Suncorp Employee Superannuation Plan - Member Booklet Issued 29 October 2011
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Suncorp Employee Superannuation Plan Member Booklet Issued 29 October 2011
Suncorp Portfolio Services Limited (Trustee) (ABN 61 063 427 958, AFSL 237905, RSE Licence No L0002059), Asteron Life Limited (Insurer) (ABN 64 001 698 228, AFSL 237903), Suncorp Life & Superannuation Limited (SLSL) (ABN 87 073 979 530, AFSL 229880) and Suncorp-Metway Limited (SML) (ABN 66 010 831 722, AFSL 229882), are related bodies corporate of Suncorp Group Limited (Suncorp) (ABN 66 145 290 124). Various products and services are provided by different entities of the Suncorp Group. The different entities of the Suncorp Group are not responsible for, or liable in respect of, products or services provided by other entities of the Suncorp Group. The obligations of the Trustee and the Insurer aren’t guaranteed by any other company within the Suncorp Group. Except as otherwise stated, Suncorp and its subsidiaries don’t guarantee the repayment of capital invested in or the investment performance of this product. This product is not a bank deposit or other liability and is subject to investment risk including possible delays in repayment and loss of the interest and principal invested. The Product Disclosure Statement (PDS) and the Member Booklet were prepared on 15 September 2011. The Trustee is the issuer of the PDS and Member Booklet and takes responsibility for its contents. Investment option information is provided by the investment managers which includes their objectives, strategies, asset allocations, fees and buy/sell spreads. The investment managers have consented to the publication of this information in the Member Booklet and haven’t withdrawn their consent at the time of its preparation. They take no responsibility for any other information in the PDS and Member Booklet. The Suncorp Employee Superannuation Plan is part of Suncorp WealthSmart Business Super. Suncorp WealthSmart Business Super (SPIN RSA0003AU) is part of the Suncorp Master Trust (Fund) (ABN 98 350 952 022, RSE Fund Registration No. R1056655). Applications can only be accepted from persons receiving this PDS (including electronically) within Australia. If you print an electronic copy, please ensure you print all pages of this PDS and the Member Booklet. If you would like a printed version, free of charge, just call us on 1800 652 489 or email us at staff.super@suncorp.com.au. Administration services are provided to the Suncorp Employee Superannuation Plan by Suncorp Portfolio Services Limited (ABN 61 063 427 958), a wholly owned subsidiary of the Suncorp Group. We reserve the right to refuse or reject an application for membership or insurance. Insurance cover offered through the Suncorp Employee Superannuation Plan is provided by the Insurer in a policy issued to us. This policy is a non-participating policy. Subject to confirmation from the Federal Court, from 1 January 2012, insurance cover offered through the Suncorp Employee Superannuation Plan provided by Asteron Life will be provided by SLSL and all references to ‘Asteron Life’ and ‘Asteron Life Limited’ should be replaced by SLSL. Throughout this PDS and the Member Booklet, unless otherwise specified, references to: • ‘we’, ‘us’, ‘our’ and ‘Trustee’ mean Suncorp Portfolio Services Limited • ‘adviser’ means a qualified financial adviser • ‘Insurer’ and ‘Asteron Life’ mean Asteron Life Limited • ‘bank account’ means an Australian bank, building society or credit union account • ‘business day’ means a Sydney business day other than a Saturday, Sunday or public holiday in Sydney • ‘licensee’ means an organisation that has obtained an Australian Financial Services Licence (AFSL) for the provision of financial services • ‘plan’ means the Suncorp Employee Superannuation Plan • ‘employer’ means the Suncorp Group, which includes GILD Insurance Litigation Pty Ltd (GILD) • ‘associated employer’ means an associated employer of the Suncorp Employee Superannuation Plan • ‘employee’ means an employee of the Suncorp Group, which includes GILD • ‘you’ and ‘member’ means a member of the Suncorp Employee Superannuation Plan.
Contents
Welcome to the Suncorp Employee Superannuation Plan 2
Contributions7
Managing your account 9
Accessing your benefits 11
Investments12
Diversified investment options 21
Single sector investment options 23
Information about the investment managers 39
Insurance45
Fees and costs 57
Taxation information 61
Keeping in touch 62
What happens when you leave the Suncorp Group? 65
Other things you need to know 66
Suncorp Employee Superannuation Plan Member Booklet 1
Welcome to the Suncorp Employee
Superannuation Plan
Welcome to the Suncorp Employee With Suncorp, you’re on the way to a better future for you
and your family.
Superannuation Plan – Super for the
Suncorp Team Additional information
The Suncorp Employee Superannuation Plan is part of This Member Booklet forms part of the Suncorp
Suncorp WealthSmart and your employer, the Suncorp Employee Superannuation Plan Product Disclosure
Group, has chosen Suncorp WealthSmart as your Statement (PDS), issued 29 October 2011. You should
superannuation fund. read both the PDS and this Member Booklet before
Suncorp WealthSmart is a whole of life superannuation making any investment or insurance decisions.
solution, with integrated pension options allowing you to You can get a copy of the PDS and this Member Booklet
continue your account into retirement. from our website, or if you’re a current Suncorp Group
We’d like to welcome you to the plan and invite you to get employee, from the Suncorp Employee Superannuation
to know your super account. After all, your super’s going to Plan page on the Suncorp Intranet. If you would like a
play a big role in your family’s financial security, and even printed version, free of charge, just call us on 1800 652
small decisions now could make a big difference later. 489 or email us at staff.super@suncorp.com.au. We’ll be
happy to help.
What you can expect from us
We take the responsibility for your investment very
Changes to the PDS and Member
seriously. That’s why we’ll do all we can to support you Booklet
and help you make the most of your super account. The information in the PDS, this Member Booklet and its
underlying Trust Deed may change.
How will we do this?
Where the change isn’t materially adverse, we may update
• We’ll keep things simple the information on our website at suncorp.com.au, or if
• If you’re unsure about where your super should be you’re a current Suncorp Group employee, from the
invested, we’ll help you with information about how to Suncorp Employee Superannuation Plan page on the
match your attitude to risk with your investment choice Suncorp Intranet.
– we can even set you up with an appointment to talk to We’ll give you a printed version of the updated information,
Standard Pacific, your plan’s financial adviser free of charge, on request.
• We’ll help you protect what’s important with insurance
within your super
• We’ll make it easy for you to manage your account, by
giving you a range of contact options – from online,
telephone, fax or post
2 Suncorp
Product Summary
The following sets out key features of the Suncorp Employee Superannuation Plan. Take a few
moments to get to know your account.
The choice is yours
Where you invest your superannuation is your choice. ‘Super Choice’ is legislation that allows you to choose where you want your
compulsory employer contributions paid, if you’re eligible. If your compulsory employer contributions are currently being paid
into another account and you’d like them to be paid into your Suncorp Employee Superannuation Plan account, fill in a ‘Standard
Choice Form’, available from our website.
Understanding your plan – What type of member are you?
There are a number of different types of members within the plan and it’s important to know which category you fall into.
The following table provides a summary of the different membership categories within the plan:
Category name Who is included in this category?
Employed member Currently employed members of the Suncorp Group, including currently employed members of
GILD Insurance Litigation Pty Ltd (GILD)
Non-employed member A member who has left employment with the Suncorp Group, including members who have left
employment with GILD
Associate employee member Employees of an employer associated with the Suncorp Employee Superannuation Plan, but not
employed by the Suncorp Group
Family account members A family member with a Suncorp Employee Superannuation Plan account linked to an
employed, non-employed or associate employee member
Your plan at a glance
Features
Investment minimums
Initial investment No minimum
Ongoing account balance $1,200
Regular contribution plan No minimum
Investment choice
Diversified investment 6
options
Single sector investment 32
options
Maximum number of You can invest in up to 20 investment options at the one time
investment options
Default investment option Suncorp Traditional Capital Guaranteed Fund
General features
Investment switching You have the flexibility to switch between investment options at any time
Auto-rebalancing You can choose to keep your investments in line with your investment strategy by rebalancing
quarterly, half-yearly or yearly
Family accounts Your family members can enjoy most of the benefits associated with your plan, including
competitive fees, by setting up their own Suncorp Employee Superannuation Plan account
linked to yours
Suncorp Employee Superannuation Plan Member Booklet 3
Welcome to the Suncorp Employee Superannuation
Plan continued
General features
Super consolidation service Consolidating your super accounts could reduce the amount of fees you pay and the amount of
paperwork you receive
We can help you transfer all your super balances into the one account, or, if you’d prefer to do it
yourself, we also have an online super rollover wizard
Lost super service We can help you find your missing super benefits by conducting searches on the Australian
Taxation Office (ATO) databases on your behalf
Non-lapsing death benefit You can have certainty over who’ll receive your death benefit without the hassle of needing to
nomination update your nomination every 3 years
Child pension You can provide your children under age 18 with a tax-effective income stream if you die
Anti detriment payment Your beneficiaries may receive an additional amount representing the contributions tax you paid
as part of your death benefit payment
Contribution methods Making contributions to your Suncorp Employee Superannuation Plan account is easy, and you
can choose from the following methods:
• direct debit
• BPAY® (from savings and credit card)
• cheque
• transfer from another super fund
• deposits at a Suncorp branch
Regular contribution plan Contribute regularly by direct debit when it suits you – monthly, quarterly, half-yearly or yearly
Insurance options The Suncorp Employee Superannuation Plan gives members the option of having the following
types of insurance:
• Death only cover
• Death & Total and Permanent Disability (TPD) cover and
• Income Protection cover
Online access Access your Suncorp Employee Superannuation Plan account at any time by logging on to
Suncorp WealthSmart online at suncorp.com.au
Member education Log on to Suncorp WealthSmart online at suncorp.com.au to access our member education
website, customised for members of the Suncorp Employee Superannuation Plan (provided by
Standard Pacific)
Email communications By providing us with your email address, you can choose to receive many of the more important
communications, such as annual statements, transaction confirmations and confirmations of
changes to your account details via email
If your employer gives us your email address, we’ll use this to communicate with you whenever
possible
Fees and costs for current employees of the Suncorp Group1,2
(If you are an eligible employee, your employer pays for your monthly member fee)
Contribution fee Nil
Administration fee Nil
Investment fee Ranges from 0% to 1.87% pa, depending on the investment option(s) selected3
Investment switching fee Nil
Withdrawal fee $60 for withdrawing your entire account balance
Member fee $5 per month
1 Other fees and costs may apply. Please see the ‘Fees and costs’ section in this Member Booklet for more information.
2 This is subject to change. Please see the ‘Fees and costs’ section in this Member Booklet for more information.
3 An investment fee does not apply to the Suncorp Bank Deposit Fund or the Suncorp Term Deposit Fund.
4 Suncorp
Other features of the Suncorp Employee
Superannuation Plan to suit your
lifestyle
The Suncorp Employee Superannuation Plan also offers
a range of other great benefits, to make managing your
super, simple.
Family ties
Keep it in the family with the Suncorp Employee
Superannuation Plan. Your family members can choose to
open their own super accounts within the plan which are
linked to your account. By opening a family account, not
only can they access most of the same features within the
Suncorp Employee Superannuation Plan, it could also save
them money. That’s because family account members
receive competitive fees – allowing them to reach their
retirement goals faster, just by being related to you!
For the purposes of family account linking, ‘family
member’ means your:
• spouse (including legal, de facto, and interdependency
relationship)
• child (including biological, step-child, adopted or in-laws)
• parents (including biological, adopted or in-laws) and
• siblings (including biological, adopted or in-laws)
Going part time?
Have you reached the age when you can retire but Anti-detriment benefit
aren’t quite ready to leave the workforce? The transition
The Suncorp Employee Superannuation Plan provides
to retirement feature within our Suncorp WealthSmart
an anti-detriment benefit if you die. This means your
Pension product allows you to access your super benefits
beneficiaries may get a refund representing the amount of
as a retirement income stream (if you are preservation
contributions tax you paid. This benefit is limited to your
age or older) while still continuing to work. It’s particularly
spouse (legal or de facto) and children and is only payable
beneficial for those aged 60 or over.
on lump sum benefits.
And when you’re ready to retire? Continued flexibility, even when you leave
You can feel confident knowing that the change will be employment with the Suncorp Group
simple and hassle-free. You may be able to transfer to
If you leave the Suncorp Group, you can still keep your
a Suncorp WealthSmart Pension without altering your
super account in the Suncorp Employee Superannuation
investments at all. The Suncorp WealthSmart Pension
Plan. We’ll also provide you with the information you need
provides regular income to fund your retirement needs,
so that your new employer can contribute to your Suncorp
while continuing to grow your savings in a tax-effective
Employee Superannuation Plan account on your behalf.
way.
For more information on what happens when you leave
For more information on the Suncorp WealthSmart
the Suncorp Group, please see page 65 of this Member
Pension, please see the Suncorp WealthSmart Personal
Booklet.
Super & Pension PDS which is available from our website,
or speak to your adviser.
Suncorp Employee Superannuation Plan Member Booklet 5
Welcome to the Suncorp Employee Superannuation
Plan continued
Important information about the Suncorp Employee Superannuation Plan for
associate employee members
If you’re an associate employee member you still get all of the great features of the Suncorp Employee Superannuation
Plan, however, some parts of the PDS and this Member Booklet do not apply to you.
For more information about what is different for you, please see the below table:
Section How is it different? Where can I get more information?
Fees and Costs Your employer does not pay for your ‘Fees and costs’ on page 57 of this Member Booklet
monthly member fee
Insurance Cover Your employer does not pay for your ’Insurance’ on page 45 of this Member Booklet
insurance premium
Access to a member only As you are an employee of an
web page and educational associated employer, you may only
tools access the member only web page
by logging into your super account
via Suncorp WealthSmart online
6 SuncorpContributions
Get off to a super start The Government’s co-contribution amount decreases for
those on higher incomes, but you can still benefit from the
Your super is your key to a life of financial independence. co-contribution scheme if you earn less than $61,920 pa
But it’s easy to forget about your super – you probably don’t (in the 2011-12 financial year).
see the money going in, and for most people there’s no way
of getting it out. Until you retire that is. Spouse contributions
The fact is that your super is likely to be the second largest Having your spouse contribute to your super is a great
asset you build in your lifetime, after the family home. The way to work towards your retirement goals. By making a
Suncorp Employee Superannuation Plan can help you reach contribution on your behalf, your spouse may be entitled
your financial goals and achieve the retirement lifestyle you to a tax offset of up to $540 which can be claimed through
want. By taking advantage of the tax-effective nature of the their personal tax return. The offset is equal to 18% of a
superannuation environment and investing regularly in your maximum contribution of $3,000 pa (in this case, $540).
Suncorp Employee Superannuation Plan account now, you
can make saving for your retirement easier. Contribution splitting
You can direct up to 85% of any concessional
How much is your employer contributing contributions made in the previous financial year, from
for you? your account to your spouse’s account. Your spouse must
Did you know that unless you are an exempt employee, be under age 65, but if they are between preservation age
your employer must make superannuation guarantee (SG) (currently age 55) and age 60, they must not be retired.
contributions to your account on a quarterly basis?
Self-employed?
As a Suncorp Group employee, the SG amount paid to
As a self-employed person, you can’t rely on SG
your account is equal to 9% of your salary (unless you
contributions to help you save for your retirement. The
have a specific agreement in place where Suncorp pays
good news is if you’re self-employed or substantially self-
more). To find out how much is being contributed to your
employed, you may be able to claim a tax deduction for
super account on your behalf, check your payslip on
personal contributions if you’re under age 75. All the more
‘Our People Space’ (on the Suncorp Intranet), or call HR
reason to contribute extra to your super!
Central on 1800 188 833.
You can claim a tax deduction on all contributions you
Super strategies to boost your savings make. To be eligible for this deduction, less than 10% of
your assessable income, plus reportable fringe benefits
for your retirement and reportable employer super contributions can come
The 9% of your salary contributed to your super account by from an employer.
Suncorp is a great start, but the truth is it probably won’t If you’ve made personal contributions into your account
be enough to provide you with the lifestyle you want in and haven’t subsequently withdrawn them, we’ll send you
retirement. To help you boost your savings for retirement, a notice at the end of the financial year. This is known as
the Government has put in place a number of initiatives to a s290-170 notice of intent to claim a tax deduction. If you
encourage you to save more for your retirement. wish to claim a tax deduction, simply complete the notice
The following snapshots give you a flavour of these super and send it back to us. We’ll take care of the rest and
boosting strategies. For more information on how these will let you know what information you’ll need to claim a
strategies can work for you, speak to your adviser, or call tax deduction.
us on 1800 652 489.
Who can contribute?
Salary sacrifice
Personal circumstances, such as your age and
Putting a portion of your pre-tax salary into your super is employment status, determine who can open an account
one of the most powerful and tax-efficient ways to boost and contribute to super.
your Suncorp Employee Superannuation Plan account.
Rather than paying income tax which can be up to 46.5%, You can open a Suncorp Employee Superannuation Plan
you’ll generally only pay 15% tax on these contributions. account if you’re:
And because these contributions aren’t considered salary • receiving SG or certain Award employer contributions
for tax purposes, salary sacrificing can potentially reduce at any age
your overall taxable income. You can make contributions into your Suncorp Employee
Superannuation Plan account if you’re:
Government co-contributions
If you are eligible to receive the co-contribution, earn less • under age 65 or
than $31,920 pa (in the 2011-12 financial year) and you • age 65 to 74 and have worked at least 40 hours
make a $1,000 after tax contribution, the Government will in a consecutive 30-day period within the current
contribute the maximum $1,000 to your retirement savings. financial year
Suncorp Employee Superannuation Plan Member Booklet 7Contributions continued
What types of contributions are accepted?
Contributions made to your super account fit into one of two categories, known as:
• Concessional contributions or
• Non-concessional contributions
Both of these contribution categories are subject to caps on the amount you may contribute in a financial year (from 1 July
to 30 June). The table below shows what category each type of contribution made into your super account falls into and the
contributions caps for the 2011-2012 financial year:
Concessional contributions Non-concessional contributions
Types accepted • Compulsory employer (SG and • Spouse
Award) • Personal (after tax)
• Personal (deductible)
• Salary sacrifice
• Voluntary employer
Contribution caps for the $25,000 $150,000
2011-2012 financial year
$50,000 if you’re age 50 or older If you’re under age 65, you can contribute up to three
(until 30 June 2012 only)1 times the cap in a single year by combining some future
years’ caps
What happens if your Depending on the circumstances, you may pay additional tax or the contributions will be rejected
contributions exceed
the caps?
1 The Federal Government has announced that the higher concessional contribution limit will remain for individuals aged 50 or older if their super balance
is less than $500,000 (from 1 July 2012).
Contribution methods
It’s easy to contribute to your super account, with a range of flexible methods.
Direct debit Contribution type Biller code
You, your spouse and your employer can conveniently
Personal contribution 787275
contribute to your Suncorp Employee Superannuation Plan
account on a regular basis by setting up a direct debit Spouse contribution 787283
facility.
Employer salary sacrifice 787317
Deductions from the nominated bank account are made on
or around the 1st of the relevant month. You can change or Employer SG and Award 787309
cancel this arrangement at any time and we must receive
your request on or before the 25th of the month for it to be Employer voluntary 787291
effective for the next scheduled direct debit.
Cheque
BPAY® Please make cheques payable to ‘Suncorp Portfolio
BPAY® allows you to contribute from your savings or Services Limited – ’ and send it with
credit card account by phone or internet. You’ll need an Additional Investment form to us at:
your Suncorp Employee Superannuation Plan Customer Suncorp Employee Superannuation Plan
Reference Number (CRN) and the BPAY® code for the type
GPO Box 2585 (IPC: LS004)
of contribution you wish to make. Your CRN is included in
the welcome letter you’ll receive after joining the Suncorp Brisbane QLD 4001
Employee Superannuation Plan or you can find it anytime
by logging into your account online. Visit a Suncorp branch
If your employer or spouse is contributing to your account Pop into a Suncorp branch, where we accept
by BPAY®, you’ll need to provide them with the relevant cheques, cash deposits or transfers from your other
biller code and your CRN. Suncorp accounts. Simply fill out a Suncorp Employee
Superannuation Plan deposit slip which is available from
our website.
8 SuncorpManaging your account
It’s easy to manage your Suncorp Employee Superannuation Plan account via the
following transaction options
The table below answers some questions you may have and helps you identify the choice of options available for each
transaction. All forms are available from our website.
How do you? What form do you Transaction options
need to use?
Apply for insurance cover Insurance application form 3 3 – – –
Change your investment Investment change form
options 3 – – 3 3
Add or amend the auto- Investment change form
rebalancing service 3 – – 3 3
Set up a new regular Direct debit request form
contribution plan 3 3 – – –
Change your regular Change of details form
contribution plan amount or 3 – – 3 –
payment frequency
Change your address Change of details form 3 – 3 3 3
Change your name Change of details form 3 3 – – –
Change your bank account Direct debit request form
details 3 3 – – –
Transfer funds from another Super Rollover form
super provider 3 3 – – 3
Make a withdrawal Withdrawal form 3 – – 3 –
Nominate or change your Non-lapsing death benefit
death beneficiary nomination form 3 3 – – –
Provide your TFN Change of details form 3 – 3 3 3
Appoint an authorised Authorised representative
representative form 3 – – 3 –
Cancel a request No form – Simply write to us
with your request 3 – – 3 –
by mail Suncorp Employee Superannuation Plan
GPO Box 2585 (IPC: LS004)
Brisbane QLD 4001
by phone 1800 652 489
by fax 07 3002 3259
online Log on to Suncorp WealthSmart online at suncorp.com.au
Original
signature
required We must receive an original ink signature
Suncorp Employee Superannuation Plan Member Booklet 9Managing your account continued
Our service standards Auto-rebalancing
We’re committed to delivering consistent, superior Keeping track of movements in your investment options
service. Our service standards apply from when we can be a time consuming task. By selecting the auto-
receive your complete instructions. If we receive a rebalancing feature, you can ensure that your investments
complete investment transaction request from you by are automatically adjusted in line with your future
12pm (Sydney time) on a business day, you’ll receive the investment strategy at quarterly, half-yearly or yearly
unit price effective for the investment option for that day. intervals.
If we receive a completed investment transaction request For more information on how this feature works, please see
after 12pm on a business day, we’ll process the request ‘Auto-rebalancing’ in the ‘Investments’ section on page 15
using the investment option unit prices for the following of this Member Booklet.
business day.
The 12pm cut-off applies to all contributions, switches Nominating your beneficiaries
and withdrawal requests. Have certainty over who will receive your death benefits by
Generally, we aim to process requests within four nominating a dependant.
business days.
Who is a dependant?
We strive to consistently meet our service standards,
however the unit price used to process your transactions You can only nominate your estate or your dependants to
may differ from the effective unit price for that day or receive your death benefits. A dependant under super law
processing your transactions may be delayed in some includes:
circumstances including: • spouse (legal and de facto)
• incomplete or incorrect information from you • child (any age)
• a delay in confirmation or payment from an external • person in an interdependency relationship with you and
investment manager
• financial dependant
• carrying out the transaction may materially impact
other members Non-lapsing nomination
• us receiving a direction from a lawful authority to A non-lapsing death benefit nomination allows you to
suspend or amend the transaction nominate your dependants and/or your estate to receive
• the investment manager suspending redemptions part or all of your death benefit (including any insurance
from your underlying investment benefit). We must pay the benefit to your beneficiaries when
you die (provided your nomination is valid at the time).
• the proximity to the end of the financial year and
For your nomination to be valid:
• any other delays in redeeming assets
• each beneficiary must be a dependant and/or your legal
We may from time to time review our service standards.
representative at the time of your death
Please also refer to ‘Unit pricing delays’ on page 15 of
• if there is more than one beneficiary, the apportionment
this Member Booklet.
of your benefit must be clear and add up to 100% and
Terms and conditions for accepting faxes • two adult witnesses who aren’t beneficiaries must
witness and sign the nomination
We’ll accept faxed instructions on our relevant forms.
While your nomination is non-lapsing, it’s still a good
Before using this option, there are a few things you need
idea to keep it up to date. We recommend you review
to know, like:
your nomination whenever you experience a change in
• we’re not responsible to you for any loss resulting circumstances such as marriage, divorce, birth of a child or
from any fraudulently completed request when a beneficiary ceases to be a dependant.
• we’re not responsible to you for any loss suffered
by you because we process a fax that has been Child pension nomination
corrupted during transmission The child pension is an extension of the non-lapsing death
• we won’t compensate you for any losses arising from benefit nomination. You can nominate your child under age
the use of this facility and 18 to receive an income stream paid from your benefits
when you die. You can restrict your child from accessing
• we’ll be released and indemnified by you against
their account until a pre-determined age. However the
any liabilities as a result of acting on any faxed
pension must be paid out as a lump sum when the child
communication received in relation to your account
reaches age 25, unless they’re disabled.
10 SuncorpAccessing your benefits
When can you withdraw from your Suncorp Employee Superannuation Plan account?
Super is a long-term investment designed to help you save for your retirement and government legislation defines when you
can access your super benefits. While you can only access your super benefits before your preservation age under certain
circumstances, you can transfer to another complying super fund at any time.
What can you access?
Preserved benefits These benefits can only be accessed once you have satisfied a condition of
release.
Restricted non-preserved benefits These benefits can be accessed under the same conditions of release as your
preserved benefits, but can also be paid to you when you leave the employer who
made the contributions for you. Generally, restricted non-preserved benefits arise
from personal contributions made to an employer fund from 1 July 1983 up to 30
June 1999, and for which you couldn’t claim a tax deduction.
Unrestricted non-preserved benefits These benefits are fully accessible at any time.
When have you met a condition of release?
You’ll be able to access your preserved benefits if you satisfy one of the following conditions of release in the below table:
Condition of release What you can access
Permanent retirement from the workforce All
(after reaching your preservation age)
Leaving your employer after turning age 60 All
Reaching age 65 All
Permanent incapacity All
Severe financial hardship You may be limited to one lump sum payment between $1,000 and $10,000 within a
12-month period depending on your circumstances.
Compassionate grounds You’ll need to make an application to the Australian Prudential Regulatory Authority (APRA)
to have your benefits released. The amount you receive is determined by APRA.
Temporary residents departing Australia All
Termination of your employment with the You can access all your restricted non-preserved benefits. You can access your
employer who contributed for you preserved benefits as a non-commutable life pension, or as a lump sum if the amount is
less than $200.
Lost member who is found and have less than All
$200 in your account
Reaching preservation age and using your You’ll need to commence a non-commutable income stream that is limited to a maximum
benefits to start a non-commutable pension pension payment of 10% of the account balance.
(transition to retirement)
Terminal illness All
Temporary incapacity You can access an amount as long as it doesn’t exceed your income level before
becoming temporarily incapacitated. You can only receive the payments as a non-
commutable income stream.
Death All
Your preservation age Date of birth Preservation age
Your preservation age is based on when you were born
Before 1 July 1960 55
and determines when you can access some of your
benefits. Once you have reached age 60 and retired, 1 July 1960 – 30 June 1961 56
your money can be taken out of your super tax free as a
pension or a lump sum. 1 July 1961 – 30 June 1962 57
1 July 1962 – 30 June 1963 58
1 July 1963 – 30 June 1964 59
After 30 June 1964 60
Suncorp Employee Superannuation Plan Member Booklet 11Investments Make the right investment choice. A few small decisions now could make a big difference to where you’ll end up. Our investment menu The Suncorp Employee Superannuation Plan investment menu makes it simpler for you to choose an investment option that’s right for you. As a member of the Suncorp Employee Superannuation Plan, you have a choice of 38 investment options, including six diversified investment options that are designed to suit a broad range of investors. • Suncorp Traditional Capital Guaranteed Fund • Suncorp Balanced Portfolio • Suncorp Secure Portfolio • Suncorp Growth Portfolio • Suncorp Conservative Portfolio • Suncorp High Growth Portfolio Default investment strategy If you don’t make a choice, your super will be invested in the plan’s default investment option, the Suncorp Traditional Capital Guaranteed Fund. This could be a perfectly reasonable investment option for you. But no single investment option suits everyone. And the risk you take is that the default investment option won’t deliver what you want, or need, from your investments. Matching your investments to your risk profile, and to your long-term lifestyle goals, is a good start to achieving your retirement goals. With so much choice there’s sure to be an investment option, or a combination of investment options, to suit you. It’s just a matter of finding out what they are and discussing with your adviser the investment strategy that’s right for you. Check out the Suncorp Employee Superannuation Plan investment menu starting on page 19 for details on each investment option. Investment risks As with all investment products, there are risks associated with investing in the Suncorp Employee Superannuation Plan. And because we all have different attitudes towards risk, it’s a good idea to talk to your adviser about the risks relevant to your own financial situation and objectives. The relationship between risk and return As a general rule, investments with a higher level of risk will provide a higher potential return. In other words, you can’t have one without the other. By the same token, the smaller the risk an investment poses, the smaller the potential return it will provide. This is shown below: 12 Suncorp
Balancing this relationship can be tricky. That’s why it’s important to speak to your adviser before making any investment
decisions. Your adviser can recommend an investment option or a combination of investment options that suits your own
risk tolerance level.
What are the risks?
Like any investment, super is subject to risks. The biggest risk is that you won’t have enough money to meet your retirement
needs. This can happen where an investment decreases in value but also where monies are invested conservatively in
investment options which provide more stable but lower long-term returns. For most people super is a long-term investment
– be sure you speak with your adviser to see what’s right for you.
Some of the risks that may affect your investments in the Suncorp Employee Superannuation Plan are set out below. We
regularly monitor these risks for their impact on the investment menu as a whole, but it’s a good idea for you and your
adviser to consider what they might mean for you.
Risk type What is it?
Market risk This can arise due to changes in government or economic policy, interest rates and exchange
rates, market sentiment, global events, technological change, environmental conditions or
changes in legislation.
Investment options risk Investment professionals or teams and the strategies they adopt may change, which may not
be in line with your expectations when you first invested. It’s also possible an investment option
may be terminated.
Liquidity risk This arises where an investment can’t be easily converted into cash or disposed of at market
value, at a time when it’s needed.
Credit risk This is where someone doesn’t meet their obligations to, or relating to, the investment option.
For example, it includes the risk that we or an underlying investment manager are unable to
make payments.
Inflation risk If inflation exceeds an investment’s return, it’ll reduce the purchasing power of the assets.
Inflation risk is more common in low risk investments, which generally fluctuate less, but
potentially provide lower long-term returns.
Currency risk International investments can be affected by changes in the value of the Australian dollar
relative to other currencies that the investment option is invested in. Their value can rise and
fall, depending on the value of the Australian dollar. Generally, a fall in the value of the Australian
dollar will lead to an increase in the value of an unhedged international investment and vice
versa. Hedging can be used by investment managers to either minimise losses or maximise
returns on these currency fluctuations. They can do this by investing in financial instruments
such as futures, swaps and other derivatives.
Derivatives risk Derivatives are securities that derive their value from another security. Commonly known
derivatives include futures and options. Derivatives can be used to manage risks in a portfolio
or to leverage a portfolio in the hope of generating greater returns. The risks of using derivatives
include that they may be costly or difficult to reverse and their value may not move in line with
that of the underlying security.
Gearing risk Gearing involves borrowing money to invest in an asset. Geared investment options are
internally geared, meaning the investment option borrows the money, rather than you. The cost
of borrowing, including interest rates, and the level of gearing influence returns on a geared
investment. Geared investment options experience larger fluctuations in their investment returns
when compared to non-geared investment options, and they have the corresponding potential
to suffer greater losses if there is a market downturn.
Changes in law Changes in super and tax legislation may occur. This may affect when you can access your
benefits and how they’ll be treated upon withdrawal. We’ll inform you of any changes we think
are likely to affect your investment. Generally, we do this through the annual report.
Suncorp Employee Superannuation Plan Member Booklet 13Investments continued
How can you reduce risk?
The most common way to reduce your risk is by diversification, or ‘not putting all your eggs in the one basket’.
The Suncorp Employee Superannuation Plan can help you diversify your investments:
• A
cross asset classes
You can invest in a range of asset classes, including domestic and international shares, domestic and international fixed
interest, domestic and international property, cash and alternative assets
• W
ithin an asset class
You can invest in different markets, different sectors or different investment styles, within the one asset class
• A
cross investment managers
With a choice of quality investment managers to select from, you can invest with different investment managers of
differing investment styles
Understanding the asset classes
Each investment option is invested into what are called ‘underlying assets’. These underlying assets have different
characteristics and may be either income assets or growth assets or a combination of both.
• Income assets include such things as cash and fixed interest, which provide income returns in the form of interest
• G
rowth assets include property, shares and alternative assets, which provide for investment returns comprising both
capital growth (increase in value of the investment) and income
Asset Risk Potential What is it?
class level return
Low Low Cash is the most secure of all the asset classes. Returns are stable with a low potential for capital
loss.
Cash
Medium Medium Fixed interest is a relatively conservative asset class. It generally refers to investments such as bonds,
debentures and other hybrid securities. Fixed interest investments generally aim to provide returns
higher than that of cash but with a low degree of fluctuations of returns.
Fixed
interest
High High Property is a growth asset with greater risk of fluctuation in returns than cash or fixed interest.
Historically, property has had lower variability of returns than shares.
Property
High High Shares represent a part ownership in a company. Shares are considered to be riskier than cash or
property, as their value tends to fluctuate the most. However, historically over the long term, returns
from shares have outperformed those of other asset classes and are traded both on domestic and
international sharemarkets. Returns from the ownership of shares combine both the income received
(dividends) and growth (capital gains) through the increase in the share price. The value of international
shares may also be affected by fluctuations in the exchange rate.
Shares
Very Very Alternative assets are investments that are not classified or may not be correlated to the traditional
high high asset classes of cash, fixed interest, property or shares. Typically they may involve investments in asset
classes (eg gold, infrastructure or private equity) or investment strategies (eg financial instruments such
Alternative as exchange traded or Over The Counter (OTC) derivatives, or trading techniques) that aren’t liquid and
assets require specialised skills to manage.
Can you change your investment options?
Because your financial needs may change, you have the flexibility to switch between investment options at any time. And
the good news is we won’t charge you a switching fee. However, you may incur a buy/sell spread, which is charged by the
investment manager, depending on the options you select.
For more information, please see ‘Buy/sell spreads’ in the ‘Fees and costs’ section on page 60 of this Member Booklet.
14 SuncorpAuto-rebalancing How are unit prices calculated?
Keeping track of movements in your investment options Unit prices are generally calculated daily and reflect the
can be a time consuming task. Over time, variances in value of the underlying assets of the investment option
investment performance may result in your investment after taking into account income entitlements, investment
options moving away from the percentages nominated in fees, taxes and other expenses and liabilities that are
your original investment selection. considered appropriate. This underlying asset value is
divided by the number of units on issue to arrive at the
By using the auto-rebalancing service, you can choose
price per unit. Buy or sell spreads are then applied to this
to have your investment options rebalanced in line with
price per unit to calculate the entry and the exit prices,
your future investment strategy on a regular basis without
respectively. Like the values of the underlying investments,
having to constantly monitor your account. You can
the price of units can therefore move up and down.
choose to have your account rebalanced each:
The daily unit price for each Suncorp Employee
• quarter (March, June, September, December)
Superannuation Plan investment option (except for the
• half-year (June and December) or Suncorp Bank Deposit Fund and the Suncorp Traditional
• year (June) Capital Guaranteed Fund) is quoted on our website. The
Suncorp Bank Deposit Fund has a fixed unit price of $1
Rebalancing takes effect on or around the 22nd of the month. and the Suncorp Traditional Capital Guaranteed Fund
For example, you invest 50% in Option A and 50% is not unit priced. You can find information about the
in Option B and you want to maintain this investment calculation of performance for these investment options
strategy. Over time, your actual investment allocation on pages 16 and 17 of this Member Booklet.
may change to 40% in Option A and 60% in Option B
as a result of movements in the unit price. Your account Unit pricing delays
will then be automatically rebalanced to your investment We may suspend unit pricing where in our opinion:
strategy (50% in Option A and 50% in Option B) at the
frequency you select. • a significant event or incident occurs that has the
potential to affect investment markets or
Unit prices • an event occurs that has the potential to affect unit
prices or
For all investment options except the Suncorp Traditional
Capital Guaranteed Fund, your account balance is derived • an external investment manager closes the underlying
from the value of a number of underlying units, each of investment to applications and withdrawals or
which represents a part holding in an investment option • the unit prices calculated have the potential to prejudice
and over time moves up or down. specific investors.
Buying units
Investment performance
When you invest in an investment option, units in your
Investment performance lets you see how your investment
chosen investment option are allocated to you. The
is going.
number of units allocated will depend on the entry price of
the units at the time you invest, and the amount of money
you invest.
How is investment performance calculated?
Investment performance is generally calculated net of
Selling units taxes and ongoing fees such as the administration fee,
member fee, performance fee and investment fee. This is in
We may sell units from your investment options to pay for
accordance with industry standards.
taxes, insurance premiums (if applicable) and certain fees
or charges. We also sell units when you request a cash However, when calculating investment performance, we
withdrawal or transfer to another super fund. When we generally don’t take into account contributions tax, entry
sell units in an investment option, the number of units sold fees, exit fees and any discretionary ongoing fees such
depends on the exit price of the units at that time. as insurance premiums and adviser service fees. If we
calculate the investment performance for an investment
Switching between investment options option in a way different from that set out above, we’ll
include an explanation of how investment performance
If you request a switch, we’ll sell units from one investment
is calculated for that investment option in the monthly
option and use the proceeds to buy units in the other
investment performance report which is available from our
investment option. You’ll receive the exit price for any
website.
units that are sold and the entry price for units that are
bought. A buy/sell spread may also be applied to cover
transaction costs.
Suncorp Employee Superannuation Plan Member Booklet 15Investments continued
Please note past performance shouldn’t be taken as an Please note that we don’t take labour standards,
indication of future performance. environmental, social and ethical considerations into
You should be aware that the investment performance account when selecting, retaining or terminating
information for the investment options may differ from the investment options.
performance of the underlying investment managers. This
may be due to: Multi-manager investment options
• holding some assets in cash or short-term securities, A multi-manager approach to investing uses the skills
for liquidity purposes or of more than one investment manager. It’s based on the
view that no single investment manager consistently
• provisions for tax and distribution of tax credits or
outperforms the market in all conditions. Over any given
• the fees and charges that apply or timeframe, it’s difficult to predict which investment
• a lag between when the underlying investment managers or which investment style will outperform the
managers report their performance and when the value market and its peers. Some investment styles will perform
of the underlying investment option is reflected in the well in one stage of the market cycle, while others may
unit prices perform poorly in the same conditions.
The Suncorp Bank Deposit Fund has a fixed unit price The Suncorp Employee Superannuation Plan’s multi-
of $1 and the Suncorp Traditional Capital Guaranteed manager investment options blend a combination
Fund isn’t unit priced. You can find information about the of quality investment management styles to create
calculation of performance for these investment options on investment options aimed at reducing investment risk and
pages 16 and 17 of this Member Booklet. the volatility of returns.
The Suncorp Employee Superannuation Plan offers you
Who manages the Suncorp Employee access to a range of multi-manager investment options via
the Suncorp diversified portfolios.
Superannuation Plan’s investment
options? For more information on these options, please refer to our
investment option profiles.
• Ibbotson Associates (Ibbotson)
• SIM Funds Management Suncorp Traditional Capital Guaranteed
• Tyndall Investment Management Limited and other Fund
external investment managers
Suncorp Life & Superannuation Limited (SLSL) declares
For more information, please see ‘Information about the interest rates in arrears for this investment option at 30
investment managers’ on pages 39 to 44 of this Member June each year. Interest is calculated on the daily account
Booklet. balance and credited to your account on 30 June each year.
An investment in the Suncorp Traditional Capital
About the investment options Guaranteed Fund provides a participating benefit. This
For some investment options, a PDS is issued by the means that the profits arising in respect of this option
underlying investment manager, free of charge. You are allocated 80% to members and 20% to SLSL as
can download copies from our website or ask us for a shareholder.
printed version. SLSL guarantees that the interest credited to your account
Before you select or change your investment selection to at 30 June each year won’t be negative. We use an interim
a new investment option, you should consider the relevant interest rate to calculate interest on full withdrawals made
investment manager’s PDS. before the interest rate is declared (including full switches
to another investment option). The interim rate can be
In general, if there’s a conflict between the terms and
changed by SLSL at any time and will apply from the
conditions shown in an investment manager’s PDS, the
previous 1 July. The final declared rate on 30 June may be
PDS and this Member Booklet, you should refer to the
less than the interim rate that has applied during the past
PDS and this Member Booklet to understand the terms
year.
and conditions applying to your investment.
The declared interest rates are determined based on
If you’d like to find out what the differences are in
several factors, including:
investing into an investment option through the Suncorp
Employee Superannuation Plan as opposed to investing • the investment income received after an allowance for
directly with the underlying investment manager, tax, including both realised and unrealised capital gains
please see ‘Investing through the Suncorp Employee and losses
Superannuation Plan and investing directly’ on page 18 of • transfers to and from reserves in order to smooth
this Member Booklet. returns over time and provide for guarantees
16 Suncorp• administration and investment fees and What happens if an investment option is closed,
• expenses such as brokerage, stamp duty, taxes, and suspended or terminated?
other expenses incurred in managing the assets From time to time, investment options may be closed,
suspended or terminated by an external investment
Suncorp bank deposit options manager or by us. This may happen where:
If you’re looking for secure, simple and easy to • the investment option is no longer offered by the
understand investment options, the Suncorp Employee investment manager or
Superannuation Plan offers the Suncorp Bank Deposit
• the total amount of investor’s money in the investment
Fund and the Suncorp Term Deposit Fund.
option has grown too large for the investment manager
Both investment options offer competitive interest rates. to continue with its current investment strategy or
The Suncorp Bank Deposit Fund pays monthly interest in
• laws change so that some investment types become no
the form of additional units into your Suncorp Employee
longer permissible or
Superannuation Plan account. The Suncorp Term Deposit
Fund is unit priced and investment performance is shown • we determine that it’s in the best interests of the
in the movement of the daily unit price. members or
So if you’re looking for the benefits of a bank account • the investment option may no longer be economically
within your Suncorp Employee Superannuation Plan viable
account, please refer to our investment option profiles for If an investment option is closed, suspended or terminated,
more information. this may cause delays in processing withdrawals and
transfer requests. This delay may be more than 30 days
Suncorp Bank Deposit Fund and the unit price used to process your transaction may
SLSL declares interest rates in arrears for this investment differ from the price applicable on the day you lodged
option on the 15th of each month for the preceding month. your request.
Interest is then calculated on your daily account balance Where an investment option is closed, suspended or
and credited to your account on the 15th of each month terminated, we’ll write to you in advance (where possible)
effective the last day of the previous month. to notify you of this change. You’ll then be able to review
your strategy, with the help of your adviser.
We use an interim interest rate to calculate interest on
full withdrawals made before the interest rate is declared Where we’re unable to tell you in advance, we’ll determine
(including full switches to another investment option). a replacement investment option (one that is comparable
to your investment option) in which to invest your money
The interim rate will be similar to the previous month’s
until you’ve been able to review your investment strategy.
declared rate and can be changed by SLSL at any time.
The declared interest rates are determined based on
several factors, including:
• the interest received from the underlying bank deposit
investments
• expenses such as taxes, and other expenses incurred
in managing the assets and
• interim interest paid to exiting members
Changes to investment options
The Suncorp Employee Superannuation Plan’s investment
menu may change from time to time, including the fees
and charges relating to the investment options. It’s
important to check our website regularly for any changes
to your investment options.
Suncorp Employee Superannuation Plan Member Booklet 17You can also read
