member booklet Product Disclosure Statement Part 1 of 2
Effective: 1 June 2009
media
entertainment
arts
This Product Disclosure Statement (PDS) effective June 2009 was prepared by Media Super Limited ABN 30 059 502 948, AFSL 230254 (Trustee), the trustee of Media Super. The PDS is made up of two parts. You should read all parts of the PDS before you make a decision to become a member of Media Super. Part 1 of the Product Disclosure Statement contains important information about Media Super, including the features, costs, benefits and risks of Media Super. Part 2 of the Product Disclosure Statement contains important information about the insurance arrangements offered to members of Media Super. The PDS will help you decide whether or not Media Super will meet your needs and, if you have a choice, to compare Media Super with other superannuation funds. An electronic copy of parts 1 and 2 of the Media Super PDS is available from www.mediasuper.com.au or by phoning 1800 640 886. If you make the Media Super PDS available to another person, you must give them the entire electronic file or printout, including both Part 1 and Part 2 and the application forms. Please note: Some of the information contained in the Media Super PDS may change from time to time. If there is a materially adverse change, the Trustee will issue a new PDS or a Supplementary PDS. Where a change to the information in the PDS is not materially adverse, the Trustee will provide a written update on the website. You may request a printout of the update from the Trustee, who will provide it to you free of charge. The current version of the Media Super PDS is available at www.mediasuper.com.au or by phoning 1800 640 886.
General information warning The information in this PDS is general information only. It does not take into account your individual objectives, financial situation or particular needs. Before making a decision to invest in Media Super, you should read the Media Super PDS in its entirety to assess whether or not Media Super is appropriate to your individual circumstances. We recommend that you also consider obtaining financial advice from a licensed financial adviser. Investment returns are not guaranteed, as all investments carry some risk. Past performance gives no indication of future returns. Financial product advice can only be provided by a financial services licensee or an authorised representative of a financial services licensee. Unless your employer holds a financial services licence, they are unable to provide you with any financial product advice or recommend any superannuation product to you.
Contact us General enquiries Mail: Media Super Limited Locked Bag 1229, Wollongong NSW 2500 Phone: 1800 640 886 Fax: 1800 246 707 Email: administration@mediasuper.com.au Website: www.mediasuper.com.au
All persons featured in this PDS have given their consent. This consent has not been withdrawn at the time of publication. Note: All references to spouse and defacto relationships include same-sex couples.
Further information Upon request to the Trustee, you are entitled to receive further information about Media Super. The Trustee will provide all information it reasonably believes a member would reasonably need to make an informed assessment of the management and financial situation of Media Super. If you require further information, contact us. The provision of further information may be subject to charge. Visit www.mediasuper.com.au for further information.
Excellence gets results Out of 200 super funds that SuperRatings surveys, only 15% are awarded a Platinum rating – the highest rating a super fund can achieve. We’re one of them.
3
Contents
4 6 16 22 36
Welcome to Media Super
4
Extra membership benefits
49
Your Super
6
Making contributions Tax on super Accessing your super
8 12 15
Pensions Pension payments Taxation on pensions
Investments Unitised investments explained Investment basics Your investor profile Your investment options Super investments and risk
Visit www.mediasuper.com.au
18 20
22 24 25 26 27 34
General information
36
Fees and other costs Other important information How to complete the forms
38 42 46
Look for Super Hero in this handbook for helpful tips and information
16
4
Welcome to Media Super The industry super fund for print, media, entertainment and arts professionals.
5
Strong Performer Assets:
more than $2.5 billion
Members:
more than 115,000
Media Super was created on 1 July 2008 as a result of the merger of Print Super and JUST SUPER. Both Print Super and JUST SUPER were established in 1987 and have long histories of low fees and strong performance. We are run only to benefit+ you – the member. This means that Media Super rewards members with our low fees and strong long-term investment performance.
As a member of Media Super, you benefit from: Low fees
Strong long-term investment performance Super you can take from job to job Market-leading pension products for retirement Personalised service from people who understand your industry Flexible contribution arrangements Choice of 10 investment options Regular communication Insurance benefits (if you are eligible).
An Industry Super Fund that looks after you Media Super is governed by a Trustee Board of Directors. As an industry super fund, the Board is made up of an equal number of employer and employee representatives and two independent directors. The current Media Super Board of directors includes representatives from: rinting Industries Association P of Australia – three directors; Fairfax Media Limited – one director;
ive Performance Australia or the L Screen Producers Association of Australia – one director;
Super’s operation) and to act in the best interests of all members and beneficiaries.
Printing Division of the AMWU the – three directors;
The Directors of Media Super (or the organisation they represent) are compensated for the time they spend on the management of Media Super.
Media, Entertainment and Arts Alliance – two directors. The role of the directors is to make sure that Media Super is run according to its Trust Deed and Rules (the document that controls Media
From time to time, the Trust Deed may need to be amended. If so, all members will be advised. A copy of the Trust Deed is available on request.
About Industry Super Funds Not all super funds are the same. Industry Super Funds are run only to benefit members. This means that the Fund rewards members with low fees instead of paying financial planners and sales people commissions on your super. Over a 40-year working life, even small differences in fees can have a huge financial impact.
6
‘We’re all in the same boat. It’s good to know we’re all together.’ Mathew Barker, Web offset printer
Your super 7
Your super Choosing Media Super means you are growing your retirement savings with a fund that understands the way you work.
We offer two types of super accounts:
1
Employer-Sponsored Account If your employer is a participating Media Super employer, you are considered an ‘Employer-sponsored member’ and should open this type of account.
to join: 1. Complete the Membership application form at the back of this PDS and either: A. send it to Media Super, or B. give it to your employer (who will send it to us with your next contribution). 2. Complete the Standard choice form (if applicable) at the back of this PDS and return it to your employer.
2
personal Account Anyone who is eligible to join a super fund can open this type of account. It is especially designed for self-employed, freelance and contract workers, as well as for people requiring spouse accounts or selecting Media Super under super choice where their employer is not a participating employer. If you open this type of account, you are considered a ‘personal account member’. For more information about super choice, see www.mediasuper.com.au/superchoice.
to join: 1. Complete the Membership application form at the back of this PDS and send it to Media Super along with your first contribution.
Important note Media Super offers eligible members with super accounts insurance cover for Death and Total and Permanent Disablement and Income Protection. The type of insurance we offer depends on your situation. Part 2 of the PDS outlines the applicable insurance arrangement. If you have not received Part 2 outlining your insurance arrangements, please phone 1800 640 886.
8 Your super
Making contributions Generally, contributions fall into three categories: concessional contributions, non-concessional contributions and other contributions.
From 1 July 2009, non-wage remuneration will be included in income tests used to determine eligibility for a range of government financial assistance programs. Certain salary sacrifice superannuation contributions will be included as income for income testing purposes, as well as the selfemployed 10% income test and the spouse contribution rebate income test. This change to income could affect your eligibility to receive the Federal Government Co-contribution and spouse rebate. If you are eligible for a co-contribution, it will continue to be automatically calculated by the Australian Taxation Office (ATO) and deposited into your super fund each year after you lodge your tax return.
Concessional Contributions Concessional contributions are pre-tax contributions paid by employers (or other eligible persons). Concessional contributions include: Employer contributions The Superannuation Guarantee (SG) is the minimum amount of superannuation contributions that an employer is legally required to pay into a complying fund, such as Media Super, on behalf of an employee. Currently the minimum SG is 9% of Ordinary Time Earnings. Generally, if you are aged between 18 and 70 and earning more than $450 from an employer in a calendar month, you should be receiving SG contributions. Awards and industrial agreements may stipulate a higher employer contribution rate, or your employer may voluntarily choose to pay you additional superannuation. Salary sacrifice Salary sacrifice involves making an agreement with your employer to sacrifice some of your pre-tax salary into your super account. Salary sacrificing into super can offer a number of advantages: I t lowers your taxable income. However, from 1 July 2009 any sacrificed salary will be included for relevant income testing. C ontributions up to certain limits will be taxed at 15% (not your marginal tax rate) – refer to page 12 for details. Y ou may benefit over the long term from the low-tax environment of super. It may not substantially reduce your take-home pay.
Remember to clarify the terms of your salary sacrifice agreement with your employer to: e nsure that your 9% employer SG contributions are based on your pre-salary sacrifice salary; c heck that entitlements such as long-service leave or loadings are not adversely affected. If your employer offers a salary sacrifice option, make sure that your salary sacrifice agreement is in writing – Media Super has a sample agreement at www.mediasuper.com.au/forms to help you with this.
Your super 9
Non-concessional contributions Non-concessional contributions generally come from an individual’s after-tax income. Non-concessional contributions include:
Hint
Voluntary contributions Voluntary contributions are contributions that you choose to make out of your after-tax income (take-home pay). These contributions can be made as frequently as you like (up to the cap amount).
If you are self-employed and wish to claim a tax deduction for contributions AND make a super split, by law you must claim the tax deduction BEFORE lodging your super splitting application.
The Voluntary contribution form is available at www.mediasuper.com.au/forms or by phoning 1800 640 886. See the ‘How to contribute’ table on page 11 for contribution methods. Spouse contributions Spouse contributions are designed to help build super for non-working or low-income partners. If you are married or in a defacto relationship* and make contributions on behalf of your spouse, you may be eligible for a tax rebate of up to $540. The spouse making the contribution will receive an 18% tax rebate on contributions (up to $3000 per year) where the receiving spouse earns less than $10,800 per year. If the receiving spouse earns more than $10,800 per year, a partial rebate applies before phasing out at incomes of $13,800 per year. To be eligible, you must be living together at the time; however, it doesn’t matter whether you are employed or not. Please also see the ‘Restrictions on receiving super contributions’ table on page 11 for age restrictions that apply. The rebate will be calculated by the Australian Taxation Office (ATO) when you lodge your tax return at the end of the financial year. To make a spouse contribution, simply complete the Spouse contribution form available from www.mediasuper.com.au/forms, and make a contribution into your spouse’s Media Super account. * Effective 1 July 2009 for people in defacto relationships.
Contribution caps There are limits on the amount of concessional and non-concessional contributions you can make each financial year, as shown in the table below. Budget Changes The Federal Government proposed changes to contribution limits in the May 2009 budget. If the budget changes are passed with no amendments then the ‘after budget’ contributions caps will apply for the 2009/10 year. Contributions Cap
2008-09
2009/10
2009/10
(before budget)
(after budget)
$50,000
$55,000
$25,000
$100,000
$100,000
$50,000
$150,000
$165,000
$150,000
$450,000
$495,000
$450,000
Concessional contributions cap Under age 501 Aged 50 or over (until 30/6/2012)
2
Non-concessional contributions Annual cap3 Three-year cap
4
1. These thresholds are indexed in line with movements in Average Weekly Ordinary Time Earnings (AWOTE) in increments of $5,000. 2. This cap is not indexed.
Self-employed contributions If you are self-employed – or substantially self-employed (that is, you earn less than 10% of your income, including assessable income, reportable fringe benefits and employer super contributions, from an employer) – you can make contributions to super and claim a full tax deduction. These contributions will then be treated as concessional contributions. Please note that if you don’t claim your super contributions as a tax deduction, they will be regarded as after-tax, voluntary non-concessional contributions, and thus you may be eligible for the Government Co-contribution (see opposite). For full details on claiming a tax deduction, see page 14.
3. It is proposed that from 2009/10, this cap will be equal to six times the concessional contributions cap. 4. This cap only applies to individuals aged less than 65 in the financial year they make the contribution. If you choose to exceed the annual cap, you will not be able to make any further contributions for the next two financial years. Note: For more information on how contributions are taxed, see the ‘Tax on super’ section on page 12.
10 Your super
Other contributions Super splitting You may be able to split superannuation with your spouse. Super splitting is only available for concessional contributions. Members can split 85% of concessional contributions up to the annual concessional contributions cap. Media Super requires that a minimum of $1,000 be split and also that your account balance cannot be less than $5,000 after the split. Please note that the amount transferred to your spouse’s super account does not reduce the concessional contributions counted towards your cap. See the ‘Important notes’ section on page 11 for restrictions. You can make only one super splitting application per year. To split your super, request a super splitting pack from us by phoning 1800 640 886. This pack will contain a statement showing the concessional contributions we received from you in the previous financial year and the maximum amount you can split, as well as a form for you to advise us how you wish to split your super. A $30 withdrawal fee applies to super splits being sent to a non-Media Super account. Rollover A rollover is super that you transfer from another super fund you belong to. Given the nature of their employment, many Media Super members have accumulated multiple super accounts over the years. Multiple super accounts equal multiple super fees. Consolidating your super into one account can help you build your retirement savings faster. It also reduces the hassle of managing multiple super accounts. To make Media Super the home for your super, simply roll over your other super accounts using the Rollover form at the back of this PDS.
Co-contribution The co-contribution is a payment made by the Federal Government for low and middle-income earners. The payment is designed to reward those who make an additional contribution to their super, on top of what their employer contributes. Budget Changes The Federal Government proposed changes to the maximum co-contribution limit in the May 2009 budget. If the budget changes are passed with no amendments then the maximum co-contribution limit will reduce from $1,500 to $1,000. For example, until 30 June 2009, if you earn less than $60,342* per annum and make a voluntary super contribution (see page 9), you may be eligible for a co-contribution of up to $1,500. The maximum cocontribution of $1,500 applies for people earning up to $30,342* who have made a voluntary super contribution of $1,000 to their super account. The amount of cocontribution reduces for incomes above $30,342*. From 1 July 2009, the maximum co-contribution will be $1000. See the table below for co-contribution matching rates. Contribution year
Matching rate
Maximum co-contribution
2009/10
100%
$1,000
2010/11
100%
$1,000
2011/12
100%
$1,000
2012/13
125%
$1,250
2013/14
125%
$1,250
2014/15
150%
$1,500
If you are eligible for a co-contribution, it will be automatically calculated by the Australian Taxation Office (ATO) and deposited in your super fund each year after you lodge your tax return. For assistance on calculating the level of co-contribution that you’re eligible for, try the Co-contribution calculator at www.mediasuper.com.au/calculators. * These amounts are indexed annually. The figures shown here apply for 2008/09. For 2009/10 figures, visit www.ato.gov.au.
Employment Termination Payments Employment Termination Payments (ETP) – such as unused sick leave, amounts of time in lieu, golden handshake and employment invalidity payments – cannot be rolled into super unless the following transitional conditions are met: T he payment was specified as part of an existing employment contract, law or agreement as at 9 May 2006; and The payment is made before 1 July 2012.
Your super 11
How to contribute Method
Suitable for
What to do
Direct Debit – enables a specified amount to be deducted from your bank account monthly and paid into your Media Super account.
• Voluntary contributions
Complete the Direct debit request form and Spouse contribution form (if applicable) and return them to Media Super.
EFT – You can transfer amounts directly from your bank account to Media Super.
• Voluntary contributions
• Self-employed contributions • Spouse contributions
• Self-employed contributions
Contact us on 1800 640 886 to establish an EFT arrangement.
• Spouse contributions Cheque – for regular or one-off payments into your Media Super account.
• Voluntary contributions • Self-employed contributions • Spouse contributions
Payroll – your employer will adjust your pay (according to your instructions) and send contributions to Media Super on your behalf.
• Voluntary contributions • Salary sacrifice
Send your cheque to Media Super along with any relevant paperwork (e.g. Voluntary contribution form or Spouse contribution form). At a minimum, your cheque must be accompanied by your membership number or it will be returned. Find out if your employer offers this service. If so, sign and return to your employer the Payroll deduction authority form.
If you intend to claim a tax deduction for self-employed contributions, see page 14 for further requirements.
Restrictions on receiving super contributions CONTRIBUTION TYPE
YOUR AGE Less than 65
65-69
70-74
75+
Mandated employer contribution1
Accepted without restriction
Accepted without restriction
Accepted without restriction
Accepted without restriction
Additional employer contribution2
Accepted without restriction
Accepted provided you are gainfully employed on at least a part-time3 basis.
Accepted provided you are gainfully employed on at least a part-time3 basis.
Cannot be accepted5
Voluntary contribution
Accepted without restriction
Accepted provided you are gainfully employed on at least a part-time3 basis.
Accepted provided you are gainfully employed on at least a part-time3 basis.
Cannot be accepted5
Spouse contribution
Accepted without restriction
Accepted provided the receiving spouse is gainfully employed on at least a part-time3 basis.
Cannot be accepted
Cannot be accepted
Government co-contribution
Accepted without restriction
Accepted without restriction4
Cannot be accepted
Cannot be accepted
1. Includes SG (to age 70 only) and contributions stipulated by Awards and Agreements. 2. Includes additional employer contributions, salary sacrifice contributions and self-employed contributions where a tax deduction has been claimed. 3. Part-time means you must have worked at least 40 hours in 30 consecutive days in the financial year. 4. The co-contribution will only be paid in line with a period where you were eligible to make voluntary contributions. 5. If you are gainfully employed on at least a part-time basis during the financial year that contributions are made, contributions received on or before the day that is 28 days after the end of the month in which you turn 75 can be accepted. Important notes: • Super-splitting transfers cannot be received by a spouse who is aged 65 years or more, or has reached their Preservation Age and is retired. • Further restrictions on receiving contributions may apply if you have not supplied your tax file number. See page 12 for details. • There are no restrictions on receiving a rollover.
12 Your super
Tax on super Don’t forget! The information in this section generally explains the different types of tax that may apply to your super.
Ensure that Media Super has your tax file number on record. If the Fund doesn’t and you don’t supply it, you may be subject to additional tax.
Tax File Numbers Different rules apply if Media Super does not have your tax file number (TFN) recorded, including an additional tax of 31.5%, including Medicare levy, on top of your normal 15% contributions tax – a total of 46.5% tax. If you do not provide Media Super with your TFN, you will pay the higher tax on all employer and salary sacrifice contributions and Media Super will not be able to accept any other contributions on your behalf. As a member of Media Super, it is your responsibility to ensure that Media Super has your TFN on file. If your employer has neglected to supply your TFN, you will still be subjected to additional tax. The additional tax will be deducted directly from your Media Super account, either at the end of the financial year or when any part of your account balance is withdrawn, whichever occurs first. Provided that you supply us with a valid TFN within three years of the end of the financial year that the contributions are made, you may be entitled to a refund of the additional tax. No interest will be earned while the additional tax is held at the Australian Taxation Office (ATO). Please note that refunds are subject to processing by the ATO. To supply your TFN to Media Super, simply visit www.mediasuper.com.au/tfn or phone 1800 640 886.
Tax on contributions Tax on concessional contributions Concessional contributions, up to the concessional contribution cap, are taxed at 15%. If you make contributions across multiple super funds and the total exceeds the contribution cap, the excess contributions will be taxed at the highest marginal tax rate (plus Medicare levy) – currently 46.5%. If you exceed the relevant cap, the ATO will write to you advising you of the additional tax. You can choose to pay this additional tax from either your superannuation account or another source. You will be required to advise the ATO of your choice and to pay in the timeframe advised.
Tax on non-concessional contributions Non-concessional contributions, up to the concessional contribution cap, are not taxed in the Fund. You can make up to $150,000* (for the 2008/09 and 2009/10 financial years) of non-concessional contributions to your super account each year. Media Super is not permitted to receive contributions from you in excess of the cap. If you make contributions across multiple super funds and the total exceeds the contribution caps, the excess contributions will be taxed at the highest marginal tax rate (plus Medicare levy) – currently 46.5%. If you breach the non-concessional contribution cap, the ATO will write to you and advise you of the additional tax, which will be deducted directly from your nominated superannuation account. Tax on other contribution types There is no tax applicable for Government co-contributions or super-splitting transfers for the receiving spouse. Rollovers will not be taxed unless an untaxed rollover amount (previously called a ‘post June 1983 untaxed element’) is included, which will be taxed at 15%. Generally, this is only applicable if you are transferring from an untaxed superannuation fund. For Media Super members, tax has already been deducted by us, so this tax will not apply if you roll over your account to another fund.
TAX ON LUMP SUM AMOUNTS Tax when super is paid in cash If you are aged 60 years or over, you can access your superannuation with Media Super entirely tax-free. If you have reached your preservation age (see page 15), but are still under 60, you can still access the taxable component of your super tax-free up to the low-rate threshold ($145,000 for 2008/09 increasing to $150,000 for 2009/10). Amounts over the low-rate threshold will be taxed according to the table opposite. People who have not yet reached their preservation age and are eligible to gain access to their super will also be taxed according to the table shown opposite.
Your super 13
Tax on Total and Permanent Disablement (TPD ) benefits
Tax on Terminal Illness benefits
If you receive a super TPD benefit and are aged 60 years and over, you can access your superannuation entirely tax-free.
If you have been diagnosed by two medical practitioners (one needs to be a specialist) that you are terminally ill and are not expected to live beyond 12 months, and your benefit is paid as a lump sum, it will be tax-free.
If you are not yet 60, part of your normal taxable component will be recalculated to form part of your tax-free component. Generally, the tax-free component is increased to reflect the period where you could have expected to be gainfully employed if the disability had not occurred. This amount is calculated based on your age, length of service and the amount of your benefit. Your adjusted tax-free and taxable components will be taxed at the rates shown in the table below. Tax on Death benefits If your Death benefit is paid to a dependant for tax purposes, then the benefit is tax-free. If it is paid to a non-dependant, tax is deducted from the taxable component of the benefit at a rate of 16.5% (including Medicare levy). A higher rate will apply if the Death benefit recipient does not provide their TFN to Media Super. Any untaxed element of a taxable component of a lump sum Death benefit, where the benefit included life insurance proceeds, will be taxed at 31.5% (including Medicare levy). The untaxed element is the proportion of your total lump sum Death benefit that relates to the period from the date of death to age 65 in comparison with your total service period. Tax on Pension payments and benefits For information about the applicable tax when your benefit is paid as a pension, see page 17 in the ‘Pensions’ section.
Tax on lump sum super Component
Age
Payments
Tax rates
Tax-free
All
All
Nil
Taxable
Under your preservation age
All
Maximum of 21.5%
Your preservation age to 59
Up to $145,000*
Nil
59
Over $145,000*
Maximum of 16.5%
60+
All
Nil
Important notes: • The Medicare levy is included. • Higher rates of tax apply to an untaxed rollover amount. Media Super would deduct tax on receipt of a rollover containing an untaxed amount, and the remainder would then form part of the standard taxable component. • If you haven’t advised Media Super of your tax file number, higher tax rates may apply. * The figure of $145,000 will increase to $150,000 for the 2009/10 year.
ELIGIBLE TEMPORARY RESIDENTS If you are an eligible temporary resident (not an Australian or New Zealand citizen) and permanently leave Australia, your lump sum benefits will be taxed as follows: Tax-free component – No tax payable Taxable component – Up to 35%
There are restrictions on when you can access your super as an eligible temporary resident. For more information see page 44.
14 Your super
TAX ON INVESTMENT EARNINGS
How to claim a tax deduction
Any investment earnings (returns) on your super are taxed at 15%, less any available tax credits. This tax is deducted from Media Super’s earnings and remitted to the ATO before earning rates are declared and allocated to your account. Earnings may be positive or negative.
If you have made super contributions into your Media Super account and wish to claim a tax deduction, you will need to notify us before the earlier of:
Goods and services tax (gST) Under current GST legislation, GST does not apply to super contributions, rollovers, earnings applied to members’ accounts or benefits paid. Media Super may, however, be required to pay GST on goods and services.
INCOME PROTECTION BENEFITS Income Protection benefits are regarded as taxable income and attract PAYG tax (the same tax that applies to salary and wages). This will be deducted and remitted to the ATO before you receive the benefit. You will be required to supply your TFN when receiving an Income Protection benefit, otherwise you will be taxed at the highest marginal tax rate plus Medicare Levy.
SURCHARGE The superannuation surcharge was abolished from 1 July 2005; however, the surcharge may still be payable for periods prior to that date. If the ATO assesses that you are liable to pay a superannuation surcharge, it will advise Media Super, and payment will be deducted from your account.
DEDUCTIONS FOR THE SELF-EMPLOYED Tax deductions for the self-employed are only available for contributions paid to a complying fund such as Media Super or a retirement savings account. To be eligible for a self-employed tax deduction, you must earn less than 10% of your income, including assessable income and reportable fringe benefits, from an employer. While you can claim a tax deduction for all your super contributions in your tax return, the ATO will apply additional tax if your super contributions exceed the relevant concessional and non-concessional caps. You can only use deductions for your super contributions to reduce your taxable income to nil – you cannot add to, or create a loss for, your business through contributing.
the date when you lodge your tax return for the year the contributions were made; or t he end of the financial year immediately following the financial year in which you made the contributions. You will need to request an ATO Section 290-170 form to be sent to you. This form details the amount you have paid in super contributions during the year. To claim a tax deduction, you must complete the form, return it to Media Super and receive acknowledgment of the amount from Media Super. If you operate a company, it is the company that claims the full deduction, so no Section 290-170 form applies. Super contributions made by the company are treated as employer contributions.
Important information G enerally speaking, your personal super contributions should not be taxed if you do not notify Media Super that you intend to claim a deduction. T he ATO Section 290-170 form enables you to notify Media Super of the amount you will claim as a deduction. We then provide you with an acknowledgement as proof of your notification. The ATO may require this proof that you have notified us of your intention before it allows the deduction. S uper contributions tax will be calculated on the amount that you are claiming as a tax deduction. The tax will be deducted from your Media Super account and sent to the ATO.
Your super 15
Accessing your super PRESERVATION OF BENEFITS
PAYMENT OF BENEFITS
Superannuation is designed as a long-term investment for your retirement, so there are strict rules about when you can access your super. This generally means all contributions and any investment earnings made to your account since 1 July 1999 are preserved. That is, they must stay invested in super until you satisfy a condition of release.
Benefits are generally paid as a lump sum. However, some benefits may be paid as a pension. If you have reached your preservation age, you may also request that Media Super pays your benefit as a pension.
If you accumulated benefits before 1 July 1999, some of your super does not need to be preserved. This includes restricted non-preserved benefits that can generally be paid to you on termination of employment and/or unrestricted non-preserved benefits that can be paid to you at any time.
CLAIMING YOUR SUPER BENEFIT
Conditions of release include your: p ermanent retirement from the workforce on or after your preservation age (see table below); termination of employment after turning age 60 (without necessarily retiring permanently); reaching age 65 (whether you are retired or not); d eath (benefits are paid to your dependants or personal legal representative); permanent incapacity;
For more information on pensions, go to page 17.
If you believe that you satisfy a condition of release and would like to access your superannuation, contact Media Super on 1800 640 886. We will send you the relevant forms. Note that specific requirements apply to each condition of release, and a $30 fee may apply.
Portability If you wish to roll part of your account balance out of Media Super into another fund, at least $5,000 must remain in your Media Super account and you can only make one such withdrawal each year. If there are insufficient funds to meet your insurance premiums, your insurance cover will cease.
diagnosis of a terminal medical condition; severe financial hardship; eligibility for approval on compassionate grounds by the Australian Prudential Regulatory Authority; termination of employment with an employer-sponsor where your preserved amount is less than $200; permanent departure from Australia if you are an eligible temporary resident (see page 44 for more information); satisfying any other condition of release as specified in superannuation law. Your preservation age varies between 55 and 60 years, depending on your date of birth (see table).
Benefits at retirement Date of birth
Preservation Age
Before 1/7/60
55
1/7/60 to 30/6/61
56
1/7/61 to 30/6/62
57
1/7/62 to 30/6/63
58
1/7/63 to 30/6/64
59
After 30/6/64
60
Did you know? If you are aged 55 years or over, you may be able to access part of your superannuation account balance through a Transition to Retirement Pension, even if you’re still working. See the Pensions section on page 17 for more details.
16
‘I am still earning money, but I am now also getting money from my Media Super Pension, which is absolutely super.’ Robert Suggett, Photographer
Pensions 17
Pensions Intro text Convert your super savings to a flexible, tax-effective Media Super pension. You can choose your pension amount and frequency, and pay no tax on investment earnings.
Media Super offers two types of pensions:
1
Retirement Pension Suitable for those who have at least $10,000 of super money to invest, and: have reached their preservation age (see page 15), and are fully retired; or have retired due to Total and Permanent Disablement (TPD) or permanent incapacity; or are aged 60 or more and have left employment; or are aged 65 or over.
2
Transition to Retirement Pension Suitable for those who have at least $10,000 of super money to invest, and: have reached their preservation age (see page 15), and are still working and would like access to super at the same time.
Starting a Pension with Media Super is easy 1. Make sure you have read and understood this PDS. 2. Complete the Pension member application form at the back of this PDS. 3. If you need to transfer money from another super fund, complete the Rollover form at the back of this PDS before your pension commences. 4. Post your completed forms, along with Certified ID to: Media Super, Locked Bag 1229, Wollongong NSW 2500.
18 Pensions
Pension payments A pension with Media Super gives you the flexibility to choose your payment amount and frequency.
How much income can I receive?
CAN I MAKE ADDITIONAL WITHDRAWALS?
Retirement Pension
Once you have started your pension, there may be times when you need extra money to cover unexpected or unplanned expenses.
A minimum income payment applies each financial year, depending on your age and your account balance on 1 July of that year. There is no maximum payment. For the financial year ending 30 June 2009, the Federal Government suspended the minimum draw-down requirements for account-based pensions – a 50% reduction in the minimum payment amount. Members must draw down 50% of the minimum payment for 2008/09 (and the budget proposes to extend this to the 2009/10 financial year). If any member has already withdrawn 50% of the minimum payment, they are not required to draw down again until the end of the applicable financial year. Transition to Retirement Pension A minimum income payment applies each financial year, depending on your age and your account balance on 1 July of that year. You can receive up to a maximum of 10% of your account balance each year. The table below details the minimum yearly payment. However, if the budget changes are passed then the figures in the right column will apply.
Your minimum yearly income
Age
Minimum Yearly Payment (% of Account Balance as at 1 July)
Budget proposed Minimum yearly payment (% of account balance as at 1 July) for the financial year 2009/10
Media Super Retirement Pension members are able to make lump sum withdrawals in addition to their nominated pension payment amount. Transition to Retirement Pension members can only make lump sum withdrawals in limited circumstances, including if they: reach age 65; retire permanently on, or after, their preservation age (see page 15); reach age 60 and leave employment; b ecome totally and permanently disabled or permanently incapacitated; are diagnosed with a ‘terminal medical condition’; or are required to pay a Contributions Surcharge or superannuation-related tax liability. People under the age of 60 should be aware that there may be tax implications for making additional lump sum withdrawals – see ‘Taxation on pensions’ on page 20. You can make a partial or full withdrawal, if eligible, using the Benefit request form, available at www.mediasuper.com.au/forms or by phoning 1800 640 886. Payments will be made, after tax is deducted (if applicable), by cheque or EFT to your nominated bank account. A $30 fee may apply.
How often can I receive payments? With Media Super, you can choose the frequency of your payments.
Under 65
4%
2%
65-74
5%
2.5%
Payments
75-79
6%
3%
Payment Frequency
15th day of*
80-84
7%
3.5%
Monthly
Each month
85-89
9%
4.5%
Quarterly
90-94
11%
5.5%
September, December, March, June
95+
14%
7%
Six-monthly
December and June
Yearly
June
Each year on 1 July, your new minimum and maximum (if applicable) limits will be recalculated using your new account balance and age. We will send you a letter advising you of your new minimum and maximum (if applicable) limits. We will also seek your instructions regarding your preferred income level and payment frequency.
* If the 15th day of the month falls on a weekend or public holiday, the pension payment will be made on the last business day preceding the 15th.
Pensions 19
You can change the frequency of your pension payments at any time by completing and returning the Change of details – Pension account form at the back of this PDS. You must receive at least one pension payment each year, within your minimum and maximum (if applicable) limits.
Your first pension payment If you commence your pension on or after 1 June in any year, then no minimum payment is required to be paid to you in that financial year.
How will I receive payments? Your payments will be credited directly to your nominated bank account or financial institution or can be paid by cheque.
Can I invest more money in my pension? Once you have opened a pension, you cannot add any additional funds to it. However, you can open another pension with other super money you may have.
How long will my pension last? Your pension may not provide you with an income for the rest of your life. If your account balance reaches zero, your payments will cease and your account will close. How long your pension payments continue will depend on many factors, including whether or not you choose to receive above the minimum level of payment, the level of returns on investments, and your lump sum withdrawals.
Can I still receive a social security pension if I commence a superannuation pension? Generally, you may still be eligible to receive a Social Security Age Pension along with your Media Super pension depending on your individual circumstances. However, it is important to note that your Media Super pension payments are considered as income for the purposes of the Social Security Age Pension income test. Also, the balance of your Media Super pension is considered as an assessable asset for the purposes of the Social Security assets test. Before commencing a Media Super pension, the Trustee recommends that you seek advice from a licensed financial adviser.
Can I nominate a revErsionary beneficiary? A reversionary beneficiary is the person who will receive the balance of your death benefit as an income stream. Only spouses, certain children and interdependants are eligible to become reversionary beneficiaries. A child can only be a reversionary beneficiary if they are: under the age of 18; or aged 18-25 and financially dependent; or suffering from a disability. If your reversionary beneficiary is a child under the age of 18 at the date of your death, they can only receive your pension as an income stream until they turn 25, at which point they must convert the remaining pension into a tax-free lump sum, unless they suffer from a disability. You can nominate ONE person as a reversionary beneficiary. If you want to change your reversionary beneficiary, you will need to cancel your existing pension and commence a new pension. A valid reversionary benefit nomination is binding on Media Super.
20 Pensions
Taxation on pensions With Media Super, you pay no tax on the investment earnings of your pension, but there may be a number of other taxes applicable.
The tax applied to your pension depends on your age. If you are aged 60 years or more, any income, additional payments and investment returns from your pension are entirely tax-free. If you are under 60, then tax applies to pension income payments and benefits (see below), but investment returns are still entirely tax-free.
Tax on income Tax components Your pension balance is made up of two components – the taxable component, and the tax-free component. As their names suggest, the taxable component attracts tax, while the tax-free component doesn’t. The proportion of these two components is calculated when you start your pension. This fixed proportion then applies to each payment you receive. If you reach your preservation age (aged 55 to 59), your pension payments will be taxed as follows: Tax-free component is tax-free. Taxable component is taxed with PAYG tax plus the Medicare Levy, less 15% pension offset. If you are aged under 55, your pension payment will be taxed as follows: Tax-free component is tax-free. Taxable component is taxed with PAYG tax plus the Medicare Levy (no tax offset). In some circumstances, individuals under 55 may be eligible for the tax pension offset (for example, if the pension is paid because of death or permanent incapacity). For further information, visit www.ato.gov.au. PAYG tax If you are under 60, you will be taxed PAYG (Pay As You Go) tax on the income you receive from your pension. This is the same tax that applies to salary and wages. We will deduct the appropriate amount of tax from the payments you receive and pay it to the Australian Taxation Office (ATO).
Tax on additional withdrawals If you made additional lump sum withdrawals from your pension, these will be taxed as a lump sum (see page 12 for details). This only applies to additional withdrawals from your pension. Regular payments from a pension within the applicable minimum and maximum limits are not liable for this tax.
Tax on investment earnings Your investment earnings are entirely tax-free.
Tax on commencement If any part of the superannuation you use to start your pension consists of an untaxed rollover amount (previously a post June 1983 untaxed element), this portion will be taxed at 15%. Generally, this is only applicable if you are transferring from an untaxed super fund. For most members, tax has already been deducted by their super fund, so this tax will not be applicable.
Superannuation surcharge tax The superannuation surcharge tax was abolished from 1 July 2005; however, the surcharge may still be payable for periods prior to this date. If the ATO assesses that you are liable to pay a superannuation surcharge, you will be required to pay this directly. If you need to withdraw additional funds from your pension to pay the surcharge, that withdrawal will be tax-free.
Pensions 21
Beneficiaries AND PENSIONS
Will my beneficiary pay tax on my pension?
Beneficiaries and Pensions
The taxation applied to your pension on your death depends on the circumstances of you and your beneficiary, as well as how the pension is paid.
If your pension commenced after 1 July 2007, the following rules apply. How will my pension be paid in the event of my death? How your pension is paid to the recipient will depend on their circumstances and relationship to you. Your pension may continue to be paid in regular payments if the recipient is a dependant. It’s important to note that for a child to receive your pension in this way, they must satisfy one of these requirements: be aged under 18 years; be financially dependent and aged under 25 years; or have a disability as defined under the Disability Services Act. Alternatively, your dependant can elect to receive their benefit as a lump sum. If your beneficiary is not a dependant, or is a child who doesn’t meet one of the requirements outlined previously, your pension will be paid to them as a lump sum. They cannot receive it in regular payments.
If the benefit is paid as a pension, and you OR the beneficiary is aged 60 years or over, the pension will be paid entirely tax-free. If you AND the reversionary beneficiary are under 60 at the time of death, the pension will be taxed as follows: the tax-free component is tax free; t he taxable component is assessable income (i.e. it will be taxed at the reversionary beneficiary’s Marginal Tax Rate) but the reversionary beneficiary is entitled to a tax offset equal to 15% of the taxable component; and when the dependant turns 60, the income stream is tax free, at the revisionary beneficiary’s Marginal Tax Rate (less any tax-free amount and pension tax offset). Otherwise, it will be tax-free. Where the pension is taxable, it will become tax-free when the reversionary beneficiary turns 60. If the benefit is paid as a lump sum, see ‘Tax on Death benefits’ on page 13 for taxation details.
22
‘I now view super as a priority and contribute each month into my account.’ Priscilla Nielsen, Freelance Illustrator
Investments 23
Investments We understand that members have different investment requirements. That’s why Media Super allows you to select an investment strategy designed to assist you in achieving your retirement goals.
Why make a choice? How you invest your super can have a significant impact on your final super account balance.
What are my choices? Media Super members have the choice of four pre-mixed investment options and six asset-specific investment options – including a sustainable future option. You will find full details of our options on pages 27 to 33.
What is the right choice for me? The investment choice you make will depend on your personal circumstances. It’s important that you understand the basics of investing (page 25) and the risks associated with investment (page 34) and also consider your investor profile (page 26) before making an investment choice.
What if I don’t make a choice?
Are there restrictions on how much I can invest in each option? You can invest your entire account balance in one option or choose any combination of some or all of the 10 options. There is no minimum or maximum amount you can invest in any one option.
When can I make an investment choice? With Media Super, you have the flexibility to make an investment choice at any time. As your personal or financial circumstances change, you can change your investment strategy accordingly. Note: the buy and sell unit prices on the day your switch is processed will be applied.
What is the cost of making a choice? Each time you make or change your investment choice, a $30 fee is charged to your account.
If you don’t make a choice, your superannuation or pension will be invested in the Balanced option.
Can I invest my future contributions differently to my existing account balance?
How do I make an investment choice?
Yes. You can select one investment strategy for your existing account balance, and another strategy for future contributions paid into your account.
You can make an investment choice at any time. Making an investment choice is easy. Once you’ve read this PDS and know how you wish to invest, simply use the Membership application form or Change of details form to let us know your investment choice. Alternatively, you can log on to your account at www.mediasuper.com.au and submit your choice there. As of 1 May 2009, your investment choice will be processed on the Thursday following the week it is requested. The week is calculated from Monday to Sunday. Any investment choice made between Monday and Sunday will be processed on the Thursday of the following week (e.g. if you request a change on Sunday, 10 May, it will be processed on Thursday, 14 May).
24 Investments
Unitised investments explained The Media Super investment options operate using a unitised system. You may be familiar with this kind of system if you have invested money in a personal investment product such as a managed fund.
Unit prices go up or down depending on the value of the investments within each of the 10 available options. Influences include rental receipts, dividends, fixed interest payments and asset values. This means that the total value of your investment in Media Super is determined by multiplying the number of units you have in each of the Media Super investment options by the price of each unit in the particular investment option. You can calculate the current value of your super investment at any time by multiplying the number of units you hold in each investment option by the latest published sell price. The investment return will depend on the investment option selected and the buy price applicable at the time of buying into that investment option, i.e. at the time each contribution is made. If you make an enquiry about your account balance, the balance quoted will be based on the sell price. Unit prices for each of the Media Super investment options are updated on a weekly basis. You can access updated prices at www.mediasuper.com.au or by phoning 1800 640 886. The Trustee reserves the right to change any unit price when it sees it is in the best interests of all members invested in that investment option. The Trustee will advise you of the performance of each of the investment options as part of its regular reporting requirements and to assist you in comparing the returns to industry benchmarks.
Example: Unitised investments If you have 25,000 units in Media Super’s Balanced option valued at $1.04 per unit and 25,000 units in the Growth option valued at $1.02 per unit, then your total superannuation investment would be valued at: Balanced Growth Total 25,000 x $1.04 + 25,000 x $1.02 = $51,500
Buying and selling units When you change or switch your investment option or mix of investment options, you are, in effect, buying and selling units. As such, your investment will be affected by the buy and sell price that applies on the date your switch is made. A separate buy and sell unit price is quoted for each investment option on a weekly basis after allowing for fees, taxes and buy-sell spreads on the Media Super underlying investments. See the Fees and other costs section on page 38 for details of the buy-sell spreads of each option. Note: Different unit prices apply to super and pensions, as pension prices do not allow for tax on investment earnings.
Labour standards and environmental, social and ethical considerations The Trustee selects investments and investment managers on the basis of potential financial return for its members and does not take into account labour standards or environmental, social or ethical considerations (the Standards) for the purpose of selecting, retaining or realising investments except to the extent that it appoints investment managers in respect of its Sustainable Future Shares investment option with a mandate to consider such Standards as part of meeting the investment objectives of the Sustainable Future Shares investment option. For information on our Sustainable Future Shares option see our Sustainable Future Shares Investment Guide dated 2 February 2009. The purpose of this guide is to provide you with detailed information about the Sustainable Future Shares option, including information about: w hich Standards are taken into account; the extent to which the Standards are taken into account; and the retention and realisation policies. You may receive a copy of this document free of charge by: phoning or writing to us and requesting a copy of document number SFS100 05/08; downloading a copy from our website. Visit www.mediasuper.com.au/sustainableinvest.
Investments 25
Investment basics Before becoming an active super investor, it is worth familiarising yourself with the investment basics we cover in this section. ASSETS Investments are generally divided into two types – defensive assets and growth assets. Growth assets carry higher risk, but can deliver higher returns over the long term. Defensive assets generally carry less risk, and can therefore be used to protect your investment against loss. However, defensive assets generally deliver lower returns over the long term, and can deliver poor returns in certain environments. Media Super’s investment options provide you with the choice you need to create the best mix of investments to build a portfolio you’re comfortable with. The mix of options you choose should be determined by your investment objectives.
Shares Companies listed on a stock exchange issue shares (also known as equities or stocks) to raise capital. You become a shareholder and part-owner of the company when you purchase ordinary shares in a company. That means that you are entitled to dividend payments when the company decides there are earnings available for distribution to shareholders. Company performance (including debt levels), industry conditions or movements in the share market can affect the share price and make it rise and fall.
Alternative assets Alternative assets generally comprise those investments which do not fit within traditional broad asset classes (such as shares, property, fixed interest and cash). Examples may include absolute return funds (e.g. hedge funds), private equity, infrastructure, property development, etc. Some alternative assets may be considered to have more growth than defensive characteristics, and vice-versa. Media Super reviews each asset class to determine where it best fits.
Property Land and buildings that can be bought, sold or leased are known as property. Investing in property through a super fund lets you and other members pool your money to enable you to part own properties that would otherwise be too expensive for you to aquire on your own, for example, office buildings and shopping centres. Property includes investments in property trusts, which may be listed on the stock exchange. Like shares, the value of property is influenced by many factors, including supply and demand and market conditions.
Overseas investments For some options, Media Super invests overseas. When investing overseas, returns can also be affected by changes in the value of the Australian dollar. These changes can enhance overseas returns (when the Australian dollar is falling and there is no currency hedging) or detract from overseas returns (when the Australian dollar is rising and there is no currency hedging). Currency hedging protects overseas investment returns from movements in the Australian dollar.
Fixed interest When an investor lends money to governments, semi-government bodies and corporations, interest is paid at an agreed rate which is fixed for the term of the loan. These investments are known as bonds on fixed interest. Fixed interest investments can be held until they mature or they can be traded at any time before maturity. If they are sold before maturity, the price will depend on the interest rate at the time. Returns from fixed interest investments occur from regular interest payments and any change in value caused by movements, either up or down, in interest rates. Fixed interest is usually a more stable investment than shares, but this depends on the investment environment.
Sustainable investments Socially responsible or sustainable investments are made in assets which are aligned with more sustainable and socially responsible outcomes. They may be selected based on environmental, social and/or economic factors. To achieve the appropriate level of portfolio diversification, they may also include companies that are leaders within their industry sector.
Cash Investments in cash include money invested in term deposits or bank bills. Interest is earned on the cash invested. This is similar to having money in a bank account. Over the long term, cash is likely to produce the lowest return of all the main asset classes.
26 Investment
Your investor profile Read this section to help understand the things you should consider when selecting an investment strategy tailored for your situation.
Investment timeframe You need to consider your investment timeframe when selecting investment products. Your investment timeframe is the length of time before you will want to access your investment. It is generally accepted that the longer your investment timeframe, the more risk you can afford to take.
Risk and return Your super is invested in financial markets. Therefore, you are exposed to investment risk. Investment risk is the degree to which returns go up and down in value over time. You cannot consider return without risk and, generally, the higher the potential return, the higher the risk. In order to achieve higher returns, you must be willing to take on more risk. While shares, property and fixed interest securities historically offer higher long-term returns than cash, they also expose you to higher levels of risk, particularly in the short term. The variability of returns is a risk associated with investment, and the assets that offer higher potential return generally have the highest fluctuations in returns. The assets that have a lower risk (and lower potential return) generally have less pronounced fluctuations in returns. In financial terms, there is also a risk of not having enough assets or money to provide you with the lifestyle you desire in retirement. Therefore, if you try to avoid investment risk altogether, you may have to save more for your retirement.
Your tolerance to risk is an important factor to consider before making your investment choice. Everyone has a different tolerance to risk, and you need to be comfortable with the level of risk that is associated with the investment option or mix of investment options that you choose. The risk/return profile of each of Media Super’s options is determined by the percentage allocated to growth assets relative to defensive assets. The greater the proportion of growth assets, the riskier the investment becomes, but the greater the potential return in the longer term. See page 34 for further information on risks.
Diversification Diversifying or spreading your investments across a range of individual assets, asset classes, countries or investment managers has the potential, over time, to smooth out any ups and downs in investment returns, as it is unlikely that all asset classes will have negative returns at the same time.
We recommend... that you consider investment risk, return and diversification before making an investment choice.
Investments 27
Your investment options
Media Super members can choose from four pre-mixed options and six single asset options or you can mix and match to design your own investment portfolio by simply combining our investment options in the proportions you choose.
Pre-mixed or single asset options Pre-mixed options allow you to diversify your investments with ease. Each of the four pre-mixed options have different asset allocations designed to certain risk profiles and with particular investment objectives in mind. Choose from Balanced, High Growth, Growth and Stable.
Remember The higher your exposure to growth assets, such as shares and property, the riskier your portfolio will be over any given period. But, at the same time, you are increasing the likelihood of achieving higher returns over the long term.
Single asset options allow you to choose exactly which assets you want your super invested in at any time. You may choose a single asset option if, for example, you only want to invest in sustainable shares.
Mix & match Mix and match to choose more than one investment option or create a diverse portfolio with your investments spread across many options. You can choose any mixture of pre-mixed and single asset investment options to match your own investment strategy. Here are just two examples (see investment mix for profiles of these options on pages 28, 30 and 32). If you choose to invest 35% in Balanced and 65% in Growth, you will achieve just over 80% exposure to growth assets and almost 20% to defensive assets. Balanced
Growth
If you choose to invest 30% in Sustainable Future Shares and 70% in Balanced, you will achieve just over 80% exposure to growth assets and almost 20% to defensive assets. Total
Growth assets
35% of 73.5% = 25.72%
+
65% of 85% = 55.25%
=
80.97%
Defensive assets
35% of 26.5% = 9.28%
+
65% of 15% = 9.75%
=
19.03%
or
sustainable future shares
Balanced
Growth assets
30% of 100% = 30%
+
70% of 73.5% = 51.45%
=
81.45%
Defensive assets
30% of 0% = 0%
+
70% of 26.5% = 18.55%
=
18.55%
Total
Note: Calculations are based on long-term strategic allocations only, and will not affect each actual investment.
IMPORTANT NOTES The long-term strategic asset allocation for each option is outlined on the following pages. The underlying asset allocation for each option will vary according to the investment managers’ day-to-day asset allocation decisions. Returns are shown for each investment option, after fees and taxes. The return you receive will depend on when you invested in the option and market movements. The yearly returns detailed on the following pages are the actual returns earned for each applicable year. The five-year average figures are the compound average figures for each applicable investment option. The investment objectives of our options outline our aims and are not indicative of their actual returns. Over rolling five-year periods, each option will aim at a return that falls above the median in the SuperRatings survey (or equivalent) of comparable funds. All probabilities of achieving a crediting rate equivalent to inflation will be measured by the change in the Australian Consumer Price Index. Media Super was created on 1 July 2008 following the merger of Print Super and JUST SUPER. The historical investment returns detailed on the following pages are those of the previous Print Super investment options. To view historical investment returns for JUST SUPER to 30 June 2008, visit www.mediasuper.com.au/justsuper. Past performance is not an indicator of future performance. You should also expect the returns on each of your investment options to vary over time due to fluctuations in the value of investments with each investment option.
28 Investments
Pre-mixed Balanced – the Default option
STRATEGIC ASSET Allocation %
RangeS %
Australian Shares
32.0
22-42
Australian Private Equity
2.0
0-5
Overseas Shares (Unhedged)
20.0
10-30
Overseas Shares (Hedged)
2.0
0-5
International Private Equity
3.0
0-6
Absolute Return Strategies (Growth)
3.0
0-6
Infrastructure*
6.0
3-9
Direct Property*
3.5
1-6
Real Estate Investment Trusts
2.0
0-5
Absolute Return Strategies (Defensive)
3.0
0-6
Australian Fixed Interest
6.0
0-12
International Fixed Interest (Hedged)
4.0
0-8
Cash
4.0
0-8
Infrastructure*
6.0
3-9
Direct Property*
3.5
1-6
Asset sector
Growth
Investment mix
26.5%
Defensive
73.5% Growth
Defensive
Risk profile Medium to high risk Investment objectives Over rolling five-year periods having a 75% probability of achieving a crediting rate equivalent to inflation, plus 3.5% per annum. The estimated chance that negative returns will occur, after tax and fees, in any financial year is less than one in nine. Investment strategy Balanced offers a significant exposure to growth assets (73.5%), including Australian and overseas shares, property and alternative assets (illiquid assets). The 26.5% allocation to defensive assets includes Australian and overseas fixed-interest securities, alternative assets, hedged funds and cash.
*Note: Growth assets and Defensive assets include 50% each of both Infrastructure and Direct Property investments.
Investment returns to 30 June (% net return p.a.) Returns
Super %
Pension %
Inflation %
Investment time horizon Medium to long (5–10 years)
2003/04
13.9
13.9
2.5
2004/05
13.1
15.1
2.5
Asset allocation The underlying asset allocation for Balanced will vary in line with the investment managers’ day-to-day asset allocation decisions around their benchmark positions. The long-term strategic asset allocation for Balanced is illustrated in the pie chart above.
2005/06
14.5
16.4
4.0
2006/07
15.3
16.9
2.1
2007/08
-6.5
-8.6
4.5
9.7
10.3
3.1
5-year average (compound)
Investments 29
High Growth Asset sector
Investment mix
STRATEGIC ASSET Allocation %
RangeS %
Growth
2%
Defensive
98%
Growth
Risk profile Very high risk Investment objectives Over rolling five-year periods having a 65% probability of achieving a crediting rate equivalent to inflation, plus 5% per annum. The estimated chance that negative returns will occur, after tax and fees, in any financial year is less than one in six. Investment strategy High Growth provides a high growth-oriented investment strategy, with 98% invested in growth assets such as shares and 2% invested in defensive assets (cash). Investment time horizon Very long (15+ years) Asset allocation The underlying asset allocation for High Growth will vary in line with the investment managers’ day-to-day asset allocation decisions around their benchmark’s position. The long-term strategic asset allocation for High Growth is illustrated in the pie chart above.
Australian Shares
43.0
33-53
Australian Private Equity
4.0
0-8
Overseas Shares (Unhedged)
32.7
23-43
Overseas Shares (Hedged)
3.3
0-6
International Private Equity
5.0
0-10
Absolute Return Strategies (Growth)
10.0
0-15
Infrastructure*
0.0
0
Direct Property*
0.0
0
Real Estate Investment Trusts
0.0
0
Absolute Return Strategies (Defensive)
0.0
0
Australian Fixed Interest
0.0
0
International Fixed Interest (Hedged)
0.0
0
Cash
2.0
0-5
Infrastructure*
0.0
0
Direct Property*
0.0
0
Defensive
*Note: Growth assets and Defensive assets include 50% each of both Infrastructure and Direct Property investments.
Investment returns to 30 June (% net return p.a.) Super %
Pension %
Inflation %
2003/04
19.7
19.6
2.5
2004/05
17.0
19.0
2.5
2005/06
19.9
22.3
4.0
Returns
2006/07
20.0
21.6
2.1
2007/08
-11.8
-15.0
4.5
12.2
12.5
3.1
5-year average (compound)
30 Investments
Growth
STRATEGIC ASSET Allocation %
RangeS %
Australian Shares
37.0
27-47
Australian Private Equity
3.0
0-5
Asset sector
Investment mix Growth
15%
Defensive
85%
Growth
Risk profile High risk Investment objectives Over rolling five-year periods having a 65% probability of achieving a crediting rate equivalent to inflation, plus 4.5% per annum. The estimated chance that negative returns will occur, after tax and fees, in any financial year is less than one in seven. Investment strategy Growth provides a growth-oriented investment mix, with an 85% allocation to growth assets. Investment time horizon Long (10+ years) Asset allocation The underlying asset allocation for Growth will vary in line with the investment managers’ day-to-day asset allocation decisions around their benchmark positions. The long-term strategic asset allocation for Growth is illustrated in the pie chart above.
Overseas Shares (Unhedged)
24.5
15-35
Overseas Shares (Hedged)
2.5
0-5
International Private Equity
4.0
0-8
Absolute Return Strategies (Growth)
8.0
0-12
Infrastructure*
3.5
0-6
Direct Property*
1.5
0-2.5
Real Estate Investment Trusts
1.0
0-3
Absolute Return Strategies (Defensive)
0.0
0
Australian Fixed Interest
3.5
0-7
International Fixed Interest (Hedged)
2.5
0-5
Cash
4.0
0-8
Defensive
Infrastructure*
3.5
0-6
Direct Property*
1.5
0-2.5
*Note: Growth assets and Defensive assets include 50% each of both Infrastructure and Direct Property investments.
Investment returns to 30 June (% net return p.a.) Super %
Pension %
Inflation %
2003/04
16.2
16.4
2.5
2004/05
13.9
15.9
2.5
2005/06
17.0
19.1
4.0
2006/07
17.5
19.2
2.1
2007/08
-8.6
-11.2
4.5
5-year average (compound)
10.7
11.2
3.1
Returns
Investments 31
Stable
STRATEGIC ASSET Allocation %
RangeS %
Australian Shares
13.0
6-20
Australian Private Equity
0.0
0
Overseas Shares (Unhedged)
8.2
3-13
Overseas Shares (Hedged)
0.8
0-2
International Private Equity
0.0
0
Absolute Return Strategies (Growth)
0.0
0
Asset sector
Investment mix Growth
30.5% Growth
69.5%
Defensive
Risk profile Medium risk Investment objectives Over rolling five-year periods having a 80% probability of achieving a crediting rate equivalent to inflation, plus 2.5% per annum. The estimated chance that negative returns will occur, after tax and fees, in any financial year is less than one in 20. Investment strategy Stable aims to provide relatively steady overseas returns through a 69.5% allocation to defensive assets. Investment time horizon Short to medium (under 5 years) Asset allocation The underlying asset allocation for Stable will vary in line with the investment managers’ day-to-day asset allocation decisions around their benchmark positions. The long-term strategic asset allocation for Stable is illustrated in the pie chart above.
Infrastructure*
4.5
2-7
Direct Property*
2.0
0-4
Real Estate Investment Trusts
2.0
0-5
Absolute Return Strategies (Defensive)
5.0
0-10
Australian Fixed Interest
17.0
10-24
International Fixed Interest (Hedged)
11.0
6-16
Cash
30.0
20-40
Defensive
Infrastructure*
4.5
2-7
Direct Property*
2.0
0-4
*Note: Growth assets and Defensive assets include 50% each of both Infrastructure and Direct Property investments.
Investment returns to 30 June (% net return p.a.) Super %
Pension %
Inflation %
2003/04
7.7
7.5
2.5
2004/05
9.3
11.7
2.5
2005/06
8.7
8.6
4.0
2006/07
9.5
11.1
2.1
2007/08
0.0
-0.6
4.5
5-year average (compund)
7.0
7.6
3.1
Returns
32 Investments
Single assets Australian Shares Risk profile Very high risk Investment objectives Over rolling five-year periods having a 60% probability of achieving a crediting rate equivalent to inflation, plus 5% per annum. The estimated chance that negative returns will occur, after tax and fees, in any financial year is less than one in four. Investment strategy The Australian Shares sector option provides a high growth-oriented investment strategy predominantly invested in Australian shares. Investment time horizon Very long (15+ years)
Overseas Shares Risk profile Very high risk Investment objectives Over rolling five-year periods having a 55% probability of achieving a crediting rate equivalent to inflation, plus 5% per annum. The estimated chance that negative returns will occur, after tax and fees, in any financial year is less than one in four. Investment strategy The Overseas Shares sector option provides a high growth-oriented investment strategy predominantly invested in overseas shares. Investment time horizon Very long (15+ years)
Asset allocation Asset sector
STRATEGIC ASSET Allocation %
RangeS %
100.0
95-100
0
0-5
Growth Australian Shares Defensive Cash
Investment returns to 30 June (% net return p.a.) Super %
Pension %
Inflation %
2005/06
22.0
24.0
4.0
2006/07
23.8
25.2
2.1
2007/08
-10.0
-12.5
4.5
Returns
This option commenced on 1 April 2005.
Asset allocation STRATEGIC ASSET Allocation %
RangeS %
Overseas Shares (Unhedged)
91.0
80-100
Overseas Shares (Hedged)
9.0
0-20
0
0-5
Asset sector Growth
Defensive Cash
Investment returns to 30 June (% net return p.a.) Returns 2005/06
Super %
Pension %
Inflation %
17.9
21.8
4.0
2006/07
12.4
14.5
2.1
2007/08
-14.0
-17.3
4.5
This option commenced on 1 April 2005.
Sustainable Future Shares Risk profile Very high risk Investment objectives Over rolling five-year periods having a 60% probability of achieving a crediting rate equivalent to inflation, plus 5% per annum. The estimated chance that negative returns will occur, after tax and fees, in any financial year is less than one in four. Investment strategy The Sustainable Future Shares sector option provides a high growth-oriented investment strategy predominantly invested in Socially Responsible Australian and overseas shares. Investment time horizon Very long (15+ years)
Asset allocation STRATEGIC ASSET Allocation %
RangeS %
Australian Shares
60.0
50-70
Overseas Shares (Unhedged)
40.0
30-50
0
0-5
Asset sector Growth
Defensive Cash
Investment returns to 30 June (% net return p.a.) Super %
Pension %
Inflation %
2005/06
21.6*
23.4*
4.0
2006/07
19.0
20.6
2.1
2007/08
-13.4
-16.4
4.5
Returns
This option commenced on 1 August 2005. *T he 2005/06 figure represents the return for the period from 1 August 2005 to 30 June 2006.
Investments 33
Property Risk profile Medium to high risk Investment objectives Over rolling five-year periods having a 70% probability of achieving a crediting rate equivalent to inflation, plus 3.5% per annum. The estimated chance that negative returns will occur, after tax and fees, in any financial year is less than one in 10. Investment strategy The Property sector option provides a growth-oriented investment strategy predominantly invested in property. Investment time horizon Long (10+ years)
Asset allocation STRATEGIC ASSET Allocation %
RangeS %
Direct Property
75.0
65-85
Real Estate Investment Trusts
25.0
15-35
0
0-5
Asset sector Growth
Defensive Cash
Investment returns to 30 June (% net return p.a.) Super %
Pension %
Inflation %
2005/06
14.7
16.9
4.0
2006/07
21.8
25.1
2.1
2007/08
5.1
5.6
4.5
Returns
This option commenced on 1 April 2005.
Fixed Interest
Asset allocation
Risk profile Low to medium risk
Asset sector
Investment objectives Over rolling five-year periods having a 65% probability of achieving a crediting rate equivalent to inflation, plus 2% per annum. The estimated chance that negative returns will occur, after tax and fees, in any financial year is less than one in 20. Investment strategy The Fixed-Income sector option provides a conservative investment strategy predominantly invested in fixed income. Investment time horizon Short to medium (under 5 years)
STRATEGIC ASSET Allocation %
RangeS %
Australian Fixed Interest
60.0
50-70
International Fixed Interest (Hedged)
40.0
30-50
0
0-5
DEFENSIVE
Cash
Investment returns to 30 June (% net return p.a.) Super %
Pension %
Inflation %
2005/06
1.7*
3.2*
4.0
2006/07
3.4
4.2
2.1
2007/08
3.2
3.7
4.5
Returns
This option commenced on 1 August 2005. *T he 2005/06 figure represents the return for the period from 1 August 2005 to 30 June 2006.
Cash Risk profile Low risk Investment objectives Over rolling five-year periods having a 100% probability of achieving a crediting rate equivalent to inflation, plus 1% per annum. The estimated chance of a negative return, after tax and fees, in any financial year is negligible. Investment strategy Cash aims at providing capital preservation and secure investment returns through a 100% investment in cash. Investment time horizon Short (under 1 year)
Asset allocation Asset sector
STRATEGIC ASSET Allocation %
RangeS %
100.0
100
DEFENSIVE Cash
Investment returns to 30 June (% net return p.a.) Super %
Pension %
Inflation %
2003/04
5.8
6.0
2.5
2004/05
4.6
6.5
2.5
2005/06
4.7
4.6
4.0
2006/07
5.1
6.2
2.1
2007/08
4.8
5.7
4.5
5-year average (compound)
5.0
5.8
3.1
Returns
34 Investments
Super investments and risk There are various types of risk associated with investing in a superannuation fund, the most important of which are discussed below.
There are risks in choosing particular investment options, as all investments are subject to varying risks and generally change in value over time. The significant risks that any investor could encounter include: Inflation risk – inflation may exceed the return on your investment, which reduces your purchasing power at the time. Individual investment risk – individual assets in which Media Super invests can (and do) rise or fall in value for many reasons, such as changes in the internal operations or management of a fund or entity in which Media Super invests, or the business environment in which it operates. Market risk – economic, technological, political or legal conditions and even market sentiment can (and do) change. These can mean changes in the value of investment markets affecting the value of the investments in Media Super. Interest rate risk – changes in interest rates can have a positive or negative impact directly or indirectly on investment value or returns – for example, the income return on a fixed interest security can become more or less favourable. Currency risk – Media Super has overseas investments, and if the currencies of any of those countries rise or fall in value relative to the Australian dollar, the value of the investment can change. Derivatives risk – derivatives are used to reduce risk or gain exposure to other types of investments when appropriate. Media Super does not invest directly in derivatives but our investment managers may do so. Risks associated with derivatives include the value of the derivative, failing to move in line with the underlying asset, potential illiquidity of the derivative, not being able to meet payment obligations as they arise and counterparty risk (this is where the counterparty to the derivative contract cannot meet its obligations under the contract).
Liquidity risk – this is the risk of being unable to convert an investment into cash with little or no loss of capital and minimum delay. Some investments, such as direct property and private equity, are relatively illiquid. As such, Media Super makes these investments for the long term, and limits the exposure of any investment option to these sectors. Security specific risk – the risk that an individual company or asset fails, for example, through bankruptcy, fraudulent activity, or the business environment in which it operates, causing the value of the investment to fall sharply. Negative returns – there is a risk that the investment options have negative returns and that you do not receive the repayment of capital or may have a reduction in your investment amount. Volatility risk – is the instability of a particular investment. The effect of these risks is reduced by diversification, that is, by investing in a wide range of different types of investments. Before making an investment choice, we strongly recommend that you consider the risks outlined here. Other risks that may impact any investor include: Changes to superannuation law – changes are frequently made to superannuation law which may affect your benefits or your ability to access your benefits. Changes to taxation – changes may occur to the taxation of superannuation, which may affect the value of your investment. Insurance – the insurance cover you receive as a member of Media Super may not cover you to the extent that you require. There is also a risk that the Insurer will either not accept your desired level of insurance cover or may reject your claim. You should consider diversification and all the risks associated with investments before making an investment choice.
Investments 35
Below we detail some of the risks of each of the asset classes that Media Super’s investment options are exposed to. Australian Shares
Fixed Interest
The most significant risk that Media Super’s Australian Shares portfolio is exposed to is market risk (i.e. the risk that the Australian share market falls in value). Because of this, over short-term periods in particular, there is a risk that the return on the portfolio may not exceed inflation (inflation risk) and the returns on this portfolio could be negative. Some of the investment managers in Media Super’s Australian Shares portfolio may use derivatives from time to time, so derivative risk is a factor, but this risk is controlled by limits imposed on use of derivatives, and the risk is likely to be small at the total portfolio level. Individual investment risk is present, although it is managed by significant diversification of the underlying investments.
Interest rate risk is a significant risk to Media Super’s Fixed Interest portfolio, as the majority of the sector’s return comes from an income stream, and changes in interest rates can have a positive or negative impact on the value of investments. The Fixed Interest portfolio is exposed to market risk (i.e. the risk that fixed interest markets fall in value). Because of this, over short-term periods, the return on the portfolio may not exceed inflation (inflation risk) and the returns on this portfolio could be negative. However, the volatility of returns of fixed interest markets is generally lower than for shares and property markets, therefore market and inflation risk are less of an issue for the Fixed Interest portfolio compared to the Shares and Property portfolios. Also, diversification by investments in a range of different overseas markets reduces the overall currency risk, market risk and, consequently, inflation risk.
Overseas Shares The most significant risks that Media Super’s Overseas Shares portfolio is exposed to are market risk (i.e. the risk that overseas share markets fall in value) and currency risk (i.e. the risk that the value of overseas assets fall if the Australian dollar appreciates). Because of these risks, over short-term periods in particular, there is a risk that the return on the portfolio may not exceed inflation (inflation risk) and the returns on this portfolio could be negative. Diversification of investments in a range of different overseas markets reduces the overall market risk and consequently inflation risk. Some of the investment managers in Media Super’s Overseas Shares portfolio use derivatives from time to time, so derivative risk is a factor, but this risk is controlled by limits imposed on use of derivatives, and the risk is likely to be small at the total Overseas Shares portfolio level. Individual investment risk is present, although it is managed by significant diversification of the underlying investments. Property The most significant risk that Media Super’s Property portfolio is exposed to is market risk (i.e. the risk that property markets fall in value). Because of this, over short-term periods, there is a risk that the return on the portfolio may not exceed inflation (inflation risk) and the returns on this portfolio could be negative. Diversification of investments in different property markets – Australian Listed Property, Australian Unlisted Property and Global Listed Property – reduces the overall market risk and, consequently, inflation risk. Interest rate risk is a significant risk to the Property portfolio due to a large portion of the sector’s return coming from an income stream. Individual investment risk is present, although it has been reduced by diversifying underlying investments.
Some of the investment managers in Media Super’s Fixed Interest portfolio may use derivatives from time to time, so derivative risk is a factor, but this risk is controlled by limits imposed on their use, and the risk is likely to be small at the total Fixed Interest portfolio level. Individual investment risk is present, although it is controlled by significant diversification of the underlying investments. Alternative Assets The Alternative Assets class portfolio consists of several distinct investment strategies, including Infrastructure, Private Equity, Hedge Funds and Opportunistic Property. Each of these asset classes has a different risk profile. Infrastructure, Private Equity and Opportunistic Property portfolios are generally more exposed to individual investment risk than the more traditional asset classes as there are generally fewer investments in the portfolios. On top of this, these asset classes are exposed to interest rate, market and inflation risk. Hedge Funds aim to eliminate many market-related risks through the use of derivatives leading to derivative risk and individual investment risk remains (although this is reduced through the diversification of investments). Cash The most significant risk that Media Super’s Cash portfolio is exposed to is interest rate risk, i.e. changes in interest rates impact the returns generated by the investment.
36
‘M edia Super supports the industry that I work in and helps ensure that it stays as good as it can be.’ Alison Dean, Journalist
General information 37
General information This section contains information relevant to all Media Super members, including details of fees and costs, the services we offer, and regulations applying to superannuation and pensions.
Service
Regular updates
Media Super provides personalised service to all members – in person, via telephone or online. It’s up to you.
We are committed to keeping you updated with details of your superannuation. You will receive confirmation of your membership, insurance cover and investment strategy upon joining. Then, each year, you will receive an Annual Statement, Annual Report, half-yearly update and regular newsletters.
Personal consultations You can arrange a personal consultation with a Media Super representative. Phone 1800 640 886.
Workplace visits Our representatives can visit your workplace and provide educational workshops or one-on-one meetings for you and your colleagues. Phone 1800 640 886 to discuss a tailored program for your workplace.
Workshops We understand the complexity of planning for a comfortable retirement. That’s why we run workshops covering retirement planning, salary sacrifice, self-employment, investment choice and pensions. To register for a workshop, visit www.mediasuper.com.au/workshops or phone 1800 640 886.
Telephone service centre Our friendly staff are available via telephone to solve all your super questions. Phone 1800 640 886 weekdays from 8.30am to 5.30pm (AEST), or visit www.mediasuper.com.au.
You can register for quarterly email updates full of investment commentary, legislation updates and super news at www.mediasuper.com.au/subscribe.
Website The Media Super website has a range of resources to help you manage your superannuation, including an online education centre (Super Guide), interactive tools and calculators, news items, fund updates, and forms and publications. Take the time to visit www.mediasuper.com.au and explore the resources available.
ONLINE ACCOUNT ACCESS Managing your super account is easy with online account access. It’s simple to use and gives you secure access to your account any time. You can: check your current account balance and insurance; view details of contributions since your last statement; make an investment choice; and change beneficiaries and other personal details. You will be registered automatically for this service when you join Media Super.
38 General information
Fees and other costs The wording at the right is stipulated by law. However, the statement concerning the possibility of negotiating fees is not applicable to Media Super. For further information, contact Media Super on 1800 640 886.
The Australian Securities and Investments Commission (ASIC) provides the following warning to investors.
This document shows fees and other costs that you may be charged. These fees and costs may be deducted from your account, the returns on your investment or the fund assets as a whole. Taxes and insurance costs are set out in parts of this document. You should read all of the information about fees and costs because it is important to understand their impact on your investment. Fees and costs for particular investment options are set out on page 39.
Consumer advisory warning Did you know? Small differences in both investment performance and fees and costs can have a substantial impact on your long-term returns. For example, total annual fees and costs of 2% of your fund balance rather than 1% could reduce your final return by up to 20% over a 30-year period (for example, reduce it from $100,000 to $80,000). You should consider whether features such as superior investment performance or the provision of better member services justify higher fees and costs. You may be able to negotiate to pay lower contribution fees and management costs where applicable. Ask the fund or your financial adviser. To find out more If you would like to find out more, or see the impact of the fees based on your own circumstances, the Australian Securities and Investments Commission (ASIC) website (www.fido.asic.gov.au) has a superannuation calculator to help you check out different fee options.
Fees and costs Type of fee or cost
Amount
How and when paid
Fees when your money moves in or out of the fund Establishment fee The fee to open your investment.
Nil
Not applicable
Contribution fee The fee on each amount contributed to your investment – either by you or your employer.
Nil
Not applicable
Withdrawal fee The fee on each amount you take out of your investment.
$30 per transaction
The withdrawal fee is deducted from your account when you transfer or withdraw all, or part of, your account balance from the Fund.
Termination fee The fee to close your investment.
Nil
Not applicable
$57.20 p.a. ($1.10 per week) plus 0.41% – 0.81% p.a. of your account balance
Administration costs of $1.10 per week are deducted from your account balance monthly (or when you exit the Fund). Your investment manager fee varies from 0.31% to 0.71%, and is deducted from the particular investment option on a weekly basis prior to the unit price being calculated. This fee is not deducted from your account.
$30 per transaction
The switching fee will be deducted from your account at the effective date of your switch. The fee is waived if your first change is received by Media Super within 30 days of joining the Fund or if you are only changing your investment options for future transactions.
Management costs The fees and costs for managing your investment1 The amount you pay for specific investment options is shown at page 39.
Service fees2 Investment switching fee The fee for changing investment options.
Notes: 1. See the ‘Additional Explanation of Fees and Costs’ section following for a breakdown of management costs and other costs, including the buy-sell spreads. 2. See the ‘Additional Explanation of Fees and Costs’ following for any other costs which may be applied.
General information 39
Additional explanation of fees and costs Management Costs The Management Costs can be broken down into a number of components, including: 1. Administration Costs The Administration Costs fee is the $1.10 per week fee that is used to pay for the fees and costs of administering Media Super, including the payment of custody fees, trustee expenses, professional services expenses and other expenses. This fee is also referred to as the member fee and is deducted monthly from your account balance. 2. Other Expenses The Other Expenses fee is used to pay for fees not covered by the Administration Costs fee, including a proportion of the fees in relation to the payment of custody fees, trustee expenses, professional services expenses and other expenses. Media Super charges a fee of 0.10% p.a., which is deducted from the Fund’s assets before the unit prices are determined on a weekly basis. The unit prices issued are net of Other Expenses. Media Super will perform reconciliations of actual expenses paid and the Other Expenses charged on a periodic cycle. If the actual Other Expenses incurred are greater than the fee charged, then the unit prices for members could be decreased. If the actual Other Expenses incurred are less then the fee charged, then the unit prices for members could be increased. 3. Investment Manager Fee The Investment Manager Fee is the fee for investing in the Fund’s assets. It includes fees paid to external investment managers and other expenses incurred in investing the assets (excluding transaction costs – please see buy-sell spread table on page 40). All investment managers are paid a fixed fee for investing the assets. The fixed fee paid to each of the investment managers varies from manager to manager, and is deducted from the particular investment option on a weekly basis prior to the unit price being calculated. This fee is not deducted from your account. The fee for each investment option is shown on the right. These figures were determined based on indicative annualised calculations using information for the period 1 July 2008 to 30 April 2009. These calculated annualised rates will change throughout the year due to cash flow, changes in the Fund’s investment manager line-up, changes in asset allocation and other influencing factors. Some investment managers are also paid a Performance Based Fee (PBF).
Investment fees Investment Option
Investment Manager Fee
Balanced
0.64% p.a. (including a potential PBF estimated at 0.04%)*
High Growth
0.71% p.a. (including a potential PBF estimated at 0.08%)*
Growth
0.65% p.a. (including a potential PBF estimated at 0.05%)*
Stable
0.43% p.a. (including a potential PBF estimated at 0.02%)*
Australian Shares
0.65% p.a. (including a potential PBF estimated at 0.13%)*
Overseas Shares
0.67% p.a.
Sustainable Future Shares
0.53% p.a.
Property
0.48% p.a. (including a potential PBF estimated at 0.00%)*
Fixed Interest
0.31% p.a.
Cash
0.31% p.a.
Notes: The Investment Manager Fee may change due to several factors, including: timing, cash flow, changes in the investment manager line-up, changes in asset allocation and other factors. All fee calculations are inclusive of GST. Reduced input tax credits have been incorporated into the Administration Costs. * See the Performance Based Fee section below.
Performance Based Fee (PBF) In certain circumstances, if an investment manager outperforms their performance target, they may be paid a PBF. The Investment Manager Fees above include, where applicable, an estimate of any PBF. The Investment Manager Fee is deducted from the Fund’s assets before the unit price is determined on a weekly basis. The Media Super Balanced, High Growth, Growth, Stable, Australian Shares and Property options all have a percentage of assets invested with investment managers who may be eligible for PBFs. These managers are potentially paid a PBF determined as a percentage of the manager’s return achieved in excess of the specified target rate for the manager over an agreed period. The PBF only applies when performances are greater than the specified target. Some managers have a ‘high watermark’ associated with their PBF. A high watermark indicates that if the manager fails to meet the specified target rate over one time period, they have to get back to the previous level before getting a PBF on new excess returns. The estimated PBFs shown in the table above were determined based on indicative annualised calculations using information for the period 1 July 2008 to 31 March 2009. The extent of any PBF cannot be determined in advance. The PBFs vary according to the amount of out-performance achieved by each applicable investment manager and the weighting of that investment manager in the relevant investment option.
40 General information
Transaction costs
Transfer fees
In managing Media Super’s assets, the Trustee will incur transaction costs, including a buy-sell spread. Generally, the buy-sell spread is a transaction cost charged by some investment managers when you add to, or withdraw from, your investment and is incorporated in the Fund’s unit prices. The Trustee does not receive any part of these costs and does not add a margin to the buy-sell spread charged by investment managers. There is a buy-sell spread for each Investment Option. This buy-sell spread is variable and is applied to contributions, withdrawals and investment switches. This is an additional cost to you. The buy-sell spreads are reflected in the unit prices. The figures provided below are current as at 30 April 2009. For up to date buy-sell spreads, visit our website at www.mediasuper.com.au.
A $10 transfer fee is charged if your benefit is transferred to Media Super’s eligible rollover fund, AUSfund.
Costs Buy spread
Sell spread
Total
Balanced
0.15%
0.15%
0.30%
High Growth
0.15%
0.15%
0.30%
Growth
0.20%
0.20%
0.40%
Stable
0.10%
0.10%
0.20%
Australian Shares
0.20%
0.20%
0.40%
International Shares
0.20%
0.20%
0.40%
Sustainable Future Shares
0.15%
0.15%
0.30%
Property
0.50%
0.50%
1.00%
Fixed Interest
0.05%
0.05%
0.10%
Cash
0.00%
0.00%
0.00%
Investment Option
Temporary residents A $30 fee is charged if, as an eligible temporary resident, your account balance is sent to the Australian Taxation Office (ATO) as unclaimed super. Family Law fees A Family Law fee will be charged in relation to the following services: $98.00 for an application for information – deducted from your account balance. For a non-member spouse, the fee must be paid by cheque on application. $76.00 to split a benefit – this fee is split proportionally between you and the non-member spouse, and deducted from your account balance and the non-member spouse’s entitlement. Contribution Splitting fees If you make a contribution splitting request and the amount split is paid to your spouse’s Media Super account, the $30 withdrawal fee will be waived. If the amount split is rolled out of Media Super, the $30 withdrawal fee will apply.
General information 41
Maximum fees
Insurance costs
The Trust Deed does not provide any limits on the maximum amounts that may be charged by the Trustee in respect of the fees and charges outlined in this section. However, the Trustee will endeavour to ensure that the level of fees and charges is comparable with its competitors and that it represents good value for members.
Insurance costs are set out in Part 2 of the PDS.
Increases or alterations to fees and charges All fees are current and may be revised or adjusted by Media Super from time to time. Media Super may also introduce new fees. If there is an increase in fees, the Trustee must notify you 30 days in advance of the change. Tax All fees and costs are inclusive of GST less any input tax credit and stamp duty (if applicable). The Fund passes on any tax deduction to you in the form of higher returns on your investments. A tax deduction is not passed on to members by way of reduced fees or costs. In relation to the Administration Costs fee ($1.10 p.w.) and insurance premiums, the Fund provides you with a tax rebate of up to 15% each 30 June (if applicable).
Protection of small accounts If at any time your account balance in Media Super is less than $1,000 and includes, or has included, Superannuation Guarantee or award contributions, Federal Government regulations limit the amount of administration fees and charges that can be deducted from your account. If investment earnings are negative, then a maximum fee of any positive investment return credited to your account, plus $10.00, will be deducted from your account. Administration fees and charges do not include insurance premiums and taxation charges. Financial adviser commissions Media Super DOES NOT pay any sales or trail commissions to financial advisers, tax advisers or sales agents.
Taxation of benefits is set out in the ‘Taxation’ sections on pages 12 (super accounts) and 20 (pensions).
Example of annual fees and costs for the Balanced (default) investment option This table gives an example of how the fees and costs in the Balanced investment option for this product can affect your superannuation investment over a one-year period. You should use this table to compare this product with other superannuation products.
Super example Example – the Balanced Investment Option
Balance of $50,000 with total contributions of $5,000 during year
Contribution fees
Nil
For every $5,000 you put in, you will be charged $0.
Plus Management costs
$57.20 p.a. + 0.74% p.a.
And, for every $50,000 you have in the fund, you will be charged $370 each year, plus $57.20 in administration fees, regardless of your balance.
Equals Cost of fund
If you put in $5,000 during a year and your balance was $50,000, then for that year you will be charged fees of $427.20* What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.
Notes: * Additional fees may apply, including Withdrawal fees or Switching fees: $30 You are unable to negotiate your fees in Media Super.
Pension example Example – the Balanced Investment Option
Balance of $50,000 with total contributions of $5,000 during year
Management costs
For every $50,000 you have in the fund, you will be charged $370 each year, plus $57.20 p.a. in administration fees, regardless of your balance.
Equals Cost of fund
$57.20 p.a. + 0.74% p.a.
If your balance was $50,000 during a year, then for that year you will be charged fees of $427.20#. What it costs you will depend on the investment option you choose and the fees you negotiate with your fund or financial adviser.
Notes: # Additional fees may apply, including Withdrawal fees or Switching fees: $30 You are unable to negotiate your fees in Media Super.
42 General information
Other important information TAX FILE NUMBER (TFN)
ELIGIBLE ROLLOVER FUND (ERF)
By providing your TFN to Media Super, you will minimise the amount of tax you pay on your super.
The Trustee will transfer your superannuation benefit to Media Super’s ERF if your account balance is:
Media Super is authorised, by the Superannuation Industry (Supervision) Act 1993 to collect members’ TFNs. If you provide your TFN, Media Super will use it for purposes approved by law. These purposes include: finding or identifying your benefits where other information is insufficient; calculating tax on any payments you may be entitled to; providing information to the Australian Taxation Office (ATO) (for example, regarding contribution caps); providing your TFN to the trustee of another fund where your benefits have been transferred to that trustee. However, we will not pass on your TFN to another trustee if you tell us in writing that you do not wish this to happen; and advising the ATO through its Lost Members Register if your benefit becomes lost to the Fund. It is not an offence if you choose not to quote your TFN. However, if you don’t quote it, you may be required to pay additional tax on your benefits. Concessional contributions will be taxed at 46.5% (including Medicare levy) and Media Super can not accept any non-concessional contributions. Providing your TFN can also make it easier to locate your superannuation benefits in the future.
i) less than $1,000, and
Note: The approved purposes for which Media Super can use your TFN, as well as the consequences of your failure to supply your TFN, are subject to change.
To supply your TFN: Phone 1800 640 886 Fax 1800 246 707 Website www.mediasuper.com.au Use the Member application form when joining Media Super or Change of advice form and return it to: Media Super, Locked Bag 1229 Wollongong NSW 2500
ii) we have not received contributions for twelve months and Media Super has been unsuccessful in delivering two or more communications to you, resulting in you becoming a lost member. Transfers to Media Super’s ERF occur in June and December each year. A $10 transfer fee is charged if your benefit is transferred to the ERF. Media Super’s ERF is: AUSfund PO Box 2468 Kent Town SA 5071 Phone: 1300 361 798 Being transferred to an ERF may affect your benefits because: You will cease to be a member of Media Super and any insurance arrangements you have under Media Super will cease to apply. You will become a member of AUSfund and be subject to its governing rules. If the Trustee can provide AUSfund with your current contact details, AUSfund will provide you with its current Product Disclosure Statement (PDS) which outlines all the operational details of their fund. You can contact AUSfund to ask for a copy of its PDS. AUSfund may allocate a lower rate of earnings (which may be positive or negative) than Media Super. AUSfund will apply a different fee structure. AUSfund is required to ‘member protect’ your benefit. This generally means that administration charges cannot exceed investment earnings on your account in a reporting period. However, indirect management fees may be deducted from gross fund earnings. You should refer to the AUSfund PDS for circumstances in which fees may apply. AUSfund invests your benefits in a low-risk strategy, predominantly cash and short-term fixed interest investments. You should evaluate whether this strategy is appropriate to your specific circumstances. AUSfund does not offer insured benefits in the event of death or disablement. To claim your benefit or arrange a rollover or transfer, you must contact AUSfund directly.
General information 43
UNCLAIMED MONEY
LOST SUPER
Media Super is required to transfer your account balance to the ATO, if:
A Media Super member is regarded as ‘lost’ if any one of the following applies:
you have reached age 65 or more; and we have not received a contribution to your account for at least two years; and it has been at least five years since we last had contact with you; and you (or your beneficiaries, in the event of your death) cannot be contacted after reasonable searches by us. Media Super will pay any unclaimed money to: Australian Taxation Office GPO Box 9990 Melbourne VIC 3000 Phone: 131 020 Website: www.ato.gov.au
Unallocated money If we receive money for a member without sufficient information (e.g. the member’s name, employer’s address, etc), we will be unable to allocate the money to the correct account. Wherever possible, we hold the money in trust while we try to obtain information which enables us to allocate the money to the correct member account. If we are unable to obtain sufficient information, we will return the money to the employer or to the person who made the contribution. If it is not possible for us to identity who made the contribution, we will pay the money to the Australian Securities and Investment Commission (ASIC), generally within one month from the date we receive the money. If you think you may be entitled to unclaimed money, contact: Australian Securities and Investment Commission Unclaimed Monies Unit Phone: 1300 300 630 Email: infoline@asic.gov.au Website: www.fido.gov.au
Two pieces of written correspondence are returned unclaimed; You were a standard employer-sponsored member when you joined the Fund, and no contributions have been paid into your account for at least five years; We have not been able to verify your correct address. All super funds regularly provide the ATO with a ‘lost’ members report. The ATO maintains a register of these members. You can see if you are registered as a lost member at www.ato.gov.au/super using the SuperSeeker feature or contact 131 020. Alternatively, try searching at www.unclaimedsuper.com.au. If you successfully locate your lost super, you can roll it into your Media Super account using the Rollover form at the back of this PDS.
44 General information
ELIGIBLE TEMPORARY RESIDENTS If you are an elibile temporary resident and want to access your super after you permanently leave Australia, you can apply to Media Super for a Departing Australia Superannuation Payment (DASP) subject to the following events occurring within the last six months: Your departure from Australia Cancellation or expiration of your visa. If you do not apply to Media Super for this payment within this time, the Fund will pay your benefit to the Australian Taxation Office (ATO) as unclaimed super. If your benefit is transferred to the ATO as unclaimed super, you will no longer be a member of Media Super. As a result, you will not earn investment returns with Media Super and any applicable insurance cover obtained through your membership with Media Super will cease. To apply for a Departing Australia Superannuation Payment, phone us on 1800 640 886. For assistance in accessing unclaimed super, contact the ATO on 131 020 or visit www.ato.gov.au. For information on how your super is taxed as an eligible temporary resident, see page 13. To access your super before you permanently leave Australia, you must satisfy one of the following conditions of release: Attaining age 65; Retirement after attaining your minimum preservation age; The amount of your super is less than $200 and you no longer work for the employer who made super contributions to that account; Your death (benefits are paid to your dependants or personal legal representative); Permanent incapacity; Diagnosis of a terminal medical condition.
PRIVACY POLICY Media Super respects your privacy. Protecting your personal information has always been important to us and is required by law. We handle your personal information in accordance with National Privacy Principles. Media Super has stringent security measures in place, and the staff who handle your personal information have the knowledge, skills and commitment to protect it from unauthorised access or misuse. The information we collect Media Super only collects information that is necessary to administer your Fund membership and to provide you with information in relation to your investment. Your personal information will not be used or disclosed for any other purpose without your consent, except where required by law.
The personal information collected by Media Super from you, or through your employer, includes your contact details, date of birth and Tax File Number. Over time, financial and other information necessary to administer your Media Super membership will be added to your records. Additional information may be collected from medical practitioners or from your employer for the purpose of assessing your eligibility for insurance cover or for the assessment of a claim. We will only seek to collect such information with your consent. If you choose not to provide your personal information, we may not be able to process your membership application or administer and manage your account and benefits. To assist us to provide a complete service, we may have to pass on your personal details to other related organisations, including our administrator, Insurer, other super funds or the ATO and other government organisations. All third parties who receive your personal details from us have agreements to keep your information confidential and not use it for marketing purposes. By law, we are required to ensure that the Fund is not being used to launder money or finance terrorism. Media Super may ask you to provide proof of identity before you withdraw any money from the Fund or open a pension with us. For example, we may need proof of your name, date of birth or address. Your rights as a member As a member of Media Super, you may ask to see the information we hold about you and to have it corrected if required. From time to time, Media Super may send members information about events, promotions or services. If you do not wish to receive information of this kind, please advise us. More information? If you would like more information on how Media Super handles your personal information or a copy of the Media Super Privacy Policy, phone 1800 640 886 or visit www.mediasuper.com.au. You can also obtain information about your privacy rights from the Commonwealth Privacy Commissioner on 1300 363 992 or visit www.privacy.gov.au.
COMPLAINTS Media Super welcomes feedback and has a procedure in place to deal with member complaints. If you have a complaint, write to us at: Complaints Officer Media Super Locked Bag 1229 Wollongong NSW 2500 All complaints will be acknowledged promptly and, in most cases, addressed within 28 days. You will receive a written reply detailing Media Super’s decision.
General information 45
Superannuation Complaints Tribunal
What happens when I die?
If you are not satisfied with our response to your complaint, or you have not received a response within 90 days, then you may take your complaint to the Superannuation Complaints Tribunal (SCT).
You may nominate a beneficiary to receive your benefit. Your beneficiary must either be a dependant or legal personal representative. Media Super will take your nomination into account, but is not bound to follow it.
The SCT is an independent tribunal set up by the Federal Government to review certain types of trustee decisions. If the SCT accepts your complaint, it will attempt to resolve the matter through conciliation. If conciliation is unsuccessful, the complaint is referred to the Tribunal for a determination, which is binding. The SCT may be contacted by: phoning 1300 780 808 visiting www.sct.gov.au writing to: Locked Bag 3060, GPO Melbourne VIC 3001 Financial Ombudsman Service The Financial Ombudsman Service (FOS) deals with complaints about financial services providers including life insurers, fund managers, stockbrokers and some super providers. If you have a complaint about the financial services provided to you by the Trustee, you may lodge a complaint with FOS. FOS has restrictions on the type of complaints it will hear. Also, FOS will not hear your complaint unless you have first lodged a complaint with the Trustee’s internal procedure (i.e. a complaint with the Complaints Officer). The Trustee has generally 45 days to reply to your complaint, although they may request 90 days to deal with your complaint. If you do not receive a decision, or are unhappy with the decision in relation to your complaint, you may lodge your complaint with FOS. The FOS may be contacted by:
Your benefit will be paid to either your dependant(s) or legal personal representative. If you do not have dependants or a legal personal representative, then it may be paid to any other person. A dependant includes: your spouse (including de facto and same-sex couples); your children (including natural, step or adopted and children of your spouse). In order to receive the benefit tax-free, children must be under the age of 18. A child over the age of 18 can also receive the benefit tax-free if they are financially dependent on you or have a disability; a person financially dependent on you at the date of death; an interdependant (see below). An interdependent relationship exists if: two people have a close personal relationship; and they live together; and one or each of them provides the other with financial support; and one or each of them provides the other with domestic support and personal care. An interdependent relationship also exists if two people have a close personal relationship and the other requirements are satisfied because of physical, intellectual or psychiatric disability. For information on tax on a death benefit paid: to a ‘dependant’ as a lump sum – see page 12
phoning 1300 780 808
to a ‘non-dependant’ as a lump sum – see page 12
visiting www.fos.org.au
to a ‘dependant’ as a pension – see page 21.
writing to: GPO Box 3, Melbourne Vic 3001
COOLING-OFF PERIODS Public Offer and Pension members have 14 days to reconsider after opening a Media Super account. The 14-day cooling-off period commences on the earlier of: your receipt of confirmation of your application; or five days after your Media Super membership application is accepted. Within this 14-day period, you may withdraw your investment or transfer it to another fund without being subject to fees imposed by Media Super. To withdraw or transfer your investment, simply write to us. WARNING: The amount you receive may be less than the amount of your original investment. It will reflect any movement in the value of the investment option(s) you have selected, amounts paid to you, and tax payable on that amount.
46 Forms
How to comple the formte s
I want to‌ Open a super account
Apply for insurance cover
Complete the Membership application form.
To apply for insurance cover, see Part 2 of this Product Disclosure Statement and request the forms specific to your situation by calling 1800 640 886.
Start a pension Complete the Pension membership application form.
Have my employer pay contributions into Media Super Use the Standard choice form to let your employer know where to pay your super contributions.
I want to manage my account‌ Rollover another super account into Media Super
Make regular contributions using Direct Debit
Complete the Roll over your super form.
Make an investment choice
Complete the Direct debit request form to enable regular contributions into your super account from your bank account.
I f you are opening a super account or starting a pension, you can use the application form.
Update my details
If you are an existing member of Media Super, complete the Change of details form.
et us know your new name, contact details, L investment choice or pension payment amount using the Change of details form.
Member application form Valid from 1 June 2009
Please complete this form in black pen and capital letters.
Your Member No.
Please return completed form to your employer or: Media Super, Locked Bag 1229, Wollongong Nsw 2500 Have you previously registered as a member of Media Super?
YES
NO
Are you a current member of Media Super?
YES
NO
Personal details You must complete this section and sign the completed form on page 3. Mr/Mrs/Ms/Miss/Dr
Date of birth (DD/MM/YYYY)
Surname
/
/
Mother’s maiden name (as your privacy/security password) Given names Address
State
Telephone (home)
Telephone (work)
(
(
)
Mobile number
Postcode
)
Email address
I wish to have all my accounts with Media Super consolidated into this account
Yes
No
Current employment details (if applicable) Please provide details of your current employer. Employer’s trading name Employer’s phone number Date started with employer /
Issued by the Trustee of Media Super, Media Super Limited, ABN 30 059 502 948, AFSL 230254 Office use only:
ms
ps
mc
Please return completed form to your employer or: Media Super, Locked Bag 1229, Wollongong Nsw 2500
Page 1 of 4
MSUP 29624
/ Your occupation
Member application form (cont.) Tax file number (TFN) We are authorised by law to collect your TFN and to use it for approved purposes. Although it is optional to give your TFN, you may be disadvantaged if you don't. For instance, you may pay more tax than you have to. For more detailed information, please refer to the Media Super Product Disclosure Statement (PDS). I agree to provide my tax file number (TFN), and my TFN is: OR I choose not to quote my TFN, and I understand the implications of choosing not to quote my TFN.
Member investment choice Read the ‘Investment options’ section of the Media Super PDS before making your decision. Invest 100% in one investment, or mix and match them in any proportion you like. A switching fee of $30 will be deducted from your member account whenever you vary your investment options. Pre-mixed
Current balance Future contributions
Balanced – 70% growth assets / 30% defensive assets
%
%
High Growth – 95% growth assets / 5% defensive assets
%
%
Growth – 85% growth assets / 15% defensive assets
%
%
Stable – 30% growth assets / 70% defensive assets
%
%
Australian Shares – 95% growth assets / 5% defensive assets
%
%
Overseas Shares – 95% growth assets / 5% defensive assets
%
%
Sustainable Future Shares – 95% growth assets / 5% defensive assets
%
%
Property – 95% growth assets / 5% defensive assets
%
%
Fixed Interest – 100% defensive assets
%
%
Single Asset
%
Cash – 100% defensive assets 1
Total (must add up to 100%)
0
0 %
% 1
0
0 %
Personal contributions If you wish to make personal contributions to Media Super from your after-tax income, tick (3) the relevant boxes. Contact Media Super on 1800 640 886 to obtain the appropriate forms. Do you wish to make personal contributions to Media Super?
Yes
No
If YES, please indicate your preferred method of making personal contributions: Payroll Deduction (refer to the Media Super PDS) Direct Debit from your bank/financial institution (refer to the Media Super PDS)
Insurance Please refer to Part 2 of the Media Super PDS for details of insurance cover. I wish to alter or increase my insurance cover – contact Media Super on 1800 640 886 to obtain the appropriate forms I wish to cancel my Death and Total and Permanent Disablement (TPD) insurance cover I wish to apply for Income Protection cover I wish to cancel my Income Protection insurance cover* * Cover will be cancelled from the date Media Super receives your completed form.
Depending on your employer, you may receive automatic Income Protection cover. Contact Media Super on 1800 640 886 if you are unsure if this applies to you.
Page 2 of 4
Nomination of preferred beneficiaries You may nominate preferred beneficiaries to receive the balance of your Media Super account in the event of your death. Please provide details of your preferred beneficiaries. For further information, refer to the Media Super PDS. 1. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
2. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
3. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
4. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
5. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
Note: If you wish to nominate more beneficiaries, please attach a list of their names, relationship to you and the percentage of benefit to be paid to each, and date and sign it. The percentages you specify must total 100%.
Declaration Please sign and date this form, and return it to the address shown below. Under the terms of the Trust Deed governing Media Super, the Trustee has a discretion to determine to whom to pay your death benefit in the event of your death. The nomination of beneficiaries is not binding on the Trustee, but the Trustee will take your wishes into consideration when making the decision to whom to pay your death benefit. You can change your nomination of preferred beneficiary at any time. A new nomination will cancel any previous nomination of beneficiary that you have made. I apply to become a member of Media Super. If admitted as a member, I acknowledge and agree that I will be bound by the Trust Deed that governs Media Super. I declare that: • I have received and read the Media Super PDS. As at the date of this application, I am at work and performing the full and normal duties of my occupation. • I understand that the investment choice I have indicated will apply to my account balance and future contributions to Media Super until further notice from me. I accept that the illustrations of risk and return shown in the Media Super PDS are based on assumptions which may or may not be borne out in practice. • I understand that investment returns are not guaranteed and that investment returns can be positive or negative. • I acknowledge that if I need help in relation to my investment choice, I should obtain financial advice from a licensed financial adviser.
Privacy I have read and understood the Privacy Collection Statement contained in the Media Super PDS, and consent to Media Super collecting, using, storing and disclosing personal information about me in accordance with the Privacy Collection Statement.
DIRECT MARKETING From time to time, Media Super may send its members communication material, also known as direct marketing material, about special offers and promotions, which are available to Media Super members only.
• Tick this box, if you are happy for Media Super to use your information to send you direct marketing information.
• Tick this box, if you don’t want Media Super to
use your personal information to send you direct marketing information.
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
NO
Whatever you decide, you will have the opportunity to change your mind at any time.
Applicant’s signature
x
YES
Date (DD/MM/YYYY)
/
/
Page 3 of 4
This page has been left blank intentionally.
Pension member application form Valid from 1 JUNE 2009
Please complete this form in black pen and capital letters.
Your Member No.
Are you a current member of Media Super?
YES
NO
Personal details You must complete this section and sign the completed form on page 4. Mr/Mrs/Ms/Miss/Dr Gender
Surname
Male
Date of birth (DD/MM/YYYY)
Female
/
/
Mother’s maiden name (as your privacy/security password) Given names Address
State
Telephone (home) (
Postcode
Mobile number
)
Email address
Tax file number (TFN) We are authorised by law to collect your TFN and to use it for approved purposes. Although it is optional to give your TFN, you may be disadvantaged if you don't. For instance, you may pay more tax than you have to. For more detailed information, please refer to the Media Super Product Disclosure Statement (PDS). I agree to provide my tax file number (TFN), and my TFN is: OR I choose not to quote my TFN, and I understand the implications of choosing not to quote my TFN.
Pension type Please tick (3) the appropriate box indicating which type of pension you choose. I wish to invest in the Transition to Retirement Pension.
Issued by the Trustee of Media Super, Media Super Limited, ABN 30 059 502 948, AFSL 230254 Office use only:
ms
ps
mc
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
Page 1 of 4
MSUP 29625
I wish to invest in the Retirement Pension.
Pension member application form (cont.) Amount to be invested (minimum $10,000) Please provide details of amount to be invested. a) Current Media Super members Please tick here if you wish to invest your account balance in your accumulation Media Super account to open your Media Super pension account. If you wish to invest only part of your account balance to open your Media Super pension account, state the amount to be invested.
$
.
b) Rolling amounts from other source into Media Super pension account If you are rolling amounts into your Media Super pension account from an employer or institution(s) other than Media Super, please provide the name and amount of each rollover fund here: Name of fund Estimated amount
$
.
$
.
Select your pension amount Please advise the Media Super Trustee of the amount you wish to have paid at commencement. You are required to select your Media Super pension payment amount at the commencement of your pension. The amount must fall within the prescribed Government Minimum and Maximum limits*. If no selection is made, the Trustee will pay the minimum amount. Please nominate the date on which your Media Super pension is to commence. / / (DD/MM/YYYY) Please note that if you invest in a Media Super pension between 1 June and 30 June, you can defer your pension payments until the next financial year. Please tick (3) the appropriate box: Government Minimum Specified amount:
Government Maximum (for Transition to Retirement Pensions only)
Net amount $
.
.
or Gross amount $
Defer pension payment .
.
Please note that the specified amount must be within the relevant Government Minimum and Maximum limits*. I understand that Pay-As-You-Go (PAYG) tax will be deducted where applicable, and that if PAYG tax applies, I will receive an Income Tax Payment Summary at the end of each financial year. Note: No tax is payable if you are aged 60 or over. * Maximum limits only apply to Transition to Retirement Pensions.
Payment instruction Please provide the frequency of your pension payment and your account details here. You are required to select the frequency of your pension payments. Please tick (3) the appropriate box:
Monthly
Quarterly
Half-yearly
Yearly
Your Media Super pension payments will be paid directly to your financial institution on or before the 15th of the month that the payment is due. Please note that the frequency of pension payments can be changed at any time. Simply complete and return a Change of details form. Please credit payments to the following account: Account name Name of financial institution Branch BSB number
Account number –
Page 2 of 4
Member investment choice Read the ‘Investment options’ section of the Media Super PDS before making your decision. Invest 100% in one investment, or mix and match them in any proportion you like. A switching fee of $30 will be deducted from your member account whenever you vary your investment options. Pre-mixed
Initial Investment
Drawdown Strategy
High Growth – 95% growth assets / 5% defensive assets
%
%
Growth – 85% growth assets / 15% defensive assets
%
%
Balanced – 70% growth assets / 30% defensive assets
%
%
Stable – 30% growth assets / 70% defensive assets
%
%
Australian Shares – 95% growth assets / 5% defensive assets
%
%
Overseas Shares – 95% growth assets / 5% defensive assets
%
%
Sustainable Future Shares – 95% growth assets / 5% defensive assets
%
%
Property – 95% growth assets / 5% defensive assets
%
%
Fixed Interest – 100% defensive assets
%
%
Single Asset
%
Cash – 100% defensive assets Total (must add up to 100%)
1
0
0 %
% 1
0
0 %
Note: Drawdown Strategy is the percentage mix that will be withdrawn from your investments to make up your pension payments. You can change your drawdown strategy later by completing a Change of details form.
Nomination of preferred beneficiaries Please provide details of your preferred beneficiaries. You may nominate preferred beneficiaries to receive the balance of your Media Super account in the event of your death. For further information, refer to the Media Super Product Disclosure Statement (PDS). 1. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
2. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
3. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
Note: If you wish to nominate more than three beneficiaries, please attach a list of all their names, relationship to you and the percentage of benefit to be paid to each, and date and sign it. The percentages you specify must total 100%.
Page 3 of 4
Pension member application form (cont.) Declaration Please sign and date this form, and return it to the address shown below.
• I understand that the investment choice I have indicated will apply
Under the terms of the Trust Deed governing Media Super, the Trustee has a discretion to determine to whom to pay your death benefit in the event of your death. The nomination of beneficiaries is not binding on the Trustee, but the Trustee will take your wishes into consideration when making the decision to whom to pay your death benefit. You can change your nomination of preferred beneficiary at any time. A new nomination will cancel any previous nomination of beneficiary that you have made. I apply to become a member of Media Super. If admitted as a member, I acknowledge and agree that I will be bound by the Trust Deed that governs Media Super. I declare that: • I have received and read the PDS describing the retirement pension facility provided by Media Super, and I understand that it is not a pension that is guaranteed for life or any set period. • The whole of my investment for my Media Super pension account is made up of one or more superannuation lump sums which have or will be rolled over or transferred into Media Super. • I have satisfied one of the following conditions of release: – I have reached my superannuation preservation age (currently 55) and am no longer gainfully employed and I do not intend to resume full-time or part-time employment at any time in the future, – I have attained 60 years of age and I have ceased gainful employment since turning 60, – I have been declared totally and permanently disabled or incapacitated and have provided the Trustee with two medical certificates to that effect, or – I am over the age of 65. – (for Transition to Retirement Pensions only) I am over the age of 55.
to my account balance to Media Super until further notice from me. I accept that the illustrations of risk and return shown in the Media Super PDS are based on assumptions which may or may not be borne out in practice. • I understand that investment returns are not guaranteed and that investment returns can be positive or negative. • I acknowledge that if I need help in relation to my investment choice, I should obtain financial advice from a licensed financial adviser.
Privacy I have read and understood the Privacy Collection Statement in Part 1 – Information for Media Super pensions including Retirement Pension and Transition to Retirement Pension and consent to the Trustee collecting, using, disclosing and storing my personal information in accordance with the Privacy Collection Statement.
DIRECT MARKETING From time to time, Media Super may send its members communication material, also known as direct marketing material, about special offers and promotions which are available to Media Super members only. • Tick this box, if you are happy for Media Super to use your information to send you direct marketing information. YES • Tick this box, if you don’t want Media Super to use your personal information to send you direct marketing information. NO Whatever you decide, you will have the opportunity to change your mind at any time.
Applicant’s signature
Date (DD/MM/YYYY)
x
/
/
Office use only Pension annual amount Pension frequency payment Pension commencement date
/
/
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
Prepared by
Checked by
Page 4 of 4
Direct debit request form Valid from 1 JUNE 2009
Please complete this form in black pen and capital letters.
Your Member No.
Complete this form if you wish to make personal contributions from your after-tax income to Media Super on a monthly basis by direct debit from your bank account. Before you complete this form, check with your financial institution to make sure that this facility is available.
Personal details You must complete this section and sign the completed form after reading the Direct Debit Service Agreement over the page. Mr/Mrs/Ms/Miss/Dr
Date of birth (DD/MM/YYYY)
Surname
/
/
Given names Address
State
Telephone (home)
Telephone (work)
(
(
)
Mobile number
Postcode
)
Email address
Payment details Please provide your account details here. Name of financial institution Branch Account name (please note that the account you nominate must be your own personal or a joint account to which you are a party) BSB number
Account number –
I/We request that you debit my/our account in accordance with the details below. Amount to be debited monthly $
.
.
Deduction to commence (DD/MM/YYYY)
2
0 /
/
Issued by the Trustee of Media Super, Media Super Limited, ABN 30 059 502 948, AFSL 230254 Office use only:
ms
ps
mc
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
Page 1 of 2
MSUP 29626
Note: Deductions are always made on the 20th of the month. The commencement date must be at least 10 working days from the date that you sign the form.
Direct debit request form (cont.) Declaration Please sign and date this form, and return it to the address shown below. I/We authorise • Media Super; Debit User ID 063705 to arrange for funds to be debited from my/our account at the financial institution identified over the page and as prescribed there through the Bulk Electronic Clearing System (BECS). • The Debit User to verify the details of the above-mentioned account with my/our financial institution. • The financial institution to release information allowing the Debit User to verify the above-mentioned account details. This authorisation is to remain in force in accordance with the terms described in the Direct Debit Service Agreement below. Applicant’s signature
Date (DD/MM/YYYY)
x
/
Signature of joint account holder (if applicable)
/
Date (DD/MM/YYYY)
x
/
/
Direct Debit Service Agreement Why an agreement? Through the Direct Debit Request (DDR), you are allowing us to debit amounts from your bank/financial institution account. The amount, how often and the date we will debit your account depends on what you instruct us to do.
CHANGING THIS AGREEMENT If the Media Super Trustee wants to change this agreement, we will notify you at least 14 days before making any changes to this agreement.
IF YOU WANT TO CHANGE YOUR DIRECT DEBIT OR MAKE AN ENQUIRY Please contact our Customer Service Staff (see details below) if you wish to: • Delay or change your direct debit – you need to advise us at least ten days before the date on which we are due to debit your bank/ financial institution account, or • Cancel the DDR – you need to advise us at least three days before the date on which we are due to debit your bank/financial institution account, or • Dispute a debit that has been made from your bank/financial institution account – the Trustee will respond to your dispute within five business days.
WEEKENDS AND PUBLIC HOLIDAYS We will always try to debit your account on the 20th of the month, except when the due date falls on a weekend or public holiday. In this case, we will debit your account on the next business day.
MAKE SURE YOU HAVE ENOUGH MONEY IN YOUR ACCOUNT You should make sure that you always have enough cleared funds in your bank/financial institution account for us to debit your account. If there isn’t enough money (that is, cleared funds) in your account, we will still make the debit. But if your bank/financial institution dishonours the debit, we may pass on to you any dishonour fees and/or any costs incurred by the Trustee.
CHECK THAT YOU GIVE US YOUR CORRECT DETAILS Before completing the Direct Debit Request form, please check with your bank/financial institution that: • Your bank/financial institution account accepts direct debiting, as some accounts don’t, and • The account number you give us is correct (refer to your bank/ financial institution statement or contact your bank/financial institution if necessary). Bank Accounts and Building Society accounts can be nominated. Not all Credit Unions support a Direct Debit facility; therefore, you are advised to check with your Credit Union before completing this form.
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
BSB Number Identifies the bank/ financial institution/state/branch at which your account is held. Please contact your bank/financial institution if you are not sure of this number. Account Number Your bank/financial institution account number. Membership Number Your Media Super membership number.
CONDITIONS OF USE To cancel or alter your direct debit, you must write to the Media Super Trustee giving details. There must be enough money in your bank/ financial institution account on each day you have nominated for a deduction to occur. If the deduction is dishonoured three times, this facility will cease immediately. A dishonour means that the deduction could not be made because there was not enough money in the nominated account. If all your superannuation benefit is paid from Media Super, this deduction facility will cease automatically. If Media Super is advised of a dishonour after all your superannuation benefit is paid out, you are liable to repay the dishonoured amount to the Trustee.
PRIVACY Please note that by sending Media Super personal information about yourself (including your bank/financial institution account details), you are agreeing to the following: 1. I have read the Privacy Collection Statement in the Media Super PDS and consent to the Trustee collecting, using, disclosing and storing my personal information in accordance with the Privacy Collection Statement. 2. T hat Media Super can use my personal information for the purposes of running my superannuation account. If you have any questions about your rights under the privacy legislation, please call Media Super’s Privacy Officer on (02) 9238 2555. Once completed, please return this form to: The Administrator Media Super Locked Bag 1229 Wollongong NSW 2500 Our Customer Service Staff can be contacted weekdays from 8.30am to 5.30pm (AEST) as follows: Phone: 1800 640 886 Fax: 1800 246 707
Page 2 of 2
Roll over your super form Valid from 1 JUNE 2009
Please complete this form in black pen and capital letters.
Your Member No.
Complete this form if you wish to transfer all or part of your superannuation balances from another superannuation fund to your Media Super account. A separate form must be completed for each balance you wish to transfer. Media Super does not charge a fee for transfers. Please note that your current superannuation fund may require additional information or proof of identity (POI) requirements if you are applying for a partial transfer only. Media Super’s Superannuation Product Identification Number (SPIN): PIN0100AU Media Super’s ABN: 42 574 421 650 This form will NOT change the fund to which your employer pays your contributions. Complete a Standard Choice Form to change the fund to which your employer pays your contribution.
What you need to do
3 Read the ‘Important information’ on page 3. 3 A ttach the appropriately certified proof of identity
3 Sign the declaration. 3 Return the completed form to the address shown below.
documents.
Personal details You must complete this section and sign the completed form. Mr/Mrs/Ms/Miss/Dr Gender
Surname*
Male
Date of birth (DD/MM/YYYY) Female
/
/
Given names* Previous surname Previous given names Address*
State*
Postcode*
State
Postcode
Previous address (the last address registered with Media Super) Telephone* (
Mobile number
)
Tax file number (TFN)
Issued by the Trustee of Media Super, Media Super Limited, ABN 30 059 502 948, AFSL 230254 Office use only:
ms
ps
mc
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
Page 1 of 4
MSUP 29627
* Denotes mandatory field. If you do not complete all of the mandatory fields, there may be a delay in processing your request.
Roll over your super form (cont.) Details of old fund Help us to help you roll over your money more quickly by attaching a copy of your previous fund member statement(s). Membership name (if different from above) Name of old fund where benefits are held* Old fund membership number Fund Australian Business Number (ABN) Address of previous fund
Superannuation Product Identification Number (SPIN)
State
Telephone number of old fund (if known)
Value of benefit (approximately)
(
$
) Name of previous employer who contributed to the fund
.
Postcode
.
Approximate date I left my last employer (DD/MM/YYYY) /
/
Rollover amount Please transfer: Total balance of account at old fund Partial balance of account at old fund $
.
Proof of identity I have attached a certified copy of my driver’s licence or passport OR I have attached certified copies of both:
Birth/citizenship certificate or Centrelink pension card AND
Centrelink payment letter or Government or local council notice (within last 12 months) with name and address
Please refer to the notes on page 4 regarding ‘Proof of identity requirements’ and ‘Certification of personal documents’ for further information.
Page 2 of 4
Declaration Please sign and date this form, and return it to the address shown below. I understand and acknowledge the implications and effects of • I agree that in certain cases Media Super may be required under law transferring my benefits from my previous superannuation fund to to deduct tax from the untaxed portion of the rollover benefit (if any). my Media Super account. I do not require any further information to • I approve the deduction of the Benefit Payment Fee (if any) from understand the effects of transferring my benefits from my previous the benefits paid. super fund to my Media Super account. • I am aware that I may ask my current superannuation provider I authorise the Trustee (SPIN: PIN 0100AU) to arrange the rollover for information about my fees and charges that may apply, or of my benefits from my previous fund nominated above into my any other information about the effect a transfer may have on my Media Super account. benefits, and I do not require any further information. I declare that the information I have provided is, to the best of my • I have provided certified evidence of my name change or knowledge and belief, true and correct and that I have read and Guardianship or Power of Attorney if applicable. understood the information on this form. In giving this authorisation: • I consent to the use and disclosure of information contained in • I agree that the trustee of my previous fund is discharged from this form in accordance with the Media Super Privacy Policy. any further liability in respect of any amount once it has been • I request and consent to the transfer of superannuation as rolled over and all reporting requirements have been satisfied. described above and authorise the superannuation provider of • I understand that both superannuation funds are Regulated Funds. each fund to give effect to this transfer. Applicant’s name Applicant’s signature
x
Date (DD/MM/YYYY)
/
/
Important Information This transfer may close your account (you will need to check this with your old fund). This form can NOT be used to: • transfer benefits if you don’t know where your superannuation is; • transfer benefits from multiple funds on this one form – a separate form must be completed for each fund you wish to transfer superannuation from; • change the fund to which your employer pays contributions on your behalf; • open a superannuation account; or • transfer benefits under certain conditions or circumstances, for example if there is a superannuation agreement under the Family Law Act 1975 in place.
What happens to my future employer contributions? Using this form to transfer your benefits will not change the fund to which your employer pays your contributions, and it may close the account you are transferring your benefits from. If you wish to change the fund into which your contributions are being paid, you will need to speak to your employer about Superannuation Choice. For information about whether you are eligible to choose the fund to which your employer contributions are made, visit www.superchoice.gov.au or call the Australian Taxation Office on 131 020.
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
THINGS YOU NEED TO CONSIDER WHEN TRANSFERRING YOUR SUPERANNUATION When you transfer your superannuation, your entitlements under that fund may cease. You need to consider all relevant information before you make a decision to transfer your superannuation. If you ask for information, your superannuation provider must give it to you. Some of the points you may consider are: • Fees – your old fund must give you information about any exit or withdrawal fees. If you are not aware of the fees that may apply, you should contact the fund for further information before completing this form. The fees could include administration fees as well as exit or withdrawal fees. Differences in the fees that funds charge can have a significant effect on what you will have to retire on. For example, a 1% increase in fees may significantly reduce your final benefit. • Death and disability benefits – your old fund may insure you against death, illness or an accident which leaves you unable to return to work. If you choose to leave your current fund, you may lose any insurance entitlements you have.
WHAT HAPPENS IF I DO NOT QUOTE MY TAX FILE NUMBER (TFN)? You are not obligated to provide your TFN to Media Super. However, if you do not provide your TFN, your contributions may be taxed at the highest marginal tax rate plus the Medicare levy, compared to the concessional super tax rate of 15%. If we do not have your TFN, you will not be able to make personal contributions to Media Super. Choosing to quote your TFN will also make it easier to keep track of your superannuation in the future. Under the Superannuation Industry (Supervision) Act 1993, Media Super is authorised to collect your TFN, which will only be used for lawful purposes. These purposes may change in the future as a result of legislative change. The TFN may be disclosed to another superannuation provider when your benefits are being transferred, unless you request in writing that your TFN is not to be disclosed to any other fund trustee.
Page 3 of 4
Roll over your super form (cont.) Proof of identity requirements You will need to provide certified documentation with this transfer request to prove that you are the person to whom the superannuation entitlements belong. The following certified documents must be provided with your transfer form: Either One of the following certified documents:
• Drivers licence issued under State or Territory law, or
• Passport
• Citizenship certificate issued by the Commonwealth
• Pension card issued by Centrelink that
entitles the person to financial benefits
And One certified document from each of the following:
• Letter from Centrelink regarding a Government assistance payment
• Notice issued by Commonwealth, State or
Territory Government or local council within the past twelve months that contains your name and residential address, i.e. Australian Taxation Office Notice of Assessment or Rates Notice from local council.
Or One certified document from each of the following:
• Birth certificate or birth extract
Have you changed your name, or are you signing on behalf of the applicant? If you have changed your name, or are signing on behalf of the applicant, you will need to provide one of the following certified documents: If you have changed your name: • Marriage certificate, deed poll or change of name certificate from Births, Deaths and Marriages Registration Office. If you are signing on behalf of the applicant: • Guardianship papers or Power of Attorney These documents are known as ‘linking documents’. Freecall 1800 640 886
Certification of personal documents All copied papers of original proof of identity documents or linking documents must be certified as true copies by an individual approved to do so. Persons who are authorised to certify documents must sight the original and the copies and make sure both documents are identical, then make sure that all copies are certified as true copies by writing or stamping ‘certified true copy’ followed by the individual’s signature, printed name, qualification and date.
The following persons are eligible to certify copies of original documents as true and correct:
• A permanent employee of Australia Post with five or more years of continuous service
• A finance company officer with five or more •
years of continuance service (with one or more finance companies) An officer with, or authorised representative of, a holder of an Australian Financial Services Licence (AFSL) having five or more years of continuous service with one or more licensees A notary public officer A police officer A registrar or deputy registrar of a court
• • • • A Justice of the Peace
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
• A Commissioner for Declarations (Qld) • A member of the Institute of Chartered
Accountants in Australia, the Australian Society of Certified Practising Accountants or the National Institute of Accountants with two or more years of continuous membership
• A person enrolled on the roll of a State or
Territory Supreme Court or the High Court of Australia, as a legal practitioner
• An Australian consular officer or an Australian diplomatic officer
• A judge of the court • A chief executive officer of a Commonwealth Court, or
• A magistrate.
Page 4 of 4
Change of details form Valid from 1 JUNE 2009
Please complete this form in black pen and capital letters.
Your Member No.
Complete this form if you have any changes to your personal details, nominations of dependants or investment choice.
Changed member details Please complete the relevant parts of this section if any of your personal details have changed since you joined Media Super. Evidence of a name change must be attached. Mr/Mrs/Ms/Miss/Dr Date of birth (DD/MM/YYYY) New surname
/
/
New given names New address
State
New telephone (home) (
Postcode
New telephone (work)
)
New mobile number
(
)
New email address
Previous member details Please complete the relevant parts of this section if you have changed any of the above details. Mr/Mrs/Ms/Miss/Dr Previous surname
Date of birth (DD/MM/YYYY)
/
/
Previous given names Previous address
State
Previous telephone (home) (
Postcode
Previous telephone (work)
)
Previous mobile number
(
)
Issued by the Trustee of Media Super, Media Super Limited, ABN 30 059 502 948, AFSL 230254 Office use only:
ms
ps
mc
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
Page 1 of 4
MSUP 29628
Previous email address
Change of details form (cont.) Change nomination of preferred beneficiaries I wish to nominate the following preferred beneficiaries to receive my death benefit in the event of my death. This nomination replaces any earlier nominations I have made. 1. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
2. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
3. Full name Relationship (e.g. spouse, son, etc.)
Percentage to be paid
%
If you wish to nominate more than three preferred beneficiaries, please attach a list of the names, relationship to you and the percentage of benefit to be paid to each additional beneficiary, and date and sign it. The percentages you specify must total 100%. Please note: This nomination is not binding on the Trustee, but the Trustee will take your wishes into account in determining to whom to pay your death benefit.
Change member investment choice Read the ‘Investment options’ section of the Media Super PDS before making your decision. Invest 100% in one investment, or mix and match them in any proportion you like. A switching fee of $30 will be deducted from your member account whenever you vary the investment options of your current balance.
Super pension
Pre-mixed
Current Future balance contributions
Current Future balance contributions
Balanced – 70% growth assets / 30% defensive assets
%
%
%
%
High Growth – 95% growth assets / 5% defensive assets
%
%
%
%
Growth – 85% growth assets / 15% defensive assets
%
%
%
%
Stable – 30% growth assets / 70% defensive assets
%
%
%
%
Australian Shares – 95% growth assets / 5% defensive assets
%
%
%
%
Overseas Shares – 95% growth assets / 5% defensive assets
%
%
%
%
Sustainable Future Shares – 95% growth assets / 5% defensive assets
%
%
%
%
Property – 95% growth assets / 5% defensive assets
%
%
%
%
Fixed Interest – 100% defensive assets
%
%
%
%
Cash – 100% defensive assets
%
%
%
%
Single Asset
Total (must add up to 100%)
1
0
0 %
1
0
0 %
1
0
0 % 1
0
0 %
Page 2 of 4
Change your pension drawdown strategy You can change which of your pension account investments are drawn on to form your pension payments. Pre-mixed
Drawdown Strategy
Balanced – 70% growth assets / 30% defensive assets
%
High Growth – 95% growth assets / 5% defensive assets
%
Growth – 85% growth assets / 15% defensive assets
%
Stable – 30% growth assets / 70% defensive assets
%
Single Asset Australian Shares – 95% growth assets / 5% defensive assets
%
Overseas Shares – 95% growth assets / 5% defensive assets
%
Sustainable Future Shares – 95% growth assets / 5% defensive assets
%
Property – 95% growth assets / 5% defensive assets
%
Fixed Interest – 100% defensive assets
%
Cash – 100% defensive assets
% 1
Total (must add up to 100%)
0
0 %
Note: If you do not nominate a drawdown strategy, your pension payments will be formed by drawing on all of your investments in equal proportions.
Change your pension payment You can change the frequency of your pension payments here. Please tick (3) the appropriate box: Monthly
Quarterly
Half-yearly
Yearly
If you wish to change your pension payment, the amount must fall within the minimum and maximum Government limits. Please refer to the Media Super PDS for further details. Please tick (3) the appropriate box: Minimum
Maximum (Transition to Retirement Pension only)
Specified amount $ (for the financial year)
.
I understand that Pay-As-You-Go (PAYG) tax may be deducted where applicable, and that if PAYG tax applies, I will receive an income tax Payment Summary at the end of each financial year. Note: No tax is payable if you are aged 60 or over.
Insurance Please refer to Part 2 of the Media Super PDS for details of insurance cover. I wish to alter or increase my insurance cover – contact Media Super on 1800 640 886 to obtain the appropriate forms I wish to cancel my Death and Total and Permanent Disablement (TPD) insurance cover I wish to cancel my Income Protection insurance cover
Page 3 of 4
Change of details form (cont.) Declaration Please sign and date this form, and return it to the address shown below. I declare that I have read the Media Super PDS and understand the effect of my Change of Details request. I understand that my requested change will generally take effect from the date on which my Change of details form is processed. However, for applications for any increase in insurance cover, the change will take effect once the Trustee has notified me in writing.
Privacy I have read and understood the Privacy Collection Statement contained in the Media Super PDS, and consent to Media Super collecting, using, storing and disclosing personal information about me in accordance with the Privacy Collection Statement.
DIRECT MARKETING From time to time, Media Super may send its members communication material, also known as direct marketing material, about special offers and promotions, which are available to Media Super members only.
• Tick this box, if you are happy for Media Super to use your information to send you direct marketing information.
• Tick this box, if you don’t want Media Super to
use your personal information to send you direct marketing information.
Please return completed form to: Media Super, Locked Bag 1229, Wollongong Nsw 2500
NO
Whatever you decide, you will have the opportunity to change your mind at any time.
Applicant’s signature
x
YES
Date (DD/MM/YYYY)
/
/
Page 4 of 4
Choice of superannuation fund
Standard choice form Valid from 1 JUNE 2009
Please complete this form in black pen and capital letters.
Your Member No.
Return this form to your employer. Have you previously registered as a member of Media Super?
YES
NO
Are you a current member of Media Super?
YES
NO
Option 1: You do not have to choose a fund If you do not make a choice, your employer’s contributions will be paid into the fund that your employer has chosen (see Section 1 on the reverse side of this form). This may not be the same as your current fund. Your employer’s chosen fund may be suitable for your needs. You can choose a different fund later if you like. If you do not want to choose a fund, you do not have to complete this form. • Your employer is not liable for the performance of superannuation funds that you choose or they choose on your behalf. • Do not seek financial advice from your employer unless they are licensed to provide it.
More information You can get more information about choice of superannuation fund or superannuation in general from: • www.superchoice.gov.au, or • by phoning 132 864 If you do not speak English well and want to talk to an Australian Government officer, phone the Translating and Interpreting Service on 131 450 for help with your call. If you have a hearing or speech impairment and have access to appropriate TTY or modem equipment, phone 133 677. If you do not have access to TTY or modem equipment, phone the Speech to Speech Relay Service on 1300 555 727.
Option 2: Choose a fund You can choose the superannuation fund where you want your future employer contributions to be paid. Your employer is only required to accept one choice every 12 months.
Step 1
Step 2
Step 3
Gather information – work out what’s best for you
What do I need to tell my employer?
You will need to find out what superannuation options are available to you. Find out about the features and benefits of your current fund, the fund chosen by your employer and any other funds you are considering. Your current fund may be different to the fund chosen by your employer. The ‘Tips’ section below highlights key issues you should consider when comparing funds.
Give your employer details of your chosen fund by completing Section 2 of this form overleaf or by a written statement including the necessary information. This information may be provided by your chosen fund. Section 1 shows details of your employer’s superannuation arrangements. This includes the fund that your employer has chosen to make all future superannuation guarantee contributions to. If your employer has changed funds recently, the previous fund will also be shown. You may choose to remain in this previous fund.
What happens to any superannuation I have in existing funds? Any money you have in existing funds will remain there unless you make arrangements to transfer it (roll over) to another fund. Check the impact of any exit fees or benefits that you may lose before leaving the fund. Your employer cannot do this for you.
Tips for comparing funds Investment choice: Some funds let you choose where the fund will invest your super. Some choices offer higher returns, but with a higher risk that investments may go down as well as up. Other choices offer greater security, but with lower expected returns. Choose the level of risk and return that you are comfortable with. Investment performance: Superannuation is a long-term investment for your retirement, so its investment performance needs to be judged over the long term. Short-term performance, whether good or bad, may not be repeated. There is no guarantee that a fund that has performed well in the past will do so in the future. The information you’ll need to make these checks is in each fund’s product disclosure statement, which you can get from the fund. For further information on choosing a fund, go to the website www.superchoice.gov.au or phone 132 864.
Issued by the Trustee of Media Super, Media Super Limited, ABN 30 059 502 948, AFSL 230254 Office use only:
ms
ps
mc
Return this form to your employer and keep a copy for your records. DO NOT send this form to the Australian Taxation Office or to your superannuation fund.
Page 1 of 4
MSUP 29629
Fees: Most funds charge fees. Differences in the fees that funds charge can have a big effect on what you may have to retire on. This effect may be more than you think, and for this reason you need to consider what fees are being charged. For example, your final return could be reduced by up to 20% over 30 years if your total fees and costs amount to 2% rather than 1% (e.g. from $100,000 to $80,000). Some funds may also charge an exit fee if you leave the fund. Death and disability insurance: Your current fund may insure you against death or an illness or accident that makes you unable to return to work. Other funds may not offer insurance, or you may have to pass a medical examination before they cover you. Check if you’ll be covered in any new fund, and the costs and amount of cover, before leaving your current fund.
Standard choice form (cont.) Section 1: Employer to complete Give this form to your employee after you have completed Section 1. You must keep a copy for your own records for five years. 1. Employer details
Employer Australian Business Number (ABN) 2. Employer Superannuation Guarantee contributions will be made to the following fund: Fund name Superannuation product identification number (if applicable) To access the product disclosure statement for this fund (if applicable) phone Or visit the fund’s website 3. Employer Superannuation Guarantee contributions have previously been made to: If the employer fund has not changed, please write ‘as above’ in fund name box below. Fund name Superannuation product identification number (if applicable) To access the product disclosure statement for this fund (if applicable), phone Or visit the fund’s website 4. Employer contributions Are superannuation contributions for the employees currently made at a higher level than the required 9%? If ‘Yes’, will superannuation contributions continue at this higher level if the employee chooses a fund other than the fund named in Section 1, Part 2? Note that this statement does not alter an employer’s legal obligations (if any) relating to future payments.
YES
NO
YES
NO
Section 2: Employee to complete Only complete this section if you are making a choice. 1. I request that all future superannuation guarantee contributions be made to:
x
My employer’s previous superannuation fund named in Section 1, Part 3. Go to Part 4 below. My own choice of fund. Complete Parts 2, 3 and 4 below.
2. My chosen fund details: Fund name M
E
D
I
A
P
I
N
0
1
Membership No. (if applicable)
R Superannuation product identification number (if applicable) 0
S
U
P
0
A
U
Account name
E
Telephone 1
8
0
0
6
4
0
8
8
6
Fund Australian Business Number (ABN) (if applicable)
4
2
5
7
4
4
2
1
6
5
0
3. I have attached: x A letter from the trustee of the fund named in Section 2, Part 2 stating that this is a complying fund, and (for a self-managed superannuation fund) a copy of documentation from the Australian Taxation Office confirming that the fund is regulated, and
x x
Written evidence from the fund stating that they will accept contributions from my employer, and Details about how my employer can make contributions to this fund.
4. Employee name
Employee number (if applicable)
Tax File Number (TFN) Applicant’s signature
Date (DD/MM/YYYY)
x
/
/
/
/
Section 3: Employer to complete Date accepted (DD/MM/YY)
/
/
Date processed (DD/MM/YY)
Return this form to your employer and keep a copy for your own records. DO NOT send this form to the Australian Taxation Office or to your superannuation fund.
Page 2 of 4
Information for employers:
How you can make contributions to Media Super Media Super’s easy pay options for employers With Media Super, there are four ways in which you can process and pay your employees’ super contributions. Each option offers unique advantages depending on the size of your business and the structure of your payroll system.
Contribution option
Advantages
Suitable for:
Payments can be made via:
1. Online account Submit contributions via the secure Employers section of the Media Super website at www.mediasuper.com.au.
• Simple to use and secure. • System allows you to modify
• 1 to 30 employees
• Cheque made payable to
2. Payroll link Report your contributions using popular payroll systems. Completed files are submitted via Media Super’s website www.mediasuper.com.au.
• Upload directly from your payroll
• Any number of
• Cheque made payable to
3. Microsoft ExcelTM spreadsheet This spreadsheet can be downloaded from the secure Employers section of the Media Super website at www.mediasuper.com.au and saved onto your PC. Completed files can be submitted via the Media Super website.
• Easy to use – popular software
• Any number of
• Cheque made payable to
4. Paper-based Use Media Super’s Contribution Advice or your own internally produced report.
• Easy to use. • Good for small employers who
• 1 to 30 employees
• Cheque made payable to
employee contribution amount details electronically and to view a history of the contribution advices that you have submitted to Media Super.
system, saving you time and effort. • Minimises the chance of errors, as data is copied straight from your system to Media Super.
application that many employers are familiar with. • Media Super can send you a pre-formatted sheet with user instructions to get you started at no cost.
employees
employees
do not have Internet access or a computerised payroll system, or for those who would prefer to use a manual form.
Media Super and sent to: Locked Bag 1229 Wollongong NSW 2500 • Electronic Funds Transfer (EFT) / Direct Deposit • Direct Debit
Media Super and sent to: Locked Bag 1229 Wollongong NSW 2500 • Electronic Funds Transfer (EFT) / Direct Deposit • Direct Debit
Media Super and sent to: Locked Bag 1229 Wollongong NSW 2500 • Electronic Funds Transfer (EFT) /Direct Deposit • Direct Debit
Media Super and sent to: Locked Bag 1229 Wollongong NSW 2500 • Electronic Funds Transfer (EFT) / Direct Deposit • Direct Debit
For more information on any of these options, phone Media Super on 1800 640 886 or visit our website at www.mediasuper.com.au
Page 3 of 4
Complying fund letter 1 July 2008
To whom it may concern Media Super is a complying, resident, regulated superannuation fund under the Superannuation Industry (Supervision) Act 1993 (SIS Act) and is constituted under a trust deed dated 28 January 1981, as amended from time to time. The trustee of Media Super is Media Super Limited ABN 30 059 502 948 (Trustee). Media Super meets the minimum insurance standards required to be considered a default fund under the member super choice laws. In the event that Media Super’s complying status is revoked, the Trustee would receive notice to that effect under section 63 of the SIS Act. This would mean Media Super could not receive any further contributions. The Trustee confirms that it has not received nor does it expect to receive any such notice.
Fund details Fund Name:
Media Super
Australian Business Number (ABN):
42 574 421 650
Superannuation Product Identification Number (SPIN):
PIN0100AU
Fund Contact Details:
Locked Bag 1229 Wollongong NSW 2500
Telephone: 1800 640 886
Facsimile: 1800 246 707
Website: www.mediasuper.com.au
Media Super is able to accept contributions from employers on behalf of their employees. Details of how an employer can make contributions to Media Super are detailed overleaf.
Yours faithfully,
Ross Martin For and on behalf of the Trustee Media Super Limited
Return this form to your employer and keep a copy for your own records. DO NOT send this form to the Australian Taxation Office or to your superannuation fund.
Page 4 of 4
Notes:
Notes:
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Extra membership benefits for you As a Media Super member, you can access a range of helpful and cost-effective services such as the ones listed below.
Banking As a member of Media Super you have access to Super Members Home Loans, a range of discounted home loans provided by Members Equity Bank. The Super Members Home Loan range was created in 1994 to provide working Australians with access to home loans. Today, the SMHL is one of a range of low-cost banking products offered by Members Equity Bank. Other products include the InterestME Savings Account, Online Savings Account, Personal Loans, Term Deposits and the ME Mastercard.
To find out more: Visit www.membersequitybank.com.au or phone 131 563.
Financial planning Industry Fund Financial Planning (IFFP) can provide you with financial planning advice regarding your super. This service can help you navigate all of your super decisions, including: Which investment option is right for me? How much can I salary sacrifice? I’m retiring soon – what should I do with my super? How much tax will I pay if I take my super as a lump sum vs a pension in retirement? How can I use my super to maximise the Government Age Pension? I’ve heard you can keep working and access your super through a transition to retirement pension if you’re aged over 55. Does this apply to me? How much insurance cover should I have? Our financial planners can also offer financial advice on issues other than super – including full financial plans. IFFP does not accept commissions to recommend any particular product or service and operate on a fee-for-service basis. This means the cost for your financial advice is based only on the amount of time and work that needs to be done, not the amount of money you have to invest. Your first one-hour appointment with an IFFP financial planner is free of charge and obligation. If you then wish to seek financial advice, a full quote disclosing all costs is provided to you for approval before hand. No hidden charges, no commissions and no ongoing fees.
Please note: The information detailed in this section is provided by the service providers and not the Media Super Trustee.
To find out more: How our financial planners can help you, contact IFFP on 1300 138 848 or visit www.iffp.com.au.
Publicity Works 03 9347 3755 MSUP 28994
Compare the pair Both members in this example are on the same income, are the same age and make the same super contributions – but look at what current fee differences could mean over 30 years.* Average Media Super Member
Average Retail Master Trust Member
* The comparison shows projected outcomes, applying current fees for Media Super’s Balanced investment option and today’s average fees of a sample of 16 Retail Master Trusts over 30 years. Differences in fees may change in the future and this would alter the outcome. The amounts are not predictions or estimates of actual outcomes. Outcomes will vary between individual funds. Research and modelling current at 31 March 2009 by SuperRatings, commissioned by Media Super. Above example is a comparison of two employees that assumes same starting account balance of $50,000; same income of $58,000; 2.5% inflation rate; 3.5% salary increase per annum; 9% superannuation guarantee contributions; no additional salary sacrifice or voluntary contributions; 15% contributions tax; employer asset sizes accumulated at 11.6% per annum; investment return of 7.225% (gross of taxes and fees at 8.5%, but with taxes of 15% deducted); explicit costs deducted from members’ accounts (e.g. member fees) subject to a 15% tax allowance; contribution fees, entry fees, exit fees, additional adviser fees are excluded from calculations; employer asset size $150,000. Consider your own objectives, financial situation and needs before making a decision about superannuation, because they are not taken into account in this information. You should consider the Product Disclosure Statement as a whole before making an investment decision.
How to contact us Mail:
Media Super Limited Locked Bag 1229, Wollongong NSW 2500
Phone: 1800 640 886 Fax:
1800 246 707
Email: administration@mediasuper.com.au Website: www.mediasuper.com.au