A Nadia Radice, University of South Australia

Your super when you leave your job Issued July 2017 by UniSuper Limited ABN 54 006 027 121, AFSL 492806

PROPOSED CHANGES TO SUPER: FEDERAL BUDGET 2017

The 2017 Federal Budget included several announcements related to super. At the time of preparation, none of these proposals have been legislated.

You can read more about Budget proposals affecting super at unisuper.com.au/budget-2017.

If you’re thinking about making a change to your super, we encourage you to consider the proposed changes and to seek advice from a qualified financial adviser. You can contact UniSuper Advice on 1800 UADVICE (1800 823 842).

Prepared by UniSuper Management Pty Ltd (ABN 91 006 961 799, AFSL No. 235907) on behalf of UniSuper Limited, ABN 54 006 027 121, AFSL No. 492806, the Trustee of UniSuper (ABN 91 385 943 850). UniSuper Management Pty Ltd is the Administrator of the Fund and is licensed to provide financial advice, which is provided under the name of UniSuper Advice. UniSuper’s MySuper authorisation number is 91385943850448.

This information is of a general nature only and includes general advice. It has been prepared without taking into account your individual objectives, financial situation or needs. Before making any decision in relation to your UniSuper membership, you should consider your personal circumstances, the relevant product disclosure statement (PDS) for your membership category, and whether to consult a qualified financial adviser. To obtain a copy of the PDS relevant to your membership category, visit unisuper.com.au/pds or contact us on 1800 331 685.

UniSuper Advice is a service dedicated to UniSuper members and their spouses which is provided by UniSuper Management Pty Ltd, the entity licensed to provide financial advice. For more information about UniSuper Advice or to download the Financial Services Guide, please visit unisuper.com.au/advice. For any further enquiries, please contact 1800 331 685.

We’ve heard you’re moving on

Whether you’re staying within the higher education or research sector, changing careers or leaving work altogether, we know you’ve got a lot going on right now. So your super’s probably the last thing on your mind.

This booklet helps make the decision of what to do with your super easier.

The good news is no matter what your next move, you can always stay with UniSuper and continue to enjoy the benefits of being with one of Australia’s leading super funds.

Contents Defined Benefit Division (DBD) 13

Accumulation 2 23

Accumulation 1 25

WHERE TO BEGIN?

We suggest you start with the section that relates to the UniSuper product you currently have.

The front and back sections give you some useful information about UniSuper, including a glossary of common terms on pages 11 and 12.

NOT SURE WHICH UNISUPER PRODUCT YOU HAVE?

If you’re not sure which UniSuper product you have, check the welcome pack you received when you first became a UniSuper member, or your latest benefit statement. Both of these list the product you’re in (also known as your ‘membership category’).

Staying with UniSuperNow that you’re in, you’re welcome to stay. In fact, you can stay with us as long as you like. That’s because when you joined UniSuper, you entered a partnership that can continue for life. So no matter where your future takes you, you can always rely on us to help you build and manage your super.

3

Leaving your job because of illness or injury?

If you’ve left your job due to illness or injury, you may be eligible to claim a disablement benefit.

Please note: if you’re eligible, you need to claim the disablement benefit promptly after leaving your job or you may not be able to claim that type of benefit later. Please contact us immediately on 1800 331 685 for more information.

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1 For members aged 65 or older, some restrictions (known as the ‘Work Test’) apply to the types of contributions we can receive. There are also limits on the amount you can contribute to your super. Read about the Work Test and contribution caps at unisuper.com.au/glossary or call us on 1800 331 685 to find out more.

WEHI SUPER FUND MEMBERS

If you’re a UniSuper member whose benefits were transferred from the former Walter & Eliza Hall Institute (WEHI) of Medical Research Superannuation Fund, your membership is subject to special conditions and some of the material in this booklet may not apply to you. We recommend you contact us on 1800 331 685 for details of the special conditions that apply to you.

When you leave your job, your employer will stop making compulsory super contributions into UniSuper for you. What happens to your super account depends on which UniSuper product you have.

Unless you instruct us otherwise, your super will stay in UniSuper—which means you will continue to enjoy the benefits of being a UniSuper member.

By remaining a UniSuper member you can:

A continue contributing to UniSuper1

A ‘defer’ your defined benefit component if you’re in the DBD (see page 14 for what it means to defer)

A nominate UniSuper as the fund to receive your future compulsory employer contributions (as long as your new employer offers you ‘Choice of Fund’—see pages 5 and 6)

A transfer any other super you may have into UniSuper

A start a UniSuper pension (if you’re eligible)

A access our many features and benefits (see pages 8 to 10).

Alternatively, you may choose to transfer your benefit to another fund altogether.

What’s best for you depends on your personal circumstances, financial needs, and goals. You can find out more about your options in the section relevant to your UniSuper product.

Your super when you leave your job STAYING WITH UNISUPER

5

Nominating UniSuper as your chosen fund Under ‘Choice of Fund’ legislation, many employees can nominate the super fund into which their compulsory Superannuation Guarantee (SG) contributions are paid. Eligibility depends on your terms of employment.

5

6Your super when you leave your job NOMINATING UNISUPER AS YOUR CHOSEN FUND

‘Choice of Fund’ isn’t available to employees under certain types of industrial agreements or awards (which specify which super fund employer contributions must be paid into). This applies to most employees in the higher education and research sector.

However, if you’re eligible for Choice of Fund, you can nominate UniSuper as your chosen fund. Simply complete a Super Choice – Fund nomination form and provide it to your new employer within 28 days of starting your new job. This form and the Trustee Compliance Letter, contain all the information your new employer needs in order to contribute to UniSuper on your behalf. Both the form and letter are enclosed in this booklet.

You can also: A download the Choice of Fund Kit from

the ‘Forms and Documents’ section of our website.

A call us on 1800 331 685 to request a copy.

What happens if …

… UNISUPER IS YOUR NEW EMPLOYER’S DEFAULT SUPER FUND?

If UniSuper is your new employer’s default super fund, all you have to do is advise your new employer of your existing UniSuper member number. They can then automatically pay your contributions into your existing UniSuper account.

… UNISUPER IS NOT YOUR NEW EMPLOYER’S DEFAULT SUPER FUND, BUT YOU ARE ELIGIBLE FOR CHOICE OF FUND?

If UniSuper isn’t your new employer’s default super fund but you are eligible for Choice of Fund, you can nominate UniSuper as your chosen fund for your new employer to contribute to.

… UNISUPER IS NOT YOUR NEW EMPLOYER’S DEFAULT SUPER FUND AND YOU ARE NOT ELIGIBLE FOR CHOICE OF FUND?

If you’re not eligible for Choice of Fund with your new employer, your future Super Guarantee (SG) contributions will be made to another super fund. However, you can still transfer the super you accrue in your other super fund into your UniSuper account. Contact your other fund for details on how to transfer your super contributions to your UniSuper account.

7 Your super when you leave your jobFUND PERFORMANCE

8

* Past performance is not an indication of future performance. For our Balanced option 10 year performance results see www.superratings.com.au. SuperRatings does not issue, sell, guarantee or underwrite UniSuper products.

2 VALUE FOR MONEY

We’re a large value-for-money fund offering competitive fees. All our profits go to our members or are reinvested to improve our products and services. We don’t pay commissions to our financial advisers and we don’t pay dividends to external shareholders.

3 COMPETITIVE FEES

As a UniSuper member, you won’t be charged: A any entry or withdrawal fees A for the first investment option switch you

make each financial year A for selecting your own mix of investment

options when you first join UniSuper A for changing the options your future

contributions or transfers are invested in.

Our fees are often among the most competitive in Australia for an industry super fund (refer to ‘See for yourself’ on page 9).

Benefits of being a UniSuper memberSince 1983, UniSuper has been Australia’s only super fund dedicated to higher education and research sector professionals.

We’re proud to offer competitive fees, high quality products and services, and a diverse range of investment options to fulfil the super and retirement needs of our members.

Why stay with UniSuper?

1 A RECORD OF STRONG LONG-TERM INVESTMENT PERFORMANCE

Investing your money well to achieve greater retirement outcomes is at the heart of what we do. It’s because we know strong investment returns helps you reach your retirement goals sooner.

You can rely on our in-house investment team—recognised to be one of the best in Australia—and experience, to manage your money wisely. That’s why our Accumulation Balanced option—where most of our members invest—has delivered consistently strong returns for the past 10 years.*

Stay with us and feel more confident about your financial future.

9 Your super when you leave your jobBENEFITS OF BEING A UNISUPER MEMBER

4 EXCLUSIVE MEMBERSHIP

We specialise in super for people who work in higher education and research, just like you. And you can choose to stay with us right through to retirement and beyond—even if you leave the sector.

5 CONTROL AND CHOICE OVER YOUR INVESTMENTS

Everyone has different needs and preferences, so it’s good to know you have the flexibility to tailor your own investment strategy or leave it to our team of experts.

Find out more about our investment options, including suggested investing timeframes and the types of assets we invest in, by reading How we invest your money at unisuper.com.au.

SEE FOR YOURSELF

Don’t just take our word for it. See how our fees and investment returns for our Accumulation 1 and Accumulation 2 accounts stack up against other funds using the Chant West Apple Check tool via MemberOnline (which you can access at unisuper.com.au/memberonline).

6 QUALITY FINANCIAL ADVICE

With UniSuper Advice, you can feel confident that you’ll get the information you need to grow your super and other finances, from an organisation you know and trust. Our advisers offer financial plans and advice on super as well as a broad range of insurance, investment and retirement strategies and products. Plus you’ll benefit from their knowledge of the unique workings of UniSuper products as well as the industry you work in.

To find out more about what UniSuper Advice can do for you, see pages 27 and 28.

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

Chant West awarded UniSuper ‘Super Fund of the Year’ in both 2015 and 2016, and ‘Pension Fund of the Year’ in 2017. UniSuper was also awarded ‘Best Fund: Advice Services’ in 2017. UniSuper’s Accumulation 2 product has 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.

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 products have also achieved a 10-year Platinum Performance rating. Go to www.superratings.com.au for details of its rating criteria. SuperRatings doesn’t 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.

An award-winning super fund

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ACCUMULATION COMPONENTAn accumulation-style component of Defined Benefit Division (DBD) accounts that is made up of 3% additional employer contributions (if these apply) and any voluntary contributions you make as well as transfers from other funds. The value of this component is not determined by a formula, but by the performance of your investment options. For more information, see the Defined Benefit Division and Accumulation 2 Product Disclosure Statement.

CHOICE OF FUNDSuperannuation legislation that allows eligible employees to nominate which super fund their employer pays compulsory Superannuation Guarantee contributions into on their behalf.

Important definitions Here are the meanings of terms commonly used in this booklet.

ACCUMULATION 1An accumulation-style account in which your super balance accumulates through contributions, transfers from other funds, and investment returns.

ACCUMULATION 2An accumulation-style account in which your super balance accumulates through contributions, transfers from other funds, and investment returns. Employer contributions to your Accumulation 2 account are generally 14% or 17%, and you’re also required to make member contributions (although you may be able to choose to reduce your contributions).

CONTRIBUTING MEMBERYou stop being a contributing member in the DBD or Accumulation 2 if you stop working for a UniSuper participating employer, or your employment conditions change and you’re no longer eligible for employer contributions of either 14% or 17%.

DEFINED BENEFIT COMPONENTThe part of your Defined Benefit Division (DBD) benefit that’s calculated in accordance with the defined benefit formula. For more information, see the Defined Benefit Division and Accumulation 2 Product Disclosure Statement.

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DEFINED BENEFIT FORMULASThe defined benefit component of your benefit is based on formulas that take into account a number of factors and vary depending on when you joined the DBD. For more information on the DBD formula that applies to you, refer to your latest benefit statement or call us on 1800 331 685.

FUTURE CONTRIBUTIONS STRATEGYAs a UniSuper member, you can choose which investment option(s) all future contributions to your accumulation account/component are invested in. This is known as a future contributions strategy, and it can be different from the investment options you’ve selected for your existing account balance.

INBUILT BENEFITSBenefits that are provided to DBD members by UniSuper, not an external insurance provider. They are payable on disablement, temporary incapacity, terminal medical condition and death. You cannot opt out of these benefits.

LUMP SUMA benefit payable as cash rather than as an income stream (e.g. a pension). A lump-sum benefit can include a taxable component and tax-free component.

MEMBER CONTRIBUTIONSContributions paid by you. DBD and Accumulation 2 members are generally required to make standard member contributions of 7% of salary (if paid on an after- tax basis). However, you can reduce your standard member contributions under UniSuper’s ‘contribution flexibility’ requirements. To find out more, see the Contribution flexibility fact sheet and application forms, which are available at unisuper.com.au or by calling 1800 331 685.

NOTIONAL TAXED CONTRIBUTION (NTC)A notional amount of contributions that relate to a DBD member’s defined benefit component and count towards a member’s concessional contributions cap.

OPTION PERIODThe period during which a DBD member who has ceased to be a contributing member of the DBD has to elect whether to defer their defined benefit component or transfer it to Accumulation 1. Your option period commences on the date you stop being a contributing member to the DBD and ends on the latter of a) the 90th day after you cease to be a contributing member, or b) the 30th day after we write to you about your options.

PARTICIPATING EMPLOYERAn employer who has signed a ‘participation agreement’ with UniSuper. To find out if your employer is a UniSuper participating employer, call us on 1800 331 685.

UNISUPER TRUST DEED AND REGULATIONS The rules and regulations for the establishment and operation of the UniSuper Fund.

TRUSTEEThe body that is responsible for managing the UniSuper Fund in accordance with superannuation law and the Fund’s governing rules.

 

Defined Benefit Division members

Your options

In most cases, your defined benefit has two components—a defined benefit component and an accumulation component.4 During your option period you can:

A defer your defined benefit component in the DBD, or

A transfer your defined benefit component to an Accumulation 1 account.

You might also be eligible to access your benefit. To find out more, refer to page 29.

Before you make a decision regarding your defined benefit component, you should consider obtaining advice from a qualified financial adviser to help determine the right option for you. It’s important to consider your options carefully as your decision could impact your future retirement benefit.

If you’re a Defined Benefit Division (DBD) member, you generally must decide what to do with your defined benefit component within 90 days of leaving your employer.

A ...

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What if you don’t make a decision?

If you don’t elect to defer your defined benefit component within the option period, your defined benefit and accumulation components will be converted into a lump sum and transferred to an Accumulation 1 account, provided you haven’t already recommenced as a contributing member of the DBD.

The meaning of common terms used in this section are explained on pages 11 and 12.

14Your super when you leave your job DEFINED BENEFIT DIVISION MEMBERS

4 To see how the components work, refer to the Defined Benefit Division and Accumulation 2 Product Disclosure Statement available from unisuper.com.au.

5 If you elect to defer, you can request to transfer your benefit to an Accumulation 1 account at any time.

A ...

You should also consider the funding risks associated with defined benefits (see page 17) as well as the investment risks associated with accumulation benefits (see page 18).

WHAT IT MEANS TO DEFER YOUR DEFINED BENEFIT

If you elect to defer your defined benefit component in the DBD within the option period, your defined benefit component will remain in the DBD and you will become a ‘deferred’ DBD member.5

Your defined benefit will continue to accrue, even if you don’t receive any employer contributions, but the rate of accrual is likely to be significantly lower than it was while you were a contributing member.

If you start a new job with a UniSuper participating employer within the option period and are eligible for DBD membership with your new job, you will continue to be a DBD member so long as you a) haven’t already transferred your defined benefit component to Accumulation 1, or b) claimed your benefit.

15 Your super when you leave your jobDEFINED BENEFIT DIVISION MEMBERS

16Your super when you leave your job DEFINED BENEFIT DIVISION MEMBERS

6 If you elect to convert your defined benefit component into an accumulation benefit and transfer it to Accumulation 1, you will no longer be eligible for a Defined Benefit Indexed Pension.

7 For more information on Accumulation 1, see the Accumulation 1 Product Disclosure Statement (PDS). The PDS includes information about MySuper. If you transfer to Accumulation 1, any part of your account held in the Balanced investment option will form part of our MySuper offering.

8 The defined benefit formula used to calculate the lump sum depends on a number of factors and when you joined the Fund. For more information, refer to your latest benefit statement. Your final DBD calculation will be produced once we receive final contributions from your employer and confirmation of your termination date. This process may take some time depending on your employer’s payroll and administration systems.

9 Different rules apply if you elect to receive part of your defined benefit component as a Defined Benefit Indexed Pension.

WHAT HAPPENS IF YOU DEFER YOUR COMPONENT IN THE DBD

If you elect to defer your defined benefit component:

A you’ll maintain your membership in the DBD, which may be useful if you are planning to work in a role which allows you to join the DBD in the future.

A your defined benefit will increase in line with inflation, as measured by the Consumer Price Index (CPI), and age-related factors. However, depending on the date you joined the DBD, during deferral your benefit may increase at a rate slightly lower than inflation because of the effect of the Average Service Fraction (ASF) on your benefit formula.

A your defined benefit component will generally be protected from investment market volatility, subject to risks associated with defined benefits and Clause 34 of UniSuper’s Trust Deed (see page 17).

A if you joined the DBD prior to 1 July 1998 and have continuously been a DBD member since then, you’ll still be eligible to purchase a Defined Benefit Indexed Pension.6

BECOMING A CONTRIBUTING DBD MEMBER AFTER DEFERRING

If you defer your defined benefit component and are later employed in a role where you’re eligible to join the DBD, you’ll again become a contributing member of the DBD. Your deferred benefit component will cease to be deferred and will again accrue at the rates applicable to a contributing member.

WHAT IT MEANS TO TRANSFER TO ACCUMULATION 1

If you elect to transfer your defined benefit component (together with your accumulation component) to an Accumulation 1 account7, it will be converted to a lump sum in accordance with the applicable defined benefit formula before being transferred.8

In the period between ceasing to be a contributing member of the DBD to the date of processing the transfer to Accumulation 1, your defined benefit will generally continue to accrue in the same way it would have if you chose to defer your defined benefit component in the DBD.9

Here’s an example of how a transfer from the DBD to Accumulation works:

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Bob is 61 years old and stopped working on 30 June 2017. He has been a UniSuper member for 10 years and is receiving 17% employer contributions, with 14% paid into the defined benefit component and 3% to his accumulation component. His three year Benefit Salary is $55,000, his five year Benefit Salary is $52,500, and his accumulation component is $20,000. Bob’s leaving service benefit will be made up of the sum of his defined benefit component and his accumulation component. As he is older than 60, no tax applies to his benefit when it is withdrawn.

* The formula for a leaving service/retirement benefit varies depending on the date you joined the DBD.

If Bob elected to defer his benefit on 30 June 2017 and remains in deferral for one year, his retirement benefit at 30 June 2018 is calculated using:

A his three year and five year benefit salary at 30 June 2017 increased by one year of CPI (assuming CPI of 2.1%).

A an updated Lump Sum Factor as he is one year older, and A an extra year’s Benefit Service with 0% service fraction (which gives an ASF of

90.91%). The effect of being in deferral for one year on Bob’s retirement benefit is shown in the following example.

Example: Bob’s leaving service/retirement benefit

BOB’S LEAVING SERVICE BENEFIT AT 30 JUNE 2017*

BOB’S RETIREMENT BENEFIT AT 30 JUNE 2018 AFTER ONE YEAR IN DEFERRAL*

7.5

BENEFIT SERVICE BEFORE 1 JANUARY 2015

22.2%

LUMP SUM FACTOR

100%

AVERAGE SERVICE

FRACTION

100%

AVERAGE CONTRIBUTION

FACTOR

$55,000

THREE YEAR BENEFIT SALARY

7.5BENEFIT

SERVICE BEFORE 1 JANUARY 2015

22.4%LUMP SUM

FACTOR

90.91%AVERAGE SERVICE

FRACTION

100%AVERAGE

CONTRIBUTIONFACTOR

$56,155THREE YEAR

BENEFIT SALARY

As Bob worked full time with the same employer, his average service fraction (ASF) is 100% at 30 June 2017. Having always made 7% standard member contributions, Bob’s average contribution factor (ACF) is 100%.

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Bob is 61 years old and stopped working on 30 June 2017. He has been a UniSuper member for 10 years and is receiving 17% employer contributions, with 14% paid into the defined benefit component and 3% to his accumulation component. His three year Benefit Salary is $55,000, his five year Benefit Salary is $52,500, and his accumulation component is $20,000. Bob’s leaving service benefit will be made up of the sum of his defined benefit component and his accumulation component. As he is older than 60, no tax applies to his benefit when it is withdrawn.

Example: Bob’s leaving service/retirement benefit

$52,500

FIVE YEAR BENEFIT SALARY

2.5

BENEFIT SERVICE FROM

1 JANUARY 2015

22.2%

LUMP SUM FACTOR

100%

AVERAGE SERVICE

FRACTION

100%

AVERAGE CONTRIBUTION

FACTOR

$120,712.50

DEFINED BENEFIT COMPONENT

$120,712.50

DEFINED BENEFIT COMPONENT

$20,000

ACCUMULATION COMPONENT

$140,712.50

TOTAL LEAVING SERVICES BENEFIT

$123,969.20DEFINED BENEFIT

COMPONENT

$20,000ACCUMULATION

COMPONENT

$143,969.20TOTAL LEAVING

SERVICES BENEFIT

$53,602.50FIVE YEAR

BENEFIT SALARY

3.5BENEFIT

SERVICE FROM 1 JANUARY 2015

22.4%LUMP SUM

FACTOR

90.91%AVERAGE SERVICE

FRACTION

100%AVERAGE

CONTRIBUTIONFACTOR

$123,969.20DEFINED BENEFIT

COMPONENT

19 Your super when you leave your job DEFINED BENEFIT DIVISION MEMBERS

Your transferred benefits

INVESTMENT STRATEGY

Your transferred defined benefit component and any future contributions will be invested according to the future contributions strategy for your accumulation component.

If you have not chosen a future contributions strategy, your transferred defined benefit component and any future contributions will be invested in the same way as current contributions to your accumulation component.

If you don’t have an accumulation component, your transferred defined benefit component and future contributions will be invested in our default investment option, the Balanced option, and form part of our MySuper offering.

20Your super when you leave your job DEFINED BENEFIT DIVISION MEMBERS

Things to consider

RISKS ASSOCIATED WITH DEFINED BENEFITS

In the event of a shortfall of assets caused by a prolonged market downturn or other factors, the Trustee, under Clause 34 of the Trust Deed, may reduce defined benefits. Therefore members must consider this risk.

Clause 34 of the Trust Deed provides a process to manage the DBD’s financial position, including a mechanism to reduce benefits if necessary. The Trustee uses two key actuarial measures to track the financial position of the fund; the Vested Benefits Index (VBI) and the Accrued Benefits Index (ABI). Under Clause 34, if the Actuary’s report of its annual investigation and valuation of the DBD advises that those measures have fallen below particular levels (or the level of contributions is such that those measures are likely to fall below those levels), we must notify members and employers. Four years after receiving this advice, if the Actuary’s subsequent report advises that the Fund’s position has not improved sufficiently, the Trustee must consider whether it is in the interests of all DBD members to reduce benefits payable.

The four-year monitoring periods mean that the Trustee can make decisions in DBD members’ best interests. If benefit reductions are required, the Trustee must do this on a fair and equitable basis for all DBD members. There is currently a Clause 34 monitoring period in place which will end when the first Actuarial Report has been presented to the Trustee after 30 June 2017. The Trustee may then consider if defined benefit reductions are required. If benefit reductions are required, the approach would depend on the circumstances after the monitoring period concludes. However, it could include changes to the rate at which your defined benefits accrue, reductions to the accrued value of your defined benefit, or a combination of both. For more information, go to unisuper.com.au/dbdupdate.

Clause 34 doesn’t apply to accumulation- style super, such as our Accumulation 1 and 2 products, Spouse Accounts and Flexi Pensions.

Super benefits for members of the DBD are largely determined by a formula, part of which changed for benefits that accrue from 1 January 2015. As a result, most DBD members who joined before 1 January 2015 will have their leaving service benefit calculated using a combination of the old and new formulas.

For more detailed information about the change under Clause 34 of the Trust Deed and its effects, including several examples, go to unisuper.com.au/dbdupdate.

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What are ‘grandfathering arrangements’?

Although contributions caps apply to you as a DBD member, the level of concessional contributions made to your defined benefit component is calculated using a Notional Taxed Contribution (NTC) amount, rather than the actual amount of concessional contributions.

Special arrangements apply when determining the NTCs for eligible members who were in the DBD before 12 May 2009.

These arrangements—often called ‘grandfathering arrangements’— mean that where a member’s NTC amount exceeds the concessional contributions cap, the NTC amount is deemed to be at the concessional contributions cap, and no additional tax is payable on contributions made to the DBD component.

For more information on the taxation of contributions and NTCs, please refer to the relevant fact sheet available at unisuper.com.au.

RISKS ASSOCIATED WITH ACCUMULATION BENEFITS

In choosing to transfer your benefits to Accumulation 1, you’re exposing all of your benefit directly to positive or negative investment performance (from the date of transfer to Accumulation 1). For more information on investment risk, see the How we invest your money booklet available at unisuper.com.au/pds, or by calling 1800 331 685. 

GRANDFATHERING OF NOTIONAL TAXED CONTRIBUTIONS

If you cease to be a contributing member of the DBD and defer your defined benefit component, you retain the benefit of any ‘grandfathering arrangements’ you may have regarding the calculation of notional taxed contributions. This means that these arrangements will still apply if you become a contributing member of the DBD again (provided you continue to be eligible under the rules of the grandfathering arrangements).

However, if your defined benefit component is transferred to Accumulation 1 (regardless of whether you’ve chosen this option), you’ll lose the benefit of any grandfathering arrangements you have. This means that if you return to the DBD as a contributing member, you will not have the benefit of the grandfathering arrangements.

Your super when you leave your job YOUR INSURANCE COVER AND INBUILT BENEFITS

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Your insurance cover and inbuilt benefits

As a DBD member you’re entitled to inbuilt benefits and insurance cover. Ceasing to be a contributing member of the DBD may affect your entitlements.

INBUILT BENEFITS

When you stop being a contributing member of the DBD, you’re no longer entitled to inbuilt benefits—unless you’re eligible to claim a benefit under the Fund’s continued inbuilt benefit provisions. This applies within the 90-day period from the date you ceased being a contributing member (in the context of inbuilt benefits, this is known as the 90-day continuation period), regardless of whether you defer your benefit in the DBD or transfer to Accumulation 1.

MORE INFORMATION

For more information on insurance, reinstatement of cover, eligibility conditions and other events that may lead to your cover ceasing, please refer to the Insurance in your super booklet, which is available at unisuper.com.au/pds or call us on 1800 331 685.

10 TAL Life Limited, ABN 70 050 109 450, AFSL No. 237848.

Your super when you leave your job YOUR INSURANCE COVER AND INBUILT BENEFITS

EXTERNAL INSURANCE COVER

As a DBD member, in addition to the inbuilt death and disablement benefits provided, you can also take out insurance cover through a group life policy held with our Insurer10 (if you’re eligible).

Any external insurance cover you have as part of your UniSuper membership will generally continue as long as you have a sufficient balance in your accumulation component or account to pay your premiums, and meet the policy terms and conditions.

Your external insurance cover will cease if your:

A accumulation component doesn’t have enough funds to pay the premiums, or

A super benefit is less than $2,000 and you haven’t received any contributions or transfers for 12 consecutive months. In this case, your cover will cease from the date you have been advised in writing that your cover has ceased.

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Accumulation 2 members

The meaning of common terms used in this section are explained on pages 11 and 12.

Your accumulation account

When you stop being a contributing member of Accumulation 2, your benefit will automatically be transferred to an Accumulation 1 account, unless you have already started a new job that makes you eligible for Accumulation 2 membership.

Your benefit will be your account balance less any fees, charges and taxes that apply.

If you’re an Accumulation 2 member and you stop working for a UniSuper participating employer, your Accumulation 2 benefit will automatically be transferred to an Accumulation 1 account.

The future contributions investment strategy applicable to your account won’t change when you transfer from Accumulation 2 to Accumulation 1, unless you make a change.

When your Accumulation 2 benefit is transferred to an Accumulation 1 account, you’re no longer required to make standard member contributions.

24Your super when you leave your jobACCUMULATION 2 MEMBERS

MORE INFORMATION

For more information, including events that will lead to ceasing or reinstating your insurance cover, eligibility conditions and reinstatement of cover, please refer to Insurance in your super booklet, available at unisuper.com.au/pds or call 1800 331 685.

Your insurance cover

INSURANCE COVER

Any insurance cover you have as part of your UniSuper membership will generally continue as long as you continue to have a sufficient balance in your accumulation account to pay your premiums and meet the policy terms and conditions.

Your cover will cease if your: A account has insufficient funds to pay

the premiums, or A super benefit is less than $2,000 and

you haven’t received any contributions or transfers for 12 consecutive months. In this case, your cover will stop from the date you have been advised in writing that your cover has ceased.

25

The meaning of common terms used in this section are explained on pages 11 and 12.

Your accumulation account

If you were an Accumulation 1 member before leaving your job, your account will stay open and your account balance will remain invested in the same investment options. Your Accumulation 1 account will earn the investment returns of your chosen investment option(s).

The investment returns of each investment option are affected by movements in the investment markets and may be positive or negative in any given period.

Your Accumulation 1 benefit will be your account balance less any applicable fees, costs and taxes (plus any death or disablement benefit, if applicable). Effective from the date you leave employment and until you instruct UniSuper otherwise, your benefit will remain in the investment option(s) you have chosen for your account.

Accumulation 1 membersAs an Accumulation 1 member, your super entitlements are held in an Accumulation 1 account, where your balance is maintained, net of fees and costs.

What happens if …

… YOU START A NEW JOB WITH A UNISUPER PARTICIPATING EMPLOYER AND ARE ELIGIBLE FOR ACCUMULATION 1 MEMBERSHIP?

Nothing changes—your Accumulation 1 membership continues. Simply advise your new employer of your existing UniSuper member number and they will make contributions into your account. Your balance will remain invested in your existing investment option(s) (unless you choose new ones).

… YOUR NEW JOB QUALIFIES YOU FOR DEFINED BENEFIT DIVISION (DBD) OR ACCUMULATION 2 MEMBERSHIP?

If your job qualifies you for DBD or Accumulation 2 membership, you will become a DBD or Accumulation 2 member.

26Your super when you leave your job ACCUMULATION 1 MEMBERS

… IF YOUR NEW EMPLOYER OFFERS YOU CHOICE OF FUND?

You can ask them to pay your compulsory Superannuation Guarantee (SG) contributions into your UniSuper Accumulation 1 account. All you have to do is fill out the Super choice – fund nomination form in this booklet (which includes the Trustee Compliance letter), and give it to your new employer’s HR or payroll department (whoever looks after super). It’s that simple.

For more information on nominating us as your chosen fund, see pages 5 and 6.

… YOU’RE NOT ELIGIBLE FOR CHOICE OF FUND?

Even if you‘re not eligible to choose which super fund your compulsory super contributions are paid into, you can still keep your existing Accumulation 1 balance in UniSuper. This means you can continue to enjoy the range of benefits that UniSuper provides.

Your account will remain invested in the same investment option(s) as at the time you left your job. The investment returns of each investment option are affected by movements in the investment markets and may be positive or negative in any given period.

MORE INFORMATION

To find out about insurance cover—including other events that will lead to ceasing or reinstating your insurance cover, eligibility conditions and reinstatement of cover, please refer to Insurance in your super booklet, available at unisuper.com.au/pds or call 1800 331 685.

Your insurance cover

Any insurance cover you have as part of your UniSuper membership will continue, as long as you keep your Accumulation 1 account open and meet the policy terms and conditions.

Your insurance cover will cease if your: A account has insufficient funds to pay

the insurance premiums, or A your super benefit is less than

$2,000 and you have not received any contributions or transfers for 12 consecutive months.

27

Wherever you are in your journey—whether you’re just starting out, nearing retirement, or somewhere in between—UniSuper Advice11 can help you with the decisions you’re facing.

Our advisers are solely dedicated to helping you and your spouse with your finances, which means you get personal financial advice from a team with unique, in-depth knowledge of UniSuper and the higher education and research sector.

Need help making the right decision?Making decisions about your super can feel daunting, especially if you’re not confident about how your choice will impact your future savings and bigger financial picture.

We operate Australia-wide, providing phone-based and face-to-face advice, and can help with a variety of financial issues including:

A superannuation A strategies beyond superannuation,

such as: – transitioning to retirement – investment strategies – debt management – redundancy advice – income planning – wealth accumulation – insurance – estate planning – social security planning.

No matter what your stage of life, it’s never too late to plan your financial future

11 Not all estate planning services are available through UniSuper Advice. A UniSuper Advice financial adviser may refer you to a third part to receive specialist advice, including legal advice.

Come see us on campus

You might find it useful to speak to one of our on-campus consultants about your membership and work out your options. Visit unisuper.com.au/campusbookings to make a booking near you.

28Your super when you leave your job NEED HELP MAKING THE RIGHT DECISION?

Advice fees

There’s a general misconception that financial advice is only for the wealthy. At UniSuper, we understand our members have diverse financial situations, so we provide different financial advice options to make it as accessible and affordable for all our members, regardless of how much you earn or have saved.

General information is provided at no additional charge to UniSuper members, while phone-based advice and face-to- face advice are provided at either fixed or hourly rates, depending on the extent of your requirements.

After assessing your needs during your first meeting, we will provide you with a quote detailing any potential fees before you decide to proceed. Keep in mind all or part of the advice fees may be deducted from an eligible account.12 You can learn more about our fees in our Financial Services Guide, which is available at unisuper.com.au.

Plan your retirement with us

You may be considering retirement after years of saving and hard work. Whatever you want to be and whatever you want to do in retirement, you’ll need a regular flow of income for the years ahead. UniSuper offers a range of options to suit your retirement income needs.

Whether you want investment choice, flexibility in the level of income you receive each year, the ability to make lump-sum withdrawals or nominate who’ll receive the balance of your pension when you’re gone, we have a pension to suit you. And the good news is that the income you receive from any UniSuper pension could be tax free from age 60.

For more information, refer to the Your income when you retire booklet available on our website.

MORE INFORMATION

To contact UniSuper Advice, please call 1800 UADVICE (1800 823 842) or email advice@unisuper.com.au.

UniSuper Advice is operated by UniSuper Management Pty Ltd, which is licensed to provide financial advice.

12 Any advice paid for from your UniSuper account must be related to your super and/or super-related retirement planning.

29

From 1 July 1999, all super contributions and investment earnings must be preserved. Your super benefits are classified into three components—known as preservation components—that determine when you can access them.

The preservation components are: A preserved A restricted non-preserved A unrestricted non-preserved.

Accessing your benefitSuper is a long-term investment with government restrictions on when you can access your super benefit. Generally, your super must remain in the super system until you permanently retire from the workforce on or after reaching your ‘preservation age’.

Preserved benefits

Generally, you cannot withdraw your preserved benefits until you have met what’s known as a ‘condition of release’.

CONDITIONS OF RELEASE

The conditions of release include: A permanently retiring from the

workforce on or after reaching your preservation age,

A terminating employment after you reach 60,

A reaching age 65, A becoming permanently incapacitated, A being eligible for the Departing

Australia Superannuation Payment (DASP),

A terminating employment with an employer who contributed to UniSuper on your behalf, and having a preserved benefit of less than $200,

A death, or A a terminal medical condition.

Accessing your benefit

Before you decide whether to access your benefit, we can provide you with a benefit entitlement statement detailing your estimated benefit entitlements. This may be useful when considering your options. Please call us on 1800 331 685 if you would like to obtain a benefit entitlement statement.

30Your super when you leave your job ACCESSING YOUR BENEFIT

Your preservation age varies depending on when you were born (see table above).

Accessing your preserved benefits before you retire

Under the preservation rules, you may also be able to access preserved benefits early, in the following limited circumstances, provided you satisfy the eligibility criteria:

A Specified compassionate grounds You must apply directly to the Department of Human Services (DHS).

A Severe financial hardship grounds You must apply to the Trustee and you must be receiving eligible Commonwealth Government income support benefits.

However, there are limits on how much you can withdraw from your super on the above two grounds. Contact DHS or UniSuper for more information.

YOUR DATE OF BIRTH PRESERVATION AGE

Before 1 July 1960 551 July 1960 – 30 June 1961 561 July 1961 – 30 June 1962 571 July 1962 – 30 June 1963 581 July 1963 – 30 June 1964 591 July 1964 or after 60

Restricted non-preserved benefits

Generally, you can access restricted non-preserved benefits when you cease employment with an employer who contributed to UniSuper on your behalf. You can also access these benefits if you meet a condition of release.

Unrestricted non-preserved benefits

Unrestricted non-preserved benefits are benefits that you’re no longer required to keep within the super system. You can generally access unrestricted non- preserved benefits at any time, regardless of your age, employment situation or financial position.

31 Your super when you leave your jobACCESSING YOUR BENEFIT

Additional restrictions for DBD members

In addition to the preservation rules, if you’re a DBD member, the UniSuper Trust Deed and Regulations impose further restrictions under the Fund’s governing rules that limit when you can access your defined benefit component.

Generally, if you’re a contributing member of the DBD, you may only withdraw or transfer all or part of your defined benefit component if it’s entirely made up of unrestricted non-preserved benefits.

If you choose to withdraw or transfer your defined benefit component to another super fund, you will cease to be a DBD member, and any remaining defined benefit component you have will be converted into an accumulation benefit and transferred to an Accumulation 1 account.13 Any future contributions will be made into this account.

Different rules also apply to requests for early access of benefits on severe financial hardship or compassionate grounds.

13 Different rules apply if you establish a Transition to Retirement (TTR) pension.

Temporary residents

Government legislation places restrictions on temporary residents accessing their benefits.

An eligible temporary resident whose visa has expired or been cancelled is able to claim their super benefit directly from UniSuper within six months of departing Australia, or from the ATO at any time. They can also claim their benefit upon permanent incapacity, terminal medical condition or death.

Refer to our Departing Australia superannuation payment fact sheet, which is available at unisuper.com.au or by calling 1800 331 685, or visit the ATO website at www.ato.gov.au.

New Zealanders

If you’re a New Zealander and are permanently emigrating from Australia to New Zealand, you may be eligible to transfer your UniSuper benefit to an authorised KiwiSaver scheme provider.

To check the eligibility criteria, refer to the Transfer your UniSuper account to KiwiSaver fact sheet, which is available at unisuper.com.au or by calling us on 1800 331 685.

32Your super when you leave your job ACCESSING YOUR BENEFIT

Providing proof of identity

Anti-money laundering and counter terrorism financing legislation requires super funds to identify, monitor and have measures in place to reduce the risk that the fund may be used as a vehicle to launder money or finance terrorism. This means you will be required to prove you are the person to whom the superannuation entitlements belong. By law, you are required to provide certified copies of proof of identity documents in certain circumstances, e.g. when withdrawing your benefit, receiving a death benefit, starting a pension and, in some circumstances, transferring your super to another fund.

Transferring your benefit to another super fund

You can transfer all or part of your benefit to another complying super fund. We recommend that you speak to a qualified financial adviser before doing so. Keep in mind that UniSuper membership is not open to the public. If you close your UniSuper account you won’t be able to become a member again unless you start working for another UniSuper participating employer. You also won’t be able to purchase a UniSuper pension in the future. Leaving UniSuper may also have implications for any insurance cover you have through the Fund.

Do you have to withdraw your super?

You can choose to keep your super in UniSuper indefinitely while you continue working. Also, even if you have stopped making contributions and have retired from the workforce, you don’t have to withdraw your benefit if you don’t wish to—you can keep your money with us.

TAX IMPLICATIONS OF ACCESSING YOUR BENEFIT

If you’re thinking of taking some or all of your super benefit or transferring it to another super fund, it’s important to consider the tax implications before making any decision.

Tax on your benefit

You may have to pay tax when you withdraw your benefit from UniSuper. Any applicable tax will normally be deducted from your benefit before it is paid.

IF YOU’RE AGED LESS THAN 60

Tax may be deducted from your benefit. The amount of tax payable will depend on a number of factors, including your age and the preservation components of your benefit.

IF YOU’RE AGED 60 OR OLDER

Tax may be deducted depending on your account balance or your annual income amount. Otherwise, your benefit will be generally tax free.

33 Your super when you leave your jobACCESSING YOUR BENEFIT

Your benefit generally comprises a tax-free and taxable component. No tax is payable on the tax-free component, irrespective of your age. Different tax rates apply on death benefits, and the of benefits taken as a pension or paid to temporary residents.

When you make a lump-sum withdrawal, the amount you receive will be drawn down from these components in proportion to the amount in each.

TAX ON TRANSFERS

No tax is payable if you transfer your super from one complying fund to another, unless the transfer is from an untaxed source, e.g. certain public sector super funds or an eligible termination payment.

TAXATION ADVICE

The taxation of super is complex. Before you access your benefit, UniSuper recommends you obtain taxation advice from a registered taxation agent.

If you have any outstanding superannuation-related tax liabilities to the ATO, such as a Division 293 tax deferred account, you should also speak to the ATO and seek appropriate advice.

PROVIDING YOUR TAX FILE NUMBER (TFN)

It is not an offence if you do not quote your TFN to us. However, providing your TFN will have the following advantages which may not otherwise apply:

A we will generally be able to accept all types of contributions to your account (legislated contributions caps apply)

A the tax on contributions to your account will not increase due to failure to provide your TFN

A other than the tax that may ordinarily apply, no additional tax will be deducted when you start drawing down your super benefits

A it will be easier to trace all the super accounts in your name, including in other super funds, to ensure you receive all of your benefits when you retire.

If you provide us with your TFN, we can only use it for lawful purposes under superannuation and tax law. However, these lawful purposes and the consequences of not providing your TFN are subject to legislative changes. If you would like to provide us with your TFN, please visit MemberOnline, call us on 1800 331 685 or download the Tax file number collection form from our website.

MORE INFORMATION

For more information on the taxation of super, refer to the How super is taxed booklet (for Accumulation 1 and Spouse Account members) or the Defined Benefit and Accumulation 2 Product Disclosure Statement (PDS). Both are available at unisuper.com.au/pds or by calling 1800 331 685.

34

Staying in touchWe provide you with a number of options that make it easy for you to keep up to date with your super.

MEMBERONLINE

Keeping track of your super is easy with MemberOnline. With our online portal you can:

A check your super balance A monitor your transactions A monitor your investments A update your details A access our educational tools and

calculators A manage your insurance.

To register for MemberOnline, visit unisuper.com.au/memberonline or call us on 1800 331 685 to set up your secure access.

HELPLINE

If you’d prefer to speak to a person, you can call us on 1800 331 685 and we’ll be pleased to assist you with any query you have.

UNISUPER.COM.AU

An excellent source of information, our website helps keep you up to date with your super and UniSuper. Visit our website to:

A access online tools and calculators A download forms and publications A watch a tutorial online A reserve your place at one of our many

education seminars A learn all about our investment

options, their performance and the fees and costs involved.

These are just some of the things you can do at our website, so save unisuper.com.au in your favourites today.

SUPER INFORMED ENEWS

Our regular email newsletter contains valuable, relevant and interesting information about super and broader financial issues. You can subscribe to Super Informed eNews by updating your email address via MemberOnline or calling us on 1800 331 685.

UPDATING YOUR DETAILS

You can update your details in a number of ways:

A log on to MemberOnline A download and complete the Change

of details form – super members from our website

A email enquiry@unisuper.com.au and give us your new details

A call us on 1800 331 685 or +61 3 8831 7901

A write to us at: UniSuper Level 1, Bourke Street Melbourne Vic 3000.

UNISF00026 0717July 2017

Fund: UniSuper ABN 91 385 943 850Trustee: UniSuper Limited ABN 54 006 027 121 AFSL 492806 Level 1, 385 Bourke Street, Melbourne Vic 3000Administrator: UniSuper Management Pty Ltd ABN 91 006 961 799 AFSL 235907

Super Choice - Fund nomination form

SECTION 1 — Personal details

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

Title Mr ■ Mrs ■ Ms ■ Dr ■ Professor ■

Other Surname

Given name

Address

Suburb/Town

State Postcode

Date of birth (DDMMYYYY)

Employee identification number/Payroll number (if applicable)

■■■■■■■■■■■■■■■■■

SECTION 2 — Fund details

Fund name

UniSuper

Fund address

Level 1, 385 Bourke Street Melbourne Vic 3000

Fund Australian Business Number (ABN)

91 385 943 850

Superannuation Product Identification Number (SPIN)

UNI0001AU

Unique Superannuation Identifier (USI)

91385943850001

Phone

1800 331 685

Membership number (If you are unsure please refer to your most recent Benefit Statement)

SECTION 3 — Choice of Fund nomination

I wish to nominate UniSuper as my chosen fund for my future superannuation guarantee contributions.

Signature

Date (DDMMYYYY)

■■■■■■■■

Employer Records (Employer use only)

This section must be completed by the employer after the employee returns the completed form to you.

Date valid choice of fund is accepted (DDMMYYYY)

■■■■■■■■Date you act on your employee’s valid choice of fund (DDMMYYYY)

■■■■■■■■Do not send a copy of this form to the ATO or to UniSuper. You must keep a copy of this form for your own records for a period of 5 years.

Complete this form and provide it to your employer if you wish to nominate UniSuper as your chosen fund to receive your future Superannuation Guarantee contributions.

Important informationSome employees may not be able to choose their own super fund. Please speak to your employer or visit www.ato.gov.au for more information about Choice of Fund.

Note to employersChoice of Fund legislation provides that this form can be used by an employee to nominate a chosen fund instead of the Standard Choice form issued by the Australian Taxation Office. The Trustee’s letter of compliance and information about how to make contributions to UniSuper on behalf of the employee are set out on the back of this form.

RETURN YOUR COMPLETED AND SIGNED FORM TO: Please provide your completed and signed form to your employer. Do not return this form to UniSuper.

1 July 2017Trustee Compliance Letter

To whom it may concern

I confirm, on behalf of UniSuper Limited ABN 54 006 027 121, AFSL 492806, RSE Licence No. L0000925, the trustee of UniSuper ABN 91 385 943 850 (Fund) that:a. The Fund is a complying superannuation fund and a resident regulated superannuation

fund within the meaning of the Superannuation Industry (Supervision) Act 1993 (Act).b. The Fund is not subject to a direction under section 63 of the Act and does not expect to

receive such a direction.c. The Fund is able to accept superannuation guarantee contributions made to the Fund on

behalf of existing members.d. The governing rules of the Fund allow benefits to be rolled over or transferred to

the Fund.e. The Fund offers insurance cover that meets the minimum requirements set out in the

Superannuation Guarantee (Administration) Act 1992.

PAYMENT OPTIONS FOR EMPLOYERSEmployers can use one of the following methods to make superannuation contributions to UniSuper:

SuperStream BPAY®

The Federal Government is introducing SuperStream reforms requiring employers to change the way they send contributions.

Under the new reforms, employers must make payments electronically and send contribution data and member updates in a newly-prescribed electronic file format. The ATO can provide you with full details of these files.

An employer may incur penalties if they don’t comply with the requirements.

Please refer to www.ato.gov.au for further information about employer obligations.

To make contributions by BPAY® select the bill payment option through your financial institution and provide the following information:

Biller Code: 78543 Customer Reference Number: This

reference number can be obtained by calling UniSuper on 1800 331 685

The amount of contributions you are making.

Important information: Please note this method is not SuperStream compliant.

If you have any questions, please call the UniSuper Helpline on 1800 331 685.

Yours sincerely

Kevin O'SullivanKevin O'Sullivan Chief Executive Officer On behalf of UniSuper

Superannuation product identification number (SPIN): UNI0001AU

Unique Superannuation Identifier (USI): 91385943850001

Fund: UniSuper ABN 91 385 943 850

Trustee: UniSuper Limited ABN 54 006 027 121 AFSL 492806

Administrator: UniSuper Management Pty Ltd ABN 91 006 961 799 Australian Financial Services Licence No. 235907

Helpline 1800 331 685

Head Office Level 1, 385 Bourke Street Melbourne Vic 3000

Facsimile 03 8831 6141

unisuper.com.au® Registered to BPAY Pty Ltd ABN 69 079 137 518

UNIS000035 0717

UNIS000011 0717

HELPLINE 1800 331 685

FAX +61 3 8831 6141

WEBSITE unisuper.com.au

EMAIL enquiry@unisuper.com.au

ADDRESS UniSuperLevel 1, 385 Bourke Street Melbourne Vic 3000 Australia

Printed on environmentally responsible paper.