Accumulation 2 guide - UniSuper/media/files/forms and... · Accumulation 2 membership can help protect you when you’re most in need. Remember If after reading the DBD Guide, this

Defined Benefit Division and Accumulation 2 Product Disclosure Statement, Part 2 of 2This Guide, together with the Defined Benefit Division Guide, forms the Defined Benefit Division and Accumulation 2 Product Disclosure Statement. Issued 1 April 2020 by UniSuper Limited ABN 54 006 027 121.

Accumulation 2Guide/ 1 April 2020 /

About this guideThis Guide has been prepared and issued by UniSuper Limited. It’s for members who are considering transferring to Accumulation 2 membership and summarises the key features of the product (including significant benefits and characteristics, fees and taxes) as well as key risks.

Information in this Guide may change from time to time. We’ll provide updates of any changes at unisuper.com.au/pds .

You can also request a paper or electronic copy of updated information without charge by calling us on 1800 331 685.

UniSuper, ABN 91 385 943 850, MySuper Authorisation Number 91385943850448 is referred to as ‘UniSuper’ or ‘the Fund’. UniSuper Limited, ABN 54 006 027 121, AFSL No. 492806, is referred to as ‘USL’ or the ‘Trustee’. UniSuper Management Pty Ltd, ABN 91 006 961 799, AFSL No. 235907, is referred to as ‘UniSuper Management’ or ‘USM’. USL has delegated administration of UniSuper to USM, which is wholly owned by USL in its capacity as UniSuper’s trustee. UniSuper Advice is operated by USM, which is licensed to deal in financial products and provide financial advice. UniSuper advisers are employees of USM. They are remunerated by way of a base salary and potential bonuses. External insurance cover is provided to UniSuper through group insurance policies the Trustee has taken out with TAL Life Limited, ABN 70 050 109 450, AFSL No. 237848 (referred to as our ‘Insurer’ throughout this document).

The information in this document is of a general nature only and does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of the information having regard to your personal circumstances and consider consulting a qualified financial adviser before making an investment decision based on information contained in this Guide. The value of your investments can go up or down and investment returns can be positive or negative. The Trustee does not guarantee the performance of the Fund’s investment options. To the extent that this Guide contains any information which is inconsistent with the UniSuper Trust Deed and Regulations (together, ‘the Trust Deed’) the Trust Deed will prevail. USM, SuperRatings Pty Ltd and Chant West Pty Ltd have consented to their logo and/or statements being included in this document, in the form and context in which they have been included, and consent has not been withdrawn as at the date of this document.

© UniSuper Limited 2020.

Important information bookletsYou should read the following documents together with this Guide and the Defined Benefit Division Guide: • More about the DBD and Accumulation 2 • How we invest your money • Insurance in your super • How super is taxed • What happens to your inbuilt benefits if you choose Accumulation 2?

They’re incorporated by reference into this Guide and italicised when we refer to them. They’re available free of charge at unisuper.com.au/pds or by calling 1800 331 685.

WE’RE ONE OF AUSTRALIA’S MOST AWARDED SUPER FUNDS

With a string of awards and high ratings from Australia’s top ratings and research agencies, SuperRatings and Chant West, we’re one of Australia’s most award-winning super funds.

SuperRatings, a superannuation research company, has awarded UniSuper a Platinum Choice rating for its accumulation products, something only the ‘best value for money’ funds receive. Our accumulation and pension products have also achieved a 10-year Platinum Performance rating. Go to www.superratings.com.au for details of its rating criteria. SuperRatings does not issue, sell, guarantee or underwrite this product. SuperRatings has consented to the inclusion in this document of the references to SuperRatings and the inclusion of its logos in the form and context in which they are included.

In 2019, Chant West awarded UniSuper ‘Super Fund of the Year’, ‘Investments Best Fund’ and ‘Advice Services Best Fund’. Our accumulation and pension products have received a 5 Apples rating. For information about the methodology used, see www.chantwest.com.au. Chant West has consented to the inclusion in this document of the references to Chant West and the inclusion of its logos in the form and context in which they are included.

> Cover: UniSuper member Brent Edwards, University of Melbourne

http://unisuper.com.au/pdshttp://unisuper.com.au/pdshttp://www.superratings.com.auhttp:// www.chantwest.com.au

Contents06 What is Accumulation 2?

07 How does ‘accumulation’ super grow?

09 How to become an Accumulation 2 member

12 Contributing to super

14 Accessing super

15 Nominating beneficiaries

16 How we invest your money

18 Risks of super

19 How super is taxed

22 Insurance in your super

24 General information

25 Fees and other costs

Form – Transferring from the Defined Benefit Division

to Accumulation 2


2 1800 331 685UNISUPER.COM.AU

Jargon busterThe super industry is full of terms that can be hard to understand. We’ve tried our best to keep our information straightforward but you might find this jargon buster useful as you read this guide.

JARGON WHAT IT MEANS

Beneficiary The person(s) you nominate to receive your death benefit if you die. To be eligible as a beneficiary when you die, the recipient must be your spouse or child, financially dependent on you, in an interdependent relationship with you or be your legal personal representative.

Concessional contribution

This is money added to super before income tax is taken out. It’s taxed at 15%—not at your income tax rate. Examples of concessional contributions are ‘employer contributions’ and ‘salary sacrifice contributions’.

Contribution Money paid into your super that goes towards your retirement savings.

Contributions caps The maximum amount you can pay into super each year without having to pay extra tax. There are two types of contributions caps—concessional (before tax) and non-concessional (after tax).

Default member contributions

This is money you add to your super over and above your employer’s contributions. As a DBD or Accumulation 2 member, the default level is 7% after tax of your salary. You can lower your default member contributions, but this will reduce the amount you have when you retire, as you’ll have contributed less (it may also affect the availability of insurance cover).

Defined benefit Super which is calculated using a formula that’s based on the number of hours worked (e.g. full or part time), your salary, your age and your level of contributions.

Employer contributions

Your employer must contribute 9.5% of your before-tax earnings to super. Some employers contribute a higher amount—DBD and Accumulation 2 members generally receive either 14% or 17%.

Inbuilt benefits Similar to life insurance cover and provided exclusively to DBD members, inbuilt benefits can provide financial protection against injury, illness or death. They’re provided by UniSuper (i.e. they’re different to the insurance provided through our Insurer). Inbuilt benefits are part of the DBD’s overall design—there are no charges deducted from your account balance to pay for them.

Income protection cover

If you can’t work because of injury or illness, this type of insurance can pay you a regular monthly amount for a period of time. Income protection cover is provided by our Insurer and isn’t available to DBD members.

Insurance / Life Insurance

Can provide financial protection against injury, illness or death. Any insurance cover we provide you when you are a member of UniSuper—and any extra cover you buy through us—is provided by our Insurer.

Investment options You can choose how your accumulation component is invested. We offer a range of 16 different investment options, each with differing levels of risk and expected returns. There’s a default option if you don’t choose.

Lump sum When super is withdrawn as a single amount—rather than being transferred into a pension or income stream—we call this a lump sum.

MySuper A simple superannuation solution designed to protect members by ensuring certain rules are met in relation to investment strategy, fees and insurance cover.

Non-concessional contributions

This is money added to super after income tax has been taken out. It doesn’t get taxed, because you’ve already paid tax on it (although limits do apply). Also known as ‘personal’ or ‘voluntary’ contributions.

Salary sacrifice contributions

An arrangement between you and your employer where you contribute (‘sacrifice’) some of your before-tax salary into super. Salary sacrifice contributions into super can have tax and income advantages and are generally taxed at 15%.

Trustee This is a company appointed to make sure the fund operates in accordance with our Trust Deed and with relevant law. Trustees are obliged to act in the best interest of members. Our Trustee is called UniSuper Limited.

3Accumulation 2 GuideJARGON BUSTER

Getting started • Read this Guide, the Defined Benefit Division Guide

and all the important information documents we refer to throughout them.

• Read the Choosing a style of super that suits you fact sheet (available at unisuper.com.au/factsheets ) .

• If you’d like to update any of your default options, complete the Defined Benefit Division/Accumulation 2 changing your default options form in the Defined Benefit Division Guide and return it to us.

• Prefer Accumulation 2? Then complete the Transferring from the Defined Benefit Division to Accumulation 2 application form and return it to us within your first two years of joining.

If you’ve just joined the Defined Benefit Division (DBD), you’ve got two years to decide if you want to stay a DBD member or become an Accumulation 2 member—a permanent decision which can’t be undone.

We’ll be in touch with a reminder about making a decision before your two years is up.

We’re here to helpWe’re available on your campus to help with information and general advice about your membership and our range of products. You might find it beneficial to speak to one of our consultants—either on campus or at one of our member centres.

Visit unisuper.com.au/oncampus to book an appointment.

http://unisuper.com.au/factsheets http://unisuper.com.au/oncampus



> UniSuper member Madelyn Lawry, USQ


Accumulation 2 At a glance

6

Your default cover will changeIf you have existing insurance cover you have not elected to receive, and you’re under age 25 or have an account balance under $6,000, when you transfer, your existing insurance will be cancelled unless you instruct us you want it to continue.

Go to page 22 for more information about how your Accumulation 2 membership can help protect you when you’re most in need.

RememberIf after reading the DBD Guide, this Guide and the information we refer to throughout it, you think Accumulation 2 suits you better—you can transfer within your first two years of joining the DBD.

Accumulation 2 is more like the super you’re probably already used to: • it’s a bit like a bank account • it moves up and down with investment markets, and • you can choose how to invest it.

With Accumulation 2, you’re in control. You can: • choose how to invest your entire super balance

(see page 16) • Reduce your insurance cover, apply for more or

cancel it altogether.

If you transfer to Accumulation 2, the Inbuilt benefits you had as a DBD member will cease. Depending on your circumstances, you may generally elect to receive external insurance cover that replaces your inbuilt benefits (‘transitioned cover’). This insurance cover is provided by our Insurer. A pre-existing condition (PEC) exclusion will apply to some or all of this cover for anywhere between 12 months and three years, depending on when you started in the DBD. Read What happens to your inbuilt benefits if you choose Accumulation 2? at unisuper.com.au/pds for more information.

What is Accumulation 2?Accumulation 2 is our accumulation-only option for members who prefer not to be in the DBD.

http://unisuper.com.au/pds

7

How does ‘accumulation’ super grow?In Accumulation 2, your super grows through a number of different ways. Here’s an overview.

Through contributionsDifferent types of contributions can go into your super as an Accumulation 2 member, as illustrated opposite.

DEFAULT MEMBER CONTRIBUTIONS

To give you the best chance at having enough in retirement, when you first join the DBD you’ll make extra super contributions on an after-tax basis or—with your employer’s agreement—on a before-tax basis. These are called ‘default member contributions’, and they’re over and above the contributions your employer makes.

If you choose Accumulation 2, you’ll continue to make default member contributions. You can lower them if you want to, it just means you’ll contribute less and will probably have less super at retirement.

For more information about contributions, see page 12.

Contribution types

Employer contributions (equal to 17% or 14% of your salary)

Default member contributions

Other contributions (optional and subject to eligibility)

Co-contributions (subject to eligibility)

THE GOVERNMENT MAKES:

YOUR EMPLOYER MAKES:

YOU MAKE:


Through investment returnsAs an Accumulation 2 member, you’ll have the freedom to invest your entire account balance in our range of 16 investment options.

We have options that aim to deliver higher returns and are higher-risk, and options that aim to deliver lower returns and are lower-risk.

In Accumulation 2, your super balance may go up and down because it’ll be subject to fluctuations in investment markets (depending on which investment options you’re invested in).

Read How we invest your money at unisuper.com.au/pds for more information about our investment options—including how they’re invested, the different asset mixes and the different levels of risk associated with them.

Through transfersHave multiple super accounts, multiple funds and multiple sets of fees and charges eroding your retirement savings? Looking to consolidate?

With Accumulation 2, you can. Go to unisuper.com.au/combine for more information and to get started.

Remember to consider all your options before you combine your super and check if there’s an impact on any other entitlements, like insurance.

http://unisuper.com.au/pdshttp://unisuper.com.au/combine

9

How to become an Accumulation 2 member

DBD OR ACCUMULATION 2?Within your first two years as a DBD member you can choose to switch to Accumulation 2,

otherwise you’ll remain in the DBD.

SWITCH TO ACCUMULATION 2

If you think Accumulation 2 is better for you, read on.

Complete the Transferring from the Defined Benefit Division to Accumulation 2 form (at the back of this Guide) and return it to

us within your first two years as a DBD member.

Inbuilt benefits cease. You can generally elect to receive external insurance cover that replaces your inbuilt benefits

(‘transitioned cover’). You won’t have to provide health evidence but some or all of your cover will be subject to

PEC exclusion period.

When you transfer to Accumulation 2, we’ll cancel any existing insurance cover you have (unless you’ve told us you’d like it to continue) if you have cover

you didn’t elect to receive and you:• are under age 25, or

• have an account balance under $6,000.

ALL DONEWe’ll calculate your defined benefit at the date of transfer

and combine it with your existing accumulation component.

REMAIN IN THE DBD

If you don’t elect to become an Accumulation 2 member, you’ll

stay in the DBD throughout your membership (subject to eligibility).



> UniSuper member Shawn Ohalloran, Southern Cross University


Accumulation 2 A closer look

12

Contributing to superHere’s an overview of the ways to contribute to super as an Accumulation 2 member.

Employer contributionsAs an Accumulation 2 member, your employer will generally be making generous contributions to your super—equal to 14% or 17% of your salary (depending on the terms of your employment).

We’re required to deduct a 15% contributions tax from employer and before-tax (salary sacrifice) contributions, and an extra 32% ‘no TFN contributions tax’ if we don’t have your tax file number.

What does it cost?We’re committed to providing you with value for money. The fees we charge cover the costs of managing your account and investments. We don’t pay advisers commissions and we don’t pay shareholder dividends.For information about the fees and costs associated with being an Accumulation 2 member, read the ‘Fees and other costs’ section on page 25.

Default member contributionsIn addition to employer contributions, you make ‘default member contributions’. The default level of member contributions for Accumulation 2 members is 7% after tax—or 8.25% before tax (and with the agreement of your employer)—of your salary.

If you’d like to make default member contributions from your before-tax salary, complete the Change my default member contributions form in the Defined Benefit Division Guide or from our website.

LOWERING YOUR DEFAULT MEMBER CONTRIBUTIONS

You can lower your default member contributions to: • 0.00% if you receive 17% employer contributions, or • 2.55% if you receive 14% contributions.1

If you do lower them: • you’ll receive more take-home pay but you’ll reduce

the size of your super savings over the long term. • you may need to satisfy extra criteria to receive

‘default cover’ through our Insurer. • you can still make additional member contributions

to your account in the future.

To reduce your default member contributions, complete the Change my default member contributions form in the Defined Benefit Division Guide or from our website.

1 The minimum is 3% if your employer agrees to you making default member contributions on a before-tax basis. Your employer maintains their contribution level.

13Accumulation 2 GuideCONTRIBUTING TO SUPER

Contribution limitsThere are limits, called ‘contributions caps’, on how much money can go into your super each financial year and still receive favourable tax treatment. You may pay a higher tax rate on any contributions that exceed the caps.

CONTRIBUTION CAPS (2019-20)

Concessional cap2 Non-concessional cap3

$25,000 $100,000

Other contributionsVOLUNTARY CONTRIBUTIONS

These are optional contributions made over and above your default member contributions.

You can make voluntary contributions (also known as personal contributions) to your super, in addition to the amount that your employer contributes on your behalf. You can make regular voluntary contributions from your salary, or one-off voluntary contributions.

If you’re 65 or over and are looking to sell the family home, you may also consider making ‘downsizer’ contributions with the proceeds. Read More about the DBD and Accumulation 2 at unisuper.com.au/pds for more information.

GOVERNMENT CO CONTRIBUTIONS

If your total income is $38,564 per year or less for 2019-20, the Government will contribute $0.50 to your account for every dollar of non-concessional (after-tax) contributions you make into your super, up to a maximum of $500. This is called a ‘co-contribution’.

Read More about the DBD and Accumulation 2 at unisuper.com.au/pds for more information.

Contribution capsExceeding contribution caps may have tax implications. Visit unisuper.com.au/pds and read How super is taxed.

2 A 15% tax applies to these contributions. Concessional contributions may be taxed at a higher rate if Division 293 applies. Read How super is taxed at unisuper.com.au/pds for more details.

3 An additional lifetime cap called the ‘total super balance’ applies to these contributions. Read How super is taxed at unisuper.com.au/pds for more details.

http://unisuper.com.au/pdshttp://unisuper.com.au/pdshttp://unisuper.com.au/pdshttp://unisuper.com.au/pdshttp://unisuper.com.au/pds

14

Accessing super There are restrictions on withdrawing your money from super funds.

You usually can’t access your super until you’ve reached a certain age (called your ‘preservation age’) and retired, but there are some special circumstances (called ‘conditions of release’) where you can withdraw it earlier, including: • retiring permanently from work once you’ve met

your preservation age • ceasing employment on or after the age of 60 • turning 65 • permanent incapacity • having an account balance of less than $200 when

you terminate employment with an employer who contributed to UniSuper, and

• death.

For information about additional special circumstances and accessing your super, visit unisuper.com.au/pds and read More about the DBD and Accumulation 2.

When can you access your super?WHEN YOU RETIRE OR LEAVE YOUR JOB

If you retire, you can access your account balance (including investment returns, which may be positive or negative), minus any fees, costs, charges and taxes.

If you leave your job and aren’t eligible for Accumulation 2 membership anymore, we’ll transfer you to our Accumulation 1 product. The way you’ve invested your super will stay the same (unless you instruct us otherwise), as will your insurance cover (provided you continue to meet the relevant criteria and have enough in your account to cover your insurance premiums).

What you end up with at retirement

YOUR ACCOUNT BALANCE

Any extra contributions, transfers and investment returns (which can be positive

or negative), less any fees, costs, taxes and insurance premiums.

OR

TOTAL AND PERMANENT DISABLEMENT, TERMINAL ILLNESS AND DEATH

Read the ‘Insurance in your super’ section on page 22 for more information on accessing super if you become totally and permanently disabled, terminally ill, or die.

For full details, visit unisuper.com.au/pds and read More about the DBD and Accumulation 2 and Insurance in your super.

http://unisuper.com.au/pdshttp://unisuper.com.au/pds

15

Nominating beneficiaries

Tell us who to leave your super and other benefits toIt’s worth considering who you’d like to leave your super and other benefits to if you die. The people you nominate are called ‘beneficiaries’.

You can make two types of beneficiary nominations: • non-binding beneficiary nominations, and • binding death benefit nominations.

For binding death benefit nominations, you can also specify whether your nomination is ‘lapsing’ (it expires after three years) or ‘non-lapsing’ (it doesn’t expire).

There are many rules around beneficiary nominations, including who you can and can’t nominate, what constitutes a valid nomination and administrative things like how to update or cancel a nomination.

Read the information about beneficiary nominations in More about the DBD and Accumulation 2, available at unisuper.com.au/pds , before making a decision.

> UniSuper member Jacqueline Gueye and her son


16

How we invest your moneyHere’s an overview of how we invest your money as an Accumulation 2 member.

Our investment optionsAs an Accumulation 2 member, you’ll have a range of investment options to choose from.

Pre-Mixed menu: a range of diversified investment options, each with its own mix of asset classes and weightings, performance objectives and risk profile. • Conservative • Conservative Balanced • Balanced (MySuper) • Sustainable Balanced • Growth • High Growth • Sustainable High Growth

Sector menu: investment options which mainly invest in a particular asset class. Create your own asset mix by choosing how much you want invested in each option. Sector investment options are less diversified and not intended to be used in isolation. • Cash • Australian Bond • Diversified Credit Income • Listed Property • Australian Shares • International Shares • Global Environmental Opportunities • Australian Equity Income • Global Companies in Asia

DEFAULT INVESTMENT OPTION

If you don’t select an investment strategy or if we receive any contributions before you instruct us otherwise, we’ll automatically invest contributions and transfers to your account in our default investment option—‘Balanced (MySuper)’.

CHANGING YOUR INVESTMENT OPTIONS

If you log into your account online, you can switch investment options at any time for: • your existing account balance • your future contributions strategy, and • your rollover strategy.

Alternatively, you can complete the Investment choice form—available at unisuper.com.au or by calling 1800 331 685—and send it to us. A switching fee may apply.

The How we invest your money document at unisuper.com.au/pds explains when your switch will become effective. Switches submitted online are generally processed more quickly.

You should consider the likely investment return, risk and your investment time frame when choosing an investment option.

From time to time, we may change the investment objectives and strategic asset allocations of our investment options. We’ll notify you of any materially adverse changes and publish any changes on our website.1

1 Investment objectives are not predictions or promises of any particular return.

http://unisuper.com.auhttp://unisuper.com.au/pds

17Accumulation 2 GuideHOW WE INVEST YOUR MONEY

INVESTMENT DETAILS FOR OUR DEFAULT INVESTMENT OPTION – THE BALANCED (MYSUPER) OPTION

Description of option Invests in a diversified portfolio, comprising mainly growth assets, such as Australian and international shares, property, infrastructure and private equity, with some fixed interest and cash investments.

Return target CPI + 4.6% per year over 10 years (after fees, costs and fund taxes) for a member who has a constant balance of $50,000 and who does not incur any activity-based fees.

Member suitability Members who want exposure to a range of asset classes and are comfortable with the value of their investments fluctuating.

Strategic asset allocations and ranges*

Cash and Fixed Interest 30% (10%-50%)

Australian Shares 38% (18%-58%)

Infrastructure and Private Equity 5% (0%-25%)

International Shares 22% (2%-42%)

Growth 70% (50%-90%)

Defensive 30% (10%-50%)

Property 5% (0%-25%)

Minimum suggested time frame for investment

10 years

Expected frequency of negative annual return

Four to less than six in 20 years

Summary risk level High

* UniSuper has discretion to determine the extent to which foreign currency risk is hedged. Different currencies may be hedged to different extents (or possibly not at all).

We recommend you read How we invest your money at unisuper.com.au/pds before making a decision on your investment options. It has detailed information on: • switching investment options • how we manage and change our investment options • our key considerations in determining investment

options, and • social, ethical, labour and environmental

considerations.

If you’d like more help, consider speaking with a qualified financial adviser.


18

Risks of superYour super is designed to provide you with an income for retirement. It aims to build your retirement savings in a cost-effective, tax-efficient way. But there are certain risks you should be aware of.

All investments, including super, have some level of risk.

Investment risk is the potential for your super to rise or fall due to how it is invested.

Different strategies carry different levels of risk, depending on the assets that make up the strategy. Those assets with the highest potential return over the longer term (such as equities) may also have the highest risk of losing money in the shorter term.

Investment risks associated with your account include the risk of negative returns from a specific investment, risk of underperformance by an investment manager, market risks, risks associated with poor performance by investments in particular markets or countries, currency risk, credit risk, inflation risk, liquidity risk and risks associated with the use of derivatives.

Other risks include potential changes to legislation and taxes that may apply in the future, the risk that events beyond our control may impact our administration, including our ability to process transactions, and the risk that our Trust Deed or fees and costs may change.

There’s also a risk that we may discontinue a particular investment option in the future or make changes to the investment strategy or objective of an option. We would give you advance notification if any investment options were to be discontinued.

When considering your investment in super, it’s important to understand that: • the value of investments will go up and down • the level of investment returns will vary and future

returns may differ from past returns • investment returns are not guaranteed and you may

lose some of your money • super laws are subject to change • your future savings (including contributions and

returns) may not be enough to provide adequately for your retirement

• the appropriate level of risk for you will depend on a range of factors including your age, your investment time frame, your other investments and your personal risk tolerance.

The More about the DBD and Accumulation 2 document at unisuper.com.au/pds details these, and other, significant risks of super for both DBD and Accumulation 2 members.


19

How super is taxedSuper can be a tax-effective way to save for retirement because the Government provides tax breaks and incentives. Here’s how tax can affect your super.

Tax on contributionsThis table is an overview of tax on contributions to super. It assumes you’ve provided us with your tax file number (TFN).

MAIN TYPES OF CONTRIBUTIONS

HOW MUCH TAX IS PAID HOW THE TAX IS PAID

Concessional (before-tax) contributions: • Superannuation Guarantee

(SG) employer contributions • Salary sacrifice contributions

made by your employer from your before-tax salary

• Personal contributions where you provide us with a valid form that states your intention to claim a tax deduction.

15% on contributions up to the concessional (before-tax) contributions cap.*

The tax is deducted from your super account.

Contributions which exceed your concessional contributions cap are included in your assessable income and taxed at your marginal tax rate. An excess concessional contributions charge will also apply.

You’ll also be entitled to a 15% tax offset on the excess concessional contribution (because you have already paid tax on this money). The offset is not refundable.

You can release up to 85% of your excess concessional contributions from your accumulation account.

Any excess concessional contributions not released from super are counted towards your non-concessional (after-tax) contributions cap.

Any excess concessional contributions you release from your super account will no longer count toward your non-concessional contributions cap.

The ATO will provide you with an assessment. The tax is paid ‘out of your pocket’ to the ATO. If you choose to release some of your excess contributions, we pay this to the ATO, who will offset it against any outstanding tax or other Australian Government debts you have before refunding any remaining balance.

* If your income for ‘Division 293 tax’ exceeds $250,000 during an income year, additional tax may apply to your concessionally-taxed contributions. For more details, visit unisuper.com.au/pds and read the How super is taxed document.



MAIN TYPES OF CONTRIBUTIONS

HOW MUCH TAX IS PAID HOW THE TAX IS PAID

Non-concessional (after-tax) contributions: • Personal contributions that

haven’t been claimed as a tax deduction

• Contributions your spouse makes on your behalf. These are treated in the same way as after-tax contributions, provided your spouse doesn’t claim the contribution as a tax-deductible employer contribution and provided you are not living separately from your spouse

• Excess concessional contributions not released from your super account.

There’s no tax payable on non-concessional contributions made up to your non-concessional contributions cap.

N/A

If you exceed the non-concessional contributions cap, you may choose to release the super contributions in excess of your non-concessional contributions cap plus 85% of any associated earnings.

The associated earnings released are taxed at your marginal tax rate. You will also be entitled to a 15% tax offset on the associated earnings included in your assessable income (because you’ve already paid contributions tax on this money).

The offset is not refundable.

The ATO will provide you with an assessment. The funds released are paid from us to the ATO, who will offset it against any outstanding tax or other Australian Government debts you have before refunding any remaining balance.

If you choose not to release your excess non-concessional contributions they will remain in your super account and the excess will be taxed at 47%.

The excess contributions tax is paid out of your nominated super account.

1 There’s 15% tax payable by your fund on concessional (before-tax) contributions paid into a super fund. Your super fund usually reduces your super account by your share of this tax.

2 An additional lifetime cap—the total super balance—applies to non-concessional (after-tax) contributions. Read How super is taxed at unisuper.com.au/pds for more details.

Contributions capsThe Government limits the amount of money—contributed by you or on your behalf—that can go into your super each financial year and still receive favourable (‘concessional’) tax treatment.

These ‘caps’ apply regardless of how many employers or super funds you have, and it’s your responsibility to monitor them.

You can exceed the caps, but you might pay more tax.

CONTRIBUTION CAPS (2019-20)

Concessional cap Non-concessional cap

$25,0001 $100,0002

Tax on transfersIf you transfer your super from one fund to another, there isn’t any tax payable unless the amount contains an untaxed element, e.g. from a public-sector super fund. Any untaxed element transferred to UniSuper is taxed at 15% when we receive it.

Tax on investment earningsInvestment earnings are generally taxed at up to 15%. This tax is deducted from the Fund’s investment earnings before they’re allocated to your account.


21Accumulation 2 GuideHOW SUPER IS TAXED

Tax on withdrawalsYou may have to pay tax when you withdraw super from us. We’ll normally deduct any tax before paying you. The amount of tax will depend on things like your age and how your benefit is paid.

Your payment will generally be tax free if you’re 60 or older, but it may incur tax if you’re under 60. If you are under 60 and have not provided a TFN, tax at the rate of 47% will generally be payable on the taxable component of a benefit payment made to you.

Regardless of your age, your payment may incur tax if it’s paid in other circumstances (like if you die and a death benefit is paid to a non-dependant for tax purposes).

Don’t pay any more tax than you have to!Your TFN is the unique, confidential number which links all your investments, super and taxation records to your identity. While it’s not compulsory to give us your TFN, if you don’t, any contributions or transfers that would attract tax (such as employer contributions or salary sacrifice contributions) may be taxed at the highest marginal tax rate.

It’s important for us to have accurate and up-to-date information about you to manage your account efficiently and protect your retirement savings. We use details such as your name, date of birth and also your TFN to: • match contributions and transfers from other super

funds to your account, and • verify your identity if you’re transferring super out of

UniSuper.

You can give us your TFN by logging into your account and going to the ‘Personal details’ page.

Providing your TFNRead the important information about providing your TFN at unisuper.com.au/tfn . You can also request a copy of that information, free of charge, by calling 1800 331 685.

http://unisuper.com.au/tfn

22

Insurance in your superOne of the great benefits of UniSuper membership is your access to insurance cover. Getting insurance through your super can be a convenient and affordable alternative to taking out a policy directly with an insurance company.

What you getIf you transfer to Accumulation 2, the Inbuilt benefits you had as a DBD member will cease. Depending on your circumstances, you may generally elect to receive external insurance cover that replaces your inbuilt benefits (`transitioned cover’).*

When you transfer to Accumulation 2, we’ll cancel your insurance cover (unless you instruct us otherwise) if you have existing insurance cover that you didn’t elect to receive and: • are under age 25, or • have an account balance under $6,000.

Your total cover will consist of any existing external cover we transfer (possibly none, depending on your circumstances), plus any transitioned cover you receive.

If you don’t have enough money in your account to pay for your insurance premiums at the end of each month, we’ll cancel your cover.

A pre-existing condition (PEC) exclusion will apply to some or all of the transitioned cover you receive for anywhere between 12 months and three years, depending on when you started in the DBD.

Transitioned Death and TPD cover is provided as unitised cover by default, but you can choose to convert it to fixed cover (see opposite for more information).

If you cancel your default cover, or you don’t elect to receive transitioned cover, you can always apply for cover later on. However, you’ll need to provide detailed health information that satisfies our Insurer. Our Insurer has the ability to accept, decline or impose restrictions, exclusions to your cover and/or loadings on your insurance premiums.

MORE INFORMATION?

To find out how inbuilt benefits are transitioned to external cover, and the terms, conditions and restrictions that apply to it, visit unisuper.com.au/pds and read What happens to your inbuilt benefits if you choose Accumulation 2?.

‘UNITISED’ AND ‘FIXED’ COVER

By default, Death and TPD insurance cover is provided as unitised cover, but if you’re under 61, you can convert it to fixed cover if you want to.

‘Unitised cover’ means the cost of each unit stays the same over time, but the amount of cover you get for each unit reduces as you get older.

‘Fixed cover’ means the cost of your cover increases over time, but the amount of insurance you get stays the same until you turn 61.

Some important notes about fixed cover: • You can’t have both fixed and unitised cover

(you either have one or the other). • If you do choose fixed cover, you can’t ever convert

back to unitised cover. • If you’ve already got TPD cover when you convert to

fixed cover, from age 61 your TPD cover will reduce by 10% each year until you’re insured for $0 at age 70.

Find out more about fixed cover and the premiums applicable in the Insurance in your super document at unisuper.com.au/pds .

* Transitioned cover is provided by our Insurer and subject to eligibility.

http://unisuper.com.au/pdshttp://unisuper.com.au/pds

23Accumulation 2 GuideINSURANCE IN YOUR SUPER

IF YOU BECOME TEMPORARILY UNABLE TO WORK

Income Protection cover could help with some of your daily living expenses if you become ill or are injured and you’re off work for some time as a result.

If you have Income Protection cover and our Insurer approves your claim, you’ll receive a monthly benefit that’s the lesser of: • the amount of cover you have, and • 85% of your monthly pre-disability income (with any

amount above 75% of your pre-disability income paid as a super contribution).

The standard arrangement for Accumulation 2 Income Protection cover is a waiting period of 90 days and a benefit period of five years. You can change this cover to: • a 30 or 60 day waiting period, and • a benefit period of two years, or to age 65.

Our Insurer needs to approve any increase in benefit period and decrease in waiting period, and may apply exclusions to your cover and/or loadings on your insurance premiums.

Read Insurance in your super at unisuper.com.au/pds for more information.

IF YOU BECOME TERMINALLY ILL OR DIE

If you have Death cover, are diagnosed with a terminal illness and satisfy the applicable criteria, you’ll receive an insured terminal illness payment. If a terminal illness payment is paid and you have any remaining Death cover, the remaining cover is payable on death.2

If you have Death cover and our Insurer approves the relevant claim, you’ll receive a one-off payment equal to the level of cover you hold.

If you die, the Insurer pays the one-off payment to us, and provided a condition of release is met, we release it to you or your beneficiaries.

The payment will also include your account balance (including investment returns, which may be positive or negative), minus any fees, costs, charges and taxes.

1 TPD cover ceases at age 70.2 Subject to the terms of the policy and provided cover remains in place at the date of your death.

Make sure you have the cover you needAs an Accumulation 2 member, you can reduce your insurance cover, cancel it, or apply for more—it’s up to you. You can apply: • to increase your cover • for Death and/or TPD and Income Protection cover

if you don’t have it • to change the waiting period or benefit payment

period of your Income Protection cover.

How to apply: • Log into your account online and go to the insurance

section, or • Complete the application form in the Insurance in

your super document at unisuper.com.au/pds , or • Call 1800 331 685 and we can arrange for you to

complete your application over the phone.

All applications for insurance cover (excluding additional default cover and transitioned cover) are subject to the approval of our Insurer. Our Insurer has the ability to accept, decline or impose restrictions, apply exclusions to your cover and/or loadings on your insurance premiums.

For information on the terms and conditions that apply to external insurance cover (including default cover), visit unisuper.com.au/pds and read Insurance in your super.

Types of payments and insurance availableIF YOU BECOME PERMANENTLY DISABLED

If you have insurance cover for TPD, you may be entitled to a one-off payment equal to the level of cover you hold.1 The Insurer pays the amount to us, and provided you then meet a condition of release, we release it to you.

Your payment may also include your account balance (including investment returns, which may be positive or negative), minus any fees, costs, charges and taxes.

In general terms, ‘total and permanent disablement’ means you’re unlikely—because of illness or injury—to undertake paid work for which you’re reasonably qualified by education, training or experience. For the full definition, visit unisuper.com.au/pds and read Insurance in your super.

http://unisuper.com.au/pdshttp://unisuper.com.au/pdshttp://unisuper.com.au/pdshttp://unisuper.com.au/pds

24

General informationHere we outline some extra information you should know as a UniSuper member.

Complaints We hope you don’t have any complaints about your super, but if you do, you’ll find all the information you need about our complaints process—and how to contact us—in the Defined Benefit Division Guide.

How we protect your privacyWe recognise the importance of protecting your personal information and are committed to complying with our privacy law obligations.

We collect your personal information to administer your account, ensure you’re eligible for insurance cover, provide you with UniSuper membership benefits, services and products, verify your identity and improve our products and services. You consent to our collecting sensitive information about you, where collecting that information is reasonably necessary for us to perform one or more of our functions or activities. We usually collect personal and sensitive information directly from you, however, it may also be collected from third parties, such as your employer.

We may also collect this information from you because we’re required or authorised by or under an Australian law or a court/tribunal order to collect that information.

If you don’t provide this information, we may not be able to administer your account, provide you with a product or service or you may be disadvantaged in some other way.

We may disclose your information to any service provider we engage (for example mail-houses, auditors, insurers, actuaries, lawyers and research consultants) to carry out or help us provide your membership benefits, services and products.

This includes overseas entities. The countries we may disclose personal information to are Japan, Canada and the United States of America. Where information is transferred overseas, we’ll seek to ensure the recipient of the data has security systems to prevent misuse, loss or unauthorised disclosure in line with Australian laws and standards.

Our Privacy Policy contains information about how you can access any personal information we hold, how to correct your information and how to make a complaint about a breach of the Privacy Act. It’s available at unisuper.com.au or by calling 1800 331 685.

We’re here to helpWe’re available on your campus to help with information and general advice about your membership and our range of products. You might find it beneficial to speak to one of our consultants — either on campus or at one of our member centres.

Visit unisuper.com.au/oncampus to book an appointment.

http://unisuper.com.auhttp://unisuper.com.au/oncampus

25

Fees and other costsThis section shows you the fees and other costs you may be charged.

These fees and costs may be deducted from your account, from the returns on your investment or from the assets of the superannuation entity as a whole.

Other fees, such as activity fees, advice fees for personal advice and insurance fees may also be charged, but these will depend on the nature of the activity, advice or insurance you choose.

Entry and exit fees cannot be charged.

We provide you with a 15% rebate for administration fees, switching fees and external insurance premiums paid where a tax deduction is available to us. The rebates for administration fees and external insurance premiums are credited to your account on a monthly basis. The rebate for switching fees is credited to your account when those fees are deducted.

This means for every $100 in fees and premiums deducted from your account, we provide you with a $15 rebate to reduce these costs.

Taxes, insurance fees and other costs relating to insurance are set out in this PDS, the How super is taxed document and the Insurance in your super document—all available on our website.

You should read all the information about fees and costs because it is important to understand their impact on your investment.

The fees and other costs for the Balanced (MySuper) investment option, and each other investment option offered by UniSuper, are set out on page 17.

Fees and costsCOMPETITIVE FEES AND NO COMMISSIONS

UniSuper members benefit from the savings we achieve as one of the largest super funds in the country—savings we pass on to you through competitive fees.

We don’t pay commissions, and our advisers don’t receive commissions.

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 account 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 or your employer, as applicable, may be able to negotiate to pay lower fees. 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.moneysmart.gov.au) has a superannuation calculator to help you check out different fee options.

* This text is required by law to be included in all PDSs. However, UniSuper’s fees are set at a competitive level that is consistent with effective management and are not negotiable by members.

http://www.moneysmart.gov.au


ACCUMULATION 2

Type of fee Amount How and when paid

Investment fee1 Balanced investment option 0.42%1 per year

The investment fee accrues daily and is deducted from the Balanced investment option and any other investment option(s) you’re invested in (as relevant).2

Administration fee1 The lesser of $96 or 2% of your account balance per year.

No more than $8 per month is deducted directly from your account. This fee is assessed and applied at the end of each month or, if you close your account, on that date.3

If at the end of the month your account balance is less than $4,800 (including investment returns, where applied) you’ll be charged one month’s worth of the 2% annual fee.4

Buy-sell spread Nil. Not applicable.

Switching fee The first switch per account in each financial year is free of charge. Any subsequent switches within that financial year will incur an $9.85 switching fee on the date the switch becomes effective.

If you’re invested in the Balanced investment option before submitting your request, the fee will be deducted in full from this option before the switch is completed.

If you’re not invested in the Balanced investment option, the fee is deducted proportionally from your investment option(s).

Advice fees5,6 Nil. Not applicable.

Other fees and costs6

Indirect cost ratio (ICR)1

Balanced investment option 0.13%2 per year

The ICR accrues daily and is deducted from the assets of the Balanced investment option and any other option(s) you’re invested in (as relevant).2

1 If your account balance is less than $6,000 at the end of the financial year, the total combined amount of administration fees, investment fees and indirect costs charged to you will be capped at 3% of the account balance. Any amount charged in excess of that cap will be refunded.

2 The investment fee and ICR shown above are indicative only and are based on the ICR and investment fee for this investment option for the year ended 30 June 2019. The actual amount you’ll be charged in subsequent financial years will depend on the actual fees and costs incurred by the Trustee in managing the investment option. For the year ending 30 June 2020, we anticipate that the ICR will decrease by up to 0.02% on the basis that the funding of the Operational Risk Reserve has reduced from 0.03% to 0.01%, although as the ICR shown is an estimate only, it may increase or decrease depending on the actual fees and costs incurred. The amounts of investment fees and ICRs for other investment options are set out in the Fees and other costs section of this document, and are paid at the same frequency and in the same manner as the Balanced investment option.

3 The account balance used in the calculation will reflect investment returns where they have been applied as a transaction to your account at the date the deduction takes effect. In the month where you join or exit, the fee will apply for the whole month.

4 Where you have multiple investment options in your account, the fee will be deducted proportionally across these options.5 Advice fees relating to all members investing in the Balanced product or investment option or any other investment option.6 Further fees and costs such as fees for personal advice and insurance fees may apply. For further information, refer to ‘Additional Explanation of

Fees and Costs’ on page 29.

27Accumulation 2 GuideFEES AND OTHER COSTS

Changes to fees and costsIf changes (that aren’t materially adverse) are made to fees and costs, updated information will be available at unisuper.com.au or by calling 1800 331 685. You can request a paper or electronic copy of updated information without charge.

Example of annual fees and costs for the Balanced (MySuper) investment optionThis table gives an example of how the fees and costs for the Balanced investment option can affect your super investment over a one-year period. You can use this table to compare this super product with other super products.

To have an investment in MySuper, you must be an Accumulation 2 member with some or all of your account invested in the Balanced option.

EXAMPLE – BALANCED INVESTMENT OPTION BALANCE OF $50,000

Investment fees 0.42%1,3 For every $50,000 you have in the superannuation product, you will be charged $210 each year.

PLUS Administration fees

The lesser of $96 or 2% of your account balance per year.

And, you will be charged $96 per year in administration fees ($8 per month).

PLUS Indirect costs for the superannuation product

0.13%1, 3 And, indirect costs of $65 each year1 will be deducted from your investment

EQUALS Cost of product

If your balance was $50,000, then for that year you will be charged fees of $3712 for the super product.

1 The investment fee and ICR shown above are indicative only and are based on the investment fee and ICR for this investment option for the year ended 30 June 2019, including several components which are estimates. The actual amount you’ll be charged in subsequent financial years will depend on the actual fees and costs incurred by the Trustee in managing the investment option. For the year ending 30 June 2020, we anticipate that the ICR will decrease by up to 0.02% on the basis that the funding of the Operational Risk Reserve has reduced from 0.03% to 0.01%, although as the ICR shown is an estimate only, it may increase or decrease depending on the actual fees and costs incurred.

2 Additional fees may apply. If your Accumulation 2 account is invested in investment options other than the Balanced investment option, the investment fees and indirect costs will be different to those displayed. Refer to the ‘Additional explanation of fees and costs’ section on page 29 for further details.

3 The investment fees and ICRs for other investment options are set out on page 30, are calculated on the same basis, and paid at the same frequency and in the same manner as the Balanced investment option.

http://unisuper.com.au


> UniSuper member Maggie Ball, University of South Australia


Note that managers generally manage portfolios comprising assets which relate to multiple investment options. It’s not possible to accurately predict the amount of performance-based fees that may be payable in respect of a particular investment option in the next financial year. This will depend on: • the investment returns generated during the

year ahead • which managers generate excess returns within

their portfolios • whether there were negative amounts (or positive

amounts) being carried forward for those managers • the individual fee arrangements (if any) which had been

negotiated with the relevant investment managers • the size of the portfolios being managed by

those managers, and • the proportion of those portfolios which relate to the

relevant investment option.

ADDITIONAL EXPLANATION OF FEES AND COSTS

Investment fees and indirect cost ratio (ICR)

The investment fees and ICRs for the year ending 30 June 2019 can be viewed on page 30 or at unisuper.com.au/investment-costs . These costs show the total investment fees and indirect costs attributed to each of our investment options (excluding the fees that are charged directly to your account) as a percentage of the total average net assets of the relevant investment option.

Performance-based fees

We don’t directly deduct any performance-based fees from member accounts. However, some external investment managers may be entitled to receive performance-based fees if they generate strong investment returns. These are included in the investment fees and are indirectly borne by members invested in an option.

To receive performance-based fees, a manager must generate returns which exceed an agreed benchmark (in some cases by a margin or hurdle), in which case the manager is entitled to receive a percentage of the excess returns. The amount that can be recouped by any particular manager in one year is generally capped and fees in excess of the cap are carried forward into future years and can potentially be paid in future years, subject to generating adequate returns. If managers fail to generate excess returns in a year, this typically results in a negative amount being carried forward for future years to offset any performance-based fees which may otherwise become payable in future.

http://unisuper.com.au/investment-costs


The table below sets out the estimated investment fees and costs for each option.

INVESTMENT OPTION FEES AND COSTS FOR THE YEAR ENDED 30 JUNE 2019

Option Investment Fees (%)1 Indirect Costs (%)1 Total (%)3

Conservative 0.32 0.28 0.60

Conservative Balanced 0.34 0.30 0.64

Balanced 0.42 0.13 0.55

Sustainable Balanced 0.33 0.04 0.37

Growth 0.50 0.19 0.69

High Growth 0.51 0.16 0.67

Sustainable High Growth 0.38 0.04 0.42

Cash2 0.14 0.04 0.18

Australian Bond2 0.18 0.04 0.21

Diversified Credit Income 0.33 0.04 0.36

Listed Property4 0.24 0.09 0.33

Australian Shares 0.37 0.33 0.70

International Shares 0.60 0.04 0.64

Global Environmental Opportunities

0.44 0.04 0.48

Australian Equity Income 0.39 0.04 0.42

Global Companies in Asia 0.45 0.04 0.48

1 The investment fees and ICRs shown above are indicative only and are based on the investment fees and ICRs for the year ended 30 June 2019, including several components which are estimates. The actual amount you’ll be charged in subsequent financial years will depend on the actual fees and costs incurred by the Trustee in managing the relevant investment option. For the year ending 30 June 2020, we anticipate that the ICR will decrease by up to 0.02% on the basis that the funding of the Operational Risk Reserve has reduced from 0.03% to 0.01%, although as the ICR shown is an estimate only, it may increase or decrease depending on the actual fees and costs incurred.

2 For the year ending 30 June 2020, we anticipate that the investment fee for the Cash and Australian Bond options will decrease by up to 0.04%.3 Components may not add to ‘Total’ due to rounding.4 These amounts reflect the fees and costs which we have incurred in managing the Listed Property option, for example, fees and costs we incurred in

the course of investing in listed property securities (i.e. REITs) for that option. These figures do not include any amounts incurred by the REITs which the Listed Property option has invested in – such as costs relating to any real property and the other business activities of those REITs.


Transactional and operational costs

Each investment option incurs transactional and operational costs to different extents. These typically include items such as: • brokerage • stamp duty • settlement and clearing costs • bid / ask spreads (note that spreads pertaining to

over-the-counter derivatives have already been factored into our Investment Fees and/or ICR)

• market impact, and • property operating costs for options which invest in

property-related interposed vehicles.

Borrowing costs

UniSuper invested in interposed vehicles which incurred borrowing costs. The amount borne by particular investment options varies and those amounts are set out in the table on the next page. These borrowing costs are recovered from the revenues of the particular investment prior to the distribution of any earnings from the investment. Viewed this way, these costs are an additional cost to members in the same way that they are a cost for any investor in the investment.

What’s an interposed vehicle?

An interposed vehicle is a complicated concept to define completely and accurately. The following example illustrates, on a simplistic level, how an investor might invest in an interposed vehicle. • An investor buys shares in a particular company

listed on the Australian Securities Exchange. In this case, the shares in that company are an investment in their own right.

• On the other hand, an investor could invest in another entity (Fund A) which, in turn, invests in that particular company listed on the Australian Securities Exchange. In this case, Fund A will often be regarded as an interposed vehicle. When super funds disclose their fees and costs, they include fees and costs incurred by interposed vehicles. However, Fund A will not necessarily be an interposed vehicle if this was an investment in its own right and not a means of gaining exposure to the listed company.

Determining whether an entity is an interposed vehicle involves three separate tests. For a detailed explanation, we recommend you refer to the latest version of ASIC’s Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements as well as any guidance (including Frequently Asked Questions) issued by ASIC in conjunction with Regulatory Guide 97. The Guide is available at www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides.

http://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guideshttp://www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides


TRANSACTIONAL AND OPERATIONAL COSTS, PERFORMANCE-BASED FEES, AND BORROWING COSTS BY INVESTMENT OPTION FOR THE YEAR ENDED 30 JUNE 2019

Option Transactional and operational costs (%)1

Performance-based fee (%)1,2

Borrowing costs (%)1

Conservative 0.28 (of which 0.21 has already been included in the investment fee and/or ICR)

0.03 0.04

Conservative Balanced 0.28 (of which 0.23 has already been included in the investment fee and/or ICR)

0.03 0.04

Balanced 0.21 (of which 0.11 has already been included in the investment fee and/or ICR)

0.02 0.01

Sustainable Balanced 0.07 (of which 0.02 has already been included in the investment fee and/or ICR)

0.00 0.00

Growth 0.31 (of which 0.18 has already been included in the investment fee and/or ICR)

0.03 0.02

High Growth 0.30 (of which 0.16 has already been included in the investment fee and/or ICR)

0.03 0.02

Sustainable High Growth 0.07 (of which 0.03 has already been included in the investment fee and/or ICR)

0.00 0.00

Cash 0.00 0.00 0.00

Australian Bond 0.10 (of which 0.01 has already been included in the investment fee and/or ICR)

0.00 0.00

Diversified Credit Income 0.12 (of which 0.01 has already been included in the investment fee and/or ICR)

0.00 0.00

Listed Property3 0.16 (of which 0.02 has already been included in the investment fee and/or ICR)

0.00 0.00

Australian Shares 0.37 (of which 0.30 has already been included in the investment fee and/or ICR)

0.00 0.03

International Shares 0.22 (of which 0.06 has already been included in the investment fee and/or ICR)

0.00 0.00

Global Environmental Opportunities

0.19 (of which 0.05 has already been included in the investment fee and/or ICR)

0.00 0.00

Australian Equity Income 0.10 (of which 0.05 has already been included in the investment fee and/or ICR)

0.00 0.00

Global Companies in Asia 0.01 (of which 0.00 has already been included in the investment fee and/or ICR)

0.00 0.00

1 The transactional and operational costs, performance-based fees, and borrowing costs shown above are indicative only and are based on the transactional and operational costs, performance-based fees, and borrowing costs for the year ended 30 June 2019, including several components which are estimates. The actual amount you’ll incur in subsequent financial years will depend on the actual transactional and operational costs, performance-based fees, and borrowing costs incurred by the Trustee in managing the relevant investment option.

2 Performance-based fees are already included in the investment fee and/or ICR for each option. 3 These amounts reflect the fees and costs which we incurred in managing the Listed Property option, for example, fees and costs we incurred in the

course of investing in listed property securities—i.e. real estate investment trusts (REITs)—for that option. These figures don’t include any amounts incurred by the REITs which the Listed Property option has invested in—such as costs relating to any real property and the other business activities of those REITs.


You’ll receive an advice fee quote before UniSuper Advice proceeds with personal advice services. You’ll be charged on a fee-for-service basis at either a fixed or hourly rate. The cost of the service provided varies depending on a number of factors, including the complexity of the advice sought.

These fees are additional to the fees stated in this product disclosure statement.

You can learn more about the services UniSuper Advice provides by referring to the Financial Services Guide—Personal Advice and Financial Services Guide—General Advice, available at unisuper.com.au or by calling us.

ALTERATIONS TO FEES

Fees are generally reviewed annually and may increase on 1 July each year in line with increases in the Consumer Price Index (CPI) for the previous 12 months ending 31 December. Fees may change without your consent. We reserve the right to introduce a new fee or change any fees. We will give you 30 days’ written notice (except where an increase in fee or charge is attributable to an increase in the Trustee’s costs in managing your investments) before a new or increased fee takes effect. Where an increase in fee or charge is attributable to an increase in the Trustee’s costs of managing your investments, the Trustee will notify you as soon as possible after the change takes effect, but not more than 3 months after the event occurs unless the change is not materially adverse, in which case the Trustee will notify you within 12 months of the change.

Tax

See this Product Disclosure Statement and the How super is taxed document for information on the tax applicable to your account. We’ll provide you with a 15% rebate for administration fees, switching fees and external insurance premiums paid where a tax deduction is available to us. The rebates for administration fees and external insurance premiums are credited to your account on a monthly basis. The rebate for switching fees is credited to your account when those fees are deducted.

INSURANCE PREMIUMS

See the Insurance in your super document at unisuper.com.au/pds for information on the premiums, restrictions, exclusions and limitations associated with your insurance cover. Applicable insurance premiums are deducted from your account each month. A fee for administrating the insurance agreement is included in the premium cost. This administration fee is paid to the Trustee.

OPERATIONAL RISK FINANCIAL REQUIREMENT

Australian super funds are required to have an Operational Risk Financial Requirement (ORFR). This is required by the Australian Prudential Regulation Authority (APRA) and is intended to ensure that super funds have access to financial resources to cover losses, costs and expenses that may be incurred in the event of an operational risk.

The financial resources are held in the Operational Risk Reserve (ORR). This is funded out of investment-related charges which are included in the ICR for each investment option. This component of the ICR is currently 0.01% p.a. for each investment option.

FEES FOR UNISUPER ADVICE

Factual information and general advice is provided at no additional charge to UniSuper members. The cost of that service is included in the administration fees you pay.

UniSuper Advice is a financial planning service generally available to UniSuper members, former members and their families through UniSuper Management Pty Ltd (USM) ABN 91 006 961 799 Australian Financial Services Licence No. 235907, which is licensed to provide financial advice services and deal in financial products.

UniSuper Advice offers personal scaled advice on several topics, or comprehensive personal advice. Personal scaled advice covers topics like super contributions, investment options and insurance as they relate to your UniSuper account, as well as establishing a Flexi Pension. Comprehensive advice includes retirement planning, insurance, non-super investments and wealth accumulation.

http://unisuper.com.auhttp://unisuper.com.au/pds


Advice fees

A fee is an advice fee if: • the fee relates directly to costs incurred by

UniSuper’s Trustee because of the provision of financial product advice to a member by:

– UniSuper’s Trustee; or – another person acting as an employee of, or

under an arrangement with, UniSuper’s Trustee; and

• those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an activity fee or an insurance fee.

Refer to the ‘Fees for UniSuper advice’ section on page 33 for information about advice fees in UniSuper.

Buy-sell spreads

A buy-sell spread is a fee to recover transaction costs incurred by UniSuper’s Trustee in relation to the sale and purchase of UniSuper assets.

Buy-sell spreads do not currently apply to your UniSuper account.

Indirect cost ratio

The indirect cost ratio (ICR)—for a MySuper investment option or another investment option offered by UniSuper—is the ratio of the total of the indirect costs for the MySuper product or investment option, to UniSuper’s total average net assets attributed to the MySuper product or investment option.

Note: A fee deducted from a member’s account or paid out of the superannuation entity is not an indirect cost.

ICRs are deducted indirectly from your account. A breakdown of these costs to 30 June 2019, for each investment option, is provided on page 30.

GST and stamp duty

Fees and costs may include GST and stamp duty where applicable. The amount of GST payable may be reduced in certain circumstances as a result of tax credits applicable to the Trustee.

Bank fees

The Trustee reserves the right to recover any bank fees incurred on a cost recovery basis.

DEFINED FEES

This section defines the different fees and costs that are able to be legally charged to your UniSuper account. Not all charges apply to your UniSuper account.

Activity fees

Activity fees relate to costs incurred by UniSuper’s Trustee if they are directly related to a Trustee activity: • that is engaged in at the request, or with the

consent, of a member, or • that relates to a member and is required by law

and those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an advice fee or an insurance fee.

The only activity fees charged by UniSuper are external insurance premiums.

Administration fees

An administration fee is a fee that relates to UniSuper’s administration or operation and includes costs that relate to the administration or operation, other than: • borrowing costs, and • indirect costs that are not paid out of the

superannuation entity that the Trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the entity or in an interposed vehicle or derivative financial product, and

• costs that are otherwise charged as an investment fee, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.

UniSuper’s administration fee for Accumulation 2 is the lesser of $96 or 2% of your account balance per year.


Investment fees

An investment fee is a fee that relates to the investment of UniSuper’s assets and includes: • fees in payment for the exercise of care and

expertise in the investment of those assets (including performance fees); and

• costs that relate to the investment of UniSuper’s assets, other than:

– borrowing costs, and – indirect costs that are not paid out of UniSuper

that the Trustee has elected in writing will be treated as indirect costs and not fees, incurred by UniSuper’s Trustee or in an interposed vehicle or derivative financial product, and

– costs that are otherwise charged as an administration fee, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.

Investment fees are deducted indirectly from your account. A breakdown of these fees to 30 June 2019, for each investment option, is provided on page 30.

Switching fees

A switching fee for a MySuper product is a fee to recover the costs of switching all or part of a member’s interest in UniSuper from one class of beneficial interest in UniSuper to another.

A switching fee for a superannuation product other than a MySuper product, is a fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one investment option or product in the entity to another.

The first switch in a financial year is free. UniSuper charges a switching fee of $9.85 for the second and subsequent switches in a financial year. The fee is charged on the date the switch becomes effective.

This page has been intentionally left blank.

Transferring from the Defined Benefit Division to Accumulation 2

Fund: UniSuper ABN 91 385 943 850 Trustee: UniSuper Limited ABN 54 006 027 121 AFSL No. 492806Administrator: UniSuper Management Pty Ltd ABN 91 006 961 799 AFSL No. 235907Address: Level 1, 385 Bourke Street, Melbourne Vic 3000 Issue date: April 2020

UNISF00094 0420

SECTION 1 — Your details

Please use BLACK or BLUE BALLPOINT PEN and print in CAPITAL LETTERS. Cross where required

UniSuper member number

■■■■■■■■■■■If you’re unsure, refer to your most recent correspondence or call us.

Title Mr ■ Mrs ■ Ms ■ Dr ■ Professor ■Other ■■■■■■■■■■■■■■■Surname

■■■■■■■■■■■■■■■■■Given name

■■■■■■■■■■■■■■■■■Date of birth (DDMMYYYY)

■■■■■■■■Contact number

( ■■ ) ■■■■■■■■■■Employer

■■■■■■■■■■■■■■■■■

Complete this form to elect to transfer your UniSuper membership from the Defined Benefit Division (DBD) to Accumulation 2.

Once you’ve made an election to transfer to Accumulation 2 you’re unable to reverse the decision.You should read the Defined Benefit Division and Accumulation 2 PDS (and its associated documents) for information about membership, and consider seeking advice from an on-campus consultant or a qualified UniSuper Financial Adviser before you make your decision.The PDS contains information about how long you have to make a decision about transferring to Accumulation 2. Generally, if you don’t make an election within two years of the date your DBD membership commenced, you’ll remain a member of the DBD. So we must receive and process this form within two years of the date you join the DBD.If you’d like to remain a member of the DBD, you don’t need to make an election.If you transfer to Accumulation 2, your inbuilt benefits will cease.If you elect and receive external insurance cover to replace your inbuilt benefits – known as ‘transitioned cover’ – it will be added to any existing external cover you have through your UniSuper membership, subject to the automatic acceptance limit.Visit unisuper.com.au/choosingyoursuper if you need more information to make your decision.

If you’re under age 25 or have an account balance less than $6,000, and you have insurance cover you’ve not elected to receive or keep, you’ll need to tell us you want to keep that cover or we may cancel it when you transfer to Accumulation 2.

Read the Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? documents, available at unisuper.com.au/pds .

Need help? A Email [email protected] A Call 1800 331 685, or A Visit unisuper.com.au

AVOID PROCESSING DELAYSCheck you’re using the latest version of this form. Compare the issue date at the bottom of this page with the version available at unisuper.com.au/forms .

SECTION 2 — Insurance election

If eligible, would you like to receive external Death, TPD and income protection cover (transitioned cover) to replace your inbuilt benefits, in addition to any existing external insurance cover you may already have?

■ Yes. Go to SECTION 3■ No. Continue.If you make no election and you transfer to Accumulation 2 on or after 1 April 2020, you won’t receive transitioned cover.

Are you under age 25 or do you have an account balance of less than $6,000?

A No. Go to Section 3 A Yes. Continue.

of 2

SECTION 3 — Member election, declaration and signature

Please read this declaration before you sign and date your form.

• I declare the information I have given on this form is true and correct.

• I have read and understood the information in the Defined Benefit Division and Accumulation 2 PDS including the documents that have been incorporated by reference.

• I understand that: - my inbuilt benefits will cease. - if I don’t elect to receive external insurance cover to replace my inbuilt benefits, I may have no insurance.

- my election is irrevocable and I will be unable to return to Defined Benefit Division membership at a later date.

- my membership of Accumulation 2 will be effective from the commencement date of the pay period after we received the election.

- if I cease employment before my election is effective, my request to transfer to Accumulation 2 may not be processed.

- my converted defined benefit component transferred into Accumulation 2 and any future contributions received will be invested in line with my current future contributions strategy for my accumulation component. This future contributions strategy will now apply to my Accumulation 2 account. If I have not nominated a future contributions strategy, my future contributions strategy will be the same as the way my current contributions are invested in my accumulation component. If I don’t have an accumulation component, then any future contributions will be invested in the default Balanced investment option.

- external insurance cover will cease if I do not have sufficient funds to pay the premiums when due.

• I consent to my personal information being used in line with UniSuper’s Privacy Policy.

Member signature

Date (DDMMYYYY)

■■■■■■■■

RETURNING YOUR FORMEmail: [email protected]: UniSuper, Level 1, 385 Bourke Street,

Melbourne VIC 3000

Privacy statementWe recognise the importance of protecting your personal information and are committed to complying with our privacy law obligations.We collect your personal information to administer your account, ensure you’re eligible for insurance cover, provide you with UniSuper membership benefits, services and products, verify your identity and improve our products and services. You consent to our collecting sensitive information about you, where collecting that information is reasonably necessary for us to perform one or more of our functions or activities. We usually collect personal and sensitive information directly from you, however, it may also be collected from third parties, such as your employer.We may also collect this information from you because we’re required or authorised by or under an Australian law or a court/tribunal order to collect that information.If you don’t provide this information, we may not be able to administer your account, provide you with a product or service or you may be disadvantaged in some other way.We may disclose your information to any service provider we engage (for example mail-houses, auditors, insurers, actuaries, lawyers and research consultants) to carry out or help us provide your membership benefits, services and products. This includes overseas entities. The countries we may disclose personal information to are Japan, Canada and the United States of America. Where information is transferred overseas, we’ll seek to ensure the recipient of the data has security systems to prevent misuse, loss or unauthorised disclosure in line with Australian laws and standards.Our Privacy Policy contains information about how you can access any personal information we hold, how to correct your information and how to make a complaint about a breach of the Privacy Act. It’s available at unisuper.com.au or by calling 1800 331 685.

SECTION 2 — Continued

Would you like to keep any existing external insurance cover you may have?

■ Yes.If you don’t tick this box and you transfer to Accumulation 2 on or after 1 April 2020, we’ll only cancel your cover if you have cover that you haven’t elected to receive or keep if, on the day you transfer:• you’re under age 25, or• you have an account balance of less than $6,000.

CONTACT US1800 331 685 +61 3 8831 7901

WEBSITEunisuper.com.au

[email protected]

UNISUPER ADVICE 1800 823 842 +61 3 8831 7916

ADDRESSUniSuper Level 1, 385 Bourke Street Melbourne Vic 3000 Australia

Printed on environmentally responsible paper.

UNIS000010 0420

http://unisuper.com.aumailto:enquiry%40unisuper.com.au?subject=

UNIS000010_Accumulation_2_Guide_0420_FV2_LRUNISF00094_Transferring_from_DBD_to_Accum2_0420_FV_INTUNIS000010_Accumulation_2_Guide_0420_FV2_LR

Member_number: Title: OffOther_title: Surname: Given_name: Date_of_birth: Area_code: Contact_number 1: Employer: Insureance_question1: OffInsurance_question3: OffDec_signature_date:

Documents

Accumulation 2 guide - UniSuper/media/files/forms and... · Accumulation 2 membership can help protect you when you’re most in need. Remember If after reading the DBD Guide, this