Local Government Super Product Disclosure Statement

Retirement Scheme

Local Government Super Product Disclosure Statement

Local Government Super Product Disclosure Statement

Product Disclosure Statement

How to use this Product Disclosure StatementThis Product Disclosure Statement (PDS) provides you with important details about the Local Government Super (LGS) Retirement Scheme.

This document together with the fact sheets detailed below make up the LGS Retirement Scheme PDS.

The following fact sheets containing further information on the topics covered in this PDS are available at lgsuper.com.au/PDS or can be sent to you free of charge by calling Member Services on 1300 LGSUPER (1300 547 873):

l Fees and other costs

l How we manage your money

l Riskanddiversification.

The information contained in this PDS and the fact sheets is general information only and should not be considered to be personal advice as it does not take into account your individualfinancialobjectives,financialsituationorneeds.

Establishing and maintaining your accountToestablishandmaintainyourmembershipinLGS,theTrusteerequeststhatyouprovidecertaininformationtoLGSanditsserviceproviderswhenyoujoinandwhenyouprovideinstructions in relation to your account.

If you choose not to give us your personal information or provide us with incomplete or inaccuratepersonalinformation,wemaynotbeabletoprovideyouwithallyourentitlementsandbenefits,andmaynotbeabletoprocessyourclaimorpayyourbenefit.

Obtaining up-to-date informationTheinformationcontainedinthisPDSisuptodateatthetimeofpreparation.However,LGSreservestherighttochangetheinsurerandvarythebenefits,proceduresortermsandconditionsfromtimetotime.Someoftheinformationmayalsobesubjecttochange,suchasinformationaboutmanagementcosts,otherfeesoraparticularinvestmentoption.

LGS will update the PDS if there is a materially adverse omission or change to any information in the PDS.

The latest PDS is available free of charge at lgsuper.com.au or from Member Services.

The best returns are sustainableLikeothersuperfunds,LGSinvestsinarangeofassetssuchasshares,privateequityanddirectproperty.However,unlikemostfunds,LGSactivelyinveststheseassetsbasedona Sustainable and responsible investment policy.

LGSbelievesthatitisnotonlyimportanttomaximiseinvestmentreturns,butalsotoinvestinawaythatfavourscompaniesandprojectswhichshowacommitmenttoourcommunityand the environment.

LGS has won numerous awards in recognition of its commitment to responsible investing. More information on our awards can be found at lgsuper.com.au/awards

https://www.lgsuper.com.au/forms-and-resources/product-disclosure-statement/

https://www.lgsuper.com.au/

https://www.lgsuper.com.au/about-us/why-choose-lgs/our-awards/

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RETIREMENT SCHEME

ContentsImportant information......................................... 1About Local Government Super (LGS) ... 2LGS Retirement Scheme .................................... 3Your account ..............................................................5Contributions ............................................................6SalaryandBenefitPoints .................................12

Insurance ....................................................................14

Benefits ........................................................................16

Fees and other costs ..........................................27

Riskanddiversification .....................................33

How we invest your money ...........................34

Preservation .............................................................36

Taxation.......................................................................38

Operational information ..................................41

Contact details ................................(back cover)

Issue No. 18 dated 1 July 2020. This document has been issued by LGSS Pty Limited (ABN 68 078 003 497) (AFSL 383558), as Trustee for Local Government Super. This document contains general ainformation only and is not intended to be a substitute for advice. It does not take into account your investment objectives, financial situation or particular needs. You should obtain advice tailored to your personal circumstances. Accordingly, you should consider the information having regard to your personal circumstances and consider the relevant Product Disclosure Statement at lgsuper.com.au/PDS before making a decision about the product.



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Quality serviceServicesavailabletomembersincludeawebsitewithonlineaccountaccess,anLGSmobileapptomanageyouraccount,anin-housecontactcentre,affordablefinancialplanning,seminars,annualandhalf-yearlystatementsandnewsletters.LGSdirectlyandactivelymonitors the administration services it provides and welcomes feedback from members regarding these services.

Reasonable cost LGSoperatesonaprofit-to-membersbasis.Itdoesnothaveanyentryfeesandbelievesthat the total fees charged are competitive in the superannuation industry.

Investment choiceThe LGS Retirement Scheme offers you a choice of six investment options.

Disclaimer NeitherLGSnoranyofitsserviceproviders,oranyoftheirassociatedcompanies,guaranteetheperformanceoftheLGSRetirementSchemeoranyofitsinvestments,therepaymentofcapital,oranyparticularrateofreturn.

Interpretation In this PDS:

l Local Government Super is referred to as ‘LGS’

l the LGS Retirement Scheme is referred to as ‘the Scheme’

l theTrustee,LGSSPtyLimited,isreferredtoas‘theTrustee’,‘we’and‘us’

l members are referred to as ‘you’ and ‘your’

l allmonetaryamountsreferredtointhisdocumentareinAustraliandollars,unlessotherwisespecified.

Important information

RETIREMENT SCHEME

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About Local Government Super (LGS)The Local Government Superannuation Scheme was established on 30 June 1997 by a Trust Deed made under an Act of the NSW Parliament for the purpose of providing retirement benefitsforemployeesofcertainLocalGovernmentbodiesinNSW.Whenyoujoin,youare bound by the Trust Deed.

The Retirement Scheme is provided under Division B of the Trust Deed.

LGS is regulated primarily by the Superannuation Industry (Supervision) Act 1993 (Commonwealth).

About the TrusteeLGSS Pty Limited (ABN 68 078 003 497) is the Trustee of Local Government Super (ABN 28 901 371 321). LGS manages approximately $12 billion in superannuation assetsforapproximately90,000members.WhilstthesizeofLGSisnotaguaranteeofsecurityorperformance,itgivestheTrusteecosteffectiveaccesstoprofessionaladvice,administrationandmonitoringservices.TheTrusteeisaprofit-to-memberscompanysolelyengagedinthemanagementandcontrolofLGSanditsassetsforthebenefitofmembers.

TheTrusteeisresponsibleformanagingLGS,includingthesafekeepingofassetsandensuringLGS operates in accordance with the Trust Deed and superannuation law.

The Trustee is an APRA Registrable Superannuation Entity Licensee and is also the holder of an Australian Financial Services Licence (licence no. 383558).

TheTrusteeengagesexternalexpertssuchasinvestmentadvisers,investmentmanagers,administrators,custodians,accountants,solicitorsandauditorstoassistwithitsobligations.

The Trustee is located at:

Local Government House Contact details: Level 12 Phone: 1300 LGSUPER (1300 547 873) 28 Margaret Street Fax: (02) 9333 3096 Sydney NSW 2000 Web: lgsuper.com.au

About the service providersThe administrator of LGS is Australian Administration Services Pty Limited (AAS) which attendstotheday-to-dayoperationsunderawrittenserviceagreement.

ThecustodianforLGSisJ.P.MorganNomineesAustraliaLtd,whichholdsLGS’sassetsunder a written service agreement.



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About the LGS Retirement SchemeTheSchemeisasplitbenefittypeschemeforcertainemployeesofparticipatingemployerswithintheLocalGovernmentsectorinNSW.SubjecttolimitedexceptionsspecifiedintheSuperannuation Administration Act 1996 (NSW),theSchemeisclosedtonewemployees.

Your employer contributes on your behalf. Your contribution level determines the pace atwhichyoubuildupyourretirementbenefits.

TheSchemeprovidesbenefitsintheeventofyourdeath,invalidityandonleavingemployment with a participating employer.

Ifyouarenolongeremployedbyaparticipatingemployer,incertaincircumstancesyoumayretainyourbenefitsasadeferredmember.Refertopage24formoreinformation.

Members who have reached their preservation age may also access a Transition to Retirement (TTR) pension while still employed. Refer to page 18 for more information.

Who can join? TheSchemeisclosedtonewmembers,exceptfor:

l persons taking up employment with a Local Government employer and as part of this employment wish to transfer their existing membership of the State Authorities Superannuation Scheme (SASS) or the Energy Industries Retirement Scheme; and

l certainmembersoftheLGSRetirementSchemeandtheLGSDefinedBenefitSchemewho have experienced a salary reduction of 20% or more and have taken up an option todefertheiraccruedbenefitintheirrespectiveScheme.

LGS Retirement Scheme

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RETIREMENT SCHEME

Earlier Schemes Thereareanumberofspecialprovisionsthatapplytomemberswhooriginallyjoinedoneof the schemes which preceded the establishment of SASS in 1988. It is not possible to detail allofthesespecialprovisionsandmemberswhooriginallyjoinedoneoftheseearlierschemesare advised to check with Member Services on 1300 LGSUPER (1300 547 873) as to which of the provisions might apply to them. The earlier schemes and a brief summary of the special provisions are as follows:

NSW Retirement Fund (NRF)

l Special contribution points up to age 45.

l Pension options under some circumstances.

l Minimumbenefitspayableondeathorinvalidity.

Local Government Insurance Fund

l Minimumbenefitspayableonresignation,dismissal,discharge,retirement,death or invalidity.

Local Government Provident Fund

l Minimumbenefitspayableonresignation,dismissal,discharge,deathorinvalidity.

Local Government Benefits Fund

l Minimumbenefitspayableonretirement,deathorinvalidity.

l Some female members have a retirement age of 55.

l Some former Sydney Electricity employees have a retirement age of 55.

Local Government Pension Fund


l Minimumbenefitspayableondeathorinvalidity.

l Children’s pensions payable on death.

l Additionalbenefitspayableondeathorinvalidityundersomecircumstances.

l Additionalbenefitspayabletoage60undersomecircumstances.

Public Authorities Superannuation Scheme (PASS)

l Additionalbenefitspayabletoage60undersomecircumstances.

State Public Service Superannuation Fund (SPSSF)

l Benefitpointshavehighernominalvalueof3%ofsalary.

l Retirement age is 55.

l Maximum points to age 55 is 162.

l Can accrue a maximum of six points per year between ages 56 and 58.

Transport Retirement Fund



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Your accountYour account consists of the following components:

Contributor Financed Benefit (CFB) YourContributorFinancedBenefitaccountisusedforthepurposeofreceivingcontributionsmadebyyoutomeetyourdefinedbenefitobligations.Thisisthe1%–9%ofsalarythatyouelecttocontributeinordertoaccrueBenefitPoints.

TheContributorFinancedBenefitisunabletoacceptcontributions(orrollovers)otherthanyourelected1%–9%ofsalary.

This account is used for the deduction of the Direct Administration fee plus any Additional Benefitlevyandinvestmentswitchfeesthatmaybepayableinrelationtoyourmembership.

Employer Financed Benefit (EFB) ThisistheemployerfundedportionofyourbenefitandisbasedonyourAccruedBenefitPoints and reason for withdrawal from the Scheme.

Basic Benefit (BB)TheBasicBenefitismadeupoftwocomponents:

1.AdefinedBasicBenefit,whichisanon-contributoryfullyemployerfundedbenefit.ThedefinedBasicBenefitisgenerallyequalto3%ofeitheryouraveragesalaryorfinalsalary(dependingonthereasonyouexittheScheme)foreachyearofservicesince 1 April 1988.

2.AnOtherContributionsaccount,whichistheaccumulationcomponentofyourBasicBenefit.Thisaccountcanbeusedforthepurposeofreceivingadditionalpersonaland employer contributions and rolling over amounts from other superannuation funds. ItisalsoabletoacceptGovernmentco-contributions.

Generally you cannot leave the Scheme while you remain an eligible employee unless you reachage65,inwhichcaseyoucanleavetheSchemeregardlessofyouremploymentstatus.Insomecircumstances,suchasseverefinancialhardshipandoncompassionategrounds,you may be able to withdraw some funds while still remaining a member.

Contributory members who have reached their preservation age can access certain componentsoftheirbenefitforpaymentofaTransitiontoRetirementpension(referto page 18 for further information).

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RETIREMENT SCHEME

Defined personal contributionsAs a memberoftheScheme,youarerequiredtocontributebetween1%and9%of your Superable Salary (refer to page 12). Your contributions are deducted from your salary each pay day by your employer and forwarded to LGS where they are credited to your ContributorFinancedBenefit.AdditionalamountscanalsobecontributedtoyourOtherContributionsaccountastop-upcontributions.

Thesecontributionscanbepaidviasalarysacrifice,post-taxoracombinationofboth.

Anysalarysacrificecontributionsmustbearrangedwithyouremployer.Youremployermayhaverestrictionsapplyingtosalarysacrificesoitisimportantthatyoucheckfirst.Itisalsoimportantthatyouconsiderhowappropriatesalarysacrificeisforyouandunderstandthetaxationconsiderationsthatapply,theeffectthesecontributionsmayhaveonyourfinalbenefitandtheeffectonyourafter-taxincome.YoucanalsospeaktoanLGSfinancialplanner before making any decisions.

Eachyearyouhavetheopportunitytochangeyourcontributionrate,whichtakeseffecton1Aprileachyear.Youcanvaryyourpercentagecontributionratetosuityourfinancialcircumstances from year to year.

Generally,theamountyoucontributewillbeadjustedfromthefirstsalarypaymentinAprileach year to take account of any change in your salary as at the preceding 31 December and any variation in your selected percentage rate of contribution.

The Trustee may approve the percentage rate of contribution being reduced to as low as 0% for a limited time on the grounds that a continuation of the contribution rate would resultinfinancialhardship.Someperiodsofleavewithoutpaydonotcountasserviceandcontributions are not payable during such periods. Members proceeding on leave without pay should check with their employer or Member Services as to whether or not they will be liable to pay contributions during that period.

Generally,thedefinedpersonalcontributionsyoumaketoyourContributorFinancedBenefitwillearnyouBenefitPoints(refertopage13)andthiswill,inturn,directlyinfluencethefinalvalueoftheEmployerFinancedBenefityoureceivewhenyouleavetheScheme.

Additional personal contributionsYouareabletomakesalarysacrificeorpost-taxcontributionsoverandabovethemaximumof9%.However,thesecontributionsdonotattractBenefitPointsandarenotpaidintoyourContributorFinancedBenefit.Instead,theyarepaidintoyourOtherContributionsaccountandwillbeinvestedinthesameinvestmentoptionasyourContributorFinancedBenefit.

Defined employer contributionsGenerally,youremployerwillmakeregular,definedcontributionstotheLGSRetirementSchemeonyourbehalf,forthedurationofyourcontributorymembership.ThesecontributionswillfundthepaymentoftheEmployerFinancedBenefitanddefinedBasicBenefit.

Contributions

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Employer Award contributionsIf you are entitled to additional employer contributions under an enterprise agreement oraward,thesecontributionswillbepaidintoyourOtherContributionsaccountandwillbeinvestedinthesameinvestmentoptionasyourContributorFinancedBenefit.

Employer contributions for members with 180 Accrued Benefit PointsGenerally,employersarenotrequiredtomakedefinedcontributionstofundtheEmployerFinancedBenefitinrespectofmemberswhohavereached180AccruedBenefitPoints.Theyare,however,stillrequiredtomakedefinedBasicBenefitcontributions.

InsteadofmakingcontributionstofundtheEmployerFinancedBenefit,mostemployersarerequiredtomake180BenefitPointsContributionsintothemember’sOtherContributionsaccount,wheretheywillbeinvestedinthesameinvestmentoptionastheContributorFinancedBenefit.

Thevalueofthe180BenefitPointscontributionisapercentageofthemember’ssuperablesalary and is directly linked to the current rate of Superannuation Guarantee (SG) contributions,lessthepercentagevalueofthedefinedBasicBenefitcontribution.

The value of the 180 Points contribution is calculated as:

9.5%(SGrate)less2.5%(definedBasicBenefitrate)=7.0%

Concessional contributions Concessional contributions are contributions which are paid by your employer as a legal requirementoronyourbehalfoutofpre-taxsalary.Concessionalcontributionsaregenerally taxed at 15%1 provided you have supplied LGS with your Tax File Number (TFN).

Concessional contributions in the LGS Retirement Scheme include:

l Notional Taxed Contributions (NTC) representing an estimate of the contributions thatyouremployerwouldhavemadetowardsyourdefinedbenefits

l salarysacrificecontributionsmadebyyou

l 180BenefitPointscontributions

l award contributions or any additional contributions made by your employer.

LGS Retirement Scheme members do not receive SG contributions in the same way as LGS Accumulation Scheme members.

1. If your annual income exceeds $250,000, some or all of your concessional contributions may be taxed at 30%.

RETIREMENT SCHEME

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Concessional contributions capUnder current legislation there is a cap on the amount of concessional contributions that youand/oryouremployercanmakeinafinancialyear.Amountsinexcessofthecapwillalsocounttowardsthenon-concessionalcap.

Thestandardconcessionalcapis$25,000perannumandappliestoallmembers.

Contributionswithinthecaparetaxedat15%,exceptifyourannualincomeexceeds$250,000,whensomeorallofyourconcessionalcontributionsmaybetaxedat30%.

From1July2018,ifyourtotalsuperannuationbalanceislessthan$500,000,youmaybeentitledtocontributemorethantheconcessionalcaponarollingfiveyearbasis.Unusedcarryforwardamountswillexpireafterfiveyears.

Amounts exceeding the concessional contributions capIf you exceed your concessional cap you may withdraw the excess contributions. The excess contributions will be taxed at your marginal rate to mirror the tax treatment those contributions would have received if you had taken them as salary. An interest charge may alsoapply,inrecognitionofthefactthatthetaxonexcesscontributionsisbeingcollectedlater than your normal income tax on the amount.

Non-concessional contributionsNon-concessionalcontributionsarepersonalcontributionswhicharepaidfromafter-taxsalaryor contributions paid on your behalf by your spouse. These contributions are not taxed (if within the cap amount) either when contributed to or withdrawn from super.

These contributions can be made periodically or as single amounts if your total superannuation balance is under $1.6 million.

Non-concessional contributions cap

Undercurrentlegislationthereisacapontheamountofnon-concessionalcontributionsthatyoucanmakeinafinancialyear.

Non-concessionalcontributionsarecappedat$100,000peryear.However,thoseunderage651canbringforwardtwoyears’worthofcontributions,givingthemacapof$300,000overthree years.

Forexample,ifyouweretocontribute$300,000inthecurrentfinancialyear,forthenexttwofinancialyearsyouwouldnotbeabletomakefurthernon-concessionalcontributionswithout exceeding the cap.

Amounts exceeding the non-concessional cap

Ifyouhavemadeanynon-concessionalcontributionssince1July2013whichexceedthenon-concessionalcap,thatcontributioncannowbewithdrawn.Ifyouelecttomakeawithdrawal,the excess component of the contribution will be returned to you and any investment earnings willbetaxedatyourmarginaltaxrate,plustheMedicarelevy.

Ifyouchoosenottowithdrawtheexcesscontributions,theywillbetaxedatthetopmarginalrate,plustheMedicarelevy.1. At the date of preparation of this PDS, the Government has proposed to amend the legislation to enable individuals aged 65 and 66 to make up to 3 years of non-concessional superannuation contributions under the bring forward rule.


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Acceptance of non-concessional contributionsThefollowingconditionsneedtobesatisfiedforyoutomakenon-concessionalcontributions:

l Your TFN must have been supplied to LGS. If your TFN has not been supplied the contribution cannot be accepted and will be refunded to you.

l Personalcontributionscanbemadeatanytimeorwithanyfrequencyuntilyoureachage 67.

l Betweenages67and74,youwillneedtosatisfytheworktest,whichrequiresthatyou have worked at least 40 hours in a period of not more than 30 consecutive days duringthefinancialyeartowhichthecontributionsrelate.

l From1July2019retiredmemberswithasuperbalancelessthan$300,000areexemptfrom the work test and can make additional contributions for 12 months from the end ofthefinancialyearinwhichtheylastmettheworktest.

l Persons aged 75 and over can no longer make personal contributions.

l Ifwereceiveasinglecontributionpaymentinexcessofthenon-concessionalcontributionscapwearerequiredtoreturntheexcessamounttoyou.

l Spouse contributions can only be accepted if the spouse is under age 75 and meets theworktestifaged67-74.

Anygovernmentco-contributionsreceivedbytheSchemeonbehalfofamemberwillbe deposited into your Other Contributions account.

RETIREMENT SCHEME

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Rollovers and transfers inTheSchemeacceptstransfersofbenefitsfromothersuperannuationfunds,includingsuperannuation split amounts resulting from a Family Law settlement or order and superannuation lump sum (SLS) payments. These are deposited into your Other Contributions account.

Federal Government super co-contributionsThe Federal Government makes contributions to the superannuation account of an eligible income earner based on the personal contributions made by the income earner.

Toqualifyforaco-contribution,youmust,inthefinancialyearinwhichthepersonalcontribution is made:

l makepersonalnon-concessionalsuperannuationcontributionstoacomplyingsuperannuation fund or retirement savings account

l haveatotalincome(assessableincomeplusanyreportablefringebenefits)oflessthan $54,837

l haveearnedatleast10%ofyourtotalincomefromeligibleemployment,runninga business or a combination of both

l have a total superannuation balance of less than $1.6 million on 30 June of the year beforetherelevantfinancialyear

l havenotexceededyournon-concessionalcontributionscapinthefinancialyear

l be a permanent resident of Australia

l havelodgedanincometaxreturnforthefinancialyearinwhichthecontributionsaremade,and

l belessthan71yearsoldattheendofthefinancialyearinwhichthecontributionsare made.

The Federal Government will contribute up to 50 cents for every one dollar you personally contribute(post-tax)subjecttoamaximumof$500peryear.Thismaximumstartsreducingonceyourassessableincomeexceeds$39,837andreducestozeroonceyourincomereaches$54,837.

Theminimumco-contributionamountpaidby the government is $20.00.

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First Home Super Saver (FHSS) SchemeTheFHSSSchemehelpsyousavemoneyforyourfirsthomebymakingvoluntarycontributionstoLGS.Youmaybeabletobenefitfromthetaxtreatmentwithinsuperby contributing to your Other Contributions account.

IfyouhaveneverownedpropertyinAustralia,youcanmakeconcessional(before-tax)andnonconcessional(after-tax)contributionstoyoursuper:

l concessionalcontributionsincludesalarysacrificecontributionsandpersonalcontributions for which a tax deduction is claimed. These contributions are taxed at 15%

l non-concessionalcontributionsincludeanypersonalcontributionsfromafter-taxmoney

ToqualifyfortheFHSSscheme,youmust:

l be at least 18 years old at the time of the withdrawal

l have never owned property in Australia

l have not previously received a FHSS scheme payment.

From 1 July 2018 you can apply to withdraw your voluntary contributions made to superafter1July2017togetherwithdeemedearningstohelppurchaseyourfirsthome.ThiscanbedonethroughtheATOviayourmyGovaccount.Formoreinformation,please refer to the ATO at www.ato.gov.au

Downsizing contributionsOn1July2018,theAustralianGovernmentintroducedtheDownsizingContributionsmeasure,whichmeansyoucancontributesomeproceedsofthesaleofyourhomeinto superannuation.

Downsizingallowsyoutomakeanafter-taxcontributionofupto$300,000intosuperannuation from the sale of your home which was your main residence. Couples canbothcontributethisamounttowardssuperuptoamaximumof$300,000each.Formoreinformation,pleaserefertotheATOatwww.ato.gov.au

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Salary and Benefit PointsSalary for contribution purposes Your salary for the purpose of calculating the amount of your contributions is your gross annualsalaryasat31Decemberpriortoeachcontributionyear,ascertifiedbyyouremployer.Forallmembers(otherthananexecutiveofficer1) salary means the sum of:

l the monetary remuneration payable to you as reported by your employer (excluding anyallowancesorleavepayments),plus

l some allowances (including shift allowances) paid in the 12 months before 31 December eachyearthatareincludedinthedefinitionof‘OrdinaryTimeEarnings’,plus

l weekly workers compensation paid to the member that are included in the ‘OrdinaryTimeEarnings’definition,plus

l thevalueofanyprivateuseofamotorvehicleprovidedbyyouremployer,plus

l thevalueofanychildcareprovidedbyyouremployer,plus

l theamountofanyvoluntaryemployer(salarysacrifice)superannuationcontributions,plus

l thevalueofanyothersalarysacrificearrangementsandanyassociatedfringebenefitstax payable on other arrangements.

Reduction in salaryIn certain circumstances where a member experiences a reduction of 20% or more in their attributedsalary(ifyouareemployedonaparttimebasis,thesalarythatyouwouldbepaidifworkingfulltime)andtheemployercertifiesthereduction,themembercanelecttodefertheiraccruedentitlementsonthepre-reductionsalaryandelecttorejointheScheme. This is provided that you notify the Trustee no later than 2 months following the salary reduction. Please contact Member Services on 1300 LGSUPER (1300 547 873) for more information on this matter.

Whenamemberhasexperiencedanyreductioninsalaryduetoill-health(orotherreasondeemedacceptablebytheTrustee),themembercanelecttocontinuetocontributeatthesame,higherlevel.Thiswouldensurethatanysubsequentbenefitpayableisnotimpactedby the lower salary.

Salary and final average salary for benefit purposesWhendeterminingbenefitentitlements,eitherFinalSalaryorFinalAverageSalaryisused.FinalSalaryisthesalarypayableatthemember’sexitdate,whileFinalAverageSalaryis generally the average of the salaries:

(a) at the exit date

(b) on 31 December preceding the exit date and

(c) on 31 December preceding the 31 December referred to in (b).

1. Special arrangements for determining a member’s superable salary apply to executive officers. Any questions about the appropriate salary to be used for contribution purposes should be referred to your employer or to Member Services.

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Benefit PointsYourEmployerFinancedBenefitisdeterminedbyyourAccruedBenefitPoints,thelengthof your period of contributory membership and your Final Salary or Final Average Salary. TheBenefitPointssystemisthelinkbetweenemployeecontributionsandtheEmployerFinancedBenefit.SubjecttothemaximumnumberofBenefitPointsthatwillattractanEmployerFinancedBenefit,itworksinthefollowingwayforfull-timeemployees:

l Foreach1%ofsalaryyoucontributeinayear,yougenerallyaccrueoneBenefitPoint.

l FormostSchemeexits,eachBenefitPointyouhaveaccruedprovidesyouwithalumpsumEmployerFinancedBenefitof2.5%ofeitherFinalSalaryorFinalAverageSalary.

Forexample,ifyoujoinedon1July1988andbytheearlyretirementage(usually58)youhavecontributedanaverage6%ofsalaryfor30years,youwouldaccrue180BenefitPoints(i.e.6x30=180).ThiswouldprovideanEmployerFinancedBenefitof4.5timesFinalAverageSalary(i.e.180x2.5%=450%or4.5).Pleasenotethataccrualratesvaryfor members of some of the older schemes listed on page 4.

Pleasenotethatformostmembers,themaximumnumberofBenefitPointswhichattracttheEmployerFinancedBenefitforafull-timememberissixtimesthenumberofyearsofyourmembershipor180BenefitPoints,whicheveristhelesser.

Therefore,thequickestperiodinwhichyouwillgenerallybeabletoaccrue180BenefitPoints,whichallattractthemaximumEmployerFinancedBenefit,is30years(i.e.180/6=30).Youcan,however,stillget180benefitpointsifyoucontributeatlessthananaverageofsixbenefitpointsperyear,itwouldjusttakeyoulonger.Forexample,atanaverageoffivebenefitpointsperyearitwouldtake36years(i.e.180/5=36).

You need not contribute at the same percentage of your salary every year. You can contributewithintherangeof1%to9%eachyearandplantoaccruethemaximumBenefitPoints (an average of six per year) over the whole period of your contributory membership.

However,maintainingyourAccruedBenefitPointsatthemaximumavailableBenefitPointsduringyourmembershipwillalsomaximiseyourEmployerFinancedBenefitifyouexitearlierduetodeath,invalidityorretrenchment.On2May2018theTrustDeedwasamendedtorestricttheBenefitPointsto180asatotalacrossallyouraccounts.

FordetailsabouttheapplicationofBenefitPointsinrespectofaperiodofpart-timeemploymentandleavewithoutpay,pleasecontactMemberServiceson1300LGSUPER(1300 547 873).

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RETIREMENT SCHEME

Additional Benefit Cover AdditionalBenefitCoverisaformofinsurancecoveravailabletomembersonanoptionalbasisandissubjecttomeetingprescribedmedicalstandards.Itispayablewhenyouceaseemployment due to total and permanent invalidity or death. The purpose of this is to help compensateyouforthedifferencebetweenthestandardbenefitandthebenefityouwouldhave received had you been able to remain in employment until after your early retirement age.

Consider these features:

l Itispayableontopofboththestandardbenefitavailabletoallcontributorsandthe BasicBenefit,whenretirementduetototalandpermanentinvalidityordeathoccurs prior to your early retirement age.

l Thetotalbenefitpayablecanbeasmuchasseventimesfinalsalaryorevenmore(includingtheBasicBenefit).

l Thecosttoyouisminimalasyouremployerfinancesaround75%ofthecostofAdditionalBenefitCover.

AdditionalBenefitCoverisbasedonProspectiveBenefitPoints.Thesearetheextrapoints that it is assumed you would have accrued by the early retirement age had total andpermanentinvalidityordeathnotoccurred.EachProspectiveBenefitPointisworth4% of Final Salary (or Final Average Salary if it is higher). Note the number of Prospective BenefitPointsplusAccruedBenefitPointscannotexceed180.

What is the cost?

Youremployerpays75%ofthetotallevyforAdditionalBenefitCover.So,yourlevycan be found using the following calculation:

(Amount of cover x rate for age1 ÷ 1000) x 25%

Forexample,amemberhas$150,000ofAdditionalBenefitCoverandiscurrentlyaged39.The standard member levy would be:

($150,000x0.75÷1000)x25%=$28.13perannumor$2.34permonth

The levy rates are considerably lower than those charged by commercial insurers for similar products.ItisdeductedeachmonthfromyourContributorFinancedBenefitandisshownon your annual statement.

You can apply to Member Services for the cover at any time up to your early retirement age. Ifyouareclosetoyourearlyretirementageoralreadyclosetohaving180accruedBenefitPoints(earlyretirementageorobtaining180BenefitPointswouldmeanthatcoverwouldcease),wesuggestyouobtainrelevantdetailsfromMemberServicesincasethecoverisnotappropriate.AdditionalBenefitCoveralsoceasesonterminationofemployment.

ThereisnocontinuationoptionforAdditionalBenefitCoveraftercessationofemployment.

Insurance

1. Your rate for age can be found using the ‘Additional Benefit Cover levy rates’ table on the next page.

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Age attainedRate per $1,000

of coverAge attained

Rate per $1,000

of cover15 0.15 37 0.60

16 0.15 38 0.75

17 0.30 39 0.75

18 0.50 40 0.85

19 0.50 41 0.95

20 0.40 42 1.10

21 0.30 43 1.20

22 0.25 44 1.30

23 0.20 45 1.50

24 0.20 46 1.70

25 0.20 47 1.90

26 0.25 48 2.20

27 0.30 49 2.50

28 0.30 50 2.85

29 0.40 51 3.50

30 0.40 52 4.20

31 0.50 53 5.40

32 0.50 54 6.75

33 0.50 55 8.10

34 0.50 56 9.50

35 0.50 57 11.10

36 0.50

Eligibility for cover

Most applications will be assessed on the information provided on the application form. However,ifweareunabletomakeanassessmentofyoureligibilityforAdditionalBenefitCoverfromthisinformation,youmayberequiredtoprovideadditionalinformationorundergoamedicalexamination.AdditionalBenefitCoverwillcommencefromthedayyourapplicationis approved and the levy generally becomes payable six to eight weeks after approval.

Additional Benefit Cover levy rates

16

RETIREMENT SCHEME

BenefitsWhat benefits are payable?Benefitsarepayable:

l onresignation,discharge,dismissal l to fund a TTR pension l on retrenchment l on invalidityl on retirement l on death.

Thereisalsoprovision,incertaincircumstances,foramembertodefertheirbenefitintheScheme (refer to page 24 for details).

Allbenefitsaresubjecttopreservationandmustmeetaconditionofreleasebeforebeingable to be taken as a lump sum cash amount.

Whenaconditionofreleaseisnotmet,yourbenefitcanremainasaDeferredBenefituntila condition of release is met or rolled over to another superannuation fund.

How are benefits calculated? Yourbenefitpayablewillconsistofthefollowingcomponents:

l AContributorFinancedBenefit,beingyourcontributionsadjustedfornetinvestmentearnings,lesstheDirectAdministrationfeeandanyotherrelevantfeesandcosts(includinganyAdditionalBenefitCoverlevies).

l AnEmployerFinancedBenefit,whichisgenerally2.5%ofeitherFinalAverageSalaryor Final Salary (depending on the circumstances of exit) for each 1% of salary you contribute,subjecttothemaximums.

l AdefinedBasicBenefit,whichis3%ofeitherFinalAverageSalaryorFinalSalary(depending on the circumstances of exit) for each year of service from 1 April 1988.

l AnOtherContributionsaccount,whichismadeupofanyadditionalcontributionamounts and rollovers.

TheEmployerFinancedBenefitanddefinedBasicBenefitarereducedbycontributionstaxof 15% in respect of the period commencing 1 July 1988 to the date of exit (except where adeathbenefitispayable).

How is the benefit paid? Generally,benefitsarepaidasalumpsum.However,therearelifetimepensionoptionsavailable to some members.

MemberswhowereatonetimeintheLocalGovernmentPensionFund,TransportRetirementFund or the NSW Retirement Fund have retained the option to convert all or part of theirEmployerFinancedBenefit(andadditionalbenefitswhereapplicable)intopensions.This can be done when a member retires after reaching age 60 or is totally and permanently incapacitated or dies before reaching retirement age.

The pensions are payable for life and in some cases there is an option to take them as a reversionary(i.e.withaspousepensionpayabletoasurvivingspouse)ornon-reversionarybenefit.TheyareadjustedannuallyinlinewithincreasesintheConsumerPriceIndexandarefully‘rebatable’,i.e.theyattractataxrebateequalto15%ofthetotalpensionpayment.

17


Children’s pensions are also payable under some circumstances where deceased members were at one time in the Local Government Pension Fund. For members who are not eligibleforoneofthementionedpensionoptions,LGSoffersaseparateaccount-basedpensionproduct.FurtherinformationontheLGSAccount-BasedPensionPlancanbe found at lgsuper.com.au

Minimum Superannuation Guarantee benefitAllEmployerFinancedBenefitsaccruedfrom1July1992mustmeettherequirementsof the Commonwealth’s Superannuation Guarantee legislation. Essentially the value ofthosebenefitsmustequaltheamountthatwouldhaveaccruedhadtheemployerpaidSuperannuation Guarantee contributions into an accumulation scheme. LGS has actuarial certificationthatitwillinallcircumstancesenableyouremployertosatisfytherequirementsof the Superannuation Guarantee legislation through its participation in the Scheme.

Resignation, discharge or dismissal prior to early retirement ageIfyouleaveunderoneoftheabovecircumstances,youhaveachoicebetweenreceivinganimmediatecashbenefitordeferringthebenefitforpaymentlater.TheDeferredBenefitwould be payable in the following cases:

l death

l total and permanent invalidity

l on reaching your preservation age and permanently retiring from the workforce (refer to page 37 for preservation ages)

l onreachingyourRetirementSchemeearlyretirementage(generally58,butmaybe age 55 for some members depending on your earlier scheme membership) subjecttopreservationrules.

Ifyouhavenotcontributedforatleast10years,specialrulesapply.PleasecontactMember Services on 1300 LGSUPER (1300 547 873) for more information.

RetrenchmentRetrenchmentoccurswhen,priortothecontributorattainingtheearlyretirementage,theemployercertifiesthatthememberhasbeenretrenchedandtherearenoothertypesofsuperannuationbenefitpayablefromtheScheme.

RetirementOnanyformofexitatoraftertheearlyretirementage,thebenefitwillgenerallycomprisea:

l lumpsumContributorFinancedBenefit,plus

l lumpsumEmployerFinancedBenefit,plus

l lumpsumBasicBenefit(includingtheOtherContributionsaccount,ifapplicable).

Someofthebenefitmaynotbepayableatthetimeofexitasitmaybesubjecttopreservation.Refertopage36formoredetails.WhensomememberswithAdditionalBenefitCoverterminateemploymentpriortoreachingage60duetodeathortotalandpermanentinvalidity,additionalbenefitsmaybepayable.Thisincludesmemberswhowereatonetimemembersof the old Public Authorities Superannuation Scheme.


18

RETIREMENT SCHEME

Transition to Retirement (TTR) pensionThe TTR pension is a Federal Government initiative which intends to provide members whohavereachedtheirpreservationagewithaccesstoanon-commutableincomestreamproduct. This could allow you to reduce your working hours and draw on some of your super to maintain your level of income.

A TTR pension can also be used to boost your super savings by allowing you to reduce yourtaxthroughsalarysacrificewhileyoukeepworkingfulltime,andthenusethesetax savings to further build your wealth.

Contributory members who have reached their preservation age may access certain componentsoftheirbenefitforpaymentofaTTRpension,subjecttothemmeetingcertain minimum amount criteria.

The LGS TTR pension allows contributory members to continue contributing to the LGSRetirementSchemewhilstalsoreceivingaTTRpensionbenefitfromtheLGSAccount-BasedPensionPlan.

Starting a TTR pension

If you have reached your preservation age you can start a TTR pension using all or part ofyourOtherContributionsaccountandContributorFinancedBenefit,providedthatthecombinedtotalwouldgiveyouastartingTTRpensionbalanceof$25,000.

YoushouldnotethatifyoucurrentlyhaveadebtagainstyourContributorFinancedBenefitforapreviousearlyreleaseofbenefits,thevalueofthedebtcannotbereleasedtofunda TTR pension.

Additionally,youcannotaccessanypartofyourEmployerFinancedBenefitordefinedBasicBenefitforaTTRpension.ThesecomponentsmuststayintheSchemeuntilyouexit.YourBasicBenefitmaybereleasedpriortoexitingyouremploymentwithanLGSemployeronce you reach age 65.

Payment of a TTR pension

WhenwereceiveavalidTTRapplication,yournominatedamountwillbedeductedfirstfrom your Other Contributions account (if applicable) and the remainder deducted from yourContributorFinancedBenefitaccount.ThisamountwillthenbetransferredfromyourLGSRetirementSchemecontributoryaccounttotheLGSAccount-BasedPensionPlan,from where your TTR pension can commence.

YourtotalbenefitintheLGSRetirementSchemewillbereducedfollowingthecommencementofyourTTRpension,duetothetransferoffundsfromyourOtherContributionsaccountandContributorFinancedBenefit.ThiswillreduceyourfinalbenefitfromtheLGSRetirementScheme.

IncircumstanceswheretheEmployerFinancedBenefitwouldnormallybecalculatedusingyourContributorFinancedBenefitbalance,anotionalContributorFinancedBenefitwillberetainedtoensurethatyourEmployerFinancedBenefitisnotdisadvantagedbythecommencementoftheTTR(andthelowerContributorFinancedBenefitbalance).

19


1. Commutation may occur in order to comply with a Family Court Order or Superannuation Agreement.

YoucanonlycommenceandmaintainaTTRpensionintheLGSAccount-BasedPensionPlan.Youcannotelecttotakethepensionelsewhere.Also,youcannotrollthepensionbalanceback to the LGS Retirement Scheme.

Special commutation provisions applying to the LGS TTR pension

The LGS TTR pension is not commutable (except in limited circumstances)1.Inotherwords,it cannot be exchanged for a lump sum payment. Once you have commenced a TTR pension it cannot cease until you exit the LGS Retirement Scheme on one of the following grounds:

l on or after early retirement

l on death at or after early retirement

l on death before early retirement

l on total and permanent invalidity before early retirement age

l on resignation dismissal or discharge before early retirement age

l on retrenchment before early retirement age

l on reaching age 70

l onelectingtobepaidortodeferyourLGSRetirementSchemebenefitbetweenthe ages of 65 to 70 while still employed

l ondeferralofyourbenefit.

Maximum TTR pension payments

FederalGovernmentlegislationspecifiesthatthereisamaximumwithdrawalamountof10%oftheaccountbalanceasatthestartofthefinancialyear(orstartofthepension)thatcanbetakenoutasaTTRpensionwithinafinancialyear.

Other conditions that apply to a TTR pension payment from the LGS Account-Based Pension Plan

YoushouldreadtheLGSAccount-BasedPensionPlanPDSwhichcontainsalltherelevantinformation about TTR pensions to ensure that you fully understand all the terms and conditions of the TTR pension. The PDS is available at lgsuper.com.au/PDS or from Member Services.

Election for payment of a TTR pension

IfyouwanttoelectforpaymentofaTTRbenefit,thenyoumustapplyusingtheApplication for Payment – Transition to Retirement Pension and Application for Membership – Transition to Retirement Pension forms.

If you are entitled to an LGS Retirement Scheme pension from your membership of apredecessorscheme,thiswillnotbeaffectedbyyourapplicationforaTTRPension.


20

RETIREMENT SCHEME

Invalidity prior to early retirement ageAbenefitispayableifamemberceasesemploymentpriortotheirearlyretirementageonthe grounds of physical or mental incapacity to perform his or her duties. There are two categoriesofbenefit,whicharedeterminedbytheseverityoftheinvalidity.ThesearePartialand Permanent Invalidity or Total and Permanent Invalidity.

Partial and Permanent Invalidity

ThePartialandPermanentInvaliditybenefitapplieswhereamember,beforeattainingtheirearlyretirementage,retiresfromemploymentwithanemployerandLGSissatisfied:

l thattheretirementwasdue,directlyorindirectly,tothepermanentphysicalormentalincapacity of the member (not being caused by the member and intended to produce theincapacity),and

l thatthemember,duetothatincapacity,ispermanentlyunabletoperformthedutiesthatwererequiredtobeperformedbeforesufferingtheincapacity.

Somememberswhooriginallyjoinedoneoftheearlierschemes(mainlytheBenefitsFund)haveguaranteedminimumbenefitswhichareequivalenttothosethatwouldhavebeenpayablehadtheyremainedinthatscheme.Itwouldbeexpected,however,thatonlyveryfewmemberswouldnowbeeligiblefora‘guaranteed’minimumbenefit.YoushouldcontactMember Services on 1300 LGSUPER (1300 547 873) if you think this may apply to you.

Total and Permanent Invalidity

TheTotalandPermanentInvaliditybenefitapplieswhereamember,beforeattainingtheearlyretirementage,retiresfromemploymentandLGSissatisfied:

l that the retirement was due directly or indirectly to the permanent physical or mental incapacity of the member (not being caused by the member and intended to produce theincapacity),and

l thatthemember,atcessationofemployment,ispermanentlyunabletoengageinanypaidemploymentinwhich,intheopinionofLGS,itwouldbereasonabletoexpectthe member to engage.

ThebenefitisthesameasthatpaidforPartialandPermanentInvalidityplustheAdditionalBenefitCoverwherethememberqualifiesforthecover.Refertopage14formoreinformationaboutAdditionalBenefitCover.

FormermembersoftheLocalGovernmentPensionFundmayalsoqualifyforpaymentofwhatiscalledan‘AdditionalAdditionalBenefit’.Thisiscalculatedas1%offinalsalaryforeachProspectiveBenefitPoint(calculatedtoage65)whichdoesnotattractanadditionalbenefitpayment.Somemembersofearlierschemes(e.g.theLocalGovernmentBenefitsFundandtheNSWRetirementFund)mayalsohaveguaranteedminimumbenefitsequaltothebenefitstheywouldhavereceivedhadtheystayedintheirold schemes. You should contact Member Services if you think this may apply to you.

21


Death benefit Whenamemberdiesinservicebeforeattainingtheearlyretirementage,thebenefitiscalculatedinasimilarmannerasthebenefitpayableonTotalandPermanentInvalidity.Howeverno15%contributiontaxreductionisappliedtotheemployerbenefits.

Whenwearenotifiedthatamemberisdeceased,thebalanceinthemember’sContributorFinancedBenefitandOtherContributionsaccount(ifapplicable)willbeautomaticallyswitched into the Managed Cash investment option. It will remain there until the death benefitispaid.

Binding nomination Ifyoumakeavalidbindingdeathbenefitnominationinfavourofoneormoreofyourdependant,theTrusteemustdistributethebenefitonyourdeathinaccordancewiththatbindingdeathbenefitnomination.Thisisprovidedthenominationisvalidatthetimeofyourdeath.

Alternatively,theTrusteewill,atitsdiscretion,paythebenefittooneormoreofyourlegalpersonal representatives and/or dependants if:

(a)youhavemadeabindingdeathbenefitnominationnoticewhichisnotvalidatthetimeofyourdeath,or

(b) you have not made a nomination.

Benefitswillbepaidtoyourlegalpersonalrepresentativebywayofalumpsumwhichformspartofyourestate.IfyoudieleavingaWill,thatlumpsumwillbedistributedaccordingto your Will. If you do not leave a Will and letters of administration for your estate have beentakenout,thebenefitwillbedistributedaccordingtolaw.

What is the definition of a dependant?At thetimeofyourdeath,adependantisdefinedundersuperannuationlawtoinclude:

l your spousel your child or childrenl any other dependant1 l any other person with whom you had an interdependency relationship.

1. This may include any other person that the common law defines as a dependant person. Currently, we have interpreted this to mean any person who is financially dependent on the member at the relevant time (in the case of a deceased person, at the time of their death). As the common law may change from time to time, we will apply the common law definition of dependant as it applies at the relevant time.

22

RETIREMENT SCHEME

Two persons have an interdependency relationship if:

l they have a close personal relationshipl they live togetherl oneoreachofthemprovidestheotherwithfinancialsupport

l one or each of them provides the other with domestic support and personal care.

Two people have an interdependency relationship if they have a close personal relationship butdonotsatisfytheotherrequirementsofaninterdependencyrelationshipbecauseeitheror both of them suffer from a disability.

Can I nominate more than one beneficiary?Yes,youmaynominateacombinationofoneormoreofyourdependants,and/oryourlegalpersonalrepresentativeasyourbeneficiaries.Youwillneedtospecifytheproportionofthebenefittopaytoeachbeneficiary.

Tobevalid,eachbenefitallocationpercentagemustbeawholenumberwiththetotalallocationequalling100%.Forexample,ifyounominatethreebeneficiaries,youmaywishto allocate the percentagesas33%,33%and34%.

How do I make a valid binding death benefit nomination?To make a bindingdeathbenefitnominationyoumustcompletetheBinding death benefit nomination form available from either Member Services or lgsuper.com.au

ForLGStoconsideryourbindingdeathbenefitnominationformtobevalidandeffective:

l Itmuststatetheproportionofthebenefitthatwillbepaidtoeachsuchbeneficiary(inwholenumbers)withthetotalallocationequalling100%ofthebenefit

l It must be signed and dated by you in the presence of two witnesses who are at least 18 years old and are not a person nominated on the form. The witnesses must sign and date their declaration on the same date that you sign the form

l Eachnominatedbeneficiarymustmeetthedefinitionofdependentundersuperannuation law (as described on page 21)

l The form must have been provided to LGS prior to your date of death.

Therearestrictlegalrequirementsforabindingdeathbenefitnominationtobevalidly made and to remain valid. You can amend or revoke your nomination at any time.Toremainvalid,abindingdeathbenefitnominationmustberenewedatleastevery three years.

Whenyoumakeavalidbindingdeathbenefitnominationwewillconfirminwritingtoyouthatthenominationhasbeenmade.Ifyoumakeabindingdeathbenefitnominationthatwe consider to be invalid we will write to you advising that we are unable to accept the bindingdeathbenefitnomination.


23


When does a valid binding death benefit nomination become effective and how long does it last?Ifyoumakeavalidbindingdeathbenefitnominationitbecomeseffectivefromthedateyouandyourwitnessessignit.However,itmustalsohavebeenprovidedtotheTrusteeprior to your date of death.

Abindingdeathbenefitnominationexpiresandceasestohaveeffectthreeyearsafterbeingmadeorlastamended.Youcanconfirmoramenditatanytimebycompletingthe Confirmation of existing binding death benefit nominationformandreturningittous,whichextends the term for another three years from the date you and your witnesses sign it.

LGSmustfollowavalidbindingdeathbenefitnomination,regardlessofwhetherornotyourcircumstanceshavechanged,soitisimportantthatyoukeepituptodate.

WARNING: If you are a member of the LGS Retirement Scheme who has a reversionaryspousepensionentitlementfromyourpredecessorschememembership,you should note that the reversionary pension can only be paid to your spouse. If you have a reversionary spouse entitlement and you make a binding death benefit nomination,thebindingnominationwillnotbevalidinrespectofthepension.Your spouse would continue to be entitled to the reversionary spouse entitlement. However,thebindingdeathbenefitnomination will apply to those lump sum benefits which do not fund the pension (usually the Contributor Financed Benefit and Basic Benefit).Inallothercaseswhereadeathbenefitbecomespayable,LGSwillfollowyour binding death benefit nomination.

Special age provisions for members 65 or overAtanytimeafterreachingage65,youhavetheoptionofterminatingyourcontributorymembershipintheSchemeandcanbepaidordeferyourtotalbenefiteventhoughyouarenotretired.YouremployerwouldthenberequiredtomakeSuperannuationGuaranteecontributions to the LGS Accumulation Scheme.

Whenyoureachage70,yourSchemebenefitmustbepaidunlessyouelecttodeferyourbenefitentitlementor,withinthreemonthsofbeingnotifiedbyLGS,youelecttoremainanon-contributorymemberoftheScheme.Ifyouelecttoremainanon-contributorymemberyouwillnotbeentitledtomakefurthercontributionsoraccruefurtherBenefitPoints.Yourbenefitwillbecalculatedinaccordancewiththeapplicablerulewhenyoumakeanelectionorapaymentruleapplies.Nofundinvestmentreturns,whetherpositiveornegative,willbeappliedtothedefinedcomponentsofthebenefit,howevertheywillcontinuetoapplytotheContributorFinancedBenefitandanyOtherContributionsaccount.Youshouldseekadvicefromafinancialplannerbeforemakinganydecision.

https://www.lgsuper.com.au/assets/Forms/ConfirmationBindingNomination.pdf

24

RETIREMENT SCHEME

Deferred Benefit Upon resignation,discharge,ordismissal,youcan,asanalternativetoreceivingthecashbenefitimmediatelypayableonexit,electtodeferyourbenefit.Deferralallowsanemployeewholeavespriortoretirementtoretainconsiderableretirementbenefitentitlements.

ADeferredBenefitwillbepaidonapplication:

l at or after retirement from the workforce

l on early retirement age (generally age 58 but in some cases age 55)

l whenyouhavereachedyourpreservationageandhavemetaconditionofrelease,or

l earlier upon total and permanent invalidity or death.

Upondeferral,yourentirebenefit,includingthedefinedEmployerFinancedBenefitandtheBasicBenefitcomponents,willbeinvestedinyourchoseninvestmentoption(i.e.thecurrentinvestmentoptionforyourContributorFinancedBenefitandOtherContributionsaccounts)andwillattractinvestmentearningsfromthetimeitisdeferreduntilthebenefitispaid.Ifyouhavenotpreviouslymadeaninvestmentelection,thewholeofyourdeferredbenefitwill be invested in the default option for the LGS Retirement Scheme. Please refer to page 34 formoreinformation.Youmay,ofcourse,choosetomakeaninvestmentswitchatanytime.

Atanytimepriortoretirementfromtheworkforce,youcanelecttotakethecashamountwhichwouldotherwisehavebeenpaidtoyouatthetimeofexit,togetherwiththenetearningsaccumulatedonthatamountattheratecreditedtoaccountsgenerally,fromthedateofexittodateofpayment.Notethatinchoosingthecashwithdrawaloption,youmayforegoasignificantportionoftheEmployerFinancedBenefitaccruedduringyourmembershipoftheScheme.

Memberswhoareeligibletobepaidaretrenchment,partialandpermanentinvalidityorretirementbenefitmayalsoelecttoleavetheirbenefitsintheSchemeasdeferredbenefits.Indoingsotheyretaintherighttobepaidthefullamountofthebenefitatanytime,subjectto the Commonwealth’s preservation rules.

AlthoughmembersholdingaDeferredBenefitarenolongerabletomakecontributionstotheirContributorFinancedBenefit,theirOtherContributionsaccountcancontinuetoacceptpersonalpost-taxcontributions,FederalGovernmentco-contributionsandspousecontributions,aswellasrolloversfromotherfunds.

25


Continuity of membershipThe rules of the Retirement Scheme are such that continuity of membership within the Retirement Scheme can only occur where a member has left employment and is entitled toapplyforabenefitonthegroundsofpartialandpermanentinvalidity,resignation,retrenchmentorretirement.Thereforeifyousatisfytherulesaboveyoumayrequestcontinuity of your contributory membership where you have commenced employment with another LGS employer (or recommenced with the same employer) and:

l the new period of employment has commenced no later than three whole calendar monthsfollowingthemonthinwhichyouroriginalemploymentceased,and

l youhavenotbeenpaidabenefitoranypartofabenefitfollowingtheemploymenttermination,and

l you have made this application to LGS within two months of commencing employment withyournewemployer,and

l the LGS Trustee has granted approval of continuity.

In some cases it is possible to transfer your Retirement Scheme membership if you have movedtoorfromanEnergyIndustriesSuperannuationScheme(EISS)employer,ora participating State Authorities Superannuation Scheme (SASS) employer. If a former LGSmemberisseekingcontinuitytotheEISSRetirementSchemeorSASS,theapprovaloftherelevanttrusteeisrequired.

Please contact Member Services on 1300 LGSUPER (1300 547 873) for more information.

26

RETIREMENT SCHEME

1. Refer to page 24 for more information about Deferred Benefits.

Transfer to the LGS Accumulation Scheme as an Executive OfficerIfyouareamemberoftheLGSRetirementSchemeandyouareidentifiedasanExecutiveOfficerundertheLGSTrustDeed,youareabletotransferyourcontributorymembershipof the LGS Retirement Scheme to the LGS Accumulation Scheme. As a result you are then able to:

l transferyourLGSRetirementSchemebenefittotheLGSAccumulationScheme.ThetransferringbenefitwouldbeequaltothevalueofyourDeferredBenefit1,or

l leave your LGS Retirement Scheme entitlement in the LGS Retirement Scheme asaDeferredBenefit1.

Ineithercaseabove,yourLGSAccumulationSchemeaccountwillbeabletoreceivefutureSuperannuationGuaranteecontributions,plusanyadditionalemployerorpersonalcontributions.

Inordertoeffectthetransfer,thefollowingformsarerequired:

l Certificate of Executive Status form completed by your employer

l LGS Accumulation Scheme Application for membership form completed by you

l LGS Retirement Scheme Election to Transfer/Defer Accrued Benefitsform,on which youmustelectwhethertotransferordeferyourLGSRetirementSchemebenefit.

Inordertotransferyourcontributorymembership,youmustelecttojointheLGSAccumulationSchemewithintwomonthsofbecominganExecutiveOfficer.

AnExecutiveOfficerincludesanyofthefollowing:

l aChiefExecutiveOfficer(underpublicsectorspecifications)

l aSeniorExecutiveOfficer(underpublicsectorspecifications)

l anofficernominatedunderSection11AoftheStatutoryandOtherOfficersRemunerationAct1975(NSW),or

l a person who is nominated by their local government employer and who satisfiesthefollowingrequirements:

(a)occupiesaseniorposition,andisreceivingasalaryequivalenttoorgreaterthanthe Executive Band of the Local Government (State) Award

(b)isonafixedtermcontractofemployment.

Formoreinformation,pleasecontactMemberServiceson1300LGSUPER(1300547873).

27


This section shows the fees and costs you may be charged in the LGS Retirement Scheme. Thesefeesandothercostsmaybedeductedfromyourmoney,fromthereturnsonyourinvestment or from the assets of the superannuation entity as a whole.

Otherfees,suchasactivityfeesandadvicefeesforpersonaladvicemayalsobecharged,but these will depend on the nature of the activity or advice chosen by you.

Taxes are set out in another part of this document.

You should read all the information about fees and other costs because it is important to understand their impact on your investment. Additional information on the fees and costs associated with all the investment options can be found in the Fees and other costs factsheetatzorfromMemberServices.

DID YOU KNOW?

Small differences in both investment performance and fees and costs canhaveasubstantialimpactonyourlong-termreturns.

Forexample,totalannualfeesandothercostsof2%ofyouraccountbalanceratherthan1%couldreduceyourfinalreturnbyupto20%overa30yearperiod(forexample,reduceitfrom$100,000to$80,000).

You should consider whether features such as superior investment performance orprovisionofbettermemberservicesjustifyhigherfeesandothercosts.

Youoryouremployer,asapplicable,maybeabletonegotiatetopaylowerfees1. Askyourfundoryourfinancialadviser.

TO FIND OUT MOREIfyouwouldliketofindoutmore,orseetheimpactofthefeesbasedonyourowncircumstances,theAustralianSecuritiesandInvestmentCommission(ASIC)website(moneysmart.gov.au) has a superannuation calculator to help you check out different fee options.

Fees and other costs

1. To help you compare different superannuation products, the Trustee is required by law to provide this statement in a PDS. It is important to note that Local Government Super does not charge contribution fees and the management costs cannot be negotiated.

https://moneysmart.gov.au

28

RETIREMENT SCHEME

Contributory member with no Other Contributions account

Type of fee Amount How and when paidInvestment fee From 0.07% to 0.33%

p.a. depending on your investment option.

Investment fees are paid from the Fund’s assets prior to unit prices being calculated. The investment fee you pay will depend on your investment option.

Administration fee1 $71.24 p.a. ($1.37 per week)

AND

0.25% p.a.

Dollar based fees are deducted from your Contributor Financed Benefit monthly. ANDPercentage administration fees are paid from the Fund’s assets prior to unit prices being calculated.

Buy-sell spread Nil N/A

Switching fees

l Investment Switching fee $27.00Deducted directly from your Contributor Financed Benefit when a switch occurs.

Advice fees Personal Advice fee may apply.

No advice fee2 is charged for providing general advice limited to your LGS account. Fees may be charged for other types of advice.

If you would like to receive personal advice, a Financial Planning fee2 will be charged and you will be informed of the cost before you proceed. If you are issued with a Statement of Advice, it will contain details of the fees which may be deducted from your LGS Accumulation Scheme account, another LGS account or paid directly.

Indirect cost ratioFrom 0.06% to 0.47% p.a. depending on your investment option3.

Indirect costs are paid from the Fund’s assets prior to unit prices being calculated. The indirect cost you pay will depend on your investment option.

1. The administration fee percentage relates to the cost of the administration and operation of the superannuation fund. As LGS is a profit for member fund, this fee is estimated each year and any excess not utilised in the running costs for the Fund is returned back to the Fund for the benefit of members.

2. Please refer to page 31 for more information.3. The Indirect Cost Ratio and investment fees shown above are provided as indicative costs only. Refer to the Fees and other

costs fact sheet for more information.

https://www.lgsuper.com.au/assets/PDS/Retirement-Scheme/Fees.pdf


29


Contributory member with an Other Contributions account





AND

0.25% p.a.

Dollar based fees are deducted from your Contributor Financed Benefit monthly. Not charged for the Other Contributions account.ANDPercentage administration fees are paid from the Fund’s assets prior to unit prices being calculated.


Switching fees

l Investment Switching fee $27.00Deducted directly from your Contributor Financed Benefit when a switch occurs.











30

RETIREMENT SCHEME

Warning – The preceding tables do not include all the fees and costs of the Retirement Scheme. Further information on other service fees is located in the Fees and other costs fact sheet. The fees and costs for our other investment options are different and can change.

Deferred member (includes Other Contributions account)





AND

0.25% p.a.

Dollar based fees are deducted from your Deferred Benefit monthly. ANDPercentage administration fees are paid from the Fund’s assets prior to unit prices being calculated.


Switching fees

l Investment Switching fee $27.00Deducted directly from your Deferred Benefit when a switch occurs.












31


Example of annual fees and costs for the Growth investment optionThe following tables provide examples of how the fees and costs in the Growth investment option for this product can affect your superannuation investment over a one year period if you are a member of the LGS Retirement Scheme.

Note:YoudonotpayfeesontheEmployerFinancedBenefitordefinedBasicBenefit.Thebelowexamples only include those accounts funded by you (not the employer).

Example – Contributor Financed Benefit account with no Other Contributions account Balance of $50,000

Investment fee 0.30% For every $50,000 you have in the Growth investment option you will be charged $150.00.

PLUS Administration fee

$71.24 p.a.AND0.25%

And, you will be charged $71.24 in administration fees regardless of your balance, plus for every $50,000 you have in the Growth investment option you will be charged $125.00.

PLUS Indirect cost ratio

0.46% And, an indirect cost ratio of $230.00 will be deducted from your investment.

EQUALS Cost of the product:

If your balance was $50,000, then for that year you will be charged fees of $576.24.1.

Example – Contributor Financed Benefit account with an Other Contributions account Balance of $50,000 (assumes Other Contributions balance of $10,000 as part of the $50,000 total balance)


PLUS Administration fee

$71.24 p.a.AND0.25%





If your balance was $50,000, then for that year you will be charged fees of $576.241.

Example – Deferred member Balance of $50,000


PLUS Direct Administration fee

$71.24 p.a. AND 0.25%





If your balance was $50,000, then for that year you will be charged fees of $576.241.

1. Additional fees may apply. Refer to the Fees and other costs fact sheet for more information.

RETIREMENT SCHEME

You should use these tables to compare this product with other superannuation products.

The tables on the previous page do not include all the fees and costs of the Growth investmentoption,oroftheproductgenerally.Furtherinformationcanbefoundin the Fees and other costs fact sheet available at lgsuper.com.au or from Member Services on 1300 LGSUPER (1300 547 873).

Financial planning fee (Advice fee)LGSmaychargemembersadirectfeeforsomefinancialplanningservices.Itisimportanttonotethatnotallfinancialadvicewillincurafeeandinmanycasestheremaybenocharge.Whetherornotafeeapplieswilldependuponthescopeofthefinancialadviceyourequire.Yourfinancialplannerwilldiscussanyfeepayablewhenmeetingwithyouand,ifafeeisapplicable,willadviseyouofthecostshouldyoudecidetoproceedwithobtainingtheadvice.

More informationYou should read the additional information in the Fees and other costs fact sheet before making a decision. This fact sheet is available at lgsuper.com.au/PDS or from Member Services on 1300 LGSUPER (1300 547 873). The material relating to fees and other costs may change between the time you read this statement and the day you sign the application form.

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Risk and diversificationSuperannuation,likeanytypeofinvestment,isnotwithoutrisk.Beforechoosinganinvestment,youshouldlookathowthe types of risk may affect your investment.

Type of risk

Investment While the risk of fluctuation in an investment can be managed and minimised, it cannot be completely eliminated.

Inflation Where an investment may be performing well, rises in inflation may reduce the value of the return when compared with cost of living expenses.

Credit Where we invest in debt securities or other debt instruments, these could be subject to default risk.

LiquidityIf an investment contains illiquid assets, the ability to sell on short notice is reduced and may even result in a loss or discount if it needs to be cashed out quickly.

Market Any number of things can cause volatility within the market. Examples include changing economic conditions and technological advances.

Derivatives

The use of derivatives gives rise to the risk that there is an adverse movement in the asset or index underlying the derivative, that the derivative position is difficult or costly to reverse and that the parties do not perform their obligations under the contract.

Short selling The risk that the price of a security increases so that the price that a security is purchased for is greater than the price that the security is sold for.

Superannuation law

Ongoing changes to superannuation law may change the way you can contribute to super and access your investment.

Product

In striving to provide quality and diversity in the product to benefit all members, changes may not always be suitable for your particular needs.It is also important to note that investment returns can be nil or even negative from time to time.

More informationFor more information on managing risk you should read the important information in the Risk and diversificationfactsheet.Thisfactsheetisavailableatlgsuper.com.au/PDS,orfromMember Services on 1300 LGSUPER (1300 547 873). The material relating to risk and diversificationmaychangebetweenthetimeyoureadthisstatementandthedayyousignthe application form.


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RETIREMENT SCHEME

How we invest your moneyYour investment optionsThe LGS Retirement Scheme offers you a choice of six investment options managed by investment managers. Each option offers a different potential rate of return and degree of volatility (or risk). You can select only one of these options at any time. If you do not makeaninvestmentchoice,thedefaultinvestmentoptionisGrowth.Forcontributorymembers,theEmployerFinancedBenefitanddefinedBasicBenefitarenotavailable for member investment choice.

The investment options available are:

l High Growth l Balanced

l Growth l Conservative

l Balanced Growth l Managed Cash

Investment details for the Growth investment optionThe table below provides important information about the Growth investment option offered by the LGS Retirement Scheme.

1. Note that the combined investments in these asset classes will not exceed 30%.

Definition For real investment growth above the CPI over the medium to longer term. For investors who want a high exposure to Australian and international equities and property and are prepared to accept more risk. The emphasis is on growth so investors should be prepared for some potential short-term volatility. In other words the value of the investment may fluctuate over the short term. This volatility is not as great as it is in the High Growth option.

Asset allocation

Asset class Asset allocation rangeAustralian SharesInternational SharesAustralian Direct Property1

International Listed PropertyCommoditiesPrivate Equity1

Opportunistic Alternatives1

Absolute Return FundsBondsCashDefensive Alternatives1

18 - 31%20 - 32%0 - 10%0 - 6%0 - 3%5 - 15%0 - 10%0 - 13%0 - 15%0 - 10%0 - 8%

Objective 3.0% net investment return per annum above CPI, measured over a rolling five-year period

Time horizon 5 years

Risk profile

High/Medium. There is potential for the value of the investment to decrease in the short term. The chance of a negative return in any year is 1 in 4.

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Investment details for other investment optionsFor important information about the other investment options available in the LGS Retirement Scheme,pleaserefertotheHow we invest your money fact sheet. This fact sheet is available at lgsuper.com.au/PDS or from Member Services on 1300 LGSUPER (1300 547 873).

Review of investment optionsLGS regularly reviews its member investment options and may from time to time make changes(suchastotheassetallocationranges,theassets,therisksandtheobjectives)tothoseoptions.Wherechangesaremadetotheoptions,LGSwillnotifymemberseitherviathewebsite,intheAnnualReportorinwritingdirectly.

Responsible investingLGS,likeothersuperfunds,investsinarangeofassetsincludingshares,privateequity,directproperty,etc,butunlikemostfunds,LGSactivelyinveststheseassetsbasedonaSustainableand responsible investment policy.

Thispolicyspecificallytakesintoconsiderationenvironmental,socialandcorporategovernance issues which recognises that the long term prosperity of the economy and well beingofmembersdependsonahealthyenvironment,socialcohesionandgoodgovernanceof the companies in which it invests. The Trustee believes that it is not only important to maximiseinvestmentreturns,butalsotoinvestinawaythatfavourscompaniesandprojectswhich show a commitment to our community and the environment.

Furthermorebyinvestingin‘green’buildings,renewableenergyandalternativeinvestmentsbasedoncleantechnology,LGSwillpositionitselfstronglytotakeadvantageofthepotentialupstream growth as these sectors develop and expand.

More informationIf you would like a copy of the LGS Sustainable and responsible investment policy please visit lgsuper.com.au or contact Member Services on 1300 LGSUPER (1300 547 873).

You should read the important information about how we invest your money and the other LGS Retirement Scheme investment options. Go to the How we invest your money fact sheet at lgsuper.com.au/PDS. The material relating to how we invest your money and the other LGS Retirement Scheme investment options may change between the time you read this statement and the day you sign the application form.




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RETIREMENT SCHEME

UnderpreservationrulesimposedbytheFederalGovernment,yourbenefitconsistsofoneor more of the three components listed below. Your member statements will set out the preservedcomponentsofyourbenefitandwhetheryouhavearestrictednon-preservedcomponentorunrestrictednon-preservedcomponent.

1. Preserved component Thisistheamountofyourbenefitthatcannotbecashed,unlessyoumeetaconditionofrelease.Allsuperannuationcontributionsandbenefitsarisingfromthosecontributions,includingallearnings,mustbepreserved.Thismeanstheycannotbewithdrawnfromthesuperannuation environment unless a condition of release is met.

2. Restricted non-preserved Thiscomponentofyourbenefitcanonlybewithdrawnandtakenincashwhenyouceaseemployment with an employer who has contributed to your account. Your restricted non-preservedbenefitistheamount(ifany)thatyouwouldhavebeenabletowithdrawandtakeincashifyouhadlefton1July1999.Overtimeyourrestrictednon-preservedbenefitstaysatthesamedollarvalueunlessyourolloveranyfurtherrestrictednon-preservedbenefitfromanotherscheme.Whileitwillcontinuetoaccumulateinvestmentearnings,theearningswillbepreserved.Therestrictednon-preservedamountplusanyunrestrictednon-preservedamount,willremainthemaximumamountthatyouwillbeable to take in cash on leaving the Scheme before satisfying a condition of release.

3. Unrestricted non-preserved Thisistheamountofyourbenefitthatyoucanwithdrawatanytime.TheTrusteekeepsa record of the amount (if any) that you would have been able to withdraw without any restrictionsat1July1999,inaccordancewiththepreservationrules.Thisamountwillonlyexistwhenyoumeetaconditionofreleaseorhaverolledoveranunrestrictednon-preservedbenefitfromanotherfund.

Family LawAllpreservationcomponentsmaybereducedifthereisabenefitsplitundertheFamilyLaw Act.

Preservation

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When are preserved benefits payable? Preservedbenefitsmaybeaccessedwhenyoumeetaconditionofrelease.Theconditionsof release are as follows:

l on permanent retirement from the workforce at or after your preservation age (see below)

l on leaving employment on or after age 60

l onleavingemploymentwithacontributingemployerandyourpreservedbenefitis less than $200

l onreachingage65,regardlessofwhetheryouarestillworking.HoweveryoumustceasecontributorySchememembershipifyouwishtoaccessanybenefitsotherthantheBasicBenefit

l on total and permanent incapacity

l ifyouenteredAustraliaonaneligibletemporaryresidentvisaandyousubsequentlypermanentlydepartAustralia,thenyoucanapplyforpaymentofyourbenefit

l whentheAustralianTaxationOffice(ATO)givesLGSareleaseauthoritytopayexcesscontributions tax to the ATO

l ondeath,or

l if you are suffering from a terminal illness.

You may be eligible to receive an early release of some of your preserved funds under certaincircumstances,suchas:

l onthegroundsofseverefinancialhardship,or

l oncompassionategroundsfollowingwrittenapprovalfromtheATO,forpaymentofaspecifiedamount.

Preservation ageYourpreservationageistheageatwhichyouareeligibletoaccessyourpreservedbenefitsduetoretirementandisbasedonyourdateofbirth,asshownbelow:

Date of birth Preservation age

Before 1 July 1960 55 years

1July1960–30June1961 56 years




After 30 June 1964 60 years

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RETIREMENT SCHEME

The taxes applying to super are complicated. The following is a summary of the tax treatmentofsuper,currentatthedatethisPDSwasprepared.Wesuggestthatyouobtainprofessional advice about how the tax laws affect you.

Tax on contributionsAstheTrusteeisrequiredtopaythetaxesreferredtobelow,itdeductstheseamountsfrom your individual account balance.

Contributions Tax

A15%taxisleviedonconcessionalcontributions(whichincludessalarysacrifice)exceptifyourannualincomeexceeds$250,000perannum,inwhichcasethetaxonsomeorallof your concessional contributions may be 30%.

Surcharge

The Federal Government abolished the surcharge levy upon high income earners from 1 July 2005.However,anyassessmentsreceivedforperiodspriortothisdateremainpayableandare recorded in a debt account. Any amounts in your debt account will be deducted from yourbenefitatthetimeitispaid.

Superannuation lump sum payment from a taxed source

No tax is payable on a superannuation lump sum payment from a taxed source which is rolled over.

Low income spouse offset Acontributingspouseisentitledtoreceivean18%offsetforcontributionsupto$3,000perannum to a superannuation fund or retirement savings account of a spouse with assessable income(includingreportablefringebenefits)below$40,000perannum.Themaximumoffsetof$540appliesforacontributionof$3,000wherethespouseisbelowtheincomelevel.Ifthespouse’sassessableincomeexceeds$10,800,therebatewillphaseoutonadollar-for-dollarbasisanditisnolongeravailablewheretheassessableincomeexceeds$40,000perannum.

The ATO will determine eligibility for the rebate. Contact the ATO for more information about this rebate.

Tax on investment earningsEarnings on investments are generally taxed at a maximum of 15%. The actual rate may be reduced below 15% due to the effect of various tax credits and rebates.

Benefits paid in a case of terminal illnessWhenabenefitispaidforamemberwhohasbeenapprovedforapaymentundertheterminalillnessconditionofrelease,notaxwillbepayable.

Taxation

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1. For those born after 30 June 1960, age 55 is replaced with your preservation age (refer to page 37).

Tax on death benefits Taxpayableondeathbenefitsdependsonindividualcircumstances.Werecommendthatyouseekadvicefromasuitablyqualifiedprofessionalabouthowthetaxlawsapplyspecificallytoyouandyourspouse,estateanddependants.

Tax on superannuation lump sum paymentsThere may be tax payable when you make a lump sum withdrawal. Lump sum payments aresubjecttodifferentincometaxrates,dependingonage,amountandthecomponentswithdrawn. Details of the current tax treatment of the components of a lump sum superannuation payment are contained in the table below.

Tax benefitIfyouhavetaxablecontributionsallocatedtoyouraccount,LGSisabletoclaimataxdeduction on your behalf for any administration costs and insurance premiums that you havepaidinthefinancialyear.

Ifyouareeligibleforthetaxbenefit,thiswillbepassedontoyoubywayofreducedcontributions tax.

Goods and Services Tax (GST) YourcontributionstoandwithdrawalsfromtheSchemewillnotbesubjecttoGST.However,GSTwillbeincludedinsomechargestotheSchemeformanagementandinvestment services by the providers of those services. In respect of most of those GST amounts,LGScanclaimback55%or75%oftheGSTincurredasareducedinputtaxcredit,depending on the service. Amounts claimed back are credited to LGS.

Component Tax treatment

Age less than 551 Age55–591 Age 60+

Tax Free component Tax free Tax free Tax free

Taxable component Taxed at 20%

Tax free up to the low rate cap amount with the balance taxed at 15%

Tax free

TheMedicarelevyisalsopayableuponanybenefitwhereataxrategreaterthan0%applies.

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RETIREMENT SCHEME

Will your social security benefits be affected? Socialsecuritybenefitsdependonindividualcircumstances.YoushouldseekadvicefromasuitablyqualifiedprofessionalabouthowyourindividualaccountandbenefitsintheSchemewillaffectyoursocialsecuritybenefits,orthoseofyourspouseordependantswhomayreceiveabenefitorpensionafteryourdeath.

Tax File Number (TFN)UndertheSuperannuationIndustry(Supervision)Act1993,yoursuperannuationfundisauthorisedtocollectyourTFN,whichwillonlybeusedforlawfulpurposes.

These purposes may change in the future as a result of legislative change. LGS may discloseyourTFNtoanothersuperannuationproviderwhenyourbenefitsarebeingtransferred,unlessyourequestLGSinwritingthatyourTFNnotbedisclosedtoanyothersuperannuation provider.

ItisnotanoffencenottoquoteyourTFN.However,therecouldbesignificantconsequencesofLGSnotholdingyourTFN,theseareoutlinedbelow.

Non-disclosure of TFN

IfyouoryouremployerhavenotprovidedyourTFNbytheendofthefinancialyearthen:

l inthecaseofanaccountopenedafter1July2007,allofyouremployer’sconcessionalcontributionswillbetaxedatthetopmarginalrate,plustheMedicarelevy

l inthecaseofanaccountopenedonorbefore1July2007,whereyourannualcontributionexceeds$1,000,allofyourconcessionalcontributionswillbetaxedatthetopmarginaltaxrate,plustheMedicarelevy.

Inthecaseofself-employedcontributionsorotherpersonalcontributions,thesecannotbe accepted without a TFN.

IfyoudonotprovideyourTFNbytheendofthefinancialyearandtheadditionaltaxisdeducted,youcanstillprovideyourTFNandapplytohavetheadditionaltaxrefunded.However,additionaltaxwillonlybeabletoberefundediftheTFNisreceivedwithinthreeyears of the year in which the contributions were made and the additional tax was deducted.

IfwehavepaidtheadditionaltaxtotheATO,therewillgenerallybeaconsiderabledelaybefore any tax paid can be reclaimed because the application can only be made when we lodge our next tax return. If you leave LGS before any additional tax can be reclaimed fromtheATO,yoursuperpayoutwillbereduced.Youwillnotbeabletorequestarefundof this additional tax paid after you have left LGS.

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Regular reports on your investment You will receive the following regular reports:

Member statements Theseareissuedhalf-yearlyandyearlyandshowthecurrentbalanceofyourindividualpersonalaccount,estimationsofbenefits,yourpreservedcomponentsandanytransactionsthathavetakenplaceovertheperiod,includingnetinvestmentearnings.

Annual Report TheAnnualReportprovidesyouwithinformationonthemanagementandfinancialconditionof LGS including its investment performance. The report is available at lgsuper.com.au. Alternatively,youcancontactMemberServicestorequestafreecopy.

Complaints resolutionOur commitmentLGSiscommittedtoprovidingyouwithsatisfactoryserviceandthatallofyourenquiriesare attended to promptly.

However,ifyouaredissatisfiedwiththeservicethatyouarereceivingoradecisionthataffectsyou,weencourageyoutolodgeaformalcomplaint.

How to lodge a complaintIf you have a complaint about any services you have received or about a Trustee decision that affectsyou,youmaywishtocontactMemberServicesinthefirstinstancetoattempttohavethematterresolved.IfyouarenotsatisfiedwiththeresponseprovidedbyMemberServices,oryouwouldrathermakeawrittencomplaint,youcanreferthemattertotheLGSComplaintsResolution Manager in writing at the following address:

Complaints Resolution ManagerLocal Government SuperPO Box H290 AustraliaSquareNSW1215

[email protected],with‘NoticeofComplaint’markedinthesubjectline.

Operational information


mailto:info%40lgsuper.com.au?subject=Notice%20of%20Complaint

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RETIREMENT SCHEME

Bylaw,wearerequiredtohaveinplacearrangementstoproperlyconsideranddealwithcomplaints within 90 days of receipt. The Complaints Resolution Manager (who maintains a register of all complaints and actions) will ensure that your complaint is considered and provide you with a response as soon as possible.

If we have not made a decision within 90 days of receipt of your complaint you may write to us andrequestourwrittenreasonsforourfailuretomakeadecisionwithinthatperiod.Writtenreasons for not making a decision within 90 days of your complaint must be given within 28 days ofreceiptofyourrequest.Wewillnotifyyouofourdecisiononthecomplaintonceitismade.Inthecaseofdecisionsoncomplaintsastopaymentofdeathbenefits,wemustgiveyouwrittenreasonsforourdecisions.Inthecaseofdecisionsonothercomplaints,youmayrequestwrittenreasonsforourdecisions.Wemustgiveyouthereasonswithin28daysofreceiptofyourrequest.

Ifyouarenotsatisfiedwiththeresponse,orwefailtorespondtoyouwithin90days,youhavethe option of referring your complaint to the Australian Financial Complaints Authority.

Australian Financial Complaints AuthorityThe Australian Financial Complaints Authority (AFCA) is an independent external dispute resolution scheme authorised by the Minister for Revenue and Financial Services. AFCAprovidesfairandindependentfinancialservicescomplaintresolutionthatisfreeto superannuation funds’ members.

Ifanissuehasnotbeenresolvedtoyoursatisfaction,youcanlodgeacomplaintwithAFCA.

The contact details for AFCA are:

Australian Financial Complaints Authority GPO Box 3 Melbourne VIC 3001

Phone: 1800 931 678 Email: [email protected] Web: afca.org.au

mailto:info%40afca.org.au?subject=

http://afca.org.au


Family Law ActThe Family Law provisions are complex and you should seek independentlegalandfinancialplanningadvicewithrespectto your personal situation. Please note that for Family Law purposes,thetermspousereferstothelegallymarriedspouseofamember,adefactospouseorasamesexpartner.For more information please refer to the Family Law in the Retirement Schemefactsheet,availableatlgsuper.com.au

Information on PrivacyLGS is fully committed to comply with the Australian Privacy Principlesinthewaythatinformationiscollected,storedand used. Full details on how this is achieved are contained within LGS’s Privacy Policy. A copy of the LGS Privacy Policy is available on our website at lgsuper.com.au or by calling Member Services on 1300 LGSUPER (1300 547 873).

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RETIREMENT SCHEME

Ifyouarenotsatisfiedthatadequateprecautionsarebeingtakentoprotectyourpersonalinformation,youmaymakeaformalcomplaint.Thecomplaintmustbeinwritingandaddressed to:

LGSPrivacyOfficer Local Government Super PO Box H290 AustraliaSquareNSW1215

Phone: 1300 LGSUPER (1300 547 873)

IfyouarenotsatisfiedwiththeresponsefromthePrivacyOfficer,youmaylodgeacomplaintwiththeOfficeoftheAustralianInformationCommissionerwhichcanbecontactedon:

OfficeoftheAustralianInformationCommissioner GPOBox5218, Sydney NSW 2001

Phone: 1300 363 992 Email: [email protected] Web: oaic.gov.au

Anti-money laundering and counter-terrorism financingThe Trustee does not accept cash nor does the Trustee make payments to third parties unlessauthorisedtodosobytheregulator,theCourtorthelaw.

Tomeetitslegalobligationsandtomanageitsmoneylaunderingandanti-terrorismfinancingrisks,theTrusteemustbereasonablysatisfiedthatyouarewhoyousayyouare,especiallywhenyourequestanytypeofwithdrawalfromyouraccount.ThisisinadditiontotheTrusteebusinessrequirementstobesatisfiedthatyouaretheownerofyouraccountandthat the instruction the Trustee has received is valid.

Ataminimum,theTrusteemustverifyyourfullnameanddateofbirth,especiallywhenyourequestanytypeofwithdrawal.TheTrusteemayseekadditionalinformationtomeetits obligations under the Anti-Money Laundering and Counter-Terrorism Financing Act 2006.

Additionally,theTrusteeisrequiredtomonitoryourtransactionsforthepurposeofidentifying,havingregardtomoneylaunderingorterrorismfinancingrisk,anytransactionthat appears to be suspicious within the terms of the legislation. Suspicious matters include suspicionsaboutyouridentity,taxevasion,offenceagainstaCommonwealth,StateorTerritorylaw,proceedsofcrime,moneylaundering,terrorismfinancingortransactionsthat have no apparent economic or visible lawful purpose. The Trustee employs both human judgementanddataanalysistoidentifysuchtransactions.

The Trustee reports any such suspicious matters plus any threshold transactions or international funds transfer instructions to the regulator.

mailto:enquiries%40oaic.gov.au?subject=

https://www.oaic.gov.au

General information in this PDS is subject to change. Certain information that is not materially adverse may be updated without issuing a supplementary PDS and may be obtained by calling Member Services on 1300 LGSUPER (1300 547 873) or by visiting lgsuper.com.au/PDS

A paper copy of the updated information will be available free of charge upon request. Cover image: Bangalow

L136

9 07

/20

Printed on environmentally responsible materials.

Member Services

Offices

Office hours

Mail Web

1300 LGSUPER (1300 547 873)

PO Box N835Grosvenor PlaceNSW 1220

lgsuper.com.au

LGSUPER

Sydney Level12,28MargaretStNewcastle GroundFloor,12PerkinsStWollongong Shop 2/60 Burelli St

OfficesinBallina,Orange,Parramatta,TamworthandWaggaWaggaare available by appointment only.

Bookings are essential. Phone 1300 LGSUPER (1300 547 873) to make an appointment.

Between8.30amand5.00pm,MondaytoFriday

Contact details


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Documents

Local Government Super Product Disclosure Statement