying asset value is divided by the number of units on issue to arrive at the price per unit. Buy or sell spreads are then applied to this price per unit to calculate the entry and the exit prices, respectively. Like the values of the underlying investments, the price of units can move up and down. If you want information about daily unit prices, give us a call on 1800 819 499. Unit pricing delays We may suspend unit pricing where in our opinion: ›› a significant event or incident occurs that has the potential to affect investment markets or ›› an event occurs that has the potential to affect unit prices or ›› an external investment manager closes the underlying investment to applications and withdrawals or ›› the unit prices calculated have the potential to prejudice specific investors. Investment performance About the investment options Investment performance lets you see how your investment is going. Before you select or change your investment selection to a new investment option, you should refer to the Optimum PDS and this Product Guide to understand the terms and conditions applying to your investment. How is investment performance calculated? Your super balance can go up or down. Past performance is not an indicator of future performance. In accordance with industry standards, investment performance is generally calculated net of taxes and ongoing fees such as the administration fee, member fee, performance fee and investment fee. However, when calculating investment performance, we generally don’t take into account contributions tax, contribution fees, exit fees and any discretionary ongoing fees such as insurance premiums and adviser service fees. If we calculate the investment performance for an investment option in a way different from that set out above, we’ll explain this in the monthly Optimum investment performance report which is available from our website. You should be aware that the investment performance information for the investment options may differ from the performance of the underlying investment managers. This may be due to: ›› holding some assets in cash or short-term securities, for liquidity purposes or ›› provisions for tax and distribution of tax credits or ›› the fees and charges that apply or ›› a lag between when the underlying investment managers report their performance and when the value of the underlying investment option is reflected in the unit prices. If you’d like to find out what the differences are in investing into an investment option through Optimum as opposed to investing directly with the underlying investment manager, please see Investing through Optimum and investing directly in this Product Guide. Please note that we don’t take labour standards, environmental, social and ethical considerations into account when selecting, retaining or terminating investment options. Multi-manager investment options A multi-manager approach to investing uses the skills of more than one investment manager. It’s based on the view that no single investment manager consistently outperforms the market in all conditions. Over any given timeframe, it’s difficult to predict which investment managers or which investment style will outperform the market and its peers. Some investment styles will perform well in one stage of the market cycle, while others may perform poorly in the same conditions. Optimum’s multi-manager investment options blend a combination of quality investment management styles to create investment options aimed at reducing investment risk and the volatility of returns. Who manages Optimum investment options? ›› Standard Pacific For more information, please see Information about the investment manager in this Product Guide. Optimum Corporate Super for Standard Pacific Product Guide 19 How we invest your money continued Changes to investment options Optimum’s investment menu may change, so it’s important to check our website regularly in case your investment options have changed, including the fees and charges relating to the investment options. From time to time, investment options may be closed, suspended or terminated by an external investment manager or by us. This may happen where: ›› the investment option is no longer offered by the investment manager or ›› the total amount of investor’s money in the investment option has grown too large for the investment manager to continue with its current investment strategy or Investing through Optimum and investing directly When you invest with Optimum, we hold the investment on your behalf, instead of you holding it directly. There are differences in investing into an investment option through Optimum as opposed to investing directly with the underlying investment manager. These include: Timing of information An investment manager’s PDS may have a different preparation date from this PDS and may include investment information effective as at different dates. Differing returns Investment returns based on unit prices as calculated for Optimum are likely to differ from any returns in an investment manager’s PDS or reports. This could be due to differences in investment fees, costs, taxes, and the timing impact of differences in transactions for the investment options offered within Optimum relative to those for the investment manager’s financial product. Differing fees The fees incurred when investing through Optimum are likely to differ from the fees charged by the investment manager as a result of fees levied to administer Optimum. Minimum and maximum transaction amounts An investment manager’s PDS may set out minimum and maximum investment amounts. These don’t apply to you when investing through Optimum. Tax implications Optimum is liable to pay tax for each investment option. The unit prices of investment options in Optimum will reflect any applicable tax liability. Receipt of reports You won’t receive reports directly from investment managers when you invest in Optimum. The rights to attend and vote at unit holder meetings When you invest in Optimum, you won’t hold any rights to attend and vote at meetings of unit holders of the underlying financial product. ›› laws change so that some investment types become no longer permissible or ›› we determine that it’s in the best interests of the members or ›› the investment option may no longer be economically viable. If an investment option is closed, suspended or terminated, this may cause delays in processing withdrawals and transfer requests. Such a delay may be more than 30 days. The unit price used to process your transaction may therefore differ from the price applicable on the day you lodged your request. Where an investment option is closed, suspended or terminated, we’ll write to you in advance (where possible) to tell you. You’ll then be able to review your investment strategy, with your adviser or call us. If we can’t tell you in advance, we’ll choose a replacement investment option in which to invest your money until you’ve been able to review your investment strategy. 20 Optimum Corporate Super for Standard Pacific Product Guide You should check our website each time you make an additional contribution to see whether any matter in the PDS has been affected by a materially adverse change or significant event. Related companies We, Suncorp Custodian Services Pty Limited (ABN 85 010 421 931) Optimum Pooled Superannuation Trust (PST) (SFN 269 403 949), and Suncorp Life & Superannuation Limited (SLSL), are part of the Suncorp Group. We don’t deal with our related companies more favourably than we would with any other independent service provider. The underlying assets of the Fund are invested in a group insurance policy with SLSL which then invests into the Optimum PST. The Optimum PST then invests into the underlying investment options. Optimum investment menu For straight forward investing you can pick one of the diversified portfolios in the box below. These portfolios were designed in conjunction with Standard Pacific, with the aim of achieving the diversification you need in one portfolio. Investment options Type Page Diversified investment options Standard Pacific Conservative Fund Diversified 22 Standard Pacific Moderate Fund Diversified 23 Standard Pacific Growth Fund Diversified 24 Standard Pacific High Growth Fund Diversified 25 Standard Pacific Aggressive Fund Diversified 26 Single manager 27 Single sector investment options Standard Pacific Cash Fund Standard Pacific Fixed Interest Fund Multi-manager 27 Standard Pacific Property and Infrastructure Fund Multi-manager 28 Standard Pacific Australian Shares Fund Multi-manager 28 Standard Pacific International Shares Fund Multi-manager 29 Standard Pacific Small Cap Shares Fund Multi-manager 29 Optimum Corporate Super for Standard Pacific Product Guide 21 How we invest your money continued Diversified investment options Standard Pacific Conservative Fund Objective To provide a return that exceeds the UBS Bank Bill index by 1.0% with a low probability of loss in capital values over a three year period. Strategy To invest in core and satellite market funds with approximately 70% of the investment option in income investments and balance in growth investments. Standard Risk Measure 3 – Low to medium Asset type Strategic asset allocation Cash 30.0 Fixed interest 40.0 Property & infrastructure 5.0 Australian shares 9.9 Small cap shares 1.6 International shares 5.5 Alternative assets 8.0 Asset type Range Strategic asset allocation (%) Range (%) Cash 10-40 Fixed interest 30-63 Property & infrastructure 2-8 Australian shares 6-15 Small cap shares 0-5 International shares 3-13 Alternative assets 0-18 Investment fee 0.85% pa (This includes 0.29% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee Yes1 Buy/sell spread +/-0.12% Recommended minimum time to keep the investment 3 years plus Style Diversified multi-manager 1 Please see Specific notes on page 30. 22 Optimum Corporate Super for Standard Pacific Product Guide Standard Pacific Moderate Fund Objective To provide a return that exceeds the UBS Bank Bill index by 2.0% with a low probability of loss in capital values over a four year period. Strategy To invest in core and satellite market funds with approximately 50% of the investment option in income investments and balance in growth investments. Standard Risk Measure 5 - Medium to high Asset type Strategic asset allocation Cash 20.0 Fixed interest 30.0 Property & infrastructure 8.0 Australian shares 18.0 Small cap shares 2.8 International shares 10.2 Alternative assets 11.0 Asset type Cash Fixed interest Range Strategic asset allocation (%) Property & infrastructure Range (%) 5-30 19-50 4-13 Australian shares 12-26 Small cap shares 0-8 International shares 6-19 Alternative assets 0-26 Investment fee 0.90% pa (This includes 0.31% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee Yes1 Buy/sell spread +/-0.16% Recommended minimum time to keep the investment 4 years plus Style Diversified multi-manager 1 Please see Specific notes on page 30. Optimum Corporate Super for Standard Pacific Product Guide 23 How we invest your money continued Standard Pacific Growth Fund Objective To provide a return that exceeds the UBS Bank Bill Index by 3.0% with a moderate probability of loss in capital values over a five year period. Strategy To invest in core and satellite market funds with approximately 65% of the investment option in growth investments and balance in income investments. Standard Risk Measure 6 - High Asset type Strategic asset allocation Cash 10.0 Fixed interest 20.0 Property & infrastructure 10.0 Australian shares 22.5 Small cap shares 3.5 International shares 14.0 Alternative assets 20.0 Asset type Cash Fixed interest Range Strategic asset allocation (%) Property & infrastructure Range (%) 2-15 10-35 5-17 Australian shares 17-33 Small cap shares 0-11 International shares 9-25 Alternative assets 0-37 Investment fee 0.96% pa (This includes 0.34% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee Yes1 Buy/sell spread +/-0.19% Recommended minimum time to keep the investment 5 years plus Style Diversified multi-manager 1 Please see Specific notes on page 30. 24 Optimum Corporate Super for Standard Pacific Product Guide Standard Pacific High Growth Fund Objective To provide a return that exceeds the UBS Bank Bill Index by 4.0% with a moderate probability of loss in capital values over a six year period. Strategy To invest in core and satellite market funds with approximately 80% of the investment option in growth investments and balance in income investments. Standard Risk Measure 6 – High Asset type Cash Strategic asset allocation 5.0 Fixed interest 10.0 Property & infrastructure 13.0 Australian shares 28.8 Small cap shares 4.5 International shares 18.7 Alternative assets 20.0 Asset type Range Strategic asset allocation (%) Range (%) Cash 0-10 Fixed interest 5-20 Property & infrastructure 5-22 Australian shares 23-39 Small cap shares 0-14 International shares Alternative assets 11-32 0-37 Investment fee 0.99% pa (This includes 0.35% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee Yes1 Buy/sell spread +/-0.22% Recommended minimum time to keep the investment 6 years plus Style Diversified multi-manager 1 Please see Specific notes on page 30. Optimum Corporate Super for Standard Pacific Product Guide 25 How we invest your money continued Standard Pacific Aggressive Fund Objective To provide a return that exceeds the UBS Bank Bill Index by 5.0% with a moderate probability of loss in capital values over a five year period. Strategy To invest in core and satellite market funds with approximately 94% of the investment option in growth investments and balance in income investments. Standard Risk Measure 6 – High Asset type Strategic asset allocation Strategic asset allocation (%) Cash 0.0 Fixed interest 0.0 Property & infrastructure 15.0 Australian shares 36.0 Small cap shares 5.6 International shares 23.4 Alternative assets 20.0 Asset type Cash Range (%) 0-10 Fixed interest Range Property & infrastructure 0 5-28 Australian shares 29-58 Small cap shares 0-16 International shares Alternative assets 15-45 0-35 Investment fee 1.00% pa (This includes 0.35% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee Yes1 Buy/sell spread +/-0.25% Recommended minimum time to keep the investment 7 years plus Style Diversified multi-manager 1 Please see Specific notes on page 30. 26 Optimum Corporate Super for Standard Pacific Product Guide Single sector investment options Standard Pacific Cash Fund Objective To provide investors with exposure to a portfolio of cash and cash like securities. Strategy To predominantly invest with an external manager. Standard Risk Measure 1 - Very low Strategic asset allocation Range Asset type Strategic asset allocation (%) Cash 100.0 Asset type Range (%) Cash 100 Investment fee 0.60% pa (This includes 0.10% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee No Buy/sell spread Nil Recommended minimum time to keep the investment 1 year plus Style Single manager Standard Pacific Fixed Interest Fund Objective To provide investors with exposure to a diversified portfolio of income bearing securities. Strategy To predominantly invest in a range of externally managed underlying investment options. These underlying investment options provide exposure to international shares and cash. Standard Risk Measure 6 - High Asset type Strategic asset allocation Fixed interest Cash Asset type Range Fixed interest Cash Strategic asset allocation (%) 100.0 0.0 Range (%) 90-100 0-10 Investment fee 0.88% pa (This includes 0.35% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee No Buy/sell spread +/-0.12% Recommended minimum time to keep the investment 2 years plus Style Multi-manager Optimum Corporate Super for Standard Pacific Product Guide 27 How we invest your money continued Standard Pacific Property and Infrastructure Fund Objective To provide investors with exposure to a diversified portfolio of listed domestic and international property securities and international listed infrastructure investments. Strategy To predominantly invest in a range of externally managed underlying investment options. These underlying investment options provide exposure to listed and domestic and international property securities and international listed infrastructure investments and cash. Standard Risk Measure 6 - High Asset type Strategic asset allocation Strategic asset allocation (%) Property & infrastructure 100.0 Cash Asset type Range Property & infrastructure 0.0 Range (%) 90-100 Cash 0-10 Investment fee 1.21% pa (This includes 0.35% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee No Buy/sell spread +/-0.24% Recommended minimum time to keep the investment 5 years plus Style Multi-manager Standard Pacific Australian Shares Fund Objective To provide investors with exposure to a diversified portfolio of predominantly Australian shares. Strategy To predominantly invest in a range of externally managed underlying investment options. These underlying investment options provide exposure to Australian shares and cash. Standard Risk Measure 6 - High Asset type Strategic asset allocation Australian shares Cash Asset type Range Australian shares Cash Strategic asset allocation (%) 100.0 0.0 Range (%) 90-100 0-10 Investment fee 0.76% pa (This includes 0.35% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee No Buy/sell spread +/-0.25% Recommended minimum time to keep the investment 5-7 years Style Multi-manager 28 Optimum Corporate Super for Standard Pacific Product Guide Standard Pacific International Shares Fund Objective To provide investors with exposure to a diversified portfolio of international shares. Strategy To predominantly invest in a range of externally managed underlying investment options. These underlying investment options provide exposure to international shares and cash. Standard Risk Measure 6 - High Asset type Strategic asset allocation International shares Strategic asset allocation (%) 100.0 Cash Asset type Range International shares 0.0 Range (%) 90-100 Cash 0 Investment fee 0.80% pa (This includes 0.35% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee No Buy/sell spread +/-0.32% Recommended minimum time to keep the investment 7 years plus Style Multi-manager Standard Pacific Small Cap Shares Fund Objective To provide investors with exposure to a diversified portfolio of domestic and international smaller company listed securities. Strategy To invest in a range of externally managed funds. These funds provide exposure to domestic and international smaller company securities selected by specialist underlying managers. The allocation to each underlying manager is actively managed. Standard Risk Measure 6 - High Asset type Strategic asset allocation Australian shares 100.0 International shares 0.0 Cash 0.0 Asset type Range Strategic asset allocation (%) Australian shares Range (%) 45-100 International shares 0-55 Cash 0-25 Investment fee 1.98% pa (This includes 0.35% pa payable to Standard Pacific and 0.20% pa payable to the Trustee.) Performance fee No Buy/sell spread +/-0.13% Recommended minimum time to keep the investment 7 years plus Style Multi-manager Optimum Corporate Super for Standard Pacific Product Guide 29 How we invest your money continued Specific notes 1 Relates to the Standard Pacific diversified funds only. Some underlying investment managers of alternative investments do charge a performance fee. Where an investment manager does charge a performance fee, that fee will be charged in addition to the investment fee and passed onto investors by way of an adjustment to the unit price, which will reduce the investment performance of the relevant investment option. Investment managers that charge a performance fee only apply those fees when performance is greater that an agreed target. Accordingly, performance fees arise when higher returns, relative to a specified target for a particular manager are achieved. Underlying investment manager’s performance fees range from 0% to 1.00% pa of total investments in their underlying investment option. Information about the investment manager Standard Pacific The Standard Pacific diversified and single sector investment options have been developed by Standard Pacific, in association with Suncorp Life, to provide clients with a range of multi-manager investment options to suit different risk/ return profiles. These investment options are available exclusively to clients of Standard Pacific. The investment options are managed within long-term asset allocation ranges, as shown for each investment option. Standard Pacific sets short-term asset allocations within these ranges as part of their active management process. 30 Optimum Corporate Super for Standard Pacific Product Guide Insurance Why is insurance important? Today we take out insurance for all our assets, including the car, boat, house and personal valuables such as jewellery. However, many people neglect to insure their most important asset – themselves, and their ability to earn an income. Fortunately, Optimum offers a range of insurance options tailored to help protect you and your family from life’s uncertainties. Insurance offered through Optimum is provided by Suncorp Life (Insurer). Suncorp Life is part of the Suncorp Group and is an award-winning insurer with a proud heritage of protecting Australians that stretches back for 175 years. Why have insurance through super? By attaching insurance to your Optimum account, you can have your insurance premiums conveniently and taxeffectively deducted from it. Which means it can potentially be cheaper than buying insurance outside super. ›› Death and Total and Permanent Disablement (TPD) - A lump sum payment when you die or become totally and permanently disabled ›› Income Protection (IP) - A monthly benefit is paid if you become totally or partially disabled. What if you want more insurance? If the cover selected by your employer doesn’t suit your needs, you have the option to apply for ‘member selected’ or ‘individual cover’. You can: ›› apply for a higher sum insured ›› apply for a different type of cover (eg. if you were automatically provided with Death only insurance you can apply for TPD insurance cover of the same amount). You can apply for the following options: Type of insurance Benefit Death only or Death & TPD1 You can choose one of two options: Cover in addition to your account balance. The total benefit payable on Death and TPD is the nominated sum insured plus your accumulated account balance (ie. the actual sum insured amount will remain fixed unless you apply to vary it) By having your insurance through your super account, you won’t have any out-of-pocket expenses, because your insurance premiums will be deducted taxeffectively from your super account. ›› fixed sum insured (eg. $100,000) Your insurance in Optimum Cover including your account balance. The type of cover you will automatically receive as a corporate member of Optimum is selected by your employer. The insurance information will be detailed in your welcome pack. The total benefit payable on Death and TPD includes your accumulated account balance plus the sum insured (ie. the actual sum insured amount will reduce as your account balance increases) If your employer has arranged insurance cover for your plan with another insurer agreed by the Trustee, the terms and conditions of insurance set out in the PDS and Product Guide will not apply to you. Your welcome pack will state if your insurance cover is provided by an insurer other than Suncorp Life, and will contain the insurance policy document and any relevant endorsements that apply to you. The policy document issued by the other insurer sets out the terms and conditions that apply to your insurance cover. Suncorp Life is not the insurer and is not responsible for any arrangements that apply to you in respect of such cover. Your employer can choose: ›› Death only insurance - A lump sum payment when you die ›› fixed benefit amount (eg. $100,000) Income Protection 2 You can choose cover based on: ›› a monthly benefit (eg. $5,000 per month) to a maximum of 75% of your salary ›› an additional optional super contribution component of up to 10% pa of salary3 ›› a benefit period of 2 years ›› a waiting period of 30, 60 or 90 days. 1 The amount of TPD cover cannot be greater than the amount of death cover. 2 Monthly benefits can be reduced if you receive sick leave payments, worker’s compensation, social security or income benefits from another source. 3 Payment of this benefit must be made to a complying super fund. Family account members can also apply to be insured for any of the cover options in the table above. Optimum Corporate Super for Standard Pacific Product Guide 31 insurance continued How do you apply for memberselected cover? If you’d like to apply for insurance you’ll need to fill in an Insurance application form, available on our website and send it to us. Acceptance of cover isn’t automatic and is subject to an underwriting assessment by our underwriters. We’ll advise you in writing if your application has been accepted and the date your cover starts. How do you know if you’re eligible? Anyone can apply for cover, as long as you’re: ›› age 15 and over, but less than age 65 (age 60 for TPD and IP) and you are a member of Optimum ›› an Australian resident or non-Australian resident holding a visa ›› gainfully employed on a permanent basis for at least 15 hours per week (TPD and IP). What is the maximum amount of insurance cover that you can apply for? The following table provides a summary of the maximum levels of cover available, depending on your type of insurance: Maximum amount of cover Death TPD1 Income Protection2 $5 million $2 million $20,000 per month 1 Where TPD cover from all insurers operating in Australia is more than $2 million, we may reduce any TPD benefit from Optimum so that the total cover provided by Optimum and these insurers together is $2 million. 2 Monthly benefits can be reduced if you receive sick leave payments, worker’s compensation, social security or income benefits from another source. If you are considered to be partially disabled instead of totally disabled, you may be able to receive a pro-rata monthly benefit. If you are entitled to receive a benefit amount and die or become totally and permanently disabled, then we will stop paying the benefit amount and will instead credit your Optimum account with a lump sum of twice the monthly benefit amount. 32 Optimum Corporate Super for Standard Pacific Product Guide Automatic Acceptance Limits An Automatic Acceptance Limit (AAL) is the maximum amount of insurance cover you will be able to receive, without having to be underwritten. Unless you have other arrangements with your employer, you’ll automatically receive the insurance that is attached to your employer plan (up to the AAL), from the date you start employment, without the need to apply, provided: ›› we’ve received your details and initial contribution from your employer ›› you’re under age 65 (Death), and 60 (TPD and IP) ›› you’re gainfully employed on a permanent basis for more than 15 hours a week (TPD and IP) ›› you’re ‘at work’ in active employment on that day ›› we receive all your details from your employer and a contribution sufficient to cover premiums within 130 days of you commencing employment. An automatic acceptance limit may be reduced or withdrawn where the number of insured members is less than 80% of your plan’s membership. Any change will not affect your currently accepted cover at the time. When does your insurance cover stop? Your insurance cover will stop at the earliest time of one of these happening: Scenario Death TPD Income Protection Reach age 65 – Reach age 70 – – Leave your employment and continuation of cover is nor requested or declined – – Become unemployed – – Work less than 15 hours per week on a permanent basis1 – – Haven’t paid outstanding premium amounts 30 days after sending you a notice Commence active duty with the armed forces of any country2 Take unpaid leave or work overseas and Suncorp Life has not agreed before your exit from Australia to cover you for this period in writing Request in writing to cancel your cover Receive a payment for TPD Leave Optimum Die No longer hold a valid Australian visa Cease to be engaged in an occupation for which cover is available from Suncorp Life 1 TPD cover will not stop if you work less than 15 hours a week. However the definition of TPD to obtain a benefit will change 2 This does not include regular activities of the Navy, Army or Air Force Reserves Optimum Corporate Super for Standard Pacific Product Guide 33 insurance continued Your insurance benefits in detail Cover basics The following table provides a summary of what you are entitled to depending on your type of insurance: Benefit Death TPD Income Protection A lump sum benefit is paid if you die A lump sum benefit is paid if you become totally and permanently disabled A monthly benefit to replace up to 75% of your income for a period of time if you are totally or partially disabled due to sickness or injury for longer than the nominated waiting period Death benefit We will pay a benefit to your beneficiaries in the event of your death. Having the right amount of Death cover means that your family can afford the lifestyle you want for them. The amount of your Death cover (and the subsequent benefit paid), is based on your insured amount at the time of your death. TPD benefit If your family relies on your income, your TPD cover can help alleviate some of the financial stress in the event that you are unlikely to work again due to becoming totally and permanently disabled, by providing money for living, care and medical expenses. We will pay a benefit to you if you are unlikely to work again due to becoming ‘totally and permanently disabled’, as defined in the Optimum Superannuation Insurance Policy. A summary of these definitions can be found on pages 38 to 39 of this Product Guide. The amount of your TPD cover (and the subsequent benefit paid) is based on your insured amount at the time you become totally and permanently disabled. Income Protection benefit Total disability If you have Income Protection cover and are deemed to be ‘totally disabled’ for longer than the waiting period that you or your employer has selected, the monthly benefit that you are insured for starts to accrue from the day after the end of the waiting period, and a benefit is paid to you monthly in arrears until the earliest of the following: ›› You cease to meet the definition of being Totally Disabled* ›› You reach 65 ›› You die Interim Death cover ›› You become Totally and Permanently Disabled Interim cover for accidental death is provided to you for up to 90 days from receipt of your completed application at our Sydney office for (or to increase) Death only or Death and TPD cover, subject to sufficient funds being in your account to cover an amount equal to the first month’s premium for Death only or Death and TPD cover requested. ›› You reach the end of the benefit period that you or your employer has selected. Refer to the definition of “Totally Disabled” on page 39 of this Product Guide. * If you are able to return to work in some capacity you may be eligible for a “partial disability” benefit. The maximum amount of interim cover is the lesser of $500,000 or the amount of cover requested. We do not charge an additional premium for this interim cover. The period of cover ceases on the earlier of acceptance or rejection of the application, your withdrawal of your application and 90 days after receipt of a completed application. Partial disability The interim cover is for accidental death only whereby death is caused directly and solely by violent, accidental, external and visible means and independently of all other causes. If you have Income Protection cover and are partially disabled after being totally disabled for at least 14 days in any period of: 34 Optimum Corporate Super for Standard Pacific Product Guide If you have income protection cover and are working in a reduced capacity due to sickness or injury, you’ll received a monthly benefit to compensate your partial loss of earnings. This payment will be paid until the end of the benefit period and will be reduced in line with anything you earn while partially disabled. ›› 19 days since you became totally disabled, if your waiting period is 30 days or ›› 24 days since you became totally disabled, if your waiting period is longer than 30 days and are partially disabled for the remainder of the waiting period, the monthly benefit is payable as a partial disability benefit in proportion to the reduction in your monthly income. The partial disability benefit starts to accrue from the day after the later of: ›› the end of your waiting period and Return to work during the waiting period If you have Income Protection cover and during the waiting period, you return to any gainful employment for: ›› 5 days or less, if your waiting period is 30 days or ›› 10 days or less, if your waiting period is longer than 30 days and again stop gainful employment due to total disability, the waiting period will not restart but these days of employment will be added to the waiting period. ›› the date you are no longer totally disabled and is paid monthly in arrears until the end of the benefit period. The proportion of the monthly benefit payable will be: Insured total disability benefit x (A - B) A Where: A = pre-disability earnings and B = your monthly earnings due to disability for the month the benefit is payable. If you are partially disabled and not working to your capability, ‘B’ will be calculated based on what you could reasonably be expected to earn if you were working to the extent of your capability. We may request medical and related evidence to determine ‘B’. If you are continuously disabled for the first 3 months immediately after the end of the waiting period and ‘B’ is less than or equal to 20% of ‘A’, we will pay the monthly benefit for the first 3 months. Refer to the definition of ‘Partially disabled’ on page 38 of this Product Guide. Recurring disability If you suffer total disability or partial disability from the same or related injury or sickness within six months of Suncorp Life having paid you an Income Protection benefit under the policy, then Suncorp Life will deem it a continuation of the previous claim and the waiting period will not apply. However, the maximum claim period will be adjusted to take into account prior claim payments. You still need to be employed by your employer at the date of the recurring disability to be covered for this benefit. However, if you resume gainful employment for: ›› more than 5 days, if your waiting period is 30 days or ›› more than 10 days, if your waiting period is longer than 30 days the waiting period starts again from the date you stop gainful employment due to total disability. Waiver of premium We will stop deducting Income Protection premiums from your account in the month that you start to receive the benefit. We will recommence deducting the premium in the month that we stop paying the benefit. How much does it cost? How are your premiums calculated? Your premiums are calculated based on a number of factors, which include: ›› The type of insurance cover ›› Amount of cover ›› Your age ›› Smoking status ›› Your occupation ›› Your health ›› Your gender ›› Waiting period chosen (IP) ›› Occupation rating of your plan (for employer selected cover). If you make another claim which arises from the same or a related cause as a previous claim, the new claim will be treated as a separate claim if it occurred after you have returned to work (and been at work) for 6 consecutive months. Optimum Corporate Super for Standard Pacific Product Guide 35 insurance continued You’ll be charged at either group rates or individual rates. The table below shows you when you’ll be charged group or individual rates. For a copy of the insurance premium rates and examples on how premiums are calculated, please see the Insurance premium and occupational ratings guide. Type of cover Type of insurance Employer selected cover within or over the AAL Group rates Member/individual selected cover for a higher sum insured than your employer has selected Group rates Member/individual selected cover for a different type of insurance your employer has selected Individual rates Cover for a family members account Individual rates When you leave the plan and have retained your insurance1 Individual rates 1 When you leave your employer plan any Death & TPD insurance arrangements will remain in place but all premiums will be based on individual smoker rates (unless and until we are informed that you do not smoke). This is subject to conditions. Who pays for your insurance? Unless you have an alternative arrangement with your employer, insurance premiums will be deducted monthly from your super account. How to make a claim If you need to make a claim, we’ll make sure the process is as quick and easy as possible, during what’s often a difficult time. You can only make a claim if the event first happens while you are a member of Optimum and your cover is in force. Making a claim is easy. Just contact us as soon as you can reasonably do so, but no later than: Claim type When you should make a claim by For a TPD claim Twelve months from the time of the event giving rise to the claim For an Income Protection claim One month from the time of the event giving rise to the claim If you make a claim later than this, we may reduce the amount paid, or not pay any benefit at all, if the delay is prejudicial to Suncorp Life. Choice of fund If your plan commenced on or after 1 July 2005, your employer must nominate Death cover at no less than either the prescribed age based or premium based minimum, for all Choice of Fund (Choice) eligible employees. If your employer has made arrangements with us, we will provide you with either the prescribed age based or premium based minimum cover, which your employer has selected. No minimum level of Death only cover is required, or will be provided, if you are aged 56 or older. Suncorp Life does not have to provide cover for you if your occupation is not acceptable. Cover under either of these options is subject to automatic acceptance requirements. If you are not at work on the cover commencement date, you will only be eligible for ‘New Events Cover’ until such time as you have been at work performing all the normal duties of your regular occupation for a period of 60 consecutive days, at which time you will be eligible for ‘All Events Cover’. If your employer does not supply your relevant details and category information to determine the occupational rating for your plan, any minimum cover provided will be rated as skilled blue collar. We may change this rating if your employer later provides this information. When can you access your insurance benefits? Death If you die while covered, any death benefit amount payable will be paid into your Optimum account and be invested in the Standard Pacific Growth Fund. We’ll then pay the benefit to one or more of your dependants and/or your estate. If you’ve made a valid death benefit nomination, we’ll pay this benefit in accordance with your nomination. Your dependants can then choose to receive this benefit as a lump sum, or in some circumstances, a pension or a combination of both. TPD If you are eligible to receive a TPD benefit, we’ll pay the benefit (less any tax) to your Optimum account, and invest it in the Standard Pacific Growth Fund. To access any TPD benefits, you must satisfy a ‘condition of release’. For more information about when you have met a condition of release, please see Accessing your benefits on page 12 of this Product Guide. 36 Optimum Corporate Super for Standard Pacific Product Guide Income Protection You must meet the definition of totally disabled or partially disabled to receive an Income Protection benefit. Income tax is payable on any Income Protection benefits received by you. Income Protection benefits are paid monthly in arrears. If you are covered for superannuation contributions, any amounts will be paid into your superannuation account and will be subject to the normal charges applying to your contributions. Your funds will be fully preserved. Payment of this benefit must be made to a complying superannuation fund. Limitations The following limitations apply to the payment of benefits: ›› Income Protection benefits will not be paid for disablement resulting from pregnancy, childbirth or miscarriage, unless you are disabled for more than three months from either the date your pregnancy finishes or the date your disability starts, whichever is later. The waiting period will be taken as starting at that date. ›› If for any reason you have more than one membership of Optimum, you can have an insured benefit under only one membership. Death only or Death and TPD cover will continue, subject to payment of premiums, for up to 12 months without obtaining written confirmation from Suncorp Life. A request for cover to continue beyond any agreed period requires written approval from Suncorp Life prior to the end of the period. Cancelling your cover If you don’t want insurance cover, you can cancel your insurance cover at any time by writing to us. If you cancel or reduce your cover within 30 days of receiving your confirmation of membership, we’ll refund all premiums deducted from your account. If you cancel or reduce your cover after the 30 day period, we will cancel cover and stop deducting premiums or reduce cover and stop deducting premiums or reduce cover and change the premiums payable from the date we receive your written instructions. You should read all the information in the PDS and Product Guide before deciding whether to cancel or keep your insurance cover. When are salary based benefits under the plan reviewed? ›› the risk being accepted by Suncorp Life Any salary based benefits are reviewed each year on the plan’s annual review date, which is generally 1 April. If an automatic acceptance limit (AAL) applies, any salary based cover will be revised automatically on your plan’s annual review date if your salary has changed (and you are at work), but only up to the AAL. Your employer must provide us with updated salary information for you at your plan’s annual review date. Otherwise, cover will remain at the level consistent with your last advised salary. Any amounts above the AAL will not be covered unless you complete an Insurance application form and acceptance is advised by Suncorp Life. ›› any increase in cover (but only in respect of the increase) or Future increases in cover ›› No Income Protection cover will be paid if your disability is caused at any time by an intentional selfinflicted act, whether sane or insane. ›› Insurance cover will not be paid if Death or TPD is caused directly or indirectly by an intentional selfinflicted act, whether sane or insane, within 13 months of: ›› the risk being reinstated by Suncorp Life after lapsing. ›› No insured TPD or Income Protection benefit will be paid if the event giving rise to a claim is caused directly or indirectly by war or an act of war. Other things you need to know about your Insurance cover Overseas cover and leave without pay If you have employer selected cover based on your salary, you may apply for cover above the AAL for your plan. If this application is accepted you may be eligible for cover that will increase automatically when we are notified of any subsequent salary increases up to a maximum limit of 30% each year. This means that you can avoid the need for future underwriting each time your salary increases. If eligible, we will advise you of the maximum limit. Your premiums will be adjusted to take into account any increases, as they take effect. Before departing overseas or taking leave without pay, you’ll need to get written confirmation from the Insurer for all types of cover to continue. If you take unpaid maternity/paternity leave approved by your employer, your Optimum Corporate Super for Standard Pacific Product Guide 37 insurance continued Key definitions and concepts Definitions are important – they set out the test we’ll apply when considering a claim, so it’s important you take the time to understand what they mean. We want to help you with that, so we’ve created the following table, which contains a summary of some of the key definitions – simplified, to help you get a clearer understanding of what they mean. Where you see these terms throughout the PDS and this Product Guide, you should also refer to the policies for the definitions. The Optimum Superannuation Group Life and Group Income Protection policy contains the exact wording of all definitions. Term Definition At work You’re considered at work if you are: Actively performing all the duties of your regular occupation, are not absent from work because of illness or injury, and are not in receipt of an/or entitled to claim income support benefits from any source including workers’ compensation benefits, statutory transport accident benefits and disability income benefits. Where you are on approved leave you must be capable of performing all the duties of your regular occupation had you not been on approved leave. If you do not meet these requirements, you are correspondingly described as not at work. All Events Cover means in accordance with all other terms and conditions of the policy, cover for death arising from a sickness or injury regardless of the date the sickness or injury became apparent. Automatic acceptance limit (AAL) means the amount of benefit specified in the benefit schedule for which we require no evidence of insurability from you. Benefit period means the maximum period of time for which a benefit will be payable. Gainfully employed means being employed or self-employed for income or reward in any business, trade, profession, vocation, calling or employment on a permanent basis. Injury means an accidental or unintentional bodily injury suffered by you while you are insured for the relevant benefit under Optimum. New Events Cover means in accordance with all other terms and conditions of the policy, cover for death arising from a sickness that becomes apparent or an injury that occurs on or after the commencement of minimum death cover. Partially disabled means that, because of sickness or injury, you: ›› would be totally disabled except that you are performing, or are capable of performing, one or more of the important duties of your regular occupation, or you are working in another occupation and ›› have monthly earnings which are less than your pre-disability earnings because of your disability and are following the advice of a medical practitioner (acceptable to Suncorp Life). Pre-disability earnings monthly earnings from your employment with your employer for any twelve consecutive month period since the date three years before an Income Protection claim is made. If the period of your employment with your employer is less than three years but greater than twelve months, we will use the twelve consecutive month period with the highest average during this period. Where the period of your employment with your employer is less than twelve months, a monthly average will be determined for that period. Salary means, unless otherwise agreed in writing by Suncorp Life: means an employee’s yearly remuneration package accepted by us at your plan’s anniversary unless otherwise agreed by us in writing. 38 Optimum Corporate Super for Standard Pacific Product Guide Term Definition Sickness means a sickness or disease you suffer which becomes apparent while you are insured under Optimum. If you have: ›› surgery to transplant part of your body to someone else or ›› an operation to improve your appearance or ›› elective surgery on the advice of a medical practitioner (acceptable to Suncorp Life) this is deemed to be a sickness, unless the surgery takes place within six months of commencing your Income Protection cover, or an increase in this cover (but only in respect of the increase). Totally disabled means that, because of sickness or injury you are: ›› not capable of doing the important duties of your regular occupation and ›› not working in any gainful occupation and ›› following the advice of a medical practitioner (both acceptable to Suncorp Life). Totally and permanently disabled Totally and permanently disabled means either: ›› You are gainfully employed for 15 hours or more per week on a permanent basis at the time of the event giving rise to the claim, and you have been absent from employment through sickness or injury for six consecutive months and we are satisfied that you are incapacitated to such an extent that you are unlikely ever to be able to resume work or attend any gainful profession or occupation for which you are suited by reason of your education, training or experience or ›› You suffer the loss of both feet or both hands or both eyes; or any combination of two of, a hand, a foot or an eye; where ‘loss’ means the total and permanent loss of the use of the hand or foot from the wrist or ankle joint, or sight in the eye or ›› You are not gainfully employed for 15 hours or more per week on a permanent basis at the time of the event giving rise to the claim, and are constantly and permanently unable to perform two or more activities of daily living without the physical assistance of someone else. Definitions of activities of daily living are: ›› bathing and showering ›› dressing and undressing ›› eating and drinking ›› maintaining of continence with a reasonable level of personal hygiene ›› getting in and out of bed, a chair or wheelchair or moving from place to place by walking, wheelchair or walking aid. If you can perform the activity on your own by using special equipment, we will consider you able to perform that activity. Underwritten means that you have been assessed for cover by Suncorp Life other than that provided under automatic acceptance. Waiting period means the nominated period during which you have to remain totally or partially disabled before receiving Income Protection benefits. War War means any act of war (whether declared or not), revolution, invasion, rebellion or civil unrest. Optimum Corporate Super for Standard Pacific Product Guide 39 insurance continued Honesty is the best policy We have a duty, under the Insurance Contracts Act 1984 (Cth) to disclose to the Insurer every matter that we know, or could reasonably be expected to know, that is relevant to the Insurer’s decision whether to accept the risk of the insurance, and, if so, on what terms. We have the same duty to disclose those matters to the insurer before it renews, extends, varies or reinstates a contract of life insurance. This duty, however, doesn’t require disclosure of a matter: ›› that diminishes the risk to be undertaken by the insurer ›› that’s of common knowledge ›› that the insurer knows, or in the ordinary course of their business, ought to know and ›› as to which compliance with your duty is waived by the insurer. It’s a condition of your membership in Optimum, that you discharge the same duty of disclosure to us. If you fail to comply with your duty of disclosure and the Insurer wouldn’t have entered into the contract on any terms if the failure hadn’t occurred, the Insurer may avoid the contract within three years of entering into it. If the non-disclosure is fraudulent, the Insurer may avoid the contract at any time. An Insurer who is entitled to avoid a contract of life insurance may, within three years of entering into it, elect not to avoid it but to reduce the sum that you’ve been insured for in accordance with a formula that takes into account the premium that would’ve been payable if you had disclosed all relevant matters to the Insurer. This duty continues to apply until the Insurer notifies you that the risk has been accepted. Where can you get more information? The Optimum Group Life policy contains the full terms and conditions of insurance, including all definitions. In the event of any inconsistency between the PDS, this Product Guide and the insurance policies, the insurance policies will prevail. You can get a copy of the Insurance policy free of charge, by contacting us. 40 Optimum Corporate Super for Standard Pacific Product Guide Fees and other costs Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may negotiate to pay lower contribution fees and management costs where applicable. Ask us or your financial adviser.1 To find out more If you’d like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (moneysmart.gov.au) has a superannuation fee calculator to help you compare different fee options. 1 We are required by law to mention that members may be able to negotiate lower fees and costs. As the fees are agreed between your employer and your plan’s adviser, the contribution and asset fees cannot be negotiated by you. The table below outlines the fees and costs for investing through Optimum. Fees for Optimum members Type of fee or cost Amount How and when paid Fees when your money moves in or out of Optimum Establishment fee Nil Not applicable Contribution fee1 Up to 4.1% of contributions and transfers for plans that commenced on or after 1 December 2004. This fee is deducted from your account when a contribution or transfer is made to your account. Up to 4.1% of contributions and 5.0% of transfers for plans that commenced before 1 December 2004. This fee is agreed between your employer and your plan’s adviser.2 Withdrawal fee $50 for withdrawing your entire balance This fee is deducted from your account by the withdrawal of units at the time of withdrawal. Termination fee Nil Not applicable Management costs The fees and costs for managing your investment Asset fee1 1.55% pa for members of plans that commenced on or after 5 March 2007. This fee is deducted monthly in arrears from your account by the withdrawal of units. 2.00% pa for members of plans that commenced before 5 March 2007. Your employer may also agree a lower fee with your plan’s adviser. A discount applies for balances over $250,000. Investment fee Depends on the investment option(s) selected and range from 0.60% pa to 1.98% pa. This includes an investment fee of 0.10% to 0.35% pa payable to Standard Pacific and a fee of 0.20% payable to the Trustee. Calculated in the daily unit price calculation for each investment option. Optimum Corporate Super for Standard Pacific Product Guide 41 Fees and other costs continued Type of fee or cost Amount How and when paid Performance fees Depends on the diversified investment option(s) selected and range from 0% to 1.00% pa of total investments in the underlying investment option. The fee paid by members will be based on the allocation to the underlying investment option within each of the diversified investment options. Only applies when performance exceeds the specified benchmark for certain investment options and is included in the daily unit price calculation for each investment option. Member fee $57.60 pa Deducted monthly in arrears by withdrawing units on or around the 15th of each month Switching fee Nil Not applicable Adviser service fee Up to 2% pa of your account balance or a fixed monthly dollar amount. You can also agree a one-off fee for additional services provided by your plan’s adviser. Deducted monthly from your account by a withdrawal of units. Contribution splitting fee and superannuation splitting fee $50 Deducted from your account by a withdrawal of units at the time of the transfer. Family law enquiry $50 – Where cases are complex we may charge a higher fee. Payable by cheque to Suncorp Portfolio Services Limited at the time of enquiry. Service fees This fee is agreed between your employer and your plan’s adviser. 1 This fee includes an amount paid to your adviser’s Licensee. Please see Additional explanation of fees and other costs. 2 Your employer can agree different amounts with your plan’s adviser for contributions and transfers. The fees disclosed in this PDS are shown net of income tax and inclusive of GST (where applicable). They are the true cost to you. Example of annual fees and costs for an Optimum member invested in the Standard Pacific Growth Fund This table gives an example of how the fees and costs in the Standard Pacific Growth Fund can affect your superannuation investment over a one year period. You can use this table to compare Optimum with other super products. Example – Standard Pacific Growth Fund Balance of $50,000 with total contributions of $5,000 during the year Contribution fee 0 - 4.1%1 For every $5,000 you put in, you will be charged between $0 and $205 PLUS management costs 2.51%pa2,3,4 + $57.60 And, for every $50,000 you have in Optimum, you’ll be charged $1,255 each year, plus a $57.60 member fee EQUALS cost of Optimum If you put in $5,000 during a year and your balance was $50,000, then for that year you’ll be charged fees from: $1,312.60 to $1,517.602,4 What it costs will depend on the investment option(s) you choose and the fees negotiated with your plan or financial adviser 1 The maximum contribution fee for members of plans that commenced before 5 March 2007 is 5.0%. This means that some members may pay a higher contribution fee than in this example. 2 The maximum asset fee for members of plans that commenced before 5 March 2007 is 2.0%. This means that some members may pay a higher asset fee than in this example. 3 This amount includes the asset fee of 1.55% and investment fee of 0.94% for the Standard Pacific Growth Fund. Performance fees apply to some investment options. Where a performance fee is payable, this will be in addition to any investment fees paid. See Additional explanation of fees and other costs in the Product Guide. 4 A discount applies for higher plan balances. See Additional explanation of fees and other costs. 42 Optimum Corporate Super for Standard Pacific Product Guide Additional explanation of fees and other costs Contribution fee For members of plans that commenced before 5 March 2007: Your employer can agree with your plan’s adviser the upfront fee amount that will be applied to all deposits made into your account. Different amounts can be nominated to apply to contributions and transfers into Optimum. ›› For members of plans that commenced on or after 1 December 2004, the fee agreed can be up to 4.1%. ›› For members of plans that commenced before 1 December 2004, the fee agreed can be up to 4.1% for contributions and up to 5.0% for transfers. We may retain up to 0.88% of contributions and up to 0.08% of transfers on these plans. How much of the contribution fee is paid to my plan’s adviser? Your plan’s adviser’s Licensee will receive all of the contribution fee as commission (except for the amounts that we retain for plans that commenced before 1 December 2004). The amount they receive is generally higher than the fees paid from your account due to the addition of any GST payable ie. Up to 4.4% of contributions (regardless of the plan commencement date) and up to 5.28% of transfers for plans that commenced before 1 December 2004. This additional amount is not payable by you for GST purposes. Your plan’s adviser will disclose any amounts split with their Licensee in your employer’s Statement of Advice. Asset fee The asset fee is the fee payable to the Trustee for managing your Optimum account. The maximum asset fee is discounted dependent upon the combined value of all accounts in your employer’s plan as below: For members of plans that commenced on or after 5 March 2007: Account balance Maximum % pa First $250,000 1.55% Next $250,000 1.30% Over $500,000 0.85% Account balance Maximum % pa First $250,000 2.00% Next $250,000 1.75% Over $500,000 1.30% How much of the asset fee does my plan’s adviser receive? We may pay your plan’s adviser’s Licensee commission for the service that they provide to you on your account. ›› For members of plans that commenced on or after 5 March 2007, this ongoing payment amount is up to 0.55% pa (0.60% pa including GST). ›› For members of plans that commenced before 5 March 2007, this ongoing payment amount is up to 1.00% pa (1.10% pa including GST). This payment is part of the asset fee and is not an additional cost to you. This fee is negotiable by your employer and your plan’s adviser may agree to a lesser amount as their ongoing payment. The percentage amount that your plan’s adviser directly receives from their Licensee will be disclosed in your employer’s Statement of Advice. Adviser service fee Your employer may agree with your plan’s adviser to pay an extra amount to your plan’s adviser for the service and advice they may provide. This amount can be: ›› up to 2% pa of your account balance deducted monthly or ›› a fixed monthly dollar amount. In addition to what your employer has agreed, you are also able to agree a one-off fee with your plan’s adviser. Alternatively you may choose to pay your plan’s adviser directly. If an adviser service fee has been agreed with your plan’s adviser: ›› if it is a percentage of your account, it will be based on and deducted from your account balance at the end of each month ›› if it is a fixed monthly dollar amount, it will be deducted from your account at the end of each month Optimum Corporate Super for Standard Pacific Product Guide 43 Additional explanation of fees and other costs continued ›› if it is a one-off fee, it will be deducted from your account once we have received written notification from you. We pay the full amount to your adviser’s Licensee including GST. Your plan’s adviser will disclose any amounts they split with their Licensee in your employer’s Statement of Advice. Fees relating to investment options You can get the latest investment fees, performance fees and buy/sell spreads from the monthly Optimum investment performance report available on our website or by calling us. Investment fee The nature of the Standard Pacific Funds means that the ongoing investment fees are variable. The investment fees applicable to each investment option are the weighted average of the investment fees applied by each underlying manager of the investment option, plus an investment management fee of 0.10% pa to 0.35% pa payable to Standard Pacific and a fee of 0.20% pa to the Trustee. Investment fees generally include the underlying investment manager’s fee, audit, custody and other general costs incurred in the administration of the underlying investment option. These fees and expenses may be varied by the underlying investment manager. As this is an expense of the Fund, these variations will be passed on to you without notice. Performance fees This fee is only charged by some investment managers for certain investment options when they outperform their stated benchmarks. It’s an additional amount to the investment fee. Buy/sell spreads You may incur a buy/sell spread when you make contributions, withdraw or change your investment options. This ‘spread’ is the difference in the buying price and selling price of the investment option, and generally covers the transaction costs of buying and selling the underlying assets of that investment option. It ensures that non-transacting members are not disadvantaged by the activity of transacting members. The spread isn’t a fee paid to us, but is a charge by the investment manager which is reflected in the unit price and is retained within the net asset value of the underlying investment option. 44 Optimum Corporate Super for Standard Pacific Product Guide Family accounts Your family members can choose to open their own Optimum accounts which are linked to your plan. This allows your family to have access to the features of Optimum and also enjoy any fees applicable to your plan. Where your employer pays the asset fee, family account members will be charged the discounted fees applicable to your plan. This may mean savings in fees when compared to investing individually. Insurance premiums If you have insurance cover, your premiums will be deducted monthly in advance on or around the 1st of each month by withdrawing units from your account. For more information on the costs of insurance, please see the Insurance section in this Product Guide and the Optimum insurance premium and occupational ratings guide. Expense recovery and reserves The Fund holds a tax reserve and a general expense reserve which may be used to meet the expenses associated with the administration, management and operation of the Fund. Any excess amounts are retained within the reserve to meet future costs. Alternatively, the Trustee has discretion to distribute excess amounts to members’ accounts. Small account protection If your account balance is below $1,000 at the end of the financial year, we’ll ensure the fees charged against your account are not greater than your investment returns in that financial year. We’ll credit any protected amounts by adding units to your account at the end of the financial year, or at the time of withdrawal. Taxes and insurance premiums will continue to be deducted in full. Dishonour fees You may be required to pay any bank fees and charges we incur as a result of your cheque being dishonoured or direct debit amounts from your nominated account being rejected. Changes to fees and costs We can introduce certain new fees or change the level of current fees that you pay at any time. If we do this, we’ll notify you in writing at least 30 days in advance of any adverse change. The investment fees, performance fees and buy/sell spreads are charged by the investment managers and can change at any time. As they’re not charged by us, any variations will be passed onto you without notification from us. Payments to and from other parties Any payments (or benefits) we make to or receive from other parties are not an additional cost to you unless otherwise stated in the PDS or this Product Guide. We may pay additional amounts to your adviser or their Licensee or other benefits on the total amount of funds they introduce to us, or for its promotion. These payments won’t exceed 0.50% pa of these funds and will be disclosed in your employer’s Statement of Advice. These payments are not an additional charge to you. Any alternative forms of remuneration we may also pay or receive will be in accordance with the Financial Services Council Industry Code of Practice. We keep a register of these payments which you can view by contacting us. Optimum Corporate Super for Standard Pacific Product Guide 45 Taxation information The facts on tax Are you sketchy on tax details? The table below helps you understand the basics when it comes to tax and your Optimum account. Remember it’s important to talk to your adviser before making any decisions. This information in the table below is based on our interpretation of tax legislation at the date of this PDS and assumes that you are an Australian tax resident. Changes in legislation in the future may impact how your super account is taxed. How your super is taxed On contributions received ›› 0% on non-concessional contributions ›› 15% on concessional contributions ›› 45%1 on excess amounts over the non-concessional and concessional contributions caps ›› 15% if your transfer contains any untaxed components On your investment earnings On withdrawals ›› Up to 15% on investment earnings For lump sum withdrawals ›› 0% if you’re age 60 or over ›› 15%1 on taxable components over $175,0002 if you’re between your preservation age and age 60 ›› 20%1 on taxable components if you’re under your preservation age For death benefits paid as a lump sum withdrawal ›› 0% if paid to a tax dependant ›› 15%1 on taxable (taxed) component paid to a non-tax dependant ›› 30%1 on taxable (untaxed) component paid to a non-tax dependant 1 Plus Medicare levy, includes 15% contributions tax for concessional contributions 2 For the 2012/13 financial year. From 1 July 2012, it is proposed that individuals with income greater than $300,000 pa will pay contribution tax of 30% as opposed to the current rate of 15% on concessional contributions (on the portion over $300,000). Goods and services tax (GST) Any expenses we incur from administering the Fund may be subject to GST. If we can claim a credit for the GST paid, we may pass the benefit on to you. Tax and government charges Taxes, duties and levies incurred by us are recovered directly from the assets of the investment options (where the expenses are investment costs) before determining unit prices, or from your account. We deduct an amount from your account for contributions tax at the applicable rate. The total amount of contributions tax for the Fund is calculated at the end of the financial year. The amount is reduced by deductions allowable to the Fund. Therefore the total amount of contributions tax which is remitted to the ATO may be less than the aggregate amount which has been deducted from relevant members’ accounts. We retain any excess amount deducted for contributions tax within the Fund and may use this amount for authorised purposes including to cover expenses incurred in the proper administration, management or maintenance of the Fund. 46 Optimum Corporate Super for Standard Pacific Product Guide Keeping in touch We’ll keep you informed of any changes we make to our products and legislative updates. We’ll also provide you with your annual account details and any other news we think you’d be interested in. But it’s not all one way. We also make it easy for you to keep in touch with us and your super. Jump online! Get 24/7 access to your Optimum account with our online service WealthSolutions. When you join, you’ll automatically receive your online user ID and password. This allows you to access your account at any time through our secure site available at asteronlife.com.au Through WealthSolutions online you can – ›› view your Optimum account ›› access educational tools to assist you in understanding your super and investing ›› view and update your personal details ›› check your account balance and investment holdings ›› view your super contributions ›› view transaction and correspondence history ›› view your nominated beneficiaries ›› view your bank account details ›› view your insurance details ›› generate and print a report on your account Other tools available ›› daily unit prices And if the internet isn’t for you … … you can always call us on 1800 819 499 or write to us: By post Customer Service Centre GPO Box 1576 Sydney NSW 2000 By email [email protected] By fax 02 8275 3108 Keeping you informed and up to date We’ll notify you of any significant events affecting the Fund that are relevant to you as soon as possible on our website asteronlife.com.au or in writing as required by legislation. It’s important that you keep us up to date with your current email address at all times. You can update your email address by calling us on 1800 819 499. It’s important we don’t lose contact with you We’re required to report all ‘lost members’ to the ATO, which keeps a lost member’s register. That’s why it’s important that you keep us up to date with your current address at all times as you’ll be considered a ‘lost member’ if we receive a piece of returned mail. Any applicable fees and insurance premiums will continue to be deducted from your account and we may transfer the remainder of your account balance to an eligible rollover fund (ERF). For more details please see Eligible rollover fund and Unclaimed money on page 49. ›› historical charting of unit price movements ›› monthly investment performance reports ›› monthly investment asset allocation reports ›› product updates ›› forms and other publications ›› annual reports. Optimum Corporate Super for Standard Pacific Product Guide 47 What happens when you leave your employer? Just because you’ve left your employer doesn’t mean you need to change your super, making it one less thing you need to worry about. Provided your account balance isn’t zero, your super will automatically remain invested in Optimum – allowing you to keep the valuable benefits in the table below. We’ll also provide you with the information you need so that your new employer can contribute to your Optimum account on your behalf. What happens to your … Investment options You continue to be invested in the same investment options, unless you tell us otherwise. Insurance cover Death and TPD cover Your Death and TPD cover will continue automatically. Income Protection cover Provided you are under age 60 and still working at least 15 hours per week, you can apply to continue your Income Protection cover. You must apply within 30 days of leaving your employer, or your employer notifying us that you have left employment, whichever is later. To continue cover you will need to complete a Benefit Questionnaire, which includes information on your current occupation, smoker status and any hazardous pursuits. If your application is accepted, your insured amount will be equal to the dollar amount of your insurance cover at the time you left employment or a benefit amount applicable to your new income, whichever is less. Premiums Premiums for your Death and TPD cover will be charged at individual smoker rates, unless you notify us otherwise. If you apply to have your Income Protection cover reinstated and your application is accepted, premiums will be based on individual rates. If you had any exclusions or loadings on your Income Protection, these will still continue to apply. Fees The same fee structure will apply to your account. However any asset fee discount will be based on your account balance and not the combined balance of the accounts in your employer plan. Additionally, when you leave your employer, any fees which were agreed between your employer and your plan’s adviser may now be agreed between you and your plan’s adviser. 48 Optimum Corporate Super for Standard Pacific Product Guide Other things you need to know This section provides you with important, yet often overlooked information about your super investment in Optimum. Do yourself a favour – consolidate your super If you’ve had a few jobs, you’ve probably got a few different super funds. One of the easiest ways to simplify your finances, and potentially boost the amount of money you’ll have when you retire, is to consolidate (also called ‘to rollover’) multiple super funds into one. Consolidating (or ‘rolling over’) other funds into your Optimum account is easy, since we do most of the work for you. You have two options available to you: 1.Download and print a Super Rollover form, available from our website at asteronlife.com.au, provide certified proof of your identity (ID), and post the form and ID back to us. 2.Fill in the Super Rollover form online, using our Super Rollover Wizard, accessible via asteronsuperrollover.com.au Once completed online, print the form, provide certified proof of your identity (ID), and post the form and ID back to us. Once we have received your completed rollover form(s), we’ll contact your old super fund(s) and arrange the rollover for you. Before consolidating, we recommend that you contact your other super funds to find out if any exit fees are payable and how your insurance arrangements may be affected. If you require further information or professional advice, we recommend you consult a financial adviser or give us a call. Reclaim your missing super If you’ve had more than one job in your lifetime, there’s a chance you’ve left some of your super behind. Optimum offers a lost super service to help members match their missing super by searching ATO databases. We may conduct this search on your behalf. If we find your lost super, we’ll advise you and ask if you want us to consolidate the funds into your Optimum account. If you don’t want us to undertake this free service on your behalf, please let us know by writing to us or calling us. Unclaimed money Your account balance will be paid to the ATO if you’re age 65 and over and we haven’t received a contribution or rollover for 12 months and: ›› We’re unable to contact you within five years since last contacting you, or ›› You’re a ‘lost member’ and your account balance is less than $2,000. Any person who has a claim to your benefit will then need to contact the ATO. Eligible rollover fund If we lose contact with you or your super balance falls below $1,000 we may transfer your super to an eligible rollover fund (ERF). If your super is transferred to the ERF, you’ll no longer be a member of Optimum and any insurance cover you have will stop. We’ve selected SMF Eligible Rollover Fund as our ERF. You can contact them by: Post Fund Administrator SMF Eligible Rollover Fund GPO Box 529 Hobart TAS 7001 Phone 1800 677 306 Fax 03 6215 5933 [email protected] For investment options, features and details of what is available to you under the SMF Eligible Rollover Fund please refer to their Product Disclosure Statement. Get involved in your Plan Do you want to be part of the decision-making process and management of your Plan? A policy committee allows members to provide feedback to us on the operation of the Plan. This can involve making decisions about your Plan’s default investment strategy and on the performance and operation of your employer plan in general. Your employer should set up a policy committee if there are 50 or more members in your plan. For smaller plans, you can still set up a policy committee if five or more members request it in writing. Your annual statement will show if a policy committee is established for your plan. Optimum Corporate Super for Standard Pacific Product Guide 49 Other things you need to know continued Transfer of benefits for temporary residents The ATO may instruct us to transfer the benefits of temporary residents to the ATO if: ›› a temporary resident has left Australia and ›› their temporary visa expired/ceased more than six months prior. If we’re instructed to transfer your benefits to the ATO, your account will be closed. We’re not required to issue an exit statement under these circumstances as it’s unlikely to reach you. Once your benefit is transferred to the ATO, it can only be accessed if you meet a condition of release. Relationship breakdown You can get a copy of our privacy policy from our website or by contacting us. We welcome your feedback If you have any feedback, we’d like to hear from you. You can find details on how to contact us on the back cover of this booklet, or on the front cover of the PDS. This also includes any issues or complaints you may have. We make every effort to ensure your complaints are resolved satisfactorily and quickly. However, if your complaint isn’t answered within 90 days, or you’re not satisfied with the way it was handled, you may take your complaint to the Superannuation Complaints Tribunal (SCT). The SCT is an independent tribunal set up by the Government to help with the resolution of super complaints. You can contact the SCT by: Your Optimum account may be split with your spouse as a result of relationship breakdown. This can be done either by court order or by agreement between you and your spouse. The splitting of super benefits as a result of relationship breakdown or divorce may have tax consequences. PostSuperannuation Complaints Tribunal Locked Bag 3060 Melbourne VIC 3001 For further information on family law issues, please speak to your legal adviser. We will charge you a fee for family law enquiries or to split your account. See Fees and other costs for details. We’re also a member of the Financial Ombudsman Service (FOS). You can generally refer complaints outside the SCT’s authority to FOS. Our member number is 11123. Trust Deed, governing rules and provisions PostFinancial Ombudsman Service GPO Box 3 Melbourne VIC 3001 Optimum is governed by the Trust Deed which you can get free of charge, by contacting us. The Trust Deed, combined with the PDS, this Product Guide, relevant laws and certain information and communications sent to you by us set out the governing rules and provisions by which we must operate and your rights as a Optimum member. Phone We respect your privacy The Anti-Money Laundering and Counter-Terrorism Financing legislation requires us to collect and verify information about your identity and monitor transactions on accounts held with us. Keeping your information private is important to us. We mainly collect information about you so we can provide super and insurance services, including opening and managing your account. Without this we may not be able to provide you with all our services. You can access this information by calling us. As one of a number of companies that form the Suncorp Group, we may also provide information about you to any of our related companies within this group. We don’t disclose your personal information to any outside third party organisation, unless it’s contracted to Suncorp to provide administration services or activities on our behalf, or if we’re required by law. 50 Optimum Corporate Super for Standard Pacific Product Guide Phone 1300 884 114 Visiting onlinesct.gov.au You can contact FOS by: 1300 780 808 Visiting onlinefos.org.au Anti-Money Laundering and Counter-Terrorism Financing If we request personal information about you and you do not provide it, we may not be able to provide you with the financial product or service that you request, or provide you with the full range of services we offer. What happens if you or your employer’s application is incomplete? If you or your employer’s application is incomplete or unclear, we may hold your money for up to 30 days. If we don’t receive additional information or a completed application form within this timeframe, from your employer, we’ll return the money to whoever paid it to us without any interest. Your money will only be invested once a properly completed application form is received. The value you receive will be based on the relevant unit price at that time. Optimum Corporate Super for Standard Pacific Product Guide 51 part 2 Optimum for business and Asteron EASE If you’re running a business and would like to set up a super plan to manage your employee superannuation requirements, then this part of the document is for you. Why should I choose Optimum? We make it easy for you to meet your superannuation needs by providing a free (if enough of your employees are using Optimum) and simple to use payment solution that will meet your choice of fund requirements. So you spend less time on super, which means more time for your customers. And with a selection of insurance options available through Optimum, you can tailor an insurance package to your employees’ needs, whilst allowing them to individually apply for additional cover at their discretion. How will Asteron save me time? Our online administration system and payment solution – Asteron EASE (technically known as a ‘superannuation clearing house’) removes the hassle when it comes to managing your employees’ super, especially if you’re paying super to multiple funds. What is Asteron EASE? Simplicity One easy-to-use online interface for managing multiple super payments Control Employee information and super payments at your fingertips Flexibility Choose whether to input each employee’s details on screen individually, or upload a payroll file if you’ve got lots of employees 52 Optimum Corporate Super for Standard Pacific Product Guide With Asteron EASE you can: ›› View and manage you super information all in one place online, anytime. ›› Enjoy fast and reliable payment processing straight into your employees’ super accounts. ›› Make your super contributions by direct debit from your bank or by direct credit to ours. ›› Easily set up an Optimum account or another super fund for new employees when they join your company. ›› Quickly update employee details such as salary, address, and tax file numbers. ›› Pay your employees’ super contributions including multiple super funds at the touch of a button. ›› Painlessly delete your employees from your company when they leave your company. ›› Get access in one convenient location to reporting for employees in your plan and those who’ve chosen another super fund. What are your obligations as an employer? What is the contribution amount that I need to pay? For most employees, the Super Guarantee (SG) contribution amount is currently equal to 9% of their salary (and rising to 12% by 2019). How often do I have to make super contributions for my employees? You must make Award or SG contributions to your employees’ accounts, unless they’re exempt, at least every quarter. Payments are required by us or the external fund by the 28th day of the month following the quarterly period in which the contribution was deducted, otherwise you may become liable to pay the Superannuation Guarantee Charge (SGC). The SGC is a non tax deductible charge and may include interest and penalties. Please also refer to Our turnaround time for processing contributions later in this section for more information on cut-off times for payments. Does Optimum satisfy ‘choice of fund’ obligations? Yes. Optimum is a complying super fund for choice of fund purposes and more than meets the minimum insurance requirements. However, it’s your responsibility (and not ours or any other member of the Suncorp Group) to check if you’re able to use us as your default fund under the employment award or arrangements relevant to your industry. Optimum helps you meet your insurance obligations under the choice of fund legislation by offering two options of minimum Death cover that you can choose from: ›› age based minimum or The age based minimum insurance cover is only available to plans with ten or more employees. Cover under either of these options is subject to automatic acceptance requirements. The insurer does not have to provide cover for employees if their health, occupation and/or hours of work are not acceptable. Optimum insurance Holding life insurance through superannuation can be a tax-effective way to provide your employees with the security of knowing that they have taken care of the most important people in their life if the unexpected happens. You can select insurance for your employees for: ›› premium based minimum ($0.50 per week). Where a premium based minimum is selected, we will advise you of the sums insured. Both the age based minimum and the premium based minimum will depend on the occupational profile of your employees. No minimum level of Death cover is required for employees aged 56 or older. ›› Death only cover ›› Death and Total & Permanent Disability (TPD) cover* ›› Income Protection cover*. You may be able to apply for automatic insurance for all types of cover available through Optimum. And, as Optimum is flexible to cater for a wide range of business needs, you have the added flexibility to select different types and levels of cover for different categories of employees (eg. directors, management and general staff). * Depending on eligibility. You cannot have Income Protection only. Employer selected cover Death only or Death & TPD1 You can choose one of two options: Cover in addition to an employee’s account balance. The total benefit payable on Death and TPD is the nominated sum insured plus an employee’s accumulated account balance (ie the actual sum insured amount will remain fixed unless they apply to vary it) ›› fixed sum insured (eg $100,000 per employee) or ›› fixed premium (eg $1 per week) with insured benefits varying depending on age2. Cover including an employee’s account balance. The total benefit payable on Death and TPD includes an employee’s accumulated account balance plus the sum insured (ie. the actual sum insured amount will reduce as their account balance increases) ›› percentage of an employee’s salary multiplied by the number of years to age 65 or ›› fixed benefit amount (eg $100,000 per employee) or ›› multiple of an employee’s salary. Income Protection3 You can choose cover based on: ›› either 50%, 66.67% or 75% of an employee’s salary ›› an additional optional superannuation contribution component of up to 10% pa of salary4 ›› a benefit period of 2 years ›› a waiting period of 30, 60 or 90 days. 1 The amount of TPD cover chosen cannot be higher than the amount of Death cover. 2 Where a fixed premium is selected, we will advise you of the sums insured which will depend on the occupation profile of your employees. 3 Monthly benefits can be reduced if the employee receives leave payments, worker’s compensation, social security or income benefits from another source. 4 Payment of this benefit must be made to a complying superannuation fund. Optimum Corporate Super for Standard Pacific Product Guide 53 Optimum for business and Asteron EASE continued Automatic acceptance limits (AAL) A benefit of employer selected cover is that Suncorp Life may be able to offer automatic levels of cover for your employees. Before deciding on your AAL, we will take a number of factors into consideration, including: ›› If there are associated persons in your plan, we may require certification they are permanent employees. ›› There must be eligibility rules that specify clearly when an employee can join a category of insurance cover (established prior to the commencement of your plan). You can apply different eligibility rules to different categories of employees. Your adviser can help you determine appropriate eligibility rules for your business. ›› An AAL may be reduced or withdrawn, where the number of employees who decline or cancel insurance cover is greater than 20% of your plan membership. Any change will not affect any employee’s currently accepted cover at that time. ›› Where some employees have an occupation Suncorp Life would not normally accept, we may not offer an AAL to those employees. ›› Where employees are insured elsewhere under a group insurance arrangement, an AAL may not be available. ›› The total number of employees in your plan and within each category. Where your plan has different categories of employees and there are less than ten employees in each category, we may provide the lowest common level of insurance benefit available based on the total number of employees in the plan. For information on the AALs available in Optimum, please call Standard Pacific on 1300 232 001. Transfer of existing insurance arrangements We may allow you to transfer your employees’ existing group insurance cover, subject to certain terms and conditions. Call Standard Pacific for more information. What if an employee wants their super contributions paid to another account? Under ‘Super Choice’ legislation, your employees (if eligible) can choose where they want their compulsory employer contributions paid. If they want them paid to a fund other than Optimum, you won’t have to run around and make separate payments to each different fund. Asteron EASE lets you make contributions to as many different complying funds as you need to. How does Asteron EASE work? Asteron EASE (or Employer Administration Super Exchange) is our online superannuation clearing house facility. Simply this is how it works: 1 - Set up your employees 2 - Upload your payroll 3 - Make the payments (contributions) How do I make contributions? This illustration below shows how contributions are made using Asteron EASE: Employer’s bank Choice $ Choice Choice data Employer Choice data $ Payment agent Default fund data Default $ Everyday Super fund account 54 Optimum Corporate Super for Standard Pacific Product Guide Choice data $ Choice data $ Asteron EASE Default Employer’s bank Payment agent bank account Everyday Super admin system External External External A payment agent is an external third party we use to administer the payment of contributions to external super funds. You can pay your contributions by direct debit This is the easiest way to make your contributions. Just complete a Direct debit request form (for registered employers) which you can find on our website. We’ll then draw payments from your nominated bank account. We’ll debit your nominated account twice – once for payments for your Optimum default fund and another for payments to external funds (which will then be on-paid to them by direct credit or cheque). If we receive your contribution information before 12pm (Sydney time) on a business day, your payments will be deducted that night. Otherwise they may not be deducted until the end of the following business day. Our turnaround time for processing contributions We’ll try our best to make contributions into your employee’s super accounts within ten business days of receiving the contribution information from Asteron EASE. If we receive it on a non-business day, then we’ll take it to have been received on the following business day. This means contribution information (and if paying by direct credit, contribution payments) should be sent to us by at least 12pm (Sydney time) on a cut-off day (the 14th of January, April, July or October, or the last business day before these dates if they fall on a non-business day). This will allow enough time for your payments to be distributed to, and processed by, each external fund into your employee’s super accounts. Otherwise you may become liable to pay the Superannuation Guarantee Charge (SGC) (we talked about this earlier in the section). Please make sure you send us accurate information If the information you’ve given us is incomplete or contains errors, you may get an error message stopping you from sending it to us, and/or we may be unable to action some or all of your contribution information and payments. Sorry, but we’re not liable for any loss you or any other person incurs as a result of this. We’ll process your request based on what you’ve sent us. But neither we nor the payment agent will check you’ve sent us everything you need to or that what you’ve sent to us is accurate. And of course, both you and your employees must have met the application requirements (if any) of any external funds before sending us a payment and contribution information via Asteron EASE. What else do I need to know? Fees and costs for using Asteron EASE Asteron EASE is free, as long as you: ›› Nominated Optimum as your default employer plan and make contributions to it (except for those employees who have chosen an external fund) ›› Have contributed to your Optimum default employer plan for at least 50 per cent of your employees at the time you provide the contribution information. If the above conditions aren’t met, we have the right to charge reasonable fees. And in any event, we can introduce new fees or change the current fees at any time. It’s not our intention to do so but if we do this we’ll always give you at least 30 days written notice. Risks of using a superannuation clearing house such as Asteron EASE Using Asteron EASE involves some risk. The main risk is that contributions for an employee who has exercised ‘choice’ and chosen their own external fund (ie. a fund other than Optimum) may not get paid by the due date for SG contributions. This could happen if: ›› You provide your contribution information late (please also refer to Our turnaround time for processing contributions) ›› Your contribution information contains errors or is not complete ›› There’s not enough money in your nominated account at the time of withdrawal ›› A contribution is rejected by an external fund. Also, by law you’re only considered to have made a choice contribution to an external fund when the external fund accepts it. What if an external super fund rejects your employer super contributions? If this happens, our payment agent will refund the contribution payments into your bank account and will let you know (to the extent they can based on the information they receive from the external fund). For this reason, we must have your bank details. Sorry, but we wouldn’t be able to help you resolve the issue at this point – you’d need to take this up with the trustee of the external fund and re-send the contribution payment and supporting information directly to them. Optimum Corporate Super for Standard Pacific Product Guide 55 Optimum for business and Asteron EASE continued What if there’s a problem with your employer contribution payments? Please keep us up to date with your employee information Where you’ve made a payment to us by direct credit for external funds and this doesn’t match the contribution information from you, then all clearing house services will cease and you’ll need to cover any costs in resolving the issue. Information you’ve given us will change from time to time. For example, an employee may roll their super out of Optimum to another fund, or change their external super fund, or the name or contact details of the external fund may change. If we can’t sort this out with you then the contribution payment will be refunded to you. If you use direct debit and you receive notice that a payment to an external fund has been dishonoured, we’ll let you know, but you’re responsible for any dishonour fees you incur. You can then deposit amounts into your nominated account and re-send the contribution information to us. No interest or earnings will be paid to you on any amounts received by us. It’s important you tell us about any changes at least three business days before you provide the contribution information for a contribution period, otherwise there may be a delay in us processing your payments. What happens to an employee’s Optimum account if they leave employment with you? When they leave your employment, they’ll automatically remain a customer of Optimum. But once you’ve let us know they’ve left, we’ll take care of things for you by deleting them from your employer plan, so you’ll no longer see them listed on Asteron EASE under any employee reporting. Where are the terms and conditions of using Asteron EASE? The terms and conditions for Asteron EASE are on our website. It’s important you read them carefully, and if we update the terms and conditions, this will be available on our website asteronlife.com.au. If you’d like a free, paper copy of the updated information, just call us. Cancelling your use of Asteron EASE In the unlikely event that we do this, we’ll let you know at least 14 days beforehand. Tax File Numbers (TFN) By law, you must provide us with your employees’ TFNs, unless they instruct you not to. While it’s not compulsory for them to provide us with their TFN, they should be aware there are consequences if they don’t. (See Part 1 of this Product Guide for further information). Policy committees A policy committee lets you and your employees give us feedback on how your super plan is working, including on the general operation and performance of Optimum. You should set up a policy committee if there are 50 or more employees in your Optimum employer plan. For smaller plans, you can still set up a policy committee if five or more employees request it in writing. 56 Optimum Corporate Super for Standard Pacific Product Guide What will my employees receive? Once your account has been opened, your employees will receive a Welcome Pack with all the details about their super and how to access their online account. (See Part 1 of this Product Guide for further information.) What if I join Optimum, but then change my mind? No stress. You get a 19 day cooling-off period which ends on the day your first employee’s account has been set up. If you want to close your Optimum account during the cooling-off period, just call us. You and your employees may get back less than you put in and any insurance cover they have will be cancelled from the day we receive your request. And finally... The following information applies to you, just the same as it does for your employees for both Optimum and Asteron EASE. We provide further information on each of these in Part 1 of this Product Guide: ›› Changes to the PDS ›› How we keep you updated ›› Family accounts ›› Your privacy ›› We welcome your feedback ›› Anti-Money Laundering and Counter-Terrorism Financing The information in this Product Guide may change. If the change isn’t likely to be materially adverse, we’ll update the information on our website asteronlife.com.au. If you’d then like a free paper copy of the updated information, just call us. And that’s pretty much it! Thanks for taking the time to read all about Optimum for business and Asteron EASE. If there’s anything else you need to know, either now or any time after your new super plan is up and running, just give us a call on 1800 819 499. We’ll be happy to help. How do I open an account? Employers There are two ways you can open an Optimum and Asteron EASE business account: 1. Apply online – it will only take around 10 minutes, simply visit asteronlife.com.au 2. Call us on 1800 819 499 and apply over the phone. We’ll be happy to help. Cooling-off rights Your cooling-off rights operate in the following way. ›› A 14 day ‘cooling-off’ period will commence on the earlier time we confirm an account has been established for one of your employees and the 5th day after the day on which the account was established. ›› During the 14-day period you may contact Standard Pacific to request the return of your contributions. You will need to provide us with written confirmation of this request within this period. ›› Within one month after you tell us you wish to exercise your cooling-off rights, if you have paid us any employer contributions (including SG contributions) you must tell us the complying super fund or Retirement Savings Account (RSA) to which you want us to transfer the contributions. We will transfer all the contributions we have received for your plan to the fund or RSA you have nominated. If they wont accept them, we may transfer the contributions to our nominated eligible rollover fund. The amount of contributions we return or transfer may be less than the amount you contributed due to adjustment for any market fluctuations, any withdrawals already taken and any tax that we may be required to deduct. Any fees and charges, except those payable to investment managers will be refunded. The cooling-off period will end earlier if you or any of your employees exercise any of your membership rights, such as changing your investment portfolios. Customer Service Centre Street Address Level 10 321 Kent Street Sydney NSW 2000 Mail GPO Box 1576 Sydney NSW 2001 Fax 02 8275 3108 Email [email protected] wwwasteronlife.com.au Phone 1800 819 499, Monday to Friday, 8.30am-5.30pm (Sydney time) Adviser Standard Pacific Consulting Limited ABN 84 003 315 802 AFSL 237 635 Street Address Level 10 321 Kent Street Sydney NSW 2000 Mail GPO Box 1576 Sydney NSW 2001 Fax 02 8275 3820 Email [email protected] www standardpacific.com.au Phone 1800 232 001, Monday to Friday, 8.30am-5.30pm (Sydney time) AS02537 31/01/13 A
© Copyright 2024