Defined Benefit
Division and
Accumulation 2
Product Disclosure Statement
Issued 1 October 2015 by UniSuper Limited ABN 54 006 027 121
AA DBD member, Associate Professor Elizabeth Koch OAM, Elder Conservatorium of Music, the University of Adelaide
About this Product
Disclosure Statement
This PDS has been prepared and issued by UniSuper
Limited as Trustee of UniSuper.
This PDS is for UniSuper Defined Benefit Division (DBD)
and Accumulation 2 members. It contains the membership
application form and describes the important features of
membership, including the benefits and risks and how fees,
costs and taxes may apply. The information in this PDS
will help you make important choices about your super. In
conjunction with this PDS, it is important that you read
the How we invest your money, Insurance in your super
and What happens to your inbuilt benefits if you choose
Accumulation 2? booklets (which are incorporated by
reference in this PDS) prior to making any decisions for
your super. If you would like to request a paper copy (free
of charge) of this PDS or any of the incorporated important
information booklets that are referred to, please call us on
1800 331 685 or you can access at unisuper.com.au/pds.
The information provided in this PDS is of a general nature
only and does not take into account your personal financial
situation or needs. You should therefore consider whether
it is appropriate for your personal circumstances before
relying on it and you should consider obtaining financial
advice tailored to your personal circumstances before
making a decision about this product.
01
Overview
About UniSuper
4
How super works
9
Getting started
12
Choose your
style of super
16
What are the DBD
and Accumulation 2?
18
Insurance and
inbuilt benefits
20
UniSuper Management Pty Ltd, SuperRatings Pty
Limited, Chant West Pty Limited and Selecting Super
(Pty Ltd) have consented to their logo and/or statements
being included in this booklet, in the form and context in
which they have been included, and consent has not been
withdrawn as at the date of this booklet.
Joining UniSuper or
transferring to the DBD
21
Still not sure which
type of super will
suit you best?
22
IN THIS PDS
Risks of super
25
To the extent that this PDS contains any information
which is inconsistent with the UniSuper Trust Deed and
Regulations, (together, the Trust Deed), the Trust Deed will
prevail.
Information in this PDS is current as at the date of
issue. Information contained in this PDS which is not
materially adverse may change from time to time. Updated
information can be found on our website or by calling us.
You will be given notice of material changes or significant
events within timeframes required by law.
UniSuper is referred to as ‘UniSuper’ or ‘the Fund’, ABN 91
385 943 850.
UniSuper Limited is referred to as ‘USL’ or ‘the Trustee’,
ABN 54 006 027 121. UniSuper Management Pty Ltd
is referred to as ‘USM’, ABN 91 006 961 799, Australian
Financial Services Licence (AFSL) No. 235907, MySuper
Authorisation No. 91385943850448. The Trustee has
delegated administration of the Fund to USM, which is
wholly owned by USL in its capacity as Trustee of the Fund.
USM’s AFSL authorises it to deal in financial products and
to provide financial product advice to members, which it
does through UniSuper Advice. External insurance cover is
provided to UniSuper through group insurance policies the
Trustee has taken out with TAL Life Limited, ABN 70 050
109 450, AFSL No. 237848 (referred to as ‘our Insurer’
throughout this document).
© UniSuper Limited 2015
24 months to make
a decision about your
membership26
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
1
contents
02
03
04
Defined Benefit
Division
Accumulation 2
General information
What is Accumulation 2? 42
Making contributions
48
Insurance42
Investment options
58
Making contributions
Inbuilt benefits
and insurance
60
Risks of super
61
Accessing your benefit
65
Fees and costs
69
How super is taxed
77
Other information
81
Glossary and
important definitions
87
What is the defined
benefit division?
28
Risks associated with
defined benefits
30
Making contributions
31
Inbuilt benefits
32
Insurance cover through
your accumulation
component33
Your super
34
Accumulation 2
membership
– types of benefits
43
45
2
How to read this PDS
We know that super can be complex, so we’ve tried to make it as easy as possible for you to
understand the features of your membership, the decisions you can make and what you can
do now to make the most of your super.
The terms of your employment mean that you
are now a Defined Benefit Division (DBD)
member. This is a product that we’re proud to
offer, with a long history and unique design.
Because we know that the DBD may not suit
everyone, we offer our members the option
to permanently transfer to the Accumulation
2 Division of the Fund (Accumulation 2)
within the first 24 months of membership.
Accumulation 2 is the type of account you’re
probably more familiar with, being similar
in style to a personal account in which your
superannuation contributions are accumulated,
as well as any investment returns (which could
be positive or negative) less any fees, costs,
charges, premiums and taxes.
This Product Disclosure Statement (PDS)
explains these two types of super, highlights
some decisions you may want to make through
the life of your membership, and provides
you with information to assist you with those
decisions.
find out more
You can visit our website
unisuper.com.au for more information
or call us on 1800 331 685.
This PDS is broken
up into four sections:
01 Overview
Part 1 introduces UniSuper and explains
the basic characteristics of the DBD and
Accumulation 2. It also highlights some key
decisions to consider and provides some general
information relevant to those decisions.
02 Defined Benefit Division
Part 2 provides more detailed information
particular to the DBD.
03 Accumulation 2
Part 3 provides more detailed information
specific to Accumulation 2.
04 Other information
Part 4 covers the general, but important,
information relevant to both the DBD and
Accumulation 2. This includes making
contributions, how your super is taxed, and the
fees and costs that apply.
01 Overview
4
About UniSuper
Since 1983, we’ve been Australia’s only super fund dedicated to people who work in the
higher education and research sector. With approximately $50 billion in funds under
management and over 400,000 members, we are one of Australia’s largest super funds.
Since inception we’ve helped over 1.1 million Australians in saving and preparing for
retirement. We are committed to providing competitive and high-quality retirement
saving products and services to our members, as well as a range of investment options.
Benefits of UniSuper membership
Stay with us even if you
leave your employer
with you all the way
You have the option to keep your super with us
if you leave the higher education and research
sector. If you’re eligible for Choice of Fund,
you can ask your new employer to pay your
Superannuation Guarantee contributions into
your existing UniSuper account.
No matter where you work or what you do, you
can keep your super with us for life. That way
we can continue to help you build and manage
your super and achieve your retirement goals.
Whether you’re:
AA starting out in the workforce
AA progressing in your career
AA changing jobs
AA winding down your work hours
AA taking a well-earned break, or
AA transitioning-to-retirement.
We offer a range of products and investment
options to help you achieve your goals.
Download or order
over the phone
You can download any of our
documents including this PDS
and related important information
booklets at unisuper.com.au/pds. If
you’d prefer a paper copy, you can
order one free of charge by calling us
on 1800 331 685.
Access our competitive
pension products
You can take out a UniSuper pension when you
retire—or in the lead-up to retirement as part
of a transition to retirement strategy. We have
a range of Pension options to help our members
continue to benefit from our competitive fees
and returns. For more information, refer to
the relevant Pension PDS and/or Your guide
to a better retirement booklet available from
unisuper.com.au/pds or by calling us on
1800 331 685.
Competitive fees
Our fees are consistently amongst the most
competitive in the industry and we strive to offer
great value, excellent service and relevant choice
to our members. As a member, you won’t be
charged for:
AA any entry or exit fees, or
AA the first investment option switch you make
each financial year.
We don’t pay commissions to financial advisers
and don’t pay external shareholder dividends.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
Control and choice over
your investments
Everyone has different needs when it comes to
investments. So we offer you the flexibility and
freedom to choose your own investment strategy.
We offer a wide range of carefully built investment
options, including sustainable options, which you
can combine to create your own portfolio or leave
it to our team of experts via one of our pre-mixed
diversified investment options.
A record of strong long-term
investment performance
We’re proud to have achieved returns that have
exceeded industry benchmarks and averages for
many of our investment options.1 For example, our
Balanced option has achieved returns that place
it in the first quartile (top 25%) over one, three,
five, seven and 10 years.2 And for the 2014-15
financial year our Balanced option returned
11.0%1, ranking it the fourth best of the 50 largest
(according to funds under management) surveyed
Australian super funds.2 Most of our pre-mixed
options also exceeded their respective peer group
medians over these periods and, in most cases,
also ranked in the top quartile.
We’re a MySuper-authorised fund
UniSuper is authorised to offer ‘MySuper’.
MySuper is the Government-driven initiative for
members’ default superannuation contributions.
It is designed to protect members through
ensuring certain rules are met in relation to
investment strategy, fees and insurance cover.
Generally, only funds authorised to offer
MySuper can accept compulsory default super
contributions (Superannuation Guarantee) from
employers. UniSuper has selected its Balanced
option to be its MySuper investment strategy.
Accumulation 2 members with any part of their
account invested in our Balanced option will
automatically become part of MySuper. DBD
members are not able to become part of UniSuper’s
MySuper offering while they remain in the DBD.
Past performance is not a reliable indicator of future performance.
Source: SuperRatings Pty Ltd’s Fund Crediting Rate Survey June
2015 published on 21 July 2015, www.superratings.com.au. A survey
median was not available for all categories of investment options. It
does not take into account any subsequent revisions or corrections
made by SuperRatings. At the time of preparation, UniSuper was
not aware of any revisions or corrections which would be materially
adverse to members. Go to www.superratings.com.au for details of
its rating criteria. SuperRatings does not issue, sell, guarantee or
underwrite this product.
1
2
Award-winning fund
With a string of awards and high ratings from
Australia’s top ratings and research agencies
SuperRatings and Chant West, we’re one of
Australia’s most award-winning super funds.
SuperRatings, an independently owned
superannuation research company, has
awarded UniSuper a Platinum rating for
its Accumulation 2 product.# SuperRatings
Infinity Recognised is awarded to super
funds that clearly demonstrate excellent
sustainable business practices and
responsible investment principles. Go to
www.superratings.com.au for details of its
rating criteria. SuperRatings does not issue,
sell, guarantee or underwrite this product.
Chant West has awarded UniSuper a 5 Apples
rating for its Accumulation 2 product in 2015,
and ‘Super Fund of the Year’ and ‘Investments
Best Fund’ in its 2015 awards.^ For further
information about the ratings methodology used
by Chant West, see www.chantwest.com.au.£
UniSuper was also awarded ‘Workplace
Super Product of the Year—Deluxe Choice’ by
SelectingSuper in November 2014. This award
is given to the best SelectingSuper AAArated product for consistency of investment
performance, value for money, insurance
offering, product features, and overall quality
as assessed by Rainmaker’s research team.*
SuperRatings Fundamentals Report: UniSuper
Accumulation Super (2), 30 September 2014. Issued
by SuperRatings Pty Ltd ABN: 95 100 192 283, AFSL
311800 (SuperRatings).
^ See Chant West Super Fund Ratings at
www.chantwest.com.au Chant West Pty Limited
ABN 75 077 595 316.
£
Chant West has given its consent to the inclusion in this
PDS of the references to Chant West and the inclusion
of the logos and ratings provided by Chant West in the
form and context in which they are included.
* See Selecting Super awards at www.selectingsuper.com.
au/awards. Issued by Rainmaker Information Pty Ltd
ABN 86 095 610 996, AFSL 461 816.
#
5
6
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
To open an account for your spouse, you need
to have a current UniSuper account yourself.
You can read more information on this and
the Spouse Account membership entitlements
in the Spouse Account PDS available at
unisuper.com.au/pds or by calling us on
1800 331 685.
Generous employer contributions
Your employer makes contributions that are
well above those required by government
Superannuation Guarantee legislation,
which, when combined with your member
contributions, can help you build your
retirement savings.
Spouse Accounts
More about us
At unisuper.com.au/governance
You’ve built your life together, so it makes sense
to secure a financial future together. UniSuper
Spouse Accounts may help you and your partner
achieve the retirement you deserve.
you will find any information about
the Trustee which we’re required
to disclose to members (such as
executive remuneration). You can
find our MySuper dashboard at
You don’t have to be married
to open a Spouse Account
If you’re a UniSuper member, we recognise a
spouse as being a person who:
AA you are legally married to;
AA is in a relationship with you (whether of the
same or opposite sex), and the relationship
is registered under an Australian state or
territory law, or
AA is in a relationship with you (whether of the
same or opposite sex), and you live together
on a genuine domestic basis as a couple.
unisuper.com.au/mysuper/mysuperdashboard.
How UniSuper’s standard DBD and Accumulation 2 contribution rates
compare to the standard Government contribution rate
7%
2
7%
2
post-tax employee contributions
into defined benefit component
3%
post-tax employee contributions
9.5%
pre-tax employer
contributions
into accumulation
component
(if applicable)
pre-tax employer
contributions
17%
pre-tax employer
contributions
(or 14% if applicable)
14%
pre-tax employer
contributions into
defined benefit
component
Unisuper
DBD super
contributions
standard
government
contributions
required
Contribution flexibility allows most members to reduce how much they pay down to zero.
2
Unisuper
Accumulation
2 super
contributions
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
We can help you make
informed decisions
Attend one of our free
seminars or webinars
As a UniSuper member, you can come along to
one of our many face-to-face seminars held on
and off-campus in locations around Australia.
This is a great opportunity for you to learn more
and ask questions about all sorts of super and
pension-related topics.
We also offer live webinars which you can attend
from the comfort of your own computer. See
unisuper.com.au/learning-centre/seminars to
find out more.
Online learning tools
Our online Learning Centre lets you learn
at your own pace, with videos, tutorials and
calculators to help simplify some of the more
complex aspects of super.
Manage your account online
You can also keep track of your super with
MemberOnline. This secure, personalised portal
lets you update your details, make investment
switches, keep an eye on your account balance,
contributions and insurance, and do a range of
other things to help you stay in control.
it’s not too late
No matter your stage of life, it’s never
too late or early to plan your financial
future. Contact UniSuper Advice on
1300 331 685.
® CFP®, CERTIFIED FINANCIAL PLANNER® are
certification marks owned outside the U.S. by Financial
Planning Standards Board Ltd (FPSB). Financial Planning
Association of Australia Limited is the marks licensing
authority for the CFP Marks in Australia, through agreement
with FPSB.
Financial advice for members
through UniSuper Advice
UniSuper offers the opportunity to access
financial advice as part of its services to
members.
UniSuper Advice is operated by UniSuper
Management Pty Ltd, which is licensed
to provide financial product advice to
members. This means you can get financial
advice from someone who understands
the Fund and the higher education and
research sector.
The advice service operates exclusively for
UniSuper members and their spouses. It
offers personal advice over the phone (super
advisers) and face-to-face comprehensive
advice. Super advisers can help over-thephone on a few issues, including super
contributions, investment options and
insurance as they relate to your UniSuper
account, as well as non-super areas.
UniSuper also offers comprehensive advice
in areas including retirement planning,
insurance, non-super investments and
accumulating wealth.
UniSuper requires its advisers to achieve
a high standard of relevant education.
Nearly all our advisers have tertiary
qualifications, many in financial planning
or related disciplines, and almost all of
our comprehensive advisers have the
internationally-recognised CERTIFIED
FINANCIAL PLANNER (CFP®)
certification delivered by the Financial
Planning Association of Australia
(FPA). This requires advisers to meet a
professional Code of Conduct and possess
attributes and skills around the ‘Es’: ethics,
education, experience and examination.
UniSuper Advice operates on a fee-forservice basis. If you request personal advice
services, UniSuper Advice will provide you
with a quote before you proceed or incur
any personal advice service fees. UniSuper
advisers are salaried employees and don’t
receive any commissions.
7
8
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
AA Accumulation 2 member, Jill Azmi, the University of Sydney
9
How super works
Superannuation (super) is a way to save for your retirement which is, in part, compulsory.
It is a long-term investment and designed to provide you with a nest-egg to help you fund
your retirement.
What is super and
why do we have it?
Before the introduction of compulsory super,
most Australians generally relied on the
government-funded Age Pension and their own
savings to fund their retirement.
At its core, our compulsory super system seeks
to help Australians prepare for and fund their
retirement. It does this by compelling people to
put aside a portion of their salary while they’re
working.
Over time, it is intended that compulsory super
will increasingly supplement the reliance on the
Age Pension, and even fully-fund retirement for
many Australians.
The fundamentals
Key features of Australia’s superannuation
system include:
AA compulsory contributions to super—these
are made from your salary through the
Superannuation Guarantee (SG)
AA tax advantages—most people’s super
will be taxed at a lower rate than similar
investments outside of super
AA cost-effective insurance cover—many funds
offer cover for death, disablement and
income protection, at prices which may be
lower than similar cover purchased outside
of super
AA limited access—you can only access your
super in specific circumstances.
CONTRIBUTING TO SUPER
At UniSuper, you can make a range of different
types of contributions to your account, for
example, employer contributions, ‘standard
member contributions’, voluntary contributions,
rollovers (i.e. transfers from other funds) and,
if you meet the eligibility criteria, government
co-contributions.
There are limits, called contributions caps, on
how much you can contribute to your super each
financial year and still receive concessional tax
treatment. It’s your responsibility to monitor
the total contributions made each year into
your UniSuper account—and to any other super
accounts you have—to ensure you don’t exceed
the caps (unless it’s part of your contribution
strategy to do so). You can monitor your account
by logging onto MemberOnline at our website.
For more information on contributions and
contribution caps see page 48.
10
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
TAX ADVANTAGES
Super can be a tax-effective way to save
and invest because of the tax concessions
(favourable tax treatment) it attracts. You can
read more about how super is taxed on page 77.
Your super is one of the most important—and
may be one of the biggest—investments you will
have. Take the time to read through this PDS to
work out the best options for you.
INSURANCE COVER
If you’re eligible, DBD and Accumulation 2
membership offers different types of default
and optional insurance cover, each provided in
different ways. You need to consider carefully
what’s right for you. See page 60 for more
information, and read our Insurance in your
super booklet at unisuper.com.au.
ACCESSING YOUR SUPER
Super is designed to provide you with an income
in retirement, so there are restrictions on
withdrawing your money to protect your balance
and keep it invested until you need it. You usually
can’t access your super until you’re aged between
55 and 60 and retired, but there are some special
circumstances when you can withdraw it earlier.
There may be additional restrictions imposed on
the DBD. For more information on accessing your
super see page 65.
What does it mean?
Standard member contributions
Members of the DBD or Accumulation 2
are required to make 7% standard (aftertax) member contributions. Members can
elect to reduce this level under contribution
flexibility arrangements, however this can
have important implications for their final
benefit (see page 49 for more information).
Voluntary member contributions
Voluntary member contributions are
those contributions made over and above
your standard member contribution level.
For DBD members, it’s important to note
that voluntary member contributions are
allocated to the accumulation component
of your benefit.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
11
You’ve just become a DBD member.
Congratulations and welcome!
Defined Benefit
Which
style of
super should
I choose?
Page 22
How does
Accumulation 2 work?
Page 42
What is the DBD?
Page 28
Getting started.
Page 12
Accumulation 2
How much can I
contribute? Page 31
How do I invest
my accumulation
component? Page 58
24 months to
decide. Page 26
How much can I
contribute? Page 43
What are inbuilt
benefits and insurance
options? Pages 32-33
How do I invest my
super? Page 58
What are my insurance
choices? Page 45
What if I become ill?
Page 36
Already a UniSuper
member but your super’s
changed? Page 21
Who receives my
benefit if I die? Page 81
What if I become ill?
Page 45
Who receives my
benefit if I die? Page 81
What happens if I
leave my employer?
Page 67
What happens if I
leave my employer?
Page 67
I’ve just retired.
What do I do? Page 4
I’ve just retired.
What do I do? Page 4
12
Getting started:
a guide to your
decisions
To help guide you through the decision-making process, we have provided a range of topics
you may want to consider. Remember, before making any decision you may also want to
obtain professional financial advice.
What style of super
will you choose?
You are now a DBD member. Read the
information on page 18 for a summary of the key
features of the DBD and Accumulation 2 and the
detailed information in Sections 02 and 03.
Remember, you have 24 months3 to decide
whether to permanently transfer to
Accumulation 2. See page 26 to learn more.
What level of contributions
do you want to make?
Decide what level of member contributions you’d
like to make (known as contribution flexibility).
Limits apply to the amount of contributions you
can make each financial year (see page 48).
3
How do you want
to invest your super?
Accumulation 2 members
With our wide range of investment options, you can
tailor your account to suit your individual needs.
You can choose the way contributions made to your
account—and any transfers into your account—are
invested. Over time you can change these strategies
without changing the way your account balance
is invested. You can also change the investment
options for your existing account balance.
Read the How we invest your money booklet at
unisuper.com.au/pds for more information.
DBD members
You can only choose how the accumulation
component (see definition on page 87) of your
account is invested. You should read How we
invest your money together with this PDS prior to
making any decisions about your super available
at unisuper.com.au/pds. Choosing or changing
your investment options in your accumulation
component/account can be completed quickly
and easily through MemberOnline.
You have 24 months from when your Defined Benefit Division/Accumulation 2 application form is accepted by UniSuper, or the first
employer contribution paid on your behalf is accepted by UniSuper (or as determined by us) to decide whether to stay in the DBD or
transfer your benefit to Accumulation 2. Once you have made your decision, you can’t change your mind. Your decision will continue
to apply throughout the life of your UniSuper membership. If you don’t elect to transfer to Accumulation 2 within this period, you will
remain a DBD member.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
Do you want Inbuilt Benefits?
DBD members
DBD members can claim an inbuilt benefit in
the event of death, disablement, temporary
incapacity and terminal medical condition.
Inbuilt benefits are self-insured by UniSuper
and the value of the benefit is determined by a
formula in the Trust Deed. Inbuilt benefits are
compulsory and DBD members can’t opt out of
them.
Accumulation 2 members
If DBD members choose to transfer to
Accumulation 2, their inbuilt benefits cease
and are converted to external Death, Total
and Permanent Disablement (TPD) and
Income Protection cover through our Insurer if
they’re eligible for this cover—this is known as
transitioned cover. A pre-existing condition (PEC)
exclusion will apply to some or all of this external
cover for between 12 months and three years,
depending on when they transfer from the DBD.
To find out how the DBD’s inbuilt benefits are
converted to unitised external cover, and the
terms, conditions and restrictions that apply
to this cover, read the What happens to your
inbuilt benefits if you choose Accumulation
2? important information booklet which is
incorporated by reference in this PDS and
available at unisuper.com.au/pds.
Accumulation 2 members can opt out of the
external insurance cover. The type and level
of cover provided is determined by the group
insurance policies UniSuper has with our
Insurer. For more information on the terms and
conditions that apply to the external insurance
cover read the Insurance in your super important
information booklet (incorporated by reference
in this PDS), available at unisuper.com.au/pds.
Do you want additional
insurance cover?
You’re automatically provided with inbuilt
benefits as part of your DBD membership. These
benefits are designed to protect you financially if
you become temporarily or permanently unable
to work due to illness or injury, and provide
benefits for your loved ones on your death.
Eligible members also receive default external
Death and TPD cover through our Insurer
when first joining UniSuper. This default cover
is in addition to inbuilt benefits provided to
DBD members. You can opt out of this cover or
apply for changes to your default external cover
if you’re eligible and decide it’s right for your
personal situation.
Who do you want to receive your
benefit in the event of your death?
You have the option of making a preferred
beneficiary nomination or a binding death
benefit nomination (see pages 81-83).
Do you need to see a professional
financial adviser to help you make
the decisions that are best for you?
Consider seeking advice from a qualified
financial adviser to ensure the decisions you
make are the right decisions for you.
13
In the event of temporary incapacity, disablement, terminal
medical condition and death you may receive inbuilt
benefits if you are eligible. Inbuilt benefits are compulsory
and determined by a formula in the trust deed. They
contain a component which is self-insured by UniSuper.
Go to page 36
For your accumulation component only.
Go to page 34
The value of your benefit is directly determined by the
performance of your investment options
Inbuilt benefits
For your accumulation component only.
Go to page 58
Choice of how your super is invested
Investments
Rollovers from other funds accepted
Into your accumulation component only.
Go to page 10
From your accumulation component only.
Go to page 6
Ability to split super contributions with your spouse
Rollovers
Into your accumulation component only.
Go to page 31
Go to page 48
Ability to make standard member contributions on a
before-tax (salary sacrifice) or after-tax basis
Regular and lump-sum voluntary member contributions
accepted on before-tax (salary sacrifice) or after-tax basis
Go to page 49
Go to page 28
Go to page 28
DBD membership
Ability to reduce level of standard member contributions
(contribution flexibility)
7% standard member contributions (after-tax)
Up to 17% employer contributions
Compare Features at a glance
Contributions
Inbuilt benefits cease if you choose
to transfer to Accumulation 2. See the important
information booklet What happens to your
inbuilt benefits if you choose Accumulation 2?
to learn more.
Go to page 42
Go to page 58
Go to page 10
Go to page 6
Go to page 43
Go to page 48
Go to page 49
Go to page 43
Go to page 43
Accumulation 2 membership
You may be charged a range of fees and other costs which
may be deducted directly from your account, from the
returns on your investment, or from UniSuper’s assets.
You should read all the information about fees and costs
to understand their impact on your account.
Fees
General
That Clause 34 may be enacted, requiring a change or
reduction to the formula used to calculate your defined
benefits
DBD
Investment
Risks of super
Options when nominating beneficiaries for your death
benefit
Beneficiaries
You receive one unit of death and TPD insurance cover
automatically when you first join UniSuper, provided
you meet the eligibility criteria. You can apply for more
cover if you need it or you can opt out altogether. If you
choose Accumulation 2, your inbuilt benefits will also
be transitioned to Death, TPD and Income Protection
insurance cover (if you’re eligible). This is in addition to
your default cover.
Insurance
Go to page 69
Go to page 61
Go to page 30
Go to page 25
Accumulation component only
Go to page 62
Go to page 81
Go to page 33, and read the important
information booklet Insurance in your super
which is incorporated by reference in this PDS.
Go to page 69
Go to page 61
Go to page 62
Go to page 81
Go to page 42, and read the important
information booklets Insurance in your super
and What happens to your Inbuilt Benefits if you
choose Accumulation 2? which are incorporated
by reference in this PDS.
16
Choose your
style of super
Everyone has different needs when it comes to managing their super. That’s why, as a
UniSuper member, you’re given the opportunity to choose a style of super that suits you.
UniSuper members can choose either defined
benefits, where your final benefit is determined
by a formula, or accumulation super that lets you
decide how your super is invested. Both options
also offer different benefits if you become unable
to work, are disabled or die. Here we illustrate
how the respective components are comprised
for typical DBD and Accumulation 2 members.
Defined benefit component
14% employer contributions
+ standard member
contributions (if any)
Accumulation component
3% employer contributions
(if applicable)
+ any voluntary member
contributions, rollovers, and
investment returns (positive
or negative)
-- any fees, costs, charges,
insurance premiums and taxes
Accumulation 2 benefit
Up to 17% employer contributions
+ any standard member contributions,
voluntary contributions, rollovers,
investment returns (positive or negative)
-- any fees, costs, charges, insurance premiums
and taxes
Accumulation component
Accumulation 2 benefi
3% employer contributions
Up to 17% employer co
(if applicable)
+ any standard membe
+ any voluntary member
voluntary contributio
contributions, rollovers,
and returns (
investment
investment returns
(positive
-- any
fees, costs, charg
or negative)
and taxes
-- any fees, costs, charges,
insurance premiums and taxes
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
Some of the key differences between the DBD and Accumulation 2
DBD
ACCUMULATION 2
AA Generally greater protection from market
AA Ability to select your own mix of investment
AA
AA
AA
downturns—with the pooling of assets
across the membership, the DBD provides
benefits that are not directly subject to
volatile market movements.
Salary-linked benefits—these generally
provide members with an increased ability
to more effectively estimate their benefit at
retirement.
Inbuilt death and disablement benefits (you
can’t opt out of these benefits).
Generally steady, stable, reliable growth.
AA
AA
What is best for you?
When deciding what is best for
you, there are many factors to
consider. We’ve outlined a few
of those factors, but we have not
considered your personal objectives,
financial situation or needs. For
that reason, you should consider
the appropriateness of the above
information for you, having regard
to your own circumstances and read
the other relevant sections of this
PDS, including the risks. You may
want to consider seeking professional
financial advice before making your
decision, as well as accessing a range
of helpful resources at unisuper.com.
au/choosingyoursuper.
AA
AA
AA
options for your whole account by choosing
the strategy that works for you.
Accumulation 2 members do not receive
inbuilt death and disablement benefits—
instead, inbuilt benefits will cease and
they will receive external Death, TPD and
Income Protection insurance cover through
our Insurer (transitioned cover).
A PEC exclusion will apply to some or
all of the external cover Accumulation 2
members receive when transferred from the
DBD. Depending on when the transfer to
Accumulation 2 occurs, the PEC exclusion
will apply for a period of between 12 months
to three years.*
Accumulation 2 members can opt out of
their insurance cover, scale it up or down, or
mix and match the level and type of cover to
suit their personal circumstances.
Easy to track account changes over
time, because your account grows with
contributions and investment returns
(which can be positive or negative)—similar
to a bank account.
Highly portable super account. Take us with
you if you change jobs or leave the sector.
* For more information on the kinds of restrictions, exclusions or limitations that may apply—and to see if you’re eligible—read the
Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? important information booklets
(incorporated by reference in this PDS), available at unisuper.com/pds.
17
18
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
What are
the DBD and
Accumulation 2?
With both styles of super, you’re saving money for your retirement,
but each uses a different method to arrive at the end amount.
The Defined Benefit Formula
5-Year
benefit
salary
Benefit
service
Lump sum
factor
Defined Benefit Division
As a DBD member, your super benefits at
retirement are mainly calculated using the
formula above. For information about the formula
applicable to other forms of exit, refer to page 34.
Although DBD money is still invested, market
fluctuations are less likely to directly affect your
final benefit and it is the fund that bears most
of the investment risk. One risk of the DBD is
that if the pool is insufficient to cover the DBD
obligations, your defined benefit may be reduced.
Your DBD benefit is made up of two parts or
components—an accumulation component
and a defined benefit component. If you receive
employer contributions at the rate of 17%, 3% of
that is directed to your accumulation component.
(Note that these rates can be different if you
choose contribution flexibility, which you can read
more about on page 49.)
Average
service
fraction
Average
contribution
factor
You can choose how your accumulation
component is invested, with this component
influenced by the amount of contributions
you make towards it and the performance of
investment markets.
You are provided with inbuilt death and
disablement benefits as part of your membership.
These include temporary incapacity, terminal
medical condition, disablement and death
benefits. You’re also provided with one unit of
default Death and TPD external insurance cover
on competitive terms through our Insurer. For
more detail about how the DBD works please read
page 28.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
AA DBD member, Professor Marshall Lightowlers, the University of Melbourne
Accumulation 2
With accumulation-style super, you can choose
how your whole account is invested and your
super balance is influenced by the amount of
contributions you make and the performance
of investment markets. Your benefit is simply
your account balance when you retire or leave
UniSuper, regardless of your age at the time.
It can be helpful to think about accumulation
super as similar to a bank account, but with
lots of choice regarding your investments and
insurance—allowing you to shape it to meet your
needs.
If you transfer to Accumulation 2, your inbuilt
benefits will cease and you will instead receive
Death, Total & Permanent Disablement (TPD)
and Income Protection insurance cover (if you’re
eligible). This insurance cover is provided through
group insurance policies the Trustee has taken
out with our Insurer and some or all of the cover
you receive will have a PEC exclusion applied
for a period of between 12 months to three years.
For more information on how PEC will apply
to transitioned external cover, please read the
Insurance in your super important information
booklet (incorporated by reference in this PDS),
available at unisuper.com.au/pds.
To find out more about what happens to your
death, disablement and temporary incapacity
benefits if you transfer to Accumulation 2,
including how we determine the level of external
insurance cover you receive on transition and the
kinds of restrictions, exclusions or limitations
that may apply, read the Insurance in your super
and What happens to your inbuilt benefits if you
choose Accumulation 2? booklets, incorporated by
reference in this PDS.
While you won’t have inbuilt benefits as an
Accumulation 2 member, you will have insurance
cover which you can tailor to meet your personal
needs. To find out about the terms, kinds of
restrictions, exclusions or limitations that
may apply to the insurance cover provided to
Accumulation 2 members, read the Insurance
in your super booklet, incorporated by reference
in this PDS. For more detail about how
Accumulation 2 works please read page 42.
19
20
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
Insurance and
Inbuilt Benefits
You’re generally also provided with one unit of default Death and TPD external insurance
cover when you first join UniSuper. This is known as default cover.
If you choose to transfer to Accumulation 2,
the inbuilt benefits you have as a DBD member
will cease and will be transitioned to unitised
external insurance cover. A PEC exclusion will
apply to some or all of the transitioned cover. To
find out if you’re eligible, how we determine the
level of cover you receive upon transferring to
Accumulation 2, and the kinds of restrictions,
exclusions or limitations that may apply you
should read the Insurance in your super and
What happens to your inbuilt benefits if you
choose Accumulation 2? booklets together with
this PDS available at unisuper.com.au/pds.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
21
Joining UniSuper
or transferring
to the DBD
If you’re 65 or younger and the terms of your employment mean that you
are eligible to join the DBD, simply follow these simple steps to get started.
Other
Account/s
Defined benefit
Read this PDS
and the important
information referred
to in the PDS.
Complete the Defined
Benefit Division/
Accumulation 2
application form
and return it to your
employer. If you don’t
complete the Defined
Benefit Division/
Accumulation 2
application form, you
will be deemed to be
a DBD member from
the date UniSuper
first accepts an
employer contribution
on your behalf or
such other date
as determined by
UniSuper.
UniSuper
Account
Accumulation 2
If you want to transfer
any other super you
have to your UniSuper
account, complete
the Combine my
super (rollover) form
and return it to us or
use our easy online
rollover tool available
at unisuper.com.au.
Make a decision
within the first
24 months of
membership about
whether you want
to remain in the
DBD or transfer to
Accumulation 2 (refer
to page 26). For more
information read the
Choosing your style
of super fact sheet
available on our
website. Before you
make any decision
make sure you seek
financial advice.
22
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
Still not sure which
type of super will
suit you best?
The following questions are just a few of the things you might want to consider in
making your decision but we have not considered your objectives, financial situation or
needs. For that reason, you should carefully consider this information and how it applies
to your personal circumstances.
Do you like the idea that
part of your benefit will be
determined by a formula?
Your DBD benefit (excluding any accumulation
component) is based on a formula that generally
takes into account your age, benefit salary,
period of service, average service fraction, and
average contribution fraction.
Generally greater protection
from market downturns
The defined benefit component of your super
is not directly subject to market volatility, as
investment returns do not directly change
the formulas used to calculate these benefits.
However, this also means that you may not reap
the rewards when the investment markets are
producing good returns.
Salary-linked benefits
These may provide members with an increased
ability to more effectively estimate their benefit
at retirement.
The payment of defined benefits is subject to the
risks that the DBD will not have sufficient assets
to meet all obligations to its members. These
risks are explained on page 30. You should bear
in mind the possibility that reductions in the
level of defined benefits may be made.
How long do you expect
to remain employed by
a UniSuper employer?*
The DBD is more likely to be suited to members
who expect that they’ll be employed within
the higher education and research sector for a
reasonable period of time.
* A UniSuper employer is an employer that has entered into a participation agreement with the Trustee.
To find out if this applies to your employer, please call us on 1800 331 685.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
Age-based lump sum factors
and time in the higher education
and research sector
While employer contributions to the DBD are
made at the same percentage of pay for most
DBD members, the lump sum factors that are
used to calculate a member’s ultimate defined
benefit increase with age.
Lump sum factors are based on the member’s
age when he/she leaves the DBD (not the age at
which the member joins the DBD). The table on
page 90 shows how the lump sum factor changes
as a member nears retirement age.
Do you know when
you plan to retire?
DBD members can generally better plan their
benefit at retirement with greater certainty than
accumulation members.
External insurance cover
or inbuilt benefits?
If you choose to transfer to Accumulation 2,
your inbuilt benefits will be transitioned to
unitised external insurance cover provided
through our Insurer (if you are eligible). A
PEC exclusion will apply to some or all of
the transitioned cover. Once you receive this
external insurance cover you can tailor it to suit
your personal circumstances.*
As a DBD member you are provided with
inbuilt temporary incapacity, terminal medical
condition, disablement and death benefits
as part of the DB benefit design, subject to
eligibility criteria. These benefits are calculated
based on a formula set out in the Trust Deed
and contain an inbuilt component which is selfinsured by UniSuper. It can be helpful to think
of these as similar to insurance benefits, but you
can’t opt out of them because they’re built into
your overall DBD membership.
It is important to note that the age at which a
member leaves the sector determines their lump
sum—not their joining age. The member’s salary
and service also play a very important role.
Eligible DBD members may also receive and pay
for one unit of default Death and TPD or Deathonly cover through our Insurer. You can apply
for more cover or opt out of the default cover if
you want to.
Do you want control over the
way your super is invested?
What about fees and costs?
With Accumulation 2, you can choose how
all your super is invested from our range of
available investment options. In the DBD, you
only choose how your accumulation component
is invested.
AA As a DBD member, fees, costs, taxes and
AA
charges (including those for inbuilt benefits)
are accounted for in the formula used to
calculate your defined benefit. Applicable
fees, costs and taxes relating to the
accumulation component and premiums for
insurance cover (if applicable) are deducted
from your accumulation component.
As an Accumulation 2 member, fees, costs,
taxes and premiums for insurance cover (if
applicable) are deducted from your account.
Read the ‘Fees and costs’ section on page 69 to
find out more.
* To find out how we determine the level of cover your receive on transferring to Accumulation 2, as well as any restrictions, exclusions
or limitations that may apply—and to see if you’re eligible—read the Insurance in your super and What happens to your inbuilt benefits
if you choose Accumulation 2? booklets available at unisuper.com/pds.
23
24
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
AA DBD member, Dale Teasel , Senior Groundsman at The University of Sydney
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
Risks of super
All investments, including super, have some level of risk. The types of risks your super may
be exposed to can be broadly categorised as either general or investment risks, and include
operational risk, legislative risk, inflation risk, investment option risk and so on. There are
also risks associated with your membership category. There are differences in risks for
DBD members and Accumulation 2 members.
When considering your investment in super, it’s
important to understand that:
AA the value of investments will vary and go up
and down
AA the level of investment returns will vary and
future returns may differ from past returns
AA investment returns are not guaranteed and
you may lose some of your money
AA super laws may change in future
AA your future savings (including contributions
and returns) may not be enough to provide
adequately for your retirement
AA the appropriate level of risk for you will
depend on a range of factors including your
age, your investment time frame, your
other investments and your personal risk
tolerance.
Risks specific to DBD members
For DBD members, defined benefits are based
on a formula that takes into account your age,
benefit salary, period of service, average service
fraction and average contribution factor.
Defined benefits are supported by a pool of
assets into which your employer contributes
and which we invest in a diversified portfolio of
investments. The DBD is designed so that in the
longer term investment returns are expected to
be sufficient to provide for UniSuper’s defined
benefits, although this is not guaranteed. In
addition, over short periods the funding position
may vary with investment volatility.
The main risks to your standard of living in
retirement are that you do not contribute
enough in standard member contributions or
your period of service is not long enough to
produce an adequate final benefit.
There is, also, a risk that the defined benefit pool
is or could be insufficient to meet all obligations
to DBD members, in which case your defined
benefit may be reduced. More information
about this risk is provided on page 30 under
the heading ‘Risks associated with defined
benefits’. The accumulation component for DBD
members is also subject to investment risk.
For more detail on these differences and to read
more about the risks mentioned, read pages 61
to 63.
25
26
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Overview
24 months to make
a decision about
your membership
If you are joining the DBD for the first time, you have a 24-month period from when you join
to decide whether to remain in the DBD or transfer your benefit to Accumulation 2. If you do
not elect to transfer to Accumulation 2 within this period, you will remain a DBD member.
24 months to decide
When you join as a DBD member
you will have 24 months from when
your Defined Benefit Division/
Accumulation 2 application form is
accepted by UniSuper, or the first
employer contribution paid on your
behalf is accepted by UniSuper (or
such other date as determined by
UniSuper) to decide whether to
remain in the DBD or transfer to
Accumulation 2.
Once you have made your decision,
you can’t change your mind.
If you don’t elect to transfer to
Accumulation 2 within this period,
you will remain a DBD member.
If you cease employment during your election
period and the value of your defined benefit
component (together with your accumulation
component) is transferred to Accumulation 1,
and you subsequently re-join the DBD at a later
point in time, you will have a further 24-month
election period from the date you re-join the
DBD to make this decision, unless:
AA your previous DBD membership was longer
than the election period applicable at that
time, or
AA you ceased employment within the election
period applicable at the time you were
previously a DBD member, and you elected
to defer your defined benefit component.
Once you have made your decision, you can’t
change your mind. Your decision will continue
to apply throughout the life of your UniSuper
membership. This means that if you do not
elect to transfer to Accumulation 2 within the
timeframe allowed you will not be able to make
an election to transfer to Accumulation 2 if you
later re-join the DBD through another employer.
The only way you may be able to have another
election period is if you completely exit the
Fund (i.e. close your account), take your entire
account balance when you cease employment
and then re-join through another UniSuper
participating employer as a new member.
02 Defined Benefit Division
28
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit division
What is the defined
benefit division ?
In most cases, as a DBD member, you’ll have two components to your super – a defined benefit
component and an accumulation component. Your final benefit is the total of both components.
Defined benefit component
14% employer contributions
+ standard member
contributions (if any)
Typically, employer and member contributions
make up both components as shown in the
diagram on this page.
A DBD member’s final defined benefit is
generally determined by a formula that takes
into account age, length of service, contribution
levels, employment status and salary. This
is in addition to the member’s accumulation
component.
Important definitions
The ‘Important definitions’ at the end
of this document explain the meaning of
certain important terms which appear in
italics throughout.
Definitions relating to external insurance
cover through our Insurer can be found
in the Insurance in your super booklet,
available at unisuper.com.au/pds.
Accumulation component
3% employer contributions
(if applicable)
+ any voluntary member
contributions, rollovers, and
investment returns (positive
or negative)
-- any fees, costs, charges,
insurance premiums and taxes
Download it or order
over the phone
You can download any of our
documents including this PDS and
incorporated important information
booklets at unisuper.com.au/pds. If
you’d prefer a paper copy, you can
order one free of charge by calling us
on 1800 331 685.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit Division
29
How your defined benefit component is calculated
5-Year
benefit
salary
Benefit
service
Lump sum
factor
Average
service
fraction
Average
contribution
factor
Important note: The formula above calculates your benefit on resignation and retirement
(other than retirement due to disablement).
As at 30 June 2015, the value of the assets in the
DBD was $18 billion. These assets are invested
in many ways which may include shares,
property, infrastructure, bonds and cash. Most
contributions for DBD members are invested in
this DBD asset pool. The remaining portion is
allocated to the accumulation component and
can be invested in various investment options.
Why the DBD remains one of
Australia’s only open funds
UniSuper is one of the few defined benefit funds
in the country that remains open and continuing
to accept new members. It has been specifically
designed for the higher education and research
sector.
Performance of the
DBD over 30 years
For more than 30 years, UniSuper has
committed the time, resources and expert
advice necessary to ensure strong management
of the DBD and its long-term viability.
Over three decades, and many economic
cycles, no DBD member has had any
reduction to their accrued benefit. Even
after the Eurozone Sovereign Debt Crisis,
benefits accrued by members have not been
impacted. Many Australians have not been
so fortunate.
The DBD has a track record of enduring
challenging economic times, in part due to
pooling the $18 billion asset base across almost
80,000 members. DBD members are regarded
as defined benefit members under Australian
superannuation law. This is why the fund is
called the Defined Benefit Division.
An employment-based formula is
generally likely to provide a greater
degree of certainty about members’
benefits at retirement than would be
provided by an accumulation arrangement
where members are directly exposed to
investment market performance.
30
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit division
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),
UniSuper 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.
Under Clause 34 there are now three concurrent
four-year monitoring periods. They conclude
on 30 June 2015, 30 June 2016 and 30 June
2017 respectively. Following the end of each
of these periods the Trustee may consider if
defined benefit reductions are required. If
benefit reductions are required, the approach
would depend on the circumstances after the
relevant 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 DBD information
see the DBD update section of the website
unisuper.com.au/dbdupdate.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit Division
Making
contributions
As a DBD member, your employer is likely to be making contributions of up to either
14% or 17% of salary and you are likely to be making standard member contributions
into your super.
Making standard member
contributions
In addition to the employer contributions,
you’re required to make standard member
contributions of 7% of your salary unless
you elect to reduce them through UniSuper’s
contribution flexibility arrangements.
All DBD members are required to make
standard member contributions of 7%
unless they elect to reduce their member
contributions through contribution
flexibility.
You need to make a certain amount of standard
member contributions to maintain your full
defined benefit entitlements. Standard member
contributions usually come out of your pay. You
have the choice of making them on an after-tax
or, with your employer’s agreement, on a beforetax basis. If you make the contributions on a
before-tax basis, you will need to contribute
at a greater rate to cover the contributions tax
of 15% (for a member required to contribute
7% a rate of 8.25% would apply for before-tax
contributions).
Read more about ‘Making contributions’ on
page 48.
Reducing your standard
member contributions
- contribution flexibility
You can reduce your standard member
contribution rate through an arrangement
known as contribution flexibility.
Once you’ve made a decision to reduce your
standard member contribution rate you can’t
increase them at a later stage. It may also
mean there are no contributions going into
your accumulation component. Contribution
flexibility could have an impact on your
inbuilt benefits. Read more about ‘Making
contributions’ and ‘Contribution flexibility’ on
page 48 and 49.
Additional voluntary
member contributions
Voluntary member contributions go into the
accumulation component of the Defined Benefit
Division and include:
AA salary sacrifice contributions above your
standard member contributions
AA after-tax lump sum contributions.
31
32
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit division
Inbuilt benefits
DBD members are provided with inbuilt benefits, subject to meeting certain conditions.
Inbuilt benefits can provide you (and/or your dependants) with benefits payable on death,
disablement, temporary incapacity, or terminal medical condition. These inbuilt benefits
are self-insured by UniSuper and are calculated using formulae set out in the Trust Deed
(UniSuper’s governing rules).
DBD members may also receive inbuilt
benefits subject to satisfying certain criteria
set out in the Trust Deed. ‘Inbuilt benefits’ is
the term used to describe benefits payable on
disablement, temporary incapacity, suffering a
terminal medical condition and death, which
are calculated based on a formula set out in
the Trust Deed. These benefits contain an
inbuilt component which is self-insured by the
Fund, not by an external insurance provider.
You cannot opt out of these benefits. You may
also be entitled to a benefit if you die or suffer
disablement or temporary incapacity or are
diagnosed with a terminal medical condition
within 90 days from the date you cease
contributing service. This is commonly referred
to as a continued inbuilt benefit.
For general information on inbuilt benefits and
continued inbuilt benefits, including restrictions
that may apply, and how to make a claim please
refer to pages 36 to 40 in this section.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit Division
Insurance cover
through your
accumulation
component
In addition to inbuilt benefits, DBD members may also be eligible to receive one unit
of external default Death and TPD insurance cover provided through the group life
insurance policies the Trustee has with our Insurer.
DBD members who transferred over from
Accumulation 1 may already have external
insurance cover. This cover will continue when
they join the DBD so long as they satisfy the
requirements under the group insurance policies
we hold with our Insurer, and premiums will be
deducted from their accumulation component.
If you qualify for and receive both an inbuilt
benefit and external insurance benefit,
off-setting provisions may apply under the
group insurance policies for income protection
to reduce the amount of the insured benefit you
receive at the point of making a claim to 85% of
your salary.
You may also have the option of applying for
more insurance cover or opting out of the default
insurance cover you receive upon first joining.
However, you can’t opt out of your inbuilt benefits,
as they’re part of the overall benefit design for
DBD members set out in the Trust Deed.
You should read our Insurance in your super
and What happens to your inbuilt benefits if
you choose Accumulation 2? booklets together
with this PDS prior to making any decisions
about the external insurance cover available at
unisuper.com.au/pds. The following information
summarises the benefit entitlements (including
inbuilt benefits) of DBD members and the way
they are calculated.
33
34
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit division
Your super
We calculate your defined benefit differently depending on when and how you access it.
This section outlines your retirement and leaving service benefits and different types of
inbuilt benefits, with examples for each.
Retirement and leaving
service benefit
If you’ve reached your preservation age (age 55
to 59, depending on your date of birth), or you
cease to be employed for reasons other than
disablement (including temporary incapacity),
death or suffering a terminal medical condition,
your benefit is a lump sum benefit calculated
based on the formula set out on page 35. You can
find examples of how the formula is applied if
you retire or leave service on page 35.
Your final total benefit when you retire or leave
your job will also include the balance (if any)
of your accumulation component including
investment returns (which may be positive or
negative) less any fees, costs, charges and taxes.
You may also be entitled to a continued
inbuilt benefit if you die, suffer disablement or
temporary incapacity or are diagnosed with a
terminal medical condition within 90 days from
ceasing employment or otherwise cease to be
eligible for DBD membership. See page 37 for
more information.
If you leave your job (other than due to death or
disablement) you need to decide what to do with
your defined benefit component.
If you have not already re-commenced being a
contributing member of the DBD, you can elect
to defer your defined benefit component in the
DBD, or have the value of your defined benefit
(together with your accumulation component)
transferred to an Accumulation 1 account.
What’s a ‘future
contributions strategy’?
A ‘future contributions strategy’ refers
to the way future contributions into your
accumulation component or account are
invested. These contributions can include
those your employer makes, as well as your
standard member contributions.
If you don’t provide us with instructions for your
super within your ‘option period’, and you have
not already re-commenced being a contributing
member of the DBD, the value of your defined
benefit component (together with your
accumulation component) will be transferred to
Accumulation 1.
Your ‘option period’ is the later of 90 days after
ceasing to be a contributing member, or 30
days after the Trustee writes to you about your
options for transferring or deferring a benefit.
When you transfer your defined benefit
component to an accumulation account, it
will be invested in accordance with your
future contributions strategy existing for
your accumulation component. This future
contributions strategy will apply to your
Accumulation 1 account. Your existing
accumulation component will remain invested
as per your current investment selection,
and your future contributions strategy will
be carried across. If you do not have an
accumulation component, or have not elected a
future contributions strategy, then your defined
benefit component and any future contributions
will be invested in the Balanced (MySuper)
option, the Fund’s default investment option.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit Division
35
Defined benefit retirement and leaving service formula
5-Year
benefit
salary
Benefit
service
Lump sum
factor
Average
service
fraction
Average
contribution
factor
The terms in this formula are defined from page 87.
Example – Phil’s retirement/leaving service benefit
Phil is 50 years old and has decided to retire
on 1 January 2027. He has been a UniSuper
member for 11 years and is receiving 17%
employer contributions, with 14% paid
into the Defined Benefit component and
3% to the Accumulation component. His
five-year benefit salary is $50,000 and his
accumulation component is $30,000. Phil’s
retirement benefit will be made up of the
sum of his defined benefit component and his
accumulation component. As Phil is under
age 60, tax may apply to his benefit.
Scenario 1: Continuous full-time
employment and 7% standard member
contributions
As Phil worked full time with the same
employer, his average service fraction is
100%. Having always made 7% standard
member contributions, Phil’s average
contribution factor is 100%.
His defined benefit component
[$50,000 x 11 x 20.0% x 100% x 100%] =
$110,000
Phil’s retirement benefit
Defined benefit component: $110,000
Accumulation component: $30,000
Total retirement benefit: $140,000
Scenario 2: Part-time employment or
periods of unpaid leave
If Phil worked part time and/or took unpaid
leave for a period, his average service fraction
would be less than 100%. For the purpose of
this example, let’s assume it is 75%.
His defined benefit component
[$50,000 x 11 x 20.0% x 75% x 100%] =
$82,500
Phil’s retirement benefit
Defined benefit component: $82,500
Accumulation component: $20,000
Total retirement benefit: $102,500
Scenario 3: Reduced standard member
contributions
If after 8 years, Phil reduced his 7% standard
member contributions to 3%, his average
contribution factor will be less than 100%.
In this case, his average contribution factor =
(8 x 100% + 3 x 91.7%) ÷ 11 = 97.74%
His defined benefit component
[$50,000 x 11 x 20.0% x 100% x 97.74%] =
$107,514
Phil’s retirement benefit
Defined benefit component: $107,514
Accumulation component: $25,000
Total retirement benefit: $132,514
36
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit division
Inbuilt benefits
Disablement and temporary
incapacity benefits
If you qualify for a disablement benefit prior to
age 65 or a temporary incapacity benefit, your
monthly benefit will be:
AA 60% of your five-year benefit salary
multiplied by your average service fraction
divided by 12.
Temporary incapacity benefits
Temporary incapacity benefits are payable for a
maximum of two years, regardless of your age.
For the purposes of calculating your other
DBD entitlements, the period while you are
receiving a temporary incapacity benefit is
counted towards your benefit service with a
contribution factor of 1 and a service fraction
equal to your service fraction immediately
before your temporary incapacity. Periods of
part-time work or leave without pay during your
DBD membership will decrease your monthly
temporary incapacity or disablement benefit (as
your average service fraction will be less than
100%). Temporary incapacity benefits are paid
for a maximum of up to two years. Payment of a
temporary incapacity benefit (once approved)
will not commence until you’ve been absent for
at least 7 consecutive days without pay at the end
of the three-month qualifying period.
For more information about how and when these
benefits will be paid, refer to the How to claim an
Inbuilt disablement benefit and How to claim an
Inbuilt temporary incapacity benefit fact sheets
on our website.
Disablement benefit
Disablement benefits are available until you
reach age 65, provided you satisfy the Trust
Deed requirements.
If you qualify for an inbuilt disablement benefit
before age 65, you can request a lump sum
payment not exceeding your five-year benefit
salary as at your date of disablement multiplied
by your average service fraction. If you request
this lump sum payment, your monthly income
benefit, benefit at age 65, and any other benefits
you receive from the DBD would be reduced.
If you qualify for an inbuilt disablement benefit
after age 65 your entitlement will generally be a
lump sum benefit or pension equivalent to your
leaving service or retirement benefit.
If you are assessed as being Disabled and also
have external insurance cover for TPD you may
be entitled to a TPD benefit (if you meet the
specific requirements of that definition in the
policy) as well as your inbuilt Disablement benefit.
You may also be able to access your accumulation
component if you show that you are permanently
incapacitated and satisfy criteria set out in
superannuation law. If you want to make a claim
under your TPD insurance cover, you will need to
make a separate application (read the Insurance
in your super booklet at unisuper.com.au/pds for
information on how to make a claim). External
insurance cover for income protection is not
available to members who first joined UniSuper as
DBD members.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit Division
Example – Alison’s temporary
incapacity benefit
Alison joined the DBD on 1 January 2016.
She is working when she unfortunately
has an accident on 1 January 2027 and is
deemed eligible for a temporary incapacity
benefit.
Her five-year benefit salary is $75,000
Her average service fraction is 100%.
Her monthly benefit is calculated as:
($75,000 x 60% x 100%) / 12 = $3,750
Alison can continue to receive a monthly
temporary incapacity benefit for up to two
years, provided she continues to satisfy the
requirements set out in the Trust Deed.
Example – Carl’s disablement
benefit
Carl joined the DBD on 1 January 2016. He
is working when he unfortunately has an
accident on 1 January 2027 and is deemed
eligible for a disablement benefit.
His five-year benefit salary is $150,000
His average service fraction is 80%.
His monthly benefit is calculated as:
($150,000 x 60% x 80%) / 12 = $6,000
Carl will continue to receive a monthly
disablement benefit until age 65, provided
he continues to satisfy the conditions in the
Trust Deed.
For more information about how and
when these benefits will be paid, refer to
the How to claim an inbuilt disablement
benefit and How to claim an inbuilt
temporary incapacity benefit fact sheets at
unisuper.com.au.
Terminal medical condition benefit
If you qualify before age 60, you can elect to
receive a terminal medical condition benefit
through your inbuilt benefits. Your election will
be irreversible. If you receive this benefit, you
will no longer be entitled to any further inbuilt
death or disablement benefits.
The inbuilt terminal medical condition benefit
is a lump sum equivalent to your death benefit
(refer below for a description of how death
benefits are calculated).
If you have external insurance cover, then a
terminal illness benefit may also be payable
under the insurance policy and you will need to
make a separate claim through our Insurer.
If you take a terminal medical condition benefit
through your inbuilt benefits and subsequently
decide to continue in employment or recommence
employment at any time in the future, you are not
eligible to remain a DBD member.
All future contributions must be made into an
Accumulation 1 account. In addition, you will be
ineligible to apply for any external insurance
cover in the future.
37
38
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit division
Death benefit
The inbuilt death benefit is a lump sum amount
calculated as the greater of the following
amounts:
AA A) A lump sum amount calculated as:
five-year benefit salary x Benefit service x
21% x Average Service Fraction (ASF), and
AA B) A lump sum amount calculated as:
–– Your lump sum retirement benefit^ (refer
to definition earlier in this section), plus
–– If you are under the age of 60 at the
time of your death an additional amount
calculated as follows: Five-year benefit
salary x Potential service x 21% x GF
‘GF’ means the greater of:
AA your Service Fraction at the date of death;
and
AA your ASF at the date of death
‘Potential service’ means the period from the
date of death to your 60th birthday and only
applies to your inbuilt benefits.
^Based on service at the time of your death
If you have exercised contribution flexibility at
the time of your death, your benefit will be the
benefit calculated under (B) only.
If you also have external insurance cover for death,
then an additional amount may also be payable
under the external insurance policy but a separate
claim will be required (read the Insurance in
your super booklet at unisuper.com.au/pds for
information on how to make a claim).
The final total benefit payable on your death will
include the balance (if any) of the accumulation
component plus, if you have external insurance
cover, any insurance proceeds that may also be
payable under the insurance policy.
Example – Anne’s inbuilt
death benefit
Anne was aged 50 when she died on
1 January 2027. Her five-year benefit
salary was $77,500 and she was a
UniSuper member for 10 years.
She had not exercised contribution
flexibility at the time of death, and her
average service fraction and adjusted
service fraction are both 100%.
Her death benefit is calculated as the
greater of the following amounts:
A) $77,500 x 20 x 21% x 100% = $325,500
B) $
77,500 x 10 x 20% x 100% = $155,000
+ $77,500 x 10 x 21% x 100% = $162,750
Total death benefit under B) = $317,750
Total death benefit under A) = $325,500
In this example, Anne’s death benefit
would be calculated using the formula set
out in A. Her benefit would be increased
by the amount of any accumulation
component or external insurance cover.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit Division
General information
about inbuilt benefits
If you cease service
If you suffer a terminal medical condition,
disablement or temporary incapacity, or
die within 90 days of the date you ceased
contributing service you or your beneficiaries
may be eligible to claim a benefit under the
Fund’s continued inbuilt benefit provisions.
The benefit for death, disablement or terminal
medical condition is a lump sum equivalent to
the inbuilt death benefit that you would have
received from the DBD if you died immediately
prior to the date you ceased contributing service,
less the withdrawal benefit you were entitled to
at the time. The temporary incapacity benefit is
a monthly income calculated as at the date you
ceased contributing service, payable for up to
two years.
To be eligible to claim a terminal medical
condition, disablement or temporary incapacity
benefit you must satisfy the relevant definition in
the UniSuper Trust Deed as set out at the end of
this section.
You will generally not be eligible to receive a
continued inbuilt benefit if:
AA you cease to be a UniSuper member within
the 90-day period,
AA you again become a contributing member of
the DBD within the 90-day period, or
AA you were entitled to receive a terminal
medical condition, disablement or
temporary incapacity benefit prior to the
date you ceased contributing service.
The payment of a benefit under the Fund’s
continued inbuilt benefit provisions is subject to
UniSuper’s Trust Deed and Regulations.
Restrictions on your inbuilt benefits
Inbuilt disablement and temporary incapacity
benefits may be reduced if you are receiving
workers’ compensation or similar payments
under legislation or an industrial award or
agreement. Inbuilt benefits may not be payable
or may be reduced if you have completed less
than three years of contributing service after
joining UniSuper or transferring into the DBD
from Accumulation 1, and the Trustee considers
that your death, disablement, temporary
incapacity or terminal medical condition arose
directly or indirectly from a condition which
existed at the time of joining or transferring.
Inbuilt benefits may also not be payable if:
AA you fail to provide the Trustee with
requested medical or other information,
AA the information you provide is
unsatisfactory, false or misleading, or
AA you fail to disclose relevant information to
the Trustee.
Inbuilt benefits
If you are a DBD member, the costs associated
with providing inbuilt benefits are allowed for in
the formula – no deductions are made from your
contributions or your final benefit.
39
40
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Defined Benefit division
Impact of contribution flexibility
If you reduce your standard member
contributions under our contribution flexibility
arrangements (to read more about contribution
flexibility go to page 49), your entitlement to
inbuilt benefits will not be affected, however the
amount of inbuilt benefits may vary, for example
they may be reduced.
Other lower contribution levels
If you qualify for half contributions, your inbuilt
benefits will be half of the full amount.
For more information about inbuilt benefits
(including special conditions and limitations),
please refer to the following fact sheets available
at unisuper.com.au:
AA Temporary incapacity benefits for Defined
Benefit Division members,
AA Disablement benefits for Defined Benefit
Division members, and
AA How to claim a terminal medical condition
benefit.
How to make a claim
You must notify us in writing of any claim
or potential claim as soon as possible. To
make a claim for an inbuilt benefit, you or
your beneficiaries will need to call us on
1800 331 685 to obtain the relevant claim
forms. Any information required to assess the
claim will also need to be provided, some of
which will need to be provided at your own cost.
We will assess your claim and notify you or your
beneficiaries in writing of the decision. We will
endeavour to complete the assessment within a
reasonable timeframe. However, the assessment
process can be lengthy in certain situations.
If you or your beneficiaries disagree with the
Trustee’s decision in relation to the claim, you
may ask for it to be reviewed. You can do this by
contacting us or writing to:
Claims Manager
UniSuper
Level 35, 385 Bourke Street
Melbourne VIC 3000
03 Accumulation 2
42
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Accumulation 2
What is
Accumulation 2 ?
With accumulation-style super, you can choose how your whole account is invested
and your super balance is influenced by the amount of contributions you make and the
performance of investment markets.
You get to choose how your contributions are
invested by choosing an investment option or
mix of options from the range we offer. As well
as choosing the way you want your existing
account balance invested, you can choose the
way your future contributions and transfers into
your account (rollovers) are invested.
Insurance
Eligible Accumulation 2 members are provided
with Death, TPD and Income Protection
insurance cover through the group insurance
policies we have with our Insurer. The insurance
cover Accumulation 2 members receive typically
includes the transitional cover provided when
If you don’t choose a future contributions
they transfer from the DBD, which will be
investment strategy, then your contributions
added to any existing cover they may already
will be invested in the Balanced option, our
have. A pre-existing condition (PEC) exclusion
default investment option and MySuper offering.
applies to some or all of the transitioned cover
Please refer to the How we invest your money
for between 12 months to three years. For more
booklet which is incorporated by reference in
information about the insurance provided to
this PDS and available at unisuper.com.au/pds
Accumulation 2 members, including eligibility
for more information on investment options.
criteria, the kinds of restrictions, exclusions and
limitations that may apply, premium rates and
Accumulation
benefit
how2PEC
applies to transitioned cover, read the
Up to 17% employer
Insurance contributions
in your super and What happens to
your member
inbuilt benefits
if you choose Accumulation
+ any standard
contributions,
important information
voluntary2?contributions,
rollovers,booklets incorporated
by reference
in this PDS
and available at
investment
returns (positive
or negative)
unisuper.com.au/pds
.
-- any fees, costs, charges, insurance premiums
and taxes
Download it or order
over the phone
Accumulation 2 benefit
Up to 17% employer contributions
+ any standard member contributions,
voluntary contributions, rollovers,
investment returns (positive or negative)
-- any fees, costs, charges, insurance premiums
and taxes
You can download any of our
documents including this PDS and
incorporated important information
booklets at unisuper.com.au/pds. If
you’d prefer a paper copy, you can
order one free of charge by calling us
on 1800 331 685.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Accumulation 2
Making
contributions
As an Accumulation 2 member, you’re likely to be receiving either 14% or 17% super
contributions from your employer and be making standard member contributions into
your super.
Making standard member
contributions
Additional voluntary member
contributions
When you become an Accumulation 2 member,
you’re still required to make standard member
contributions at the rate of 7% of your salary,
unless you have exercised contribution
flexibility (read more about contribution
flexibility on page 49). You have the choice of
making them on an after-tax or equivalent
before-tax basis.
You can also make additional voluntary member
contributions including:
AA regular member contributions in addition to
your standard member contribution rate
AA once-off lump sum member contributions
Read more about making contributions and your
options on page 48.
Reducing your standard member
contributions - contribution
flexibility
You can reduce your standard member
contribution rate through an arrangement
known as contribution flexibility. If you do
decide to reduce your standard member
contributions, you should be aware it will reduce
the balance of your super savings.
Once you’ve made a decision to reduce your
standard member contribution rate you
can’t increase it at a later stage. If you elected
contribution flexibility as a DBD member, you
can’t make a different election if you become
an Accumulation 2 member. Read more about
‘Making contributions’ on page 48.
Read more about this on page 55.
43
44
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Accumulation 2
AA Accumulation 2 member, Dr Paul Jackson, the University of Adelaide
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Accumulation 2
Accumulation 2
membership
– types of benefits
This section provides details of Accumulation 2 benefits depending on when and how you
access them, including retirement and leaving service benefits and insurance benefits.
Retirement and leaving
service benefit
Total and permanent
disablement (TPD)
If you retire or leave your job, your final benefit
will be your account balance as well as any
investment returns (which could be positive
or negative) less any applicable fees, charges,
premiums, costs and taxes.
If you become totally and permanently disabled,
you will receive a lump sum benefit made up of
your account balance and any external insured
benefit payable under the group life policy, as
well as any investment returns (which could be
positive or negative) less any applicable fees,
charges, premiums, costs and taxes.
If you leave your job and you’re no longer
eligible for Accumulation 2 membership, your
benefit will automatically be transferred to an
Accumulation 1 account and your benefit will
remain in the investment option(s) you have
chosen for your account with effect from the
date you leave employment, until you instruct
UniSuper otherwise.
Your external insurance cover will remain in
place as an Accumulation 2 member as long as
you continue to meet the external insurance
policy terms and conditions, and maintain a
sufficient account balance to pay your premiums.
For more information about maintaining
your cover, you should read the important
information booklet Insurance in your super,
which is incorporated by reference in this PDS
and available at unisuper.com.au/pds.
To the extent that you do not apply for a TPD
benefit or your claim for TPD is declined by
our Insurer, you may receive your account
balance less any applicable fees, charges,
premiums, costs and taxes if you satisfy the
permanent incapacity condition of release under
superannuation law.
For information about the TPD cover available
under the group life policy including who’s
eligible for this cover, please read the Insurance
in your super important information booklet,
which is incorporated by reference into this PDS
and can be found at unisuper.com.au/pds. This
booklet also outlines the kinds of restrictions,
exclusions or limitations that may apply.
45
46
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Accumulation 2
AA Accumulation 2 member, Professor Marita McCabe, Australian Catholic University
Income protection benefit
If you make a claim for an income protection
benefit under the Salary Continuance group
insurance policy and it is accepted by our
Insurer, you may receive a monthly benefit that
is the lesser of:
AA The amount represented by the number
of units the member or our Insurer last
accepted for you, and
AA 85% of your pre-disability monthly
income (with any amount above 75% of
your pre-disability income to be paid as
superannuation contribution)
For information about the cover available
under the Salary Continuance group insurance
policy, including the restrictions, exclusions
or limitations that may apply, please read
the Insurance in your super booklet, which is
incorporated by reference in this PDS and
available at unisuper.com.au/pds.
Death and terminal
medical condition benefit
If you die or suffer a Terminal Medical Illness
you or your beneficiaries will receive a lump sum
benefit made up of your account balance and
any insured benefit payable under the group life
policy, as well as any investment returns (which
could be positive or negative) less any applicable
fees, charges, costs, premiums and taxes.
To the extent that our Insurer declines a
claim for death or Terminal Medical Illness
benefit under the group life policy, you or your
beneficiaries will receive a lump sum benefit
comprising your account balance less any
applicable fees, charges, cost and taxes.
For information about the death (including
Terminal Medical Illness) cover available under
the group life policy, including any restrictions,
exclusions or limitations that may apply, please
read the Insurance in your super booklet, which
is incorporated by reference in this PDS and
available at unisuper.com.au/pds.
04 General information
48
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Making
contributions
Over time, contributions to your super account will help to increase your benefit.
The different types of contributions and the contribution limits set by the government
(known as contribution caps), are outlined in this section.
Employer contributions
Standard member contributions
Generally, contributions equal to 14% or 17% of
your salary are made by your employer.
In addition to your employer contributions,
DBD and Accumulation 2 members are required
to make standard member contributions at the
rate of 7% of your salary.
In the DBD, 14% of this finances your defined
benefit component, and the 3% additional
employer contribution (if applicable to you) goes
to your accumulation component.
As an Accumulation 2 member, the entire
14% or 17% of contributions goes to your
accumulation account.
Tax law requires super funds to deduct a 15%
contributions tax from all your employer and
before-tax (salary sacrifice) contributions. If we
don’t have your tax file number (TFN), we are
required to deduct a further 34% in ‘No-TFN
contributions tax’.
Download it or order
over the phone
You can download any of our
documents including this PDS and
incorporated important information
booklets at unisuper.com.au/pds. If
you’d prefer a paper copy, you can
order one free of charge by calling us
on 1800 331 685.
You can, however, reduce your standard
member contributions under UniSuper’s
contribution flexibility arrangements. This
gives you more control over your budgeting and
finances, but there may be implications for your
final benefit, inbuilt death benefit (for DBD
members) and you may be required to satisfy
additional eligibility criteria in order to receive
default Death and TPD insurance cover. You
should check the implications of reducing your
standard member contributions carefully before
making any decision because your decision is
irreversible.
In certain circumstances you may qualify for
‘half contributions’. Under this arrangement,
you will make standard member contributions
of 3.5% of your after-tax salary, and your
employer will make 7% employer contributions
into your defined benefit component and
3% contributions into your accumulation
component. As a result, your final benefit will
also be reduced. Making half contributions
is different from participating in UniSuper’s
contribution flexibility.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
If your salary reduces you may, in certain
circumstances, be able to continue to make
standard member contributions based on your
previous full time salary. In this way, DBD
members can ensure that, for benefit calculation
purposes, their previous higher salary is used in
preference to their lower current salary (provided
that salary is within the relevant 5-year period
used to calculate 5-year benefit salary). You can
only do this if the Trustee and your employer
agree to the arrangement and your employer
continues to make contributions based on your
salary immediately before the reduction, or you
agree to make up the difference between the
contributions your employer made before the
salary reduction and the contributions made
after the salary reduction.
Reducing your standard
member contributions with
contribution flexibility
Under our contribution flexibility arrangements,
you can reduce your standard member
contributions to specific levels - down to zero if
you are receiving 17% employer contributions,
or to a minimum of 2.55% if you are receiving
14% employer contributions. Refer to the table
on the right. In both cases, your employer will
maintain its level of contributions.
The reduction to your standard member
contributions will generally take effect at the
commencement of the next pay period after
your request has been processed, and once you
have elected to reduce your standard member
contributions you cannot increase them at a
later date.
49
STANDARD MEMBER CONTRIBUTION LEVELS
If you are receiving
17% employer
contributions
you can make your
standard member
contributions at the
following levels
If you are receiving
14% employer
contributions
you can make your
standard member
contributions at the
following levels
7.00%
7.00%
4.45%
6.55%
4.00%
5.55%
3.00%
4.55%
2.00%
3.55%
1.00%
2.55%
0.00%
What you need to consider
If you reduce your standard member
contributions, you will receive more take-home
pay, but reduce the size of your super savings
over the long-term, and your benefits including
your inbuilt death benefits (for DBD members)
may also be lower. You may also have to satisfy
additional criteria in order to be eligible to receive
one unit of default Death and TPD insurance
cover through our Insurer (see page 51).
You cannot reinstate your previous level of
standard member contributions at a later date
once you have chosen to reduce them. If you
reduce your standard member contributions
and later want to make additional member
contributions, you can only make regular or
one-off voluntary member contributions to your
account if you’re an Accumulation 2 member,
or to your accumulation component if you’re a
DBD member.
You can find more information in the fact
sheets on contribution flexibility for members
receiving 17% employer contributions or 14%
employer contributions, available from our
website or by calling us.
50
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Accumulation 2 membership
Contribution flexibility won’t generally impact
your insurance cover as an Accumulation
2 member, as long as your account balance
has sufficient funds to cover your insurance
premiums.
Standard
Effect on
member
your benefit
contribution
levels
(after-tax)
7%
Your full defined benefit
entitlement is maintained.
Your 3% additional employer
contribution is made
into your accumulation
component.
4.45%
Your full defined benefit
entitlement is maintained.
Your 3% additional employer
contribution, previously
made to your accumulation
component, is redirected
to your defined benefit
component. This may affect
your premium payments for
insurance cover.
4%
3%
2%
1%
Minimum
level 0%
Your defined benefit
entitlement is scaled back
in proportion to your
reduced standard member
contributions. Your 3%
additional employer
contribution, formerly
made to your accumulation
component, is redirected
to your defined benefit
component.
DBD membership
Any entitlement to an inbuilt disablement
benefit will not be affected. However, your
inbuilt death benefit will be lower due to your
smaller account balance as a result of your
reduced standard member contributions.
If your employer contributes
17% to your super
If you’re a DBD member and your employer
contributes 17% to your super, you must make
standard member contributions of at least
4.45% to maintain your full defined benefit
entitlement. Your entitlement to inbuilt benefits
will not be affected. However, the amount
your beneficiaries receive on your death will
be lower. You might have to satisfy additional
eligibility criteria under UniSuper’s group life
policies to receive up to three units of Death and
TPD cover without having to go through our
Insurer’s ‘underwriting’ (providing evidence
of your health) process. More information
about the effect of reducing standard member
contributions is outlined in the following table.
If your employer contributes
14% to your super
To maintain your full defined benefit
entitlements, you must make 7% standard
member (after-tax) contributions. You can
reduce your standard member contributions to
6.55%, 5.55%, 4.55%, 3.55% or 2.55%. However,
if you do, your defined benefit will be reduced. In
addition, the amount your beneficiaries receive
on your death may be lower.
You will generally not be provided with default
Death and TPD insurance cover through your
accumulation component or account. However,
if you are a contributing member you may be
able to apply for insurance cover if you meet the
relevant eligibility criteria and have sufficient
funds in your accumulation component or
account to cover your insurance premium. Your
application will also be subject to you providing
evidence of your health, and will need to be
approved by our Insurer.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Eligibility for insurance cover if you
elect contribution flexibility
As a DBD member, if you’re receiving 17%
employer contributions, your eligibility for
insurance cover under UniSuper’s group life
policies may be affected if you reduce your
standard member contributions, as outlined
below:
AA If you elect to use contribution flexibility
when you first join UniSuper (referred to
as ‘day one contribution flexibility’) you
will need to satisfy the following additional
criteria in order to be eligible to receive up to
three units of Death and TPD cover without
having to provide our Insurer with evidence
of your health:
–– you will need to lodge an application form
within 30 days of first becoming a DBD
member; and
–– UniSuper will need to receive a
contribution or rollover into your
accumulation component within 120 days
of you joining the DBD.
If you exercise contribution flexibility after
first joining UniSuper you will receive the
one unit of default Death and TPD cover and
may be eligible to apply for a further two units
without providing evidence of your health.
For information regarding eligibility criteria
for external insurance cover, and to learn
about the kind of restrictions, exclusions or
limitations which may apply, you should read
the Insurance in your super booklet which is
incorporated by reference in this PDS and
available at unisuper.com.au/pds. If at any stage
you have insufficient funds in your accumulation
component or accumulation account to cover
premium payments or you no longer meet
relevant criteria under the group insurance
policies, your insurance cover will cease.
Salary sacrifice contributions
Many employers will allow you to make
contributions into super from your salary before
income tax has been deducted. This is known as
salary sacrifice. Salary sacrifice contributions
count towards your concessional contributions
cap, as outlined on page 54.
Salary sacrifice contributions are regarded
as employer contributions and the 15%
contributions tax applies, because you have not
yet paid any tax on this income. If we do not have
your TFN, these contributions may be taxed at
49%. To make the equivalent of a 7% after-tax
standard member contribution, you will need to
contribute 8.25% from your before-tax salary.
Salary sacrifice contributions are included in
certain income tests for assessing eligibility for
a number of government benefits, including tax
offsets and the government’s co-contribution.
51
52
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Government co-contributions
If your total income is $35,454 per annum or
less for 2015/16, the government will put in
$0.50 for every dollar of after-tax personal
contributions you make into your super, up
to a maximum of $500. This is called a cocontribution. If you earn more than $35,454 per
annum for 2015/16, you may still benefit from
government co-contributions but the amount of
co-contribution gradually reduces as your total
income increases, before phasing out completely
if you earn $50,454 per annum or more.
Government co-contributions are tax free.
Eligibility requirements
Generally, to be eligible for co-contributions you
need to:
AA earn an annual total income of less than
the threshold with at least 10% of your total
income coming from eligible employmentrelated activities and/or carrying on a
business
AA make an eligible personal super contribution
during the financial year into a complying
super fund and not claim a deduction for any
of it
AA be less than 71 years of age at the end of the
financial year
AA you did not hold a temporary visa at any time
during the income year (limited exceptions
apply to New Zealand citizens and other
prescribed people holding temporary visas),
AA lodge an income tax return, and
AA meet the requirements of superannuation
law for making voluntary member
contributions.
Remember, you can make regular voluntary
member after-tax contributions from your pay,
or make a one-off lump sum voluntary member
contribution before the end of the financial year.
UniSuper needs your TFN before we can accept
government co-contributions or personal
(voluntary) contributions.
For tax purposes, your ‘total income’ is
determined in accordance with applicable laws.
Refer to the information about government super
co-contributions on the Australian Taxation
Office (ATO) website, www.ato.gov.au, for details.
Low income superannuation
contribution
Introduced in the 2012/13 financial year,
the government provides a Low Income
Superannuation Contribution (LISC) of a
minimum of $10 and up to $500 for individuals
with taxable income up to $37,000 who satisfy
the eligibility criteria. The LISC contributes
back to the member’s super balance an amount
equal to the 15% contributions tax deducted for
the relevant year of income.
To be eligible for a LISC you must satisfy all of
the following:
AA you or your employer pays concessional
(before tax) contributions for the year made
to a complying super fund
AA you have made concessional contributions
(including notional taxed contributions to
a defined benefit fund) for the year of income
AA your adjusted taxable income’ did not exceed
$37,000
AA you did not hold a temporary resident visa
(note that New Zealand citizens in Australia
are eligible for the payment); and
AA you lodge an income tax return and 10%
or more of your total income comes from
business and/or employment, or you do
not lodge an income tax return and 10% or
more of your total income comes from your
employment
If you’re eligible to receive a LISC, the ATO
will assess your entitlement and pay the LISC
directly into your super account for you.
Current legislation provides that the LISC
will continue to be payable for concessional
contributions made up to and including the
2016/17 year.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
53
Keep an eye on your contributions
It’s your responsibility to monitor the total
contributions made each year into your UniSuper
account— and to any other super accounts you
have—to ensure you don’t exceed the caps (unless
it’s part of your contribution strategy to do so).
You can monitor your account by logging onto
MemberOnline at unisuper.com.au.
Government caps on contributions
The government imposes limits, called
contribution caps, on the total amount of
contributions that you can make to super in each
financial year and still receive concessional tax
treatment on those contributions. If you exceed
the caps, you may pay a higher tax rate on any
contributions that exceed the caps, or we may
be required to refuse to accept contributions in
some circumstances.
Each cap applies to all contributions made by
you or made on your behalf in a financial year,
regardless of how many employers or super
funds you have. Government co-contributions
are not included in either of the caps.
It’s your responsibility to monitor the
contributions made into your UniSuper account,
and to any accounts you may hold in other super
funds, to ensure you don’t exceed the caps.
Visit the ATO website, www.ato.gov.au, for more
information.
Your contribution caps
2015-16
and
2014-15
Concessional
cap
Nonconcessional cap
$30,000*
$180,000
$35,000* for
members aged
49 or over on
the last day of
the previous
financial year
* There is 15% tax payable by your fund on concessional (beforetax) contributions paid into a super fund. Your super fund
usually reduces your super account by your share of this tax.
IMPORTANT
Exceeding your contribution caps
may have tax implications. See the
How super is taxed section from page
77 for more information.
54
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Caps on concessional (before-tax)
contributions
DBD members and notional taxed
contributions
Concessional (before-tax) contributions are
generally contributions made by, or for you,
before tax is paid. They include your employer
contributions, salary sacrifice contributions
and personal contributions made by you where
you provide us with a valid form stating your
intention to claim a tax deduction and we
acknowledge receipt of this form in writing.
Notional Taxed Contributions (NTCs) are the
notional amount of contributions (excluding
after-tax member contributions) that relate
to your defined benefit component. NTCs
are counted towards your concessional
contributions cap and are added to the other
concessional contributions made to your
accumulation component in a financial year.
If you’re less than 49 years of age on 30 June
2015, you can contribute up to $30,000 of
concessional contributions in the 2015/16
financial year and incur the 15% contributions
tax, provided we have your TFN and the very
high income earners tax does not apply to you.
See ‘Additional tax for high income earners’ on
page 78 for more details). If you’re aged 49 years
or older on 30 June 2015, your concessional
(before-tax) contributions cap is $35,000 for
the 2015/16 financial year.
What this means
NTC values are generally lower than the
actual amount of before-tax contributions
that relate to your defined benefit component.
This means you may be able to ‘top up’ your
before-tax contributions to your accumulation
component without exceeding your concessional
contributions cap.
If you exceed your concessional contributions
cap during a financial year, the excess amount
is included in your assessable income and
is taxed at your marginal tax rate. You will,
however, receive a 15% tax offset in your tax
return because you have already paid the 15%
contributions tax through your super. The offset
is not refundable.
You may also be liable to pay a charge on the
increase in your tax liability relating to the
excess concessional contributions for the
relevant financial year.
If you have excess concessional contributions,
the ATO will send you a letter, together with a
voluntary release authority form, to authorise
the release of money from your superannuation
account up to 85% of the amount of your excess
concessional contributions for that financial
year. Note: you can’t use the ATO release
authority to withdraw the contributions from
UniSuper’s Defined Benefit Division, but
you can release monies from any associated
accumulation account.
It’s important to remember that although your
NTC value may be lower than the actual beforetax contributions that relate to your defined
benefit component, your final benefit is not
affected in any way. Your benefit is still calculated
using the formula set out in the Trust Deed.
You can find out more about NTCs and how they
affect you in MemberOnline, which you can
access at unisuper.com.au. More details can also
be found in the following fact sheets, available
on our website:
AA The concessional contributions cap and
NTC rates for DBD members receiving 17%
employer contributions
AA The concessional contributions cap and
NTC rates for DBD members receiving 14%
employer contributions.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Caps on non-concessional (after-tax)
contributions
You can contribute up to $180,000 in nonconcessional (after-tax) contributions to your
super in the 2015/16 financial year without
paying any additional tax (see page 78 for more
information).
If you’re less than 65 years of age and your nonconcessional contributions exceed $180,000 in
a financial year, you may be able to contribute
up to $540,000 using a ‘bring forward’
contributions cap over a three-year period. For
example, you could contribute $540,000 in one
financial year, but nothing in the subsequent
two financial years. Certain conditions apply
to ‘bring forward’ contributions. See the ATO
website www.ato.gov.au for more information.
If you exceed your non-concessional
contributions cap, you may choose to withdraw
the super contributions in excess of your nonconcessional contributions cap plus 85% of any
associated earnings. The associated earnings
withdrawn are taxed at your marginal tax rate.
You will also receive a 15% tax offset of the
associated earnings included in your assessable
income. The offset is not refundable.
If you exceed the non-concessional
contributions cap, the ATO will issue you with
a notice of assessment stating the amount of tax
payable for the financial year and provide you
with a release authority to enable the amount to
be paid from you super account. Note: you can’t
use the ATO release authority to withdraw the
contributions from UniSuper’s Defined Benefit
Division, but you can release monies from any
associated accumulation account (e.g. your
accumulation component).
Alternatively, you may choose to leave the
excess non-concessional contributions and
the associated earnings in your super instead
of withdrawing the funds. If you choose this
option, you will be liable to pay tax on the excess
contributions at a rate of 49%.
If your contributions exceed the nonconcessional contributions cap in a financial
year, the excess amount could be taxed at up to
95% overall.
For more information about the contributions
caps and the types of contributions that count
towards the concessional and non-concessional
contributions caps, please refer to the ATO
website, www.ato.gov.au.
Paying excess contributions tax
The ATO will assess you personally at your
marginal tax rate for any excess concessional
contributions you have made or received.
At the time of receiving your excess concessional
contributions determination from the ATO, you
will also be given a Voluntary release authority
form to authorise the release of money from your
super account of up to 85% of the amount of
your excess concessional contributions for that
financial year.
You can use this Voluntary release authority form
to authorise the release of the tax amount from
your super account. To do so, you must return
your completed release authority to the ATO
within 21 days. The ATO is then responsible for
providing that release authority to UniSuper.
Within seven days of receiving the release
authority from the ATO, UniSuper will pay to
the Commissioner the lesser of:
AA The amount specified in the release
authority; and
The
AA total of the amounts that can be
released from your superannuation account
Note: you can’t use the ATO release authority
to withdraw the contributions from UniSuper’s
Defined Benefit Division, but you can release
monies from any associated accumulation
account (e.g. your accumulation component).
55
56
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
When we can’t accept contributions
In some cases, certain requirements must be
met before we are permitted to accept your
contributions.
If you don’t provide us with your tax file
number (TFN)
While it isn’t compulsory to provide us with
your TFN, if you don’t we are not permitted
to accept any non-concessional (after-tax)
contributions to your account. In addition, any
concessional (before-tax) contributions, such as
employer and salary sacrifice contributions, may
be taxed at 49%.
You can provide your TFN on your Defined
Benefit Division/Accumulation 2 application
form, or by completing the Tax file number
declaration form available on our website or
MemberOnline.
If an individual after-tax contribution
exceeds the cap
We are unable to accept an individual nonconcessional (after-tax) contribution that
exceeds the non-concessional contributions cap.
In these circumstances, the amount in excess of
the cap will be returned to you.
However, remember that if you are under age 65,
you may be able to contribute up to $540,000
over a three-year period. Refer to the ‘Caps on
non-concessional (after-tax) contributions’
section on page 55 to find out more.
If you are contributing before age 65
If you are aged under 65, we can accept:
AA employer and salary sacrifice contributions,
AA non-concessional (after-tax) contributions
(unless you have not provided your TFN
or the contribution exceeds the nonconcessional contributions cap), and
AA spouse contributions made on your spouse’s
behalf, regardless of whether or not you are
working.
If you are over 65 but under 75
UniSuper can accept Superannuation
Guarantee contributions and employer
contributions made under an award or
industrial agreement (mandated contributions),
regardless of how many hours you work.
We can only accept non-mandated contributions
provided you have worked for at least 40 hours
in a period of not more than 30 consecutive days
in the financial year that the contribution is
made. This is called the work test. The work test
must be met once in each financial year before
any non-mandated member contributions can
be accepted. It’s up to you to demonstrate to us
that you have met the work test each financial
year. Prospective employment cannot be taken
into account for the purposes of the work test.
The table on page 57 helps to illustrate
contributions members can make at different
ages. Note that it is intended as a guide only.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Member’s age Personal
at time of
contribution
contribution - Made by the member
Other
contribution
- Made by someone other
than member or employer
57
VoluntAry
employer
contribution
Mandated
employer
contribution
e.g. personal
non-concessional.
personal
concessional
contributions
e.g. spouse
contribution,
co-contribution
e.g. salary
sacrifice, other
employer
contributions in
excess of SG
e.g. SG
contribution
under industrial
award
Under 65
Yes
Yes
Yes
Yes
65 to 69
Work test
Work test
Work test
Yes
70 to 74
Work test
No
Work test
Yes
75 and over
No
No
No
Yes
If you are aged 75 or over: UniSuper can accept
Superannuation Guarantee contributions as
well as employer contributions made under an
award or industrial agreement, regardless of
how many hours you work. We are unable to
accept any other type of contributions.
Spouse contributions if you are aged 65 but
under 70: We can accept spouse contributions
on your behalf, provided that you meet the
work test as prescribed above. If you’re a DBD
member, such contributions will be paid into the
accumulation component of your account. Once
you reach age 70, spouse contributions cannot
be accepted.
Temporary allowances
If you are a DBD member and you are paid
a temporary allowance (e.g. for taking on an
additional task or higher duties for a limited
period of time), it’s important that you’re aware
of how this payment will be treated with respect
to your super. Temporary allowances are treated
differently to the other types of remuneration
salary used to calculate DBD members’ benefits.
Under the Trust Deed, temporary allowances
are excluded from members’ 5-year benefit
salary, but increase their service fraction.
This is to ensure members get a fair but not
disproportionate benefit from allowances
paid over relatively short periods within their
membership.
The Trust Deed allows the Trustee to determine
whether allowances are temporary in nature.
Allowances expected to be paid for less than 5
years will generally be regarded as temporary
allowances.
58
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Investment options
Members with an Accumulation 2 account or DBD accumulation component can decide
which investment options your contributions and rollovers are invested in.
When deciding how to invest your super, it’s
important to choose investments that you feel
comfortable with and which are best suited to
your investment needs. To do that, you’ll need to
understand how the investment options work.
Our How we invest your money booklet provides
important information about our Pre-Mixed
and Sector investment options, including how
they are invested, the different asset mixes
and the different levels of risk associated
with each option. How we invest your money
is incorporated by reference in this PDS and
available at unisuper.com.au/pds.
You’ll also find general information that may help
you determine your investment needs and make
an investment selection based on those needs.
In addition, you should refer to our website for
any product, investment or disclosure updates,
and we recommend that you speak to a qualified
financial adviser before making a decision.
Contributions
If you have an accumulation component
or account, you can choose the way future
contributions are invested. This is known as your
future contributions strategy. You can change
your future contributions strategy at any time
and this will not affect the way your existing
account balance is invested. No fee applies if you
change your future contributions strategy.
If, upon joining the Fund, you have not
selected a future contributions strategy, any
contributions received will automatically be
invested in the Balanced option, our default
investment option.
If you don’t choose a rollover strategy, then any
transfers into your account from other super
funds (rollovers received) will be invested in the
same way as your future contributions. If your
application form with your future contributions
strategy is received after contributions have
been processed to your account, we will switch
those contributions from the default investment
option to the investments you have chosen as
at the date we receive your application form.
If you do not want to have those contributions
switched, you can indicate this on the
application form.
Note that our Balanced investment option is
also our MySuper offering for Accumulation 2
members. You can read more about MySuper on
page 5 and at unisuper.com.au/mysuper.
In some cases, we may be unable to immediately
allocate a contribution made on your behalf
to your account. If this occurs, investment
returns (positive or negative) for the investment
option(s) you have chosen will be applied from
the date on which the contribution was banked.
Any interest earned before the contribution is
allocated is retained in the Fund.
Transferring members
If you have transferred into the DBD or
Accumulation 2 from another membership
category in UniSuper and you have not advised
us of a new future contributions strategy, then
any contributions received on or after the
transfer date will be invested in line with your
future contributions strategy in your former
membership category.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Rollovers
You can also choose the way transfers into your
accumulation component or account (known
as ‘rollovers’) are invested. This is known as
your rollover strategy. You can change your
rollover strategy at any time and no fee applies
for changes. If you have not selected a rollover
strategy, any rollovers received will be invested
in the same way as your contributions.
Your existing account balance
If you have an accumulation component or
account, you can also change the investment
options for your existing account balance. This
is referred to as a switch. Switching does not
change the way your future contributions or
rollovers are invested. If you make a switch, you
may incur an investment switching fee – see the
table on page 70 for details.
How do I change my
investment choice?
You can switch your existing account balance
between investment options or change your
future contributions or rollover strategy by
logging in to MemberOnline, or by completing
an Investment choice form, which is available
on our website and on request by calling us. A
switching fee may apply – refer to the table on
page 70 for details.
Our How we invest your money booklet explains
when your switch will become effective.
59
60
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Inbuilt benefits
and insurance
Through your UniSuper membership, you might be eligible for external insurance for
Death, TPD and Income Protection cover. This is provided through group life policies we
hold with our Insurer.
DBD members are provided with inbuilt
death, disablement, temporary incapacity and
terminal medical condition benefits which
are self-insured by UniSuper and calculated
based on a formula in the Trust Deed. This PDS
explains inbuilt benefits and how they work.
See page 36 to learn more. Subject to satisfying
certain conditions, DBD members may also
automatically receive one unit of Death and
TPD external insurance cover which is provided
through external insurance policies we hold
with our Insurer.
Accumulation 2 members do not have
inbuilt benefits. If you choose to transfer to
Accumulation 2, your inbuilt benefits will
cease and you will receive external Death, TPD
and Income Protection insurance cover. This
transitioned cover will be added to any existing
external cover you may already have when you
were a DBD member, and will be governed by
the group insurance policies we have with our
Insurer.
For more information about how UniSuper
determines the level of external cover you
receive if you transfer to Accumulation 2,
please read the What happens to your inbuilt
benefits if you choose Accumulation 2? important
information booklet which is incorporated
by reference in this PDS and is available at
unisuper.com.au/pds.
To find out more about the types of
cover, options and premium rates
that apply to the external insurance
cover provided to Accumulation 2
members—including information
about restrictions, exclusions or
limitations that might apply—please
read the Insurance in your super
booklet which is incorporated by
reference in this PDS and available
unisuper.com.au/pds.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Risks of super
Your super is designed to provide you with an income for retirement. It aims to build your
retirement savings in a cost-effective, tax-efficient way. However, there are certain risks
you should be aware of.
General risks that may
affect your super
CYBER RISK
The impact of these risks may be short term
or long term, depending on the conditions and
circumstances that have given rise to them.
This is the risk of financial or data loss, business
disruption, or damage to the reputation of
UniSuper as a result of a threat or failure to
protect the information or personal data stored
within its information technology systems and
networks.
Legislative risk
Other general risks
This is the risk that legislation governing super
(for example, the way super is taxed and how and
when you can take your benefit) might change in
future. This may result in you paying more tax
than you had initially planned, not being able to
access your benefit exactly how you had planned
or other unanticipated consequences.
Operational risk
This is the risk that factors beyond the Trustee’s
reasonable control may prevent it from
administering and managing the Fund, your
account, the investment options and the Fund’s
investments in the manner in which it usually
would. This might include, for example, system or
technology failure, people, operational processes,
market closures, significant market movements,
significant illiquidity, significant redemption or
switching activity, actions taken by our external
investment managers and other service providers,
industrial disputes, terrorist acts, wars, actual or
potential epidemics and pandemics, earthquakes,
fires and civil disturbances.
The Trustee has measures in place that are
intended to manage the consequences of these
occurrences. However, the Trustee cannot
guarantee that these kinds of occurrences will
not interrupt normal operations.
The fees and costs (including inbuilt charges
and insurance premiums), associated with your
membership may increase in future. However,
we will give you 30 days’ written notice in
advance of any increases in fees and charges
(other than automatic indexation). There is
also the possibility that a new fee could be
introduced.
There is also the chance that the Trust Deed
may be amended or that changes to the Fund
(as permitted by law) may affect your rights and
entitlements as a member. We will keep you
informed of such changes, as required by law.
61
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Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Differences in risks
for DBD members and
Accumulation 2 members
DBD members and Accumulation 2 members
have different risks because the design of their
super benefits is different.
DBD members
For DBD members, defined benefits are based
on a formula that takes into account your age,
benefit salary, period of service, average service
fraction and average contribution factor.
Defined benefits are supported by a pool of
assets into which your employer contributes and
which we automatically invest in a diversified
portfolio of assets including shares, property,
bonds and cash. The DBD is designed so that in
the longer term investment returns are expected
to be sufficient to provide for UniSuper’s defined
benefits, although this is not guaranteed. In
addition, over short periods the funding position
may vary with investment volatility.
The main risks to your standard of living in
retirement are that you do not contribute
enough in standard member contributions or
your period of service is not long enough to
produce an adequate final benefit.
There is also a risk that the defined benefit pool
is or could be insufficient to meet all obligations
to DBD members, in which case your defined
benefit may be reduced. The accumulation
component for DBD members is also subject to
investment risk.
Accumulation 2 members and DBD
members’ accumulation components
For Accumulation 2 members and DBD
members with accumulation components,
benefits are based on your individual account
balance, which is invested in the investment
options of your choice (or if you don’t make a
choice, in the Balanced option, which is the
Fund’s default investment option). This means
that your benefits are subject to investment risk.
Investment risks that
may affect your super
Investment risk is the potential for your super
account to rise or fall due to how it is invested.
As a result, the amount of your final benefit
when it comes time to withdraw it from the
Fund may be less than the total contributions
made into your account. In other words, your
final benefit may be less than you need to
achieve your desired lifestyle in retirement.
We offer a wide range of investment options
that give you the flexibility to invest your super
according to the type of investment and level of
investment risk you are comfortable with.
While each investment option involves some
level of risk, some involve higher levels than
others. As a general rule, investments that offer
higher returns tend to be higher risk, while those
that offer lower returns tend to be lower risk.
Risks relating to particular types of investments
are set out below. The impact of these risks may
be short term or long term, depending on the
conditions and circumstances that have given
rise to them.
Specific investment (or security) risk
The risk that a specific investment held in an
investment option may experience negative
returns and lose money, or may fail to perform
in line with expectations.
Investment manager risk
The risk that UniSuper or an external investment
manager appointed by UniSuper to manage
certain investments, may underperform the
general market, or may fail to perform in line with
expectations, for example due to their investment
management style or management decisions.
Market risk
The risk that a specific investment market
(for example, the share market or the fixed
interest market) may not perform well and may
diminish the value of the investments held in
those markets. Factors such as interest rates
and inflation, as well as government policy and
economics, can all influence market risk.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Country risk
Investment option risk
The risk that investment options that hold
securities from an individual country may not
perform well as a result of economic or political
pressures specific to that country, and the
investment options may lose money as a result.
There is a risk that, during your membership,
UniSuper may discontinue the investment
option you are invested in and require you to
transfer to another option or make substantial
changes to your chosen investment option.
However, if this were to occur, you would receive
advance notification and have an opportunity
to switch to any of our other investment options
available at that time. Similarly, UniSuper
may change the default option that applies to
members who do not make a choice.
Currency risk
The risk that the changing value of currency
either in Australia or overseas may change the
value of an overseas investment. For example,
if the investment option contains investments
denominated in US dollars and the Australian
dollar rises against the US dollar, the value of
those US investments may fall when calculated
in Australian dollar terms.
UniSuper may from time to time hedge some or
all of the Fund’s foreign currency exposures but
will not necessarily do so at all times. Different
currencies may be hedged to different extents
(or possibly not at all).
Credit risk
The risk that an organisation that deals with
UniSuper will fail in its obligation and cause an
investment option to incur a financial loss.
Inflation risk
The risk that inflation and/or interest rates may
fluctuate and affect investment returns and the
real value of your investment.
Liquidity risk
The risk that a particular asset cannot be easily
converted into cash at a particular time, leading
to a delay and resulting loss when the asset is
eventually sold.
Derivatives risk
UniSuper and some of its external investment
managers use derivatives to gain exposure to
certain types of investments, or to hedge risks, as
considered appropriate. Importantly, UniSuper
does not use derivatives to leverage the Fund’s
assets. With derivatives, there is a risk that the
value of the derivative will fail to move in line
with the value of the underlying asset, or that the
obligation under the derivative contract held by
another party will not be honoured.
Managing investment risk
While risk is an inevitable part of investing,
it is possible to manage investment risk
and therefore minimise its impact on your
investments. Two strategies for managing such
risks are:
AA diversification – spreading your money
across a number of different investments,
rather than just a few or even a single
investment, and
AA investing according to your timeframe –
choosing investments that are best suited to
the length of time you intend to hold those
investments.
When it comes to deciding how you want your
accumulation component or account to be
invested, we have a wide range of investment
options to choose from. All of these options offer
a diversified selection of investments – some
within specific asset classes, and some across
a range of different asset classes. In addition,
we generally encourage you to take a longterm view when it comes to your super. Your
individual circumstances need to be considered
when deciding how to manage investment risk.
You may decide to seek professional financial
advice to help assess your investment risk
tolerance and approach.
63
64
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
AA Elder Hall, the University of Adelaide
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
65
Accessing
your benefit
Super is a long-term investment. Accordingly, the government
has placed restrictions on when you can access your benefit.
You will only be able to access your benefit if you
have satisfied a condition of release (as outlined
below).
Generally, your super must be preserved in the
superannuation system until you permanently
retire from the workforce on or after reaching
your preservation age (see the table opposite to
find your preservation age). An exception to this
is the ability to take a ‘transition to retirement’
pension (UniSuper’s ‘Flexi Pension’) while
you are still working but after reaching
your preservation age (see below for more
information).
Exactly when you can access your benefit
depends on its ‘preservation status’ under the
government’s preservation rules – ‘preserved’,
‘restricted non-preserved’ or ‘unrestricted
non-preserved’.
Additional restrictions may apply under the
Trust Deed for DBD members. These are
explained below.
Preserved benefits
From 1 July 1999, all member and employer
contributions made into super and all
investment returns must be preserved.
Generally, you cannot access preserved benefits
until you have satisfied a condition of release.
What are conditions of release?
Under the preservation rules, you must meet
a condition of release before your preserved
benefits can be withdrawn from a super fund.
The most common conditions of release include:
AA permanently retiring from the workforce on
or after reaching your preservation age,
AA terminating employment after you reach
age 60,
AA reaching age 65,
AA permanent incapacity,
AA terminating employment with an employer
who contributed to UniSuper on your behalf
and your benefit is less than $200, or
AA death.
Refer to the ATO website for further details of
when you can access your super benefit.
Your preservation age depends on when you
were born.
YOUR DATE OF BIRTH
PRESERVATION
AGE
Before 1 July 1960
55
1 July 1960 – 30 June 1961
56
1 July 1961 – 30 June 1962
57
1 July 1962 – 30 June 1963
58
1 July 1963 – 30 June 1964
59
1 July 1964 or after
60
66
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Further conditions of release
Provided you satisfy the eligibility criteria, you
may also be able to access part or all of your
preserved benefits in the following limited
circumstances:
AA Specified compassionate grounds: you must
apply directly to the Department of Human
Services (DHS).
AA Severe financial hardship grounds: you must
apply to the Trustee and you must be receiving
eligible Commonwealth Government income
support benefits to qualify.
AA Terminal medical condition: you must apply
to the Trustee.
IF YOU HAVE A TERMINAL MEDICAL CONDITION
If you have a terminal medical condition, you
may be eligible to access your super early if you
get certification from two medical specialists
that you have less than 24 months to live.
Important: There could be significant
consequences to accessing your super early
under the Government’s changes.
The certification period for UniSuper’s insured
benefits—including inbuilt terminal medical
condition benefits (DBD members only) and
externally insured terminal illness benefits—has
not changed. Our insured benefits will continue to
require certification from two medical specialists
that you have less than 12 months to live.
If you do access your super early, you may lose
your insurance.
Please note
Before you apply for the early release
of your super due to a terminal
medical condition, we encourage you
to read the Terminal medical condition
benefit fact sheet available from the
Forms and documents section of our
website, call us on 1800 331 685 to
discuss your options, or speak to a
qualified financial adviser.
Restricted non-preserved benefits
Generally, restricted non-preserved benefits can
be accessed in certain circumstances when you
terminate employment with an employer who
had contributed to UniSuper on your behalf.
Restricted non-preserved benefits can also be
accessed if you meet a condition of release, as set
out on the previous page.
Unrestricted non-preserved
benefits
Unrestricted non-preserved benefits can generally
be accessed at any time, subject to the Trust Deed
restrictions, regardless of your age, employment
situation or financial position, and are usually
made up of benefits that you have already become
entitled to, but have voluntarily decided to keep
within the super system (for example, you have
reached age 65 but you are still working).
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Temporary residents
Members with a temporary resident visa are
only able to access their benefits when they
permanently depart Australia, or if they meet
the following conditions of release:
AA permanent incapacity,
AA temporary incapacity, or
AA terminal medical condition.
Benefits are also payable when a member dies.
Further information about accessing your
benefit under the departing Australia
superannuation payment system is in our
Departing Australia superannuation payment
(DASP) fact sheet, available on our website.
DBD members
– additional restrictions
Restrictions are imposed under the Fund’s
governing rules which limit when a DBD
member can access their defined benefit
component. Generally, a DBD member can only
withdraw all or part of their defined benefit
component if that component consists entirely
of unrestricted non-preserved super.
If a DBD member withdraws all or part of their
defined benefit component, they will cease to
be a DBD member. Generally any remaining
defined benefit component will be converted
into an accumulation benefit and transferred
together with their accumulation component to
an Accumulation 1 account. Any future employer
and member contributions will be made into the
Accumulation 1 account.
Different rules apply to requests to withdraw
benefits on the grounds of severe financial
hardship or Department of Human Services
(DHS)-approved compassionate grounds.
Taking your benefit as a TTR
Flexi Pension while you’re working
Under the government’s transition to retirement
(TTR) rules, you may be able to start a TTR
Flexi Pension while you’re still working after
you’ve reached your preservation age, provided
that you satisfy the eligibility requirements.
If you would like more information, refer to
the Your guide to pensions – Flexi Pension PDS
available from our website, or by calling us. You
should read the Your guide to pensions – Flexi
Pension PDS before making a decision to take
your benefit as a TTR Flexi Pension. You can
download it at unisuper.com.au/pds.
Please note that if you use any part of your DBD
component to set up a TTR Flexi Pension while
you’re still employed, you will be transferred
from DBD to Accumulation 2. Your benefit
entitlements will be based on your account
balance. You will no longer have inbuilt benefits
and will instead receive external insurance
cover for Death, TPD and Income Protection.
For more information about how inbuilt benefits
are impacted, please read the What happens to
your inbuilt benefits if you choose Accumulation
2? important information booklet which is
incorporated by reference in this PDS and
available at unisuper.com.au/pds.
If you leave your job
If you leave your job and you are no longer
eligible for DBD or Accumulation 2
membership, provided you are eligible for
Choice of Fund in your new employment,
you can nominate UniSuper as your chosen
fund for your Superannuation Guarantee
contributions. Your new employer can then pay
these contributions into an Accumulation 1
account. For information on your benefits if you
leave your job, please refer to the ‘About your
benefit’ section of this PDS. Read on for more
information about Choice of Fund.
Please read the Your super when you leave your
job booklet for important information about
what happens to your inbuilt benefits when you
cease service or leave your job. You can find this
booklet at unisuper.com.au.
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68
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Transferring your benefit
to another fund
You may be able to transfer part of your
accumulation component/account to another
complying super fund at any time, or your
entire benefit if you cease to be employed by
a UniSuper employer. A UniSuper employer
is an employer that has signed a participation
agreement with the Trustee. To find out if this
applies to your employer, please call us on
1800 331 685.
Choice of fund
AA Under Choice of Fund legislation, certain
AA
Portability transfers
Under the portability transfer rules, you
can transfer all or part of your accumulation
component or account into another complying
super fund. Your employer will continue to make
contributions into UniSuper on your behalf. You
can request a portability transfer once in each
12-month period. If you are not transferring the
entire amount you must leave at least $5,000 in
your UniSuper account.
If you transfer your entire accumulation
component or account to another super fund,
your insurance cover (if applicable) may be
cancelled due to insufficient funds. You should
refer to the insurance section of this PDS for
more information.
You can download a Portability and rollover
form from unisuper.com.au. Note: portability
transfers do not apply to the defined benefit
component for DBD members.
AA
AA
employees can choose the super fund into
which their Superannuation Guarantee
contributions are paid.
Eligibility for Choice of Fund depends on
your conditions of employment. Choice
of Fund is generally not available to
employees whose conditions of employment
are governed by an award or industrial
agreement that specifies into which super
fund employer contributions are to be paid.
This generally includes most employees in
the higher education sector.
If you are a DBD member, you may not be
eligible for Choice of Fund.
If you are an Accumulation 2 member
and eligible for Choice of Fund, and you
nominate another super fund as your
chosen fund, your employer must pay the
Superannuation Guarantee contributions
into your chosen fund and any employer
contributions above the Superannuation
Guarantee minimum must be paid into an
Accumulation 1 account. Please ask your
employer if you are eligible for Choice of
Fund. For more details, refer to the Choice of
Fund for Accumulation 2 members fact sheet
available on our website.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Fees and costs
This section shows the fees and other costs you might be charged through your
UniSuper membership
Competitive fees and
no commissions
UniSuper members benefit from the savings the
Fund achieves as one of the largest super funds
in the country—savings that are passed on to you
through competitive fees.
Fees and other costs
This section shows fees and other costs that you
may be charged. These fees and other costs may
be deducted from your money, from the returns
on your investment or from the assets of the
superannuation entity as a whole.
Other fees, such as activity fees, advice fees for
personal advice and insurance fees, may also be
charged, but these will depend on the nature of
the activity, advice or insurance chosen by you.
Taxes, insurance fees and other costs relating
to insurance are set out in another part of this
document.
You should read all the information about
fees and other costs because it is important to
understand their impact on your investment.
This table shows the fees and other costs for the
Balanced (MySuper) investment option. The
fees and other costs for the other investment
options offered by the entity are set out on the
following page.
Consumer Advisory Warning
Did you know?
Small differences in both investment
performance and fees and costs can
have a substantial impact on your
long-term returns.
For example, total annual fees and
costs of 2% of your fund balance
rather than 1% could reduce your
final return by up to 20% over a 30year period (for example, reduce it
from $100,000 to $80,000).
You should consider whether
features such as superior investment
performance or the provision of
better member services justify higher
fees and costs. Your employer may
be able to negotiate to pay lower
administration fees1. Ask the fund or
your financial adviser.
Find out more
If you would like to find out more,
or see the impact of the fees based
on your own circumstances,
the Australian Securities and
Investments Commission (ASIC)
website (www.moneysmart.gov.au)
has a superannuation fee calculator
to help you check out different fee
options. This calculator can be used
to calculate the effect of fees and
costs on your account balance.
1 This text is required by law to be included in
all PDSs. However, UniSuper’s fees are set
at a competitive level that is consistent with
effective management and are not negotiable.
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Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
DEFINED BENEFIT DIVISION AND ACCUMULATION 2
TYPE OF FEE
AMOUNT
Investment fee
Administration fee
HOW AND WHEN PAID
DBD
Nil
Not applicable
Accumulation 2
Nil
Not applicable
DBD
$221 per annum1. This figure is
generally indexed each 1 July.
This fee is deducted from the defined
benefit pool of assets. No charge is
deducted directly from your account.
Accumulation 2
$96 per annum ($8 per month).
$8 per month is deducted directly from
your Accumulation 2 account.
This figure is generally indexed
each 1 July.
If you have any part of your
Accumulation 2 account invested in
the Balanced (MySuper) investment
option the whole of this amount will be
deducted from this option.
If you do not have an investment in the
Balanced (MySuper) option, the fee
will be deducted proportionally across
the investment options in your account.
Buy-sell spread
Nil.
Not applicable.
Switching fee
The first switch per account
in each financial year is free of
charge. Any subsequent switches
within that financial year will
incur a $15.80 switching fee on
the date the switch becomes
effective.
For Accumulation 2 members with an
investment in the Balanced (MySuper)
option prior to submitting their
request, the fee will be deducted in full
from this option prior to the switch
being completed.
Exit fee
Nil.
Not applicable.
Advice fees
Nil.
Not applicable.
Relating to all
members investing
in the Balanced
(MySuper) investment
option
For DBD members and Accumulation
2 members who do not have
an investment in the Balanced
(MySuper) option the fee is deducted
proportionally from the investment
option(s) you have chosen.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
DEFINED BENEFIT DIVISION AND ACCUMULATION 2
TYPE OF FEE
AMOUNT
HOW AND WHEN PAID
Other fees and costs
2
Indirect cost ratio
(ICR)
DBD3
(for the accumulation
component) Balanced 0.52%*
per annum (estimate based on
ICR for the 2015 financial year).
DBD
The ICR for the accumulation
component accrues daily and is
deducted from the assets of the
investment option(s).
Accumulation 2
Balanced (MySuper) 0.52%* per
annum (estimate based on ICR
for the 2015 financial year).
Accumulation 2
The ICR accrues daily and is deducted
from the assets of the Balanced
(MySuper) and other investment
option(s) (as relevant).
Government regulations require this fee to be stated here. It is, however, notional only, in that it is not deducted from your account
or benefit when paid. It may be indirectly relevant to your final benefit in that it is deducted from the pool of money used to fund
all defined benefits and could therefore be a contributing factor if UniSuper were to be unable to cover defined benefits (see ‘Risks
associated with defined benefits’ on page 30).
2
Further fees and costs such as fees for personal advice and insurance fees may apply. For further information, refer to ‘Additional
Explanation of Fees and Costs’.
3
Please note that the ICR for the defined benefit component is allowed for in the formula used to calculate your defined benefit.
* The ICR shown above is indicative only and is based on the ICR for this investment option for the year ended 30 June 2015. The
actual amount you will be charged in subsequent financial years will depend on the actual fees, costs and taxes incurred by the Trustee
in managing the investment option.
1
71
72
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Example of annual fees and costs for
the Balanced (MySuper) investment option
This table gives an example of how the fees and costs for the Balanced (MySuper) option can affect
your superannuation investment over a 1-year period. You should use this table to compare this
superannuation product with other superannuation products.
To have an investment in MySuper, you must be an Accumulation 2 member with some or all of your
account invested in the Balanced option. This example is not applicable to DBD members as MySuper
is not available to DBD members.
EXAMPLE – BALANCED (MYSUPER)
INVESTMENT OPTION
BALANCE OF $50,000
Investment fees
0.00%
For every $50,000 you have in the MySuper
product, you will be charged $0.00 each year.
PLUS
$96 ($8 per
month)
And, you will be charged $96 in
administration fees regardless of your
balance
0.52%
And, indirect costs of $260 each year1 will be
deducted from your investment
Administration fees
PLUS
Indirect costs for the Balanced
(MySuper) option
EQUALS
Cost of product
If your balance was $50,000, then for that
year you will be charged fees of $356* for the
Balanced (MySuper) investment option.
* Additional fees may also apply. Please refer to the ‘Additional explanation of fees and costs’ section for further details.
1
The ICR shown above is indicative only and is based on the ICR for this investment option for the year ended 30 June 2015. The
actual amount you will be charged in subsequent financial years will depend on the actual fees, costs and taxes incurred by the Trustee
in managing the investment option.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Additional explanation
of fees and costs
Indirect cost ratio—Investments
The ICRs for the year ending 30 June 2015 can
be viewed on page 74 or at unisuper.com.au/
investment-costs. ICRs show the total indirect
costs attributed to each of our investment options
(excluding the fees that are charged directly to
your account) as a percentage of the average net
assets of the relevant investment option.
We do not directly deduct any performancebased fees from member accounts. However,
some external investment managers may be
entitled to receive performance-based fees if
strong investment returns are generated. These
are included in the ICR and are indirectly borne
by members invested in an option.
In order to receive performance-based fees, a
manager must generate returns which exceed an
agreed benchmark (in some cases by a margin or
hurdle), in which case the manager is entitled to
receive a percentage of the excess returns. The
amount that can be recouped by any particular
manager in one year is generally capped and
fees in excess of the cap are carried forward into
future years and can potentially be paid in future
years, subject to generating adequate returns. If
managers fail to generate excess returns in a year,
this typically results in a negative amount being
carried forward for future years to offset any
performance-based fees which may otherwise
become payable in future.
Note that managers generally manage portfolios
comprising assets which relate to multiple
investment options. It is not possible to
accurately predict the amount of performancebased fees that may be payable in respect of
a particular investment option in the next
financial year. This will depend on:
AA the investment returns generated during the
year ahead
AA which managers generate excess returns
within their portfolios
AA whether there were negative amounts (or
positive amounts) being carried forward in
relation to those managers
AA the individual fee arrangements (if any)
which had been negotiated with the relevant
investment managers
AA the size of the portfolios being managed by
those managers; and
AA the proportion of those portfolios which
pertain to the relevant investment option.
The total amount of performance-based
fees incurred by UniSuper across the whole
superannuation fund in the year ended
30 June 2015 was $16,117,746. Of this, the
amount borne by particular investment
options varied between 0% and 0.12% of the
assets invested in the option. For the Balanced
(MySuper) option, 0.06% was included in its
ICR on account of performance-based fees for
that financial year.
Transaction costs such as brokerage, stamp
duty and settlement costs vary depending on
how frequently an investment option invests in
growth assets, which involve the most brokerage
and stamp duty. For options that allocate more
than 50% to growth assets, we estimate that
these costs will range between 0.05% and 0.15%
p.a. For other options, we estimate these costs
range from nil to 0.05% p.a. These transaction
costs are included in the ICR.
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74
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Investment option ICRs for
the year ended 30 June 2015
CASH
0.20%
AUSTRALIAN BOND
0.23%
Operational Risk Financial Requirement
Australian superannuation funds are required
to meet an Operational Risk Financial
Requirement. This is required by the Australian
Prudential Regulation Authority (APRA) and
is intended to ensure that superannuation funds
have access to financial resources to cover
losses, costs and expenses that may be incurred
in the event of an operational risk.
0.52%
The financial resources are held in the
Operational Risk Reserve (ORR). This is funded
out of investment-related charges which are
included in the ICR for each investment option.
This component of the ICR is currently 0.06%
p.a. for each investment option. Note that in
accordance with APRA requirements the ORR
has also been funded with respect to the DBD.
The long-term target is for the ORR to be 0.25%
of Fund assets. If there is a material shortfall,
deductions from Fund assets may be required to
fund the shortfall.
SUSTAINABLE BALANCED
Fees for UniSuper Advice
CAPITAL STABLE
0.33%
CONSERVATIVE BALANCED
0.39%
DIVERSIFIED CREDIT INCOME#
0.40%
BALANCED
0.32%
GROWTH
0.58%
HIGH GROWTH
0.63%
SUSTAINABLE HIGH GROWTH
0.35%
LISTED PROPERTY
0.48%
AUSTRALIAN SHARES
0.64%
INTERNATIONAL SHARES
0.59%
GLOBAL ENVIRONMENTAL
OPPORTUNITIES
UniSuper Advice is a financial planning service
available to UniSuper members and their
spouses through UniSuper Management Pty
Ltd ABN 91 006 961 799 Australian Financial
Services Licence No. 235907 which is licensed
to provide financial advice services.
Members will receive a quote before UniSuper
Advice proceeds with personal advice services.
The cost of the service provided varies
depending on a number of factors including the
complexity of the advice sought. You can learn
more about the services we provide, and the fees
charged by referring to our Financial Services
Guides (FSGs) at unisuper.com.au.
Where agreed with you, some or all of the cost
of advice may be able to be deducted from your
account as an Advice fee to the extent the advice
provided relates to your account in UniSuper or
superannuation-related retirement planning.
0.23%
AUSTRALIAN EQUITY INCOME
0.41%
GLOBAL COMPANIES IN ASIA
0.73%
#
Given this option commenced on 1 September 2014, it has no full-year track record regarding investment expenses. The ICR given above
represents the ICR for the period 1 September 2014 to 30 June 2015. We estimate that the ICR will be in the vicinity of 0.40%. The actual
costs may be higher or lower.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Alterations to fees
Administration fees
Fees are generally increased on 1 July each year
in line with increases in the Consumer Price
Index (CPI) for the preceding 12 months ending
31 December. UniSuper reserves the right to
introduce a new fee or increase any fees. We
will give you 30 days’ written notice (except for
automatic indexation of fees each year) before
the introduction or increase takes effect.
An administration fee is a fee that relates to
UniSuper’s administration or operation and
includes costs incurred by the Trustee of the
entity that relate to the administration or
operation of the entity, and are not otherwise
charged as an investment fee, a buy-sell spread,
a switching fee, an exit fee, an activity fee, an
advice fee or an insurance fee.
Tax
UniSuper’s administration fee is $96 per annum
for Accumulation 2 members (deducted directly
from your account), or $221 per annum for DBD
members (allowed for in the formula used to
calculate your benefit).
Tax may be applicable to your super. For
more information, please refer to the ‘Making
Contributions’ (from page 48) and ‘How your
Super is Taxed’ (from page 77) sections. Where
fees and costs are tax deductible to the Fund,
members will indirectly receive the benefit of
those tax deductions.
GST and Stamp Duty
All fees and costs include GST and stamp duty
where applicable. The amount of GST payable
may be reduced in certain circumstances as a
result of tax credits applicable to the Trustee.
Bank fees
The Trustee may recover any bank fees incurred
on a cost recovery basis.
Defined fees
Advice fees
Advice fees relate directly to costs incurred by
UniSuper’s Trustee because of the provision
of financial product advice to a member by a
Trustee of the entity or another person acting as
an employee of, or under an arrangement with,
the trustee of the entity; and those costs are not
otherwise charged as an administration fee, an
investment fee, a switching fee, an exit fee, an
activity fee or an insurance fee.
You will only be charged an Advice fee if you agree
to receive financial advice from UniSuper Advice.
The fees will be discussed and agreed with you at
this time.
Buy-sell spreads
This section defines the different fees and
costs that are able to be legally charged to your
UniSuper account. Not all changes apply to your
UniSuper account.
A buy-sell spread is a fee to recover transaction
costs incurred by UniSuper’s Trustee in relation
to the sale and purchase of UniSuper assets.
Activity fees
No buy-sell spreads currently apply to your
UniSuper account.
Activity fees relate to costs incurred by
UniSuper’s Trustee if they are directly related to
a Trustee activity:
i. That is engaged in at the request, or with the
consent, of a member; or
ii.That relates to a member and is required by
law;
and those costs are not otherwise charged as an
administration fee, any investment fee, a buy/
sell spread, a switching fee, an exit fee, an advice
fee or an insurance fee.
UniSuper does not currently charge any activity
fees.
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Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Exit fees
Investment fees
An exit fee is a fee to recover the costs of
disposing of all or part of members’ interests in
the superannuation entity.
This fee relates to the investment of UniSuper’s
assets and includes fees in payment for the
exercise of care and expertise in the investment
of those assets (including performance fees); and
costs incurred by the trustee of the entity that:
i. relate to the investment of assets of the entity;
and
ii. are not otherwise charged as an
administration fee, a buy-sell spread, a
switching fee, an exit fee, an activity fee, an
advice fee or an insurance fee.
No exit fees currently apply to your UniSuper
account.
Indirect cost ratio
The indirect cost ratio (ICR), for the Balanced
(MySuper) investment option or another
UniSuper investment option, is the ratio of
the total of the indirect costs for MySuper or
investment option, to the total average net
assets of the superannuation entity attributed to
MySuper or investment option. A dollar-based
fee deducted directly from a member’s account
is not included in the indirect cost ratio.
Insurance premiums
See our Insurance in your super important
information booklet for information on
the premiums, restrictions, exclusions
and limitations associated with your
insurance cover. You can access this at
unisuper.com.au/pds. Applicable insurance
premiums are deducted from your account each
month. A fee for administrating the insurance
agreement is included in the premium cost. This
administration fee is paid to UniSuper.
No separate investment fees currently apply
to your UniSuper account. All costs relating to
investment management are reflected in the ICR.
Switching fees
This fee recovers the costs of switching all or
part of a member’s interest in UniSuper from
one class of beneficial interest in the entity to
another.
UniSuper charges a switching fee of $15.80 for the
second and subsequent switches in a financial year.
The fee is charged on the date the switch becomes
effective.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
77
How super is taxed
In addition to the fees and other costs that may apply, it’s just as important to understand
how tax can affect your super.
Tax on contributions
The following tables provide an overview of tax on contributions and assume that you have provided your tax
file number (TFN).
Main types of
contributions
How much tax is paid
How the
tax is paid
Concessional (beforetax) contributions are
contributions made from
your before-tax income.
15% on contributions up to the concessional
(before-tax) contributions cap.*
The tax is deducted
from your super
account.
Contributions which exceed the concessional
Concessional contributions (before-tax) contributions cap are included
in your assessable income and taxed at your
include:
marginal tax rate. An excess concessional
AA Superannuation
contribution charge will also apply.
Guarantee employer
contributions
You will also be entitled to a 15% tax offset on
AA Salary sacrifice
the excess concessional contribution (because
contributions made by
you have already paid tax on this money). The
your employer from
offset is not refundable.
your before-tax salary
AA Personal contributions You can choose to release up to 85% of your
where you provide us
excess concessional contributions from your
with a valid form that
super accumulation account. Amounts cannot
states your intention to be released from your defined benefit interest.
claim a tax deduction,
Excess concessional contributions released
and
from your super account will not be counted
AA Notional taxed
towards your non-concessional contributions
contributions in
respect to your defined cap.
benefit interest.
The Australian
Taxation Office
(ATO) will provide
you with an
assessment. The tax
is paid ‘out of your
pocket’ to the ATO.
Any excess concessional contributions not
released will be counted towards your nonconcessional (after-tax) contributions cap.
* The tax concession is reduced for concessional contributions made to super by or on behalf of individuals with income and relevant
concessional contributions over $300,000 for an income year. An additional 15% tax called the ‘Division 293 tax’ on certain superannuation
contributions will apply to concessional contributions made by affected members. Refer to the ‘Additional tax for high income earners’
section below/opposite for more information.
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Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Main types of
contributions
How much tax is paid
How the
tax is paid
Non-concessional (aftertax) contributions include
contributions made from your
take-home pay.
There is no tax payable on nonconcessional (after-tax) contributions
made up to your non-concessional
contributions cap.
Not applicable.
Non-concessional
contributions include:
AA Personal contributions that
are not claimed as a tax
deduction
AA Contributions your spouse
makes on your behalf are
treated in the same way as
after-tax contributions,
provided your spouse does
not claim the contribution
as a tax-deductible
employer contribution and
provided that you are not
living separately from your
spouse
AA Concessional contributions
that exceed your
concessional contributions
cap, and where you do
not choose to release the
excess from your super
account.
If you exceed your non-concessional (aftertax) contributions cap, you may choose to
release the super contributions in excess
of your non-concessional contributions
cap plus 85% of any associated earnings.
Amounts cannot be released from your
defined benefit interest.
The ATO will
provide you with an
assessment. The tax is
paid on the associated
earnings ‘out of your
pocket’ to the ATO.
The associated earnings released are taxed
at your marginal tax rate. You will also be
entitled to a 15% non-refundable tax offset
of the associated earnings included in your
assessable income.
If you choose not to release your excess
non-concessional contributions they will
remain in your super account and the
excess will be taxed at 49%.
Additional tax for high income earners
An additional tax of 15% is imposed on
concessional contributions into your super
(referred to as low-tax contributions) made by, or
on behalf of, high income earners who earn more
than $300,000 for an income year. This additional
tax is referred to as the Division 293 tax.
Income for Division 293 tax purposes broadly
includes the sum of your taxable income,
reportable fringe benefits, total net investment
income / losses, and low-tax contributions.
Low-tax contributions are broadly your
superannuation contributions which have been
concessionally taxed. Low-tax contributions do
not include non-concessional contributions or
excess concessional contributions.
The ATO will
provide you with an
assessment. The
excess contributions
tax is paid out of your
super account.
If the Division 293 tax applies to you it will be
applied to the lower of:
AA your low-tax contributions, and
AA the sum of your income for Division 293
purposes and low-tax contributions above
the $300,000 threshold.
If you need to pay the Division 293 tax, the ATO
will issue you with a notice of assessment stating
the amount of tax payable for the financial year
and provide you with a release authority to
enable the amount to be paid from your super
account. See the ATO website, www.ato.gov.au,
for more information.
Former temporary residents, who receive a
Departing Australia Superannuation Payment
may apply to the Commissioner for a refund of
any Division 293 tax paid.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Tax on investment earnings
Investment earnings are generally taxed in
Australia at up to 15%. In some cases this rate
may be lower as a result of any tax deductions
and credits for which the Fund may qualify.
This tax is deducted from the Fund’s investment
returns before they are allocated to your
accumulation component or account.
Tax on transfers
No tax is payable if you transfer your benefit
from one super fund to another, unless the
amount contains an untaxed element, for
example from certain public sector super funds.
An untaxed element rolled into UniSuper
attracts the 15% contributions tax.
Tax on withdrawals
You may have to pay tax when you withdraw your
benefit from the Fund. UniSuper will normally
deduct any tax before paying your benefit. The
amount of tax you will pay will depend on your
circumstances, such as your age and how your
benefit is paid to you. If you are under 60 and
have not provided a TFN, tax at the rate of
49% will generally be payable on the taxable
component of a benefit payment made to you.
Age 60 or over
If you are 60 or over, the taxed element of a
benefit payment you receive will generally be taxfree, regardless of whether the benefit is paid as a
lump sum or as a pension. Tax, however, may be
payable in relation to any untaxed element.
Before age 60
If you take your benefit before 60, tax may apply
to your benefit payment. Your benefit generally
comprises a tax-free and taxable component.
When you make a lump sum withdrawal of your
benefit, the amount you receive will generally
be drawn down from your tax-free and taxable
components in proportion to the amount of each
component in your entire benefit.
If you are under 60 and have reached your
preservation age (from age 55 to 59 depending on
your date of birth), you will pay tax on the taxable
component of your lump sum benefit that exceeds
the low rate threshold. The rate of tax which
applies on amounts in excess of this threshold is
up to 17%. The low rate threshold for the 2015/16
financial year is $195,000. The low rate threshold
is a lifetime limit.
If you are under your preservation age when you
take your lump sum benefit, tax will generally be
levied on the entire taxable component at a rate
of 22%. Different tax rules apply if you take your
benefit as a pension.
Death benefits
Death benefits are paid as a lump sum and are
received tax-free if paid to a beneficiary who is
your dependant for tax purposes.
However, where the death benefit is paid as
a lump sum to a beneficiary who is not your
dependant for tax purposes, tax is generally
payable at 17% in relation to the taxed element
and at 32% in relation to the untaxed element.
Where the death benefit is paid to the trustee or
legal personal representative of a deceased estate,
tax is determined according to who has benefited,
or may be expected to benefit from the estate.
Temporary residents
Benefits claimed by temporary residents will
generally be subject to 38% tax on the taxable
component. Any untaxed component may be
subject to a higher amount of tax. For more
detailed information refer to our Departing
Australia superannuation payment fact sheet,
available from unisuper.com.au or by calling us.
Taxation advice
Before you receive any benefits, UniSuper
recommends that you obtain taxation advice
from a taxation specialist.
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Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
AA Benjamin Hay and Julie Dally, the University of Notre Dame
Providing your tax file number
The Trustee is authorised and required to ask
you for your TFN by tax law and in accordance
with the Superannuation Industry (Supervision)
Act 1993.
You should provide your TFN as part of
acquiring a UniSuper product. Your TFN will
only be used for lawful purposes, which include:
AA finding and combining your superannuation
benefits with your consent as required,
AA verifying you are the person to whom
the super entitlements belong prior to
transferring your benefit to another super
fund, unless you do not provide consent for
your TFN to be used for this purpose,
AA providing information to the ATO, for
example when you receive a benefit, to
validate initial registration information
associated with first employer contributions
using SuperTICK or if you have lost or
unclaimed benefits, and
AA providing information to the trustee of
another superannuation fund when your
benefits are being transferred, unless you
advise us in writing that you don’t want your
TFN to be passed on.
While it isn’t an offence not to quote your
TFN, providing your TFN has the following
advantages (which may not otherwise apply):
AA we will generally be able to accept all types
of contributions to your accounts (subject to
legislated caps),
AA the tax on contributions to your super
accounts will not increase,
AA other than the tax that may ordinarily apply,
no additional tax will be deducted when you
start drawing down your super benefits, and
AA it will make it much easier to identify you
as the person to whom the super benefits
belong and trace different superannuation
accounts in your name so that you receive all
your super benefits when you retire.
The lawful purposes for which your TFN can be
used and the consequences of not providing us
with your TFN may change in future as a result
of legislative change.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Other
information
In this section we provide general information about your UniSuper membership,
including nominating beneficiaries, what happens to your super if we can’t find you and
information about how we protect your privacy.
Nominating beneficiaries
To provide greater certainty about who will
receive your benefit in the event of your death,
UniSuper provides two options for nominating
beneficiaries:
AA preferred beneficiary nominations, and
AA binding death benefit nominations.
The most appropriate nomination will depend
on your personal circumstances. As there may
be taxation and other implications to consider in
nominating your beneficiaries, we recommend
that you seek professional advice before making
your nomination. Regardless of which type of
nomination you choose, the Trust Deed and
superannuation law specify who your death
benefit can be paid to.
A death benefit can be paid to one or more
of your dependants or your legal personal
representative.
Your dependants include:
AA your spouse (including legal or de facto
spouse of same sex or opposite sex),
AA your children or the children of your spouse
(regardless of age),
AA any person who was in an interdependency
relationship with you at the date of your
death, and
AA any other persons (irrespective of age) who
in the opinion of the Trustee, are or were in
any way financially dependent on you at the
date of your death.
Before any benefit can be paid to a person with
whom you had an interdependency relationship,
the Trustee requires a statutory declaration
that sets out the nature of your interdependency
relationship. You can make this statutory
declaration at the same time that you make your
nomination, or it can be made by the person with
whom you had an interdependency relationship
after your death.
Preferred beneficiary nominations
When you complete your Defined Benefit
Division/ Accumulation 2 application form, you can
provide the Trustee with a preferred beneficiary
nomination, which allows you to nominate who you
would prefer your benefit be paid to in the event of
your death. You can nominate one or more of your
dependants and/or legal personal representative.
This nomination is not binding on the Trustee.
In the event of your death, the Trustee must pay
your benefit to your dependants and/or legal
personal representative, in proportions determined
by the Trustee. However, the Trustee will take your
nomination into account when determining who
will receive your benefit. A preferred beneficiary
nomination will remain in place until it is amended
or replaced, or until you make a valid binding death
benefit nomination.
To make your preferred beneficiary nomination,
complete the relevant section of your Defined
Benefit Division/Accumulation 2 application
form. You can update your preferred beneficiary
nomination on a Change of details form or through
MemberOnline at any time.
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Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Binding death benefit nominations
A binding death benefit nomination is a written
direction to the Trustee that sets out the
dependant(s) and/or legal personal representative
that you want to receive your benefit in the event
of your death and the proportions payable to each
beneficiary. If you have more than one UniSuper
account—for example, if you have a super account
and a Flexi Pension—you can make a separate
binding nomination for each account.
If your nomination is valid and in effect at the date
of your death, the Trustee must pay your benefit in
accordance with the nomination. You can make a
binding death benefit nomination at any time.
UniSuper offers two types of binding death benefit
nominations—lapsing and non-lapsing.
A valid binding death benefit nomination (lapsing)
remains in effect for three years from the date it
was first signed, last amended or confirmed. A valid
binding death nomination (non-lapsing) will not
expire unless you amend or revoke it.
A binding death benefit nomination will not be
valid until it has been received and accepted by
the Trustee. You can amend your binding death
benefit nomination at any time by completing
a new Binding death benefit nomination form
and providing it to the Trustee. Note that your
nomination will default to lapsing if you don’t
make a choice on the Binding death benefit
nomination form.
What is a valid nomination?
There are certain conditions that must be met for
your binding death benefit nomination to be valid:
AA the nomination must be in favour of one or more
of your dependants and/or your legal personal
representative,
AA each dependant nominated must be your
dependant at the date of your death,
AA the allocation of your benefit among the
beneficiaries nominated must be clearly set out,
AA 100% of your benefit must be allocated
(the entire nomination will be invalid if the
allocation does not equal exactly 100%),
AA the nomination must be signed and dated by you
in the presence of two witnesses both of whom
are over the age of 18 years and not nominated
to receive the benefit, and the nomination must
contain a declaration signed and dated by each
witness stating that the notice was signed and
dated by you in their presence.
If your binding death benefit nomination fails
to meet any one of the above conditions, or it is
unclear, then it will be invalid. If you have made
a lapsing binding death benefit nomination and
wish to continue to bind the Trustee to pay
your benefit to your nominated dependants
and/or legal personal representative, then
you must reconfirm the nomination before it
expires. You can do this by giving the Trustee a
written notice, signed and dated by you, to that
effect. It is your responsibility to ensure that
the nomination is confirmed before it expires.
Alternatively, you may wish to make a nonlapsing binding death benefit nomination.
Your binding death benefit nomination (lapsing)
can be amended or revoked at any time before
it expires in three years by advising the
Trustee. To revoke your binding death benefit
nomination you must give the Trustee a written
notice, which must meet certain conditions. To
amend your binding death benefit nomination,
you must complete a new Binding death benefit
nomination form and provide it to the Trustee.
A valid binding death benefit nomination will
override any preferred beneficiary nomination
that you may have previously made. If a valid
binding death benefit nomination expires or
becomes invalid for any reason, it will no longer
bind the Trustee. However, the Trustee will take
it into account when deciding how to pay your
death benefit.
You can find out more from the Binding death
benefit nomination fact sheet, which is available
on our website.
If you do not make any nomination
If you have not made a preferred beneficiary
nomination or a binding death benefit
nomination, then in the event of your death
the Trustee will pay your benefit to one or
more of your dependants and/or legal personal
representatives in proportions determined by
the Trustee.
If you do not have any dependants or a legal
personal representative at the date of your
death, then the Trustee will pay your benefit to
any other person it determines as required by
superannuation law.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Keep your nomination up to date
Regardless of the type of nomination you
choose, it is important that you keep your
nomination up to date. This is especially
important if your circumstances change—for
example, if you get married, change partner,
have a child, or if someone you have nominated
as a beneficiary dies or ceases to be a dependant.
Anti-detriment payments
UniSuper will pay an additional amount
(referred to as an anti-detriment payment)
in addition to a lump sum death benefit, if the
death benefit is paid to certain beneficiaries
of the deceased member. The anti-detriment
payment represents a reimbursement of the
contributions tax that the Fund paid on the
deceased member’s taxable contributions.
The payment will only be made where a lump
sum death benefit is paid to the spouse, former
spouse or child (including an adult child) of the
deceased member. Anti-detriment payments
will not be made on any defined benefit
component that makes up the death benefit. The
payment may also be made if a lump sum death
benefit is paid to the trustee of the deceased
member’s estate and the proceeds of the estate
are expected to be distributed to the deceased
member’s spouse, former spouse or child
(including adult child).
Transfer to AUSfund
– UniSuper’s eligible rollover fund
UniSuper has nominated an eligible rollover
fund to receive members’ benefits in certain
circumstances. Generally members with
account balances of less than $1500 that have
not received a contribution in the last four
months will be identified and notified of the
UniSuper’s intention to close account and
transfer it to AUSfund. Impacted members will
have the option to remain in the fund, rollover
their balance to another fund or withdraw
account balance if they satisfy a condition of
release.
You can contact AUSfund at:
AUSfund
PO Box 543
Carlton South VIC 3053
email: admin@ausfund.net.au
website: www.unclaimedsuper.com.au
phone: 1300 361 798
AUSfund may have a different fee structure
and investment and crediting rate policy from
UniSuper and it does not offer insurance cover.
AUSfund will invest your benefit in a single
diversified investment strategy with a view to
achieving competitive returns at a moderate
level of risk. Member investment choice is not
available in AUSfund. You should evaluate
whether AUSfund is a suitable long-term
investment for your super. If your benefit is
transferred to AUSfund, then you will no longer
be a UniSuper member and any inbuilt benefits
and external insurance cover you may have had
through your UniSuper membership will cease.
You will need to contact AUSfund directly
regarding your benefit. You should refer to the
AUSfund product disclosure statement for
information on circumstances in which fees
may apply.
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Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
When we can’t find you
Lost members
Generally, you become a lost member in the
following circumstances:
AA if mail is sent to your last known address at
least once and is returned to us as unclaimed
or if we have never had an address for you, or
AA you have been a member for more than
two years and we have not received any
contributions or rollovers within the last five
years.
In these circumstances we may be required
to register your details with the ATO Lost
Members’ Register. For more details please visit
the ATO website at www.ato.gov.au.
Unclaimed money
If amounts payable to you become ‘unclaimed
money’ (as defined in superannuation
legislation) your account will be transferred to
the ATO where it is held on your behalf until you
claim it.
Your account will be categorised as ‘unclaimed
money’ if:
1. a) You have reached age 65, and
b) UniSuper has not received any
contributions or rollovers for at least two
years, and
c) After a period of five years since UniSuper
last contacted you, UniSuper has been unable
to contact you again after making reasonable
efforts, or
2. You are a former temporary resident, at least
six months have passed since you departed
Australia or your visa has expired or was
cancelled and UniSuper has received notice
from the ATO requiring us to transfer your
account balance, or
3. You meet the definition of lost member, your
account does not include a defined benefit
component and:
AA your account balance is less than $2,000, or
AA UniSuper has not received any contributions
or rollovers for five years, we have been
unable to contact you and don’t believe that
we will be able to pay your superannuation
account in the future.
If your account is transferred to the ATO, you
will need to contact the ATO directly to claim
your benefit. To check whether you have any
unclaimed or lost super, refer to the ATO’s
website at www.ato.gov.au.
If you are a DBD member, then your
accumulation component will not be transferred
to the ATO in these circumstances.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Family Law and super
How we protect your privacy
Super entitlements form part of the property of a
marriage or de facto (same-sex or opposite sex)
relationship under the Family Law legislation
and, in the event of marriage or relationship
breakdown, can be split between the parties by
agreement or court order.
UniSuper and USM recognises the importance
of protecting your personal information and
we’re committed to complying with our privacy
law obligations.
For more detailed information, refer to the
Super and Family Law fact sheet, available from
our website or by calling us.
Merging multiple accounts
Superannuation legislation requires us to carry
out a procedure at least once per financial year, to
identify where a member of our fund has multiple
super accounts held with us. It also requires us to
merge multiple super accounts where we believe
it is in your best interests to do so.
If we identify you as having more than one super
account with us, we will merge the accounts so
that you have only one account balance in respect
of those accounts. In determining your best
interests, we will consider the total amount of
fees and charges payable by you in respect of the
multiple accounts, including any fees and charges
payable by you for insurance.
If we identify that you have multiple super
accounts with us and merge them, we will contact
you and provide further information.
We collect your personal information to
administer your account, improve our products
and services, verify your identity and to provide
you with, and promote, UniSuper membership
benefits, services and products. You consent to
our collecting sensitive information about you,
where collecting that information is reasonably
necessary for us to perform one or more of
our functions or activities. We usually collect
personal and sensitive information directly from
you, however, it may also be collected from third
parties, such as your employer.
We may also collect this information from you
because we are required, authorised by, or under
an Australian law or a court/tribunal order, to
collect that information.
If you do not provide this information, we may
not be able to administer your account, or
provide you with a product or service.
We may disclose your information to any service
provider we engage (for example mail-houses,
auditors, insurers, actuaries, lawyers) to carry
out or assist us to provide your membership
benefits, services and products. This includes
overseas entities. Where information is
transferred overseas, we will seek to ensure
the recipient of the data has security systems to
prevent misuse, loss or unauthorised disclosure
in line with Australian laws and standards.
Our Privacy Policy contains information about
how you may access any personal information
held by us, how to correct your information and
how to make a complaint about a breach of the
Privacy Act. Our Privacy Policy is available from
our website at unisuper.com.au or by calling us
on 1800 331 685.
85
86
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
General information
Complaints handling
We hope that you don’t have any complaints
about your super, but if you do please contact us.
We will deal with your complaint and respond as
quickly as possible. To make a complaint, call us
on 1800 331 685 or write to:
Member Care Manager
UniSuper
Level 35, 385 Bourke Street
Melbourne VIC 3000
Email: enquiry@unisuper.com.au
If you are not satisfied with our handling of
your complaint or the decision we have made in
relation to your complaint, then you may contact
the Superannuation Complaints Tribunal
(SCT), an independent body set up by the
government to assist in the resolution of certain
complaints in relation to super.
Before the SCT can accept a complaint, the
complaint must go through the Trustee’s
internal dispute resolution process. If the SCT
accepts your complaint it will try to resolve
the matter through conciliation. If this is
unsuccessful it will make a determination,
which is binding on the Trustee.
If your complaint relates to a disablement claim
or death benefit, then time limits apply in which
to make a complaint. You can contact the SCT
on 1300 884 114 or write to:
Superannuation Complaints Tribunal
Locked Bag 3060
Melbourne VIC 3001
Website: www.sct.gov.au
The SCT cannot consider complaints relating to
the general management of the Fund.
Confirming transactions
and changes
The Trustee is required to confirm certain
transactions and changes that occur during your
membership, including investment switches,
insurance elections, lump sum withdrawals,
lump sum contributions, rollovers and changes
to beneficiary nominations.
To obtain confirmation of a transaction or
change, please call us on 1800 331 685, quoting
your member number. You can also email us at
enquiry@unisuper.com.au or write to us at:
UniSuper
Level 35, 385 Bourke Street
Melbourne VIC 3000.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Glossary and important definitions
Glossary and
important definitions
ACCUMULATION 1 ACCOUNT
ADJUSTED SERVICE FRACTION (GF)
An Accumulation 1 account refers to another
‘accumulation style’ account within UniSuper.
Accumulation 1 accounts are typically made up
of your employer super guarantee contributions,
any voluntary member contributions you make,
investment returns (which can be positive or
negative), money you roll over from other super
funds, and any other contributions such as
spouse contributions.
GF means the greater of your service fraction at
the date of your death, and your average service
fraction at the date of your death.
Fees, costs, insurance premiums (if you have
cover) and taxes are deducted from these
accounts.
means in respect of:
AA a DBD member, three units of:
–– (i) death only cover;
–– (ii) TPD only cover; or
–– (iii) death and TPD cover, and
AA an Accumulation 2 member, $1.2 million for:
–– (i) death only cover;
–– (ii) TPD only cover; or
–– (iii) death and TPD cover.
ACCUMULATION COMPONENT
The accumulation component of your DBD
membership works differently from the defined
benefit component. The 3% additional employer
contributions (if applicable), any voluntary
member contributions, and any rollovers you
make or government co-contributions you
receive are allocated to the accumulation
component. If you have insurance cover any
insurance proceeds that may be payable will
also be allocated to this component.
Fees, costs and taxes are also deducted from
your accumulation component (where these
apply), as are any premiums for death and
disablement cover. You can decide how this
component is invested by choosing from
UniSuper’s range of investment options.
Therefore, the value of your final benefit from
the accumulation component is determined
not by a formula (as in the case of your defined
benefit component), but instead by the
performance of the investment options you
choose (which could be positive or negative).
This means the value of your accumulation
component can rise or fall depending on how
investment markets have performed over
the period your accumulation component is
invested.
ADJUSTED TAXABLE INCOME
An income test measure used by the Australian
Taxation Office in determining your liability to
surcharge tax.
AUTOMATIC ACCEPTANCE LIMIT
AVERAGE CONTRIBUTION FACTOR (ACF)
This is the time-weighted average of your
contribution factors. If you always make the
standard 7% member contributions, your ACF
is 100%.
Reducing your standard member contributions
will generally decrease your ACF. See
‘Contribution factors’ to learn how this operates.
AVERAGE SERVICE FRACTION (ASF)
This refers to how much of your DBD or
Accumulation 2 membership has been spent in
full-time employment. It is calculated by averaging
all of your Service Fractions over your period of
Benefit Service with a UniSuper participating
employer. For example, if you always worked fulltime with your UniSuper employer(s), your ASF
is 100%. However, any breaks in employment will
reduce your ASF. Typical breaks in employment
include the time between ceasing one job and
starting another, periods of leave without pay,
periods of part-time work and half contributions.
Breaks in employment are calculated in days and
include weekends.
87
88
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Glossary and important definitions
BENEFIT SALARY
The benefit salary is generally the five-year
benefit salary. The five-year benefit salary is
the average of your annual equivalent full-time
salary (not indexed) as a contributing member
over your last five years of employment with a
UniSuper employer(s), before your benefit is
calculated.
If you have worked for less than five years, it is
generally averaged over the time you have been
employed as a contributing member.
BENEFIT SERVICE
Your period of service covers the years and days
of your DBD membership as a contributing
member. In the event of your death before age
60, your benefit service will also include the
period from the date of your death to what would
have been your 60th birthday. In the event that
you suffer disablement your benefit service
covers the period (years and days) from the date
of your disablement up to age 65.
CEASE CONTRIBUTING SERVICE
Cease contributing service means ceasing
employment as a contributing member with
a UniSuper participating employer and
includes where your employment conditions
have changed and you are no longer eligible
to be a contributing member of the DBD or
Accumulation 2.
CHILD/CHILDREN
A child in relation to a UniSuper member or the
member’s spouse includes, regardless of age, a
child, adopted child, a ward or child within the
meaning of the Family Law legislation of you or
your spouse.
CHOICE OF FUND
Under the Choice of Fund legislation, you may
be eligible to choose the super fund into which
your Superannuation Guarantee contributions
are paid. Eligibility for Choice of Fund depends
on your conditions of employment. Choice of
Fund isn't generally available to you if your
conditions of employment are governed by an
award or industrial agreement. DBD members
aren't eligible for Choice of Fund.
CONTRIBUTION FACTORS
Contribution factors are applied on a time
weighted basis in the benefit calculation –
see the definition of average contribution
factor. If you reduce your standard member
contributions, the final benefit you receive will
generally also reduce. This reduction to your
defined benefit entitlement will be calculated
by adjustments to your average contribution
factor. See page 50 for more information on
contribution flexibility and the impact of
reducing your standard member contributions.
If you receive 17% employer
contributions ...
Standard after-tax
member contribution
Contribution
factor
0%
74.5%
1%
80.2%
2%
86.0%
3%
91.7%
4%
97.4%
4.45%
100%
7%
100%
If you receive 14% employer
contributions ...
Standard after-tax
member contribution
Contribution
factor
2.55%
74.5%
3.55%
80.2%
4.55%
86.0%
5.55%
91.7%
6.55%
97.4%
7%
100%
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Glossary and important definitions
CONCESSIONAL CONTRIBUTIONS
EMPLOYER CONTRIBUTIONS
Concessional contributions are also known as
before-tax contributions, and include:
AA contributions made from before-tax money
(i.e. before-tax contributions). They include
employer contributions to an accumulation
account (including any salary sacrifice
contributions)
AA personal member contributions made by you
which you validly claim as a tax deduction
AA the taxable component of all your directed
termination payments in excess of $1 million
AA notional taxed contributions to a defined
benefit component
Concessional contributions incur the 15%
contributions tax. Additional taxes may apply
if you exceed the concessional contributions
cap, if you don’t provide your Tax File Number
or if you fall into the category of a high income
earner with income (income in this context
includes income for surcharge purposes plus
concessional contributions) that exceeds
$300,000 in a year.
Generally, contributions equal to 17% of your
salary are made by your employer. Some
employers contribute 14%.
DEFault cover
Injury (external cover)
For information about default cover, refer to
the Insurance in your super booklet available at
unisuper.com.au/pds.
Refer to the ‘Definitions’ section of the
Insurance in your super booklet, available at
unisuper.com.au/pds.
DEFINED BENEFIT COMPONENT
INTERDEPENDENCY RELATIONSHIP
The part of your Defined Benefit Division
benefit that’s calculated in accordance with a
formula that generally takes into account your
5-year benefit salary, benefit service, lump
sum factor, average service fraction (ASF) and
average contribution factor (ACF).
An interdependency relationship may exist
between two people (whether or not related by
family) if they live together in a close personal
relationship, and one or each of them provides
the other with financial support, and one or
each of them provides the other with domestic
support and personal care.
DISABLEMENT (inbuilt)
A state of health which in the opinion of the
Trustee renders a member permanently
incapable of performing duties or engaging
in employment for which they are reasonably
qualified by training and experience where:
AA the member has been absent from
employment through injury or illness for
three months within a period of twelve
consecutive months immediately before
ceasing service, and
AA the Trustee is satisfied that the state of
health is not due to or induced by any wilful
action on the part of the member to obtain a
benefit.
In the DBD, 14% of this finances your defined
benefit component, and the 3% additional
employer contribution (if applicable) is allocated
to your accumulation component.
As an Accumulation 2 member, all contributions
are allocated to your accumulation account.
GOVERNMENT CO-CONTRIBUTION
Also known as a co-contribution, this is an
additional payment that may be made by the
government to your super fund if you’re a
low-income earner when you make personal
contributions to super.
Illness (external cover)
Refer to the ‘Definitions’ section of the
Insurance in your super booklet, available at
unisuper.com.au/pds.
If two people have a close personal relationship
but don’t live together or provide this support
or care because either or both of them suffer
from a physical, intellectual or psychiatric
disability, they may still be deemed to have an
interdependency relationship.
89
90
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Glossary and important definitions
INCOME PROTECTION DEFINITIONS OF
DISABILITY (EXTERNAL COVER)
Partially Disabled/Partial Disability/
Partial Disablement
Refer to the ‘Definitions’ section of the
Insurance in your super booklet, available at
unisuper.com.au/pds.
LUMP SUM FACTOR
Your lump sum factor is determined by your age,
as shown in the following table.
Age when you
retire or leave
Lump sum factor
(%)
40 or under
18.0
41
18.2
Disablement
Refer to the ‘Definitions’ section of the
Insurance in your super booklet, available at
unisuper.com.au/pds.
42
18.4
43
18.6
44
18.8
45
19.0
LEGAL PERSONAL REPRESENTATIVE
46
19.2
47
19.4
48
19.6
49
19.8
50
20.0
51
20.2
52
20.4
53
20.6
54
20.8
55
21.0
56
21.2
57
21.4
58
21.6
59
21.8
60
22.0
61
22.2
62
22.4
63
22.6
64
22.8
65 and over
23.0
Totally Disabled/Total Disability/ Total
Your legal personal representative is the
executor of your will, or the administrator of
your estate if you die without a will.
If your benefit is paid to your legal personal
representative, your death benefit will form
part of your estate and will be distributed in
accordance with your will (if you have one), or
in accordance with the laws that govern people
who die without a will.
Please note that an interpolated factor based on
age in years and days is to be used.
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Glossary and important definitions
NON-CONCESSIONAL CONTRIBUTIONS
SPOUSE CONTRIBUTIONS
These are also known as voluntary or after-tax
contributions, and are generally contributions
made into your super from personal after-tax
money. They include:
AA personal contributions made from your
take-home pay
AA voluntary personal contributions you don’t
claim an income tax deduction for
AA most spouse contributions
AA certain amounts transferred from foreign
super funds
AA excess concessional contributions where
you choose not to release the excess amount
from your super account.
Spouse contributions are non-concessional
(after tax) contributions made by a person on
behalf of their eligible spouse.
Some personal contributions aren’t treated
as non-concessional contributions, including
certain contributions arising from settlement
of legal claims or orders for personal injuries, or
made from proceeds of certain capital gains tax
events.
PRE-EXISTING CONDITION (PEC)
(external cover)
Refer to the ‘Definitions’ section of the
Insurance in your super booklet, available at
unisuper.com.au/pds.
POTENTIAL SERVICE
The number of years from your date of death
until you would have reached age 60.
SERVICE FRACTION
Refers to how much of your DBD has been spent
in full-time employment.
SPOUSE
AA a person to whom you are legally married
AA a person, whether of the same sex or
AA
opposite sex, with whom you are in a
relationship that is registered under a
prescribed Australian State or Territory law
as a prescribed kind of relationship, and
a person, whether of the same sex or
opposite sex, with whom you are not legally
married but who lives with you on a genuine
domestic basis as a couple within the
meaning in superannuation law.
You may be able to claim an 18% tax offset on
some of the contributions if you’re eligible.
STANDARD MEMBER CONTRIBUTIONS
Members of the DBD or Accumulation 2 are
required to make 7% standard (after-tax)
member contributions. Members can elect to
reduce this level under contribution flexibility
arrangements, however this can have important
implications for their final benefit (see page 49
for more information).
TEMPORARY INCAPACITY (INBUILT BENEFITS)
A state of health which, in the opinion of the
Trustee, renders a member unable to perform
their own duties or any other duties for which
they are reasonably qualified by training and
experience and available at the member’s
employer where:
AA the member has been absent from
employment through injury or illness for
three months within a period of twelve
consecutive months immediately before
making a claim for the benefit, and
AA the Trustee is satisfied that the state of
health is not due to or induced by any wilful
action on the part of the member to obtain a
benefit.
TERMINAL ILLNESS OR TERMINALLY ILL
(EXTERNAL COVER)
Refer to the ‘Definitions’ section of the
Insurance in your super booklet, available at
unisuper.com.au/pds.
91
92
Defined Benefit Division and Accumulation 2 Product Disclosure Statement
Glossary and important definitions
TERMINAL MEDICAL CONDITION
(INBUILT BENEFITS)
A condition in relation to the member where
the Trustee is satisfied that the following
circumstances exist:
AA two registered medical practitioners have
certified separately that the person suffers
from an illness, or has incurred an injury,
where it is likely to result in the death of that
person with a period that ends not more than
12 months after the date of the certification,
AA at least one of the registered medical
practitioners is a specialist practising in the
area related to the illness or injury suffered
by the person, and
AA for each of the certificates, the 12-month
period has not ended.
TOTAL AND PERMANENT DISABLEMENT or
totally and permanently disabled (TPD)
(External cover)
Refer to the ‘Definitions’ section of the
Insurance in your super booklet, available at
unisuper.com.au/pds.
WORK TEST
A condition that members aged 65 or over but
under 75 must satisfy in order for us to accept
non-mandated contributions.
Under the work test, we can only accept nonmandated contributions provided you have
worked for at least 40 hours in a period of not
more than 30 consecutive days in the financial
year the contribution is made.
The work test must be met once in each financial
year before any non-mandated member
contributions can be accepted. It’s up to you to
demonstrate to us that you have met the work test
each financial year.
VOLUNTARY MEMBER CONTRIBUTIONS
Voluntary member contributions are those
contributions made over and above your
standard member contribution level. For DBD
members, it’s important to note that voluntary
member contributions are allocated to the
accumulation component of your benefit.
Defined Benefit Division/
Accumulation 2 application form
Before completing this form
Please read the attached product disclosure statement (PDS) to
ensure that you understand the benefits and risks associated with
membership as well as your options as a UniSuper member.
SECTION 1 — Member details
Please use BLACK or BLUE BALL POINT PEN and
print in CAPITAL LETTERS. Cross where required
All fields in Section 1 are mandatory. Please ensure you
complete all fields.
Joining UniSuper or transferring membership
The terms of your employment mean you are now a Defined
Benefit Division (DBD) member. Please complete this form
and return it to your Superannuation Officer or the person
who is responsible for superannuation at your workplace.
You generally have 24 months from the date you first join the
DBD to decide whether you would like to remain in the DBD.
This is a once-only, irrevocable election, therefore once you have
made your decision you cannot change your mind. Your decision
will continue to apply throughout the life of your membership in
UniSuper (see page 26 of the PDS for more information). After
you join we will write to you about your options.
The information you provide on this form will also apply to
your Accumulation 2 membership if you choose to transfer.
Read more about the difference between the DBD and
Accumulation 2 at unisuper.com.au, including how to transfer
to Accumulation 2.
If you choose to transfer to Accumulation 2, your inbuilt
benefits will cease and be transitioned to external death, TPD
and Income Protection insurance. To find out more about how
we transition inbuilt benefits, please read What happens to
your inbuilt benefits if you choose Accumulation 2?, available at
unisuper.com.au/pds.
Anti-Money Laundering and Counter Terrorism
Financing Act 2006
Under this Act, UniSuper is required by law to collect your full
name, date of birth and residential address on this form.
Further information
If you need further information:
call us on 1800 331 685
visit our website at unisuper.com.au, or
contact your employer’s Superannuation Officer
Privacy information
UniSuper recognises the importance of protecting your personal
information and is committed to complying with its privacy
law obligations. For more information on how we collect and
manage your information please refer to the Privacy statement
at the end of this form.
Fund:
Trustee:
Administrator:
Existing member number (if known)
■■■■■■■■■■■
■Mrs ■Ms ■Dr ■Professor ■
Title
Mr
Other
■■■■■■■■■■■■■■■
Surname
■■■■■■■■■■■■■■■■■
Given name
■■■■■■■■■■■■■■■■■
Date of birth (DDMMYYYY)
■■■■■■■■
Gender
Male
■Female ■
What phone number do you want us to call you on if there is a
question we need to ask you regarding this form?
Contact number (during business hours)
( ■■)■■■■■■■■■■
Email address
■■■■■■■■■■■■■■■■■
@ ■■■■■■■■■■■■■■■■
Residential address, number and street
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
Suburb/Town
■■■■■■■■■■■■■■■■■
Postcode ■■■■
State ■■■
Country (if not Australia)
■■■■■■■■■■■■■■■■■
Is your postal address different from your residential address?
■
■
N
o. Go to SECTION 2
Yes. Please provide your postal address on the next
page.
UNISF00007 1015
UniSuper ABN 91 385 943 850
October 2015
UniSuper Limited ABN 54 006 027 121
Level 35, 385 Bourke Street, Melbourne VIC 3000
UniSuper Management Pty Ltd ABN 91 006 961 799 AFSL 235907
SECTION 1 — Continued
SECTION 5 — Reducing your standard member
contributions
Postal address, number and street (or PO Box if applicable)
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
Note: Using contribution flexibility to reduce the amount of
standard member contributions is a very significant decision
that may affect the amount of your retirement benefit. If
you choose to reduce your standard member contributions,
you cannot increase the percentage rate at a later date. Your
eligibility for insurance cover may be impacted. You do
not need to make a decision about reducing your standard
member contributions when you join the DBD. You can
make this decision at any time.
Suburb/Town
■■■■■■■■■■■■■■■■■
Postcode ■■■■
State ■■■
Country (if not Australia)
■■■■■■■■■■■■■■■■■
Please ensure you have read pages 49 to 51 of this PDS and
that you review the Contribution flexibility fact sheet on our
website before you make your decision.
SECTION 2 — Tax file number
You do not have to provide your tax file number (TFN).
However, if we don’t have your TFN, you may pay more
tax than you need to and we will be unable to accept your
after-tax (non-concessional) contributions. See page 80 of
this PDS for more information about the circumstances in
which your TFN may be collected and used.
Your TFN
—
—
■■■
■■■
■■■
■
I consent to UniSuper using my TFN to access the ATO’s
SuperMatch service to search for other super in my name.
SECTION 3 — Standard member contributions
The default level of standard member contributions is 7%
of your salary. However, you can choose to reduce the level
of standard member contributions.
Do you want to make 7% standard member contributions?
(Select one box only)
■
■
Yes. Go to SECTION 4.
No. Go to SECTION 5 to reduce the level of your
standard member contributions.
How much does your employer contribute on your behalf ?
(Select one box only)
17%. What percentage of standard member
contributions* do you wish to make? (Select one
box only)
■
■
14%. What percentage of standard member
contributions* do you wish to make?
(Select one box only)
■6.55% after-tax (7.70% before-tax)
■5.55% after-tax (6.55% before-tax)
■4.55% after-tax (5.35% before-tax)
■3.55% after-tax (4.20% before-tax)
■2.55% after-tax (3.00% before-tax)
* If you make standard member contributions from your before-tax salary they will
be treated as employer contributions and will be subject to 15% contributions tax.
They will also count towards your concessional contributions cap. You can only make
standard member contributions from either your before-tax salary or your after-tax
salary – not a combination of both.
SECTION 4 —Your standard member contributions
See page 31 of this PDS.
How do you want to make your standard member
contributions? (Select one box only)
■
■
■4.45% after-tax (5.25% before-tax)
■4.00% after-tax (4.70% before-tax)
■3.00% after-tax (3.55% before-tax)
■2.00% after-tax (2.35% before-tax)
■1.00% after-tax (1.20% before-tax)
■ 0.00% (zero)
rom your before-tax salary. Please make a salary
F
arrangement with your employer for this to occur.
rom your after-tax salary.
F
Page 2 of 8
SECTION 6 — Continued
SECTION 6 — Future contributions strategy
If your’re an existing UniSuper member, please only
complete this section if you wish to change your future
contributions strategy.
For your accumulation component or account, you
can choose a single investment option or a mix of
investment options. All future contributions will then be
invested in line with these instructions. The total must
equal 100% and each nomination must be in whole
numbers. If you have transferred to the Defined Benefit
Division/Accumulation 2 from another membership
category in UniSuper and you have not provided a new
future contributions strategy, then any contributions
received on or after the transfer date will be invested as
per your future contributions strategy in the previous
membership category.
SECTOR
Pre-Mixed
You should understand the risks and other implications
of selecting your investment options. Please read
pages 62 to 63 of this PDS and the latest How we invest
your money booklet before completing this form. We
recommend that you consult a qualified financial adviser
before making any investment decisions.
Capital Stable
%
Conservative Balanced
%
Balanced (MySuper)
%
Sustainable Balanced
%
Growth
%
High Growth
%
Cash
%
Australian Bond
%
Diversified Credit Income
%
Sustainable High Growth
%
Listed Property
%
Australian Shares
%
International Shares
%
Global Environmental Opportunities
%
Australian Equity Income
%
Global Companies in Asia
%
Total
1
0
Refer to the PDS or the How we invest your money booklet for
more information.
Sector options are less diversified and are not intended to be
used in isolation, but are intended to be combined with other
investment options to build a diversified portfolio.
For example, the Australian Equity Income option might have
exposure to as few as 20 entities, and the Global Companies
in Asia option as few as 40 entities compared to the Balanced
option which has an exposure to over 1,500 entities.
If you choose to only invest in a Sector option, you may be
exposed to more risk and may miss out on the benefits of the
balance between risk and return offered by a Pre-Mixed option.
SECTION 6A — Investment switch
If your application is received after contributions have been
allocated to your account, we will switch those contributions
from our default investment option to the options you choose
on this form, as at the date we receive this form.
f you do not want to have those contributions and your
■ Iaccumulation
balance/component switched, please select
this box.
0 %
Page 3 of 8
SECTION 7 — Default Death and Disablement insurance
SECTION 7A — Applying for insurance cover if you
elect contribution flexibility upon first
joining the DBD
If you are an existing UniSuper member, please only
complete this section if you wish to change your insurance
arrangements. If you satisfy eligibility criteria, you may
automatically receive one unit of insurance cover through a
group life insurance policy the Trustee holds with TAL Life
Limited ABN 70 050 109 450, AFSL 237848 (our Insurer)
without having to provide evidence of your health. This is
known as default insurance cover. If you are aged less than 70
you will automatically receive one unit of Death and Total &
Permanent Disablement (TPD) insurance cover. You will be
ineligible for default cover if you are aged 75 and over. The
insurance premiums for this cover are deducted from your
accumulation component or account. You can opt out of this
cover now or at any stage in the future.
If you choose contribution flexibility when you first join
the DBD (known as ‘day one contribution flexibility’),
you need to satisfy the following criteria to receive up to
three units of Death and TPD cover without having to
provide evidence of your health:
•
niSuper will need to receive a contribution or
U
rollover into your accumulation component within
120 days of you joining the DBD.
■
■
Yes
No. Go to SECTION 9
SECTION 8 — Additional Death and TPD insurance
cover up to automatic acceptance limits
Note: If you do not opt out and are otherwise eligible, you will
automatically receive and start paying insurance premiums for
one unit of Death and TPD insurance cover. See the PDS for
more information.
If you are receiving 17% employer contributions, or you
have chosen contribution flexibility, and are eligible for
one unit of Death and TPD default insurance cover, you
can apply for up to two additional units of Death and
TPD cover without having to provide evidence of your
health.
How many units of Death and TPD insurance do you want to
apply for?
■
■
Have you previously made, or do you currently have pending,
an insured disablement claim?
Yes. You may be eligible for Death-only cover.
No
Are you actively performing—or capable of actively performing
—all of your normal duties of your usual occupation on a fulltime basis and free from any limitations due to injury or illness?
Yes.
No. Provide details.
odge an application form within 30 days of first
L
becoming a DBD member, and
Do you want to apply for up to three units of Death and TPD
cover?
If you receive 14% employer contributions, you’re not eligible
for default insurance cover upon joining the DBD. You can,
however, apply for Death & TPD cover. Your application will
be subject to our Insurer’s underwriting process (providing
evidence of your health and having it accepted by our Insurer).
To apply, please read the Insurance in your super booklet,
available from unisuper.com.au/pds, and use the application
form provided.
■
■
•
See page 51 of the PDS for more information.
If you receive 17% employer contributions and reduce your
standard member contributions under contribution flexibility
when you first join UniSuper, you need to satisfy additional
criteria to receive up to three units of death and TPD cover.
Please see page 51 of this PDS and Section 7A of this form.
■
■
2 units in total (including default unit)
3 units in total (including default unit)
To apply for more than three units, please complete the
Application for insurance at UniSuper form, which is included
in the PDS and the Insurance in your super booklet, available
at unisuper.com.au/pds.
SECTION 9 — Converting unitised insurance
cover to fixed cover
Would you like to convert your Death and TPD insurance
cover to fixed cover?
If you want to opt out of your default insurance cover, please
select one of the options below. If you do not complete this
section, you will retain your default insurance cover.
■
I wish to opt out of:
No
Please note, your request will take effect when your form is
received.
■
■
■
All default Death and TPD insurance cover.
Go to SECTION 10
■
Default Death cover only.
Default TPD cover only.
Page 4 of 8
Yes. This is a once-only election and you will be unable
to elect unitised cover in the future.
SECTION 10 — Preferred beneficiary nomination
SECTION 10 — Continued
Beneficiary 2
There are two types of beneficiary nomination that
can be made: a preferred beneficiary nomination and a
binding death benefit nomination.
Surname
■■■■■■■■■■■■■■■■■
Given names
■■■■■■■■■■■■■■■■■
You can only make a preferred beneficiary nomination on
this form.
See the PDS for more information about the two types of
beneficiary nominations.
Which type of beneficiary nomination would you like to make?
(Select one box only)
Preferred beneficiary nomination
■
See the PDS for information on who you can nominate.
Please make your nominations below.
Binding death benefit nomination
■
You need to complete a Binding death benefit
nomination form, which is available from
unisuper.com.au or by calling us on 1800 331 685.
Go to SECTION 11
Preferred beneficiary nominations
Please nominate your preferred beneficiaries.
The total percentage of benefit nominations must add up to
100%. A preferred beneficiary nomination is not binding on the
Trustee, but will be taken into account when determining who
receives your death benefit.
Beneficiary 1
Surname
■■■■■■■■■■■■■■■■■
Given names
■■■■■■■■■■■■■■■■■
What is the beneficiary’s relationship to you?
(Select only one of the below boxes)
■ Spouse
■ Child
■ Financially dependent
■ Interdependency relationship
■ Legal personal representative (estate)
What is the beneficiary’s relationship to you?
(Select only one of the below boxes)
■ Spouse
■ Child
■ Financially dependent
■ Interdependency relationship
■ Legal personal representative (estate)
What percentage do you nominate for this beneficiary?
Percentage
■■■ . ■■ %
Beneficiary 3
Surname
■■■■■■■■■■■■■■■■■
Given names
■■■■■■■■■■■■■■■■■
What is the beneficiary’s relationship to you?
(Select one box only)
■ Spouse
■ Child
■ Financially dependent
■ Interdependency relationship
■ Legal personal representative (estate)
What percentage do you nominate for this beneficiary?
Percentage
■■■ . ■■ %
SECTION 11 — Electronic communication
To reduce our environmental footprint, we encourage
members to access our annual Report to members and
other information at unisuper.com.au.
What percentage do you nominate for this beneficiary?
■■■ . ■■%
Do you want to receive email communication from us,
including links to these updates when they’re published?
■
■
Page 5 of 8
Yes. We will use the email address supplied in
SECTION 1 of this form.
No. Go to SECTION 12.
SECTION 12 — Continued
SECTION 12 — Member declaration and signature
Please read this declaration before you sign and date your
form.
• I declare that the information I have given on this form is
true and correct.
• I acknowledge that I have read and understood the privacy
information on page 85 of this PDS and consent to my personal
information being used in accordance with UniSuper’s Privacy
Policy.
Signature
• I understand that I will be bound by the provisions of the
UniSuper Trust Deed (as amended from time to time).
• I authorise my employer to deduct member contributions
indicated on this form from my salary.
Date (DDMMYYYY)
• If I have provided my TFN in SECTION 2, I understand the
circumstances in which my TFN may be collected and used
and I agree that my TFN may be used for all superannuation
purposes.
■■■■■■■■
• I acknowledge that I have read and understood the information
in this PDS and the How we invest your money, Insurance in
your super, and What happens to your inbuilt benefits if you
choose Accumulation 2? booklets, and I understand that:
-- I will receive and start to pay for one default unit of Death and
TPD insurance cover (if I am eligible), and that I may choose
to opt out or purchase additional units of cover
-- I will not receive default Death and TPD cover if upon
joining UniSuper I reduce my level of standard member
contributions under contribution flexibility arrangements or
if my employer contributes at the rate of 14%
-- I have read and understood the ‘Duty of disclosure’ and ‘Nondisclosure’ information in the Insurance in your super booklet,
incorporated by reference in this PDS
-- if I reduce my level of standard member contributions it will
impact my UniSuper benefit and may mean that I will have
less to live on in retirement
-- investing in an investment option may involve some risk and
that on occasions my accumulation component or account
balance may decrease
-- UniSuper does not guarantee my investment or any particular
rate of return
-- I can switch my investment option(s) for my accumulation
component or account on Member Online or by submitting
an Investment choice form. The first switch I make in each
financial year is free and there is a fee for any subsequent
switches I make in each financial year
-- if I do not choose a future contributions strategy for my
accumulation component or account then my contributions
will be automatically invested in the Balanced option, which is
the Fund’s default investment option
-- my account is not automatically rebalanced to reflect the
investment option allocations chosen on this form. However,
I can switch investment options on MemberOnline or by
submitting an Investment choice form
-- taxes, fees, charges and costs apply.
Page 6 of 8
OFFICE USE ONLY — (to be completed by your employer)
OFFICE USE ONLY - Continued
To be completed by a Superannuation Officer or the
person who is responsible for superannuation at the
applicant’s workplace
Name of Superannuation Officer or responsible person
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
Member number
■■■■■■■■■■■
Signature of Superannuation Officer or responsible person
Payroll number
Date (DDMMYYYY)
■■■■■■■■■■■
■■■■■■■■
Employer number
Employer date stamp
The following is to be completed only on behalf of employers
who have not signed a transition-in arrangement with us and
are not obliged to comply with SuperStream reforms.
■■■■■■
Employer name
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
Date the member was first eligible to join UniSuper’s Defined
Benefit Division/Accumulation 2 membership (DDMMYYYY)
Returning your form:
This is the later of the date that the member was employed
or the date that Super Guarantee contributions first commenced.
Return your completed form to your employer’s
Superannuation Officer or the person who is
responsible for superannuation at your workplace.
■■■■■■■■
Equivalent full-time salaryService Fraction
(if not 100%)
$
■■■ , ■■■ . ■■ ■■■ . ■■ %
Ordinary time earning salary
$
■■■ ■■■ ■■
■
■
,
.
Academic
General
Half contributions
No
Yes
Reduce standard member contributions
■
■
No
Yes Rate
■ . ■■ %
What date was contribution flexibility elected (if at all)
■■■■■■■■ (DDMMYYYY)
Election date must be the start date of the pay period.
Have you added the member to Acurity
(UniSuper’s administration system)?
No
Yes
Insurance cover updated?
No
Yes
Investment updated?
No
Yes
Privacy statement
UniSuper recognises the importance of protecting your personal
information and we’re committed to complying with our privacy law
obligations.
We collect your personal information to administer your account,
improve our products and services and to provide you with, and
promote, UniSuper membership benefits, services and products.
You consent to our collecting sensitive information about you, where
collecting that information is reasonably necessary for us to perform
one or more of our functions or activities. We usually collect
personal and sensitive information directly from you, however, it
may also be collected from third parties, such as your employer.
We may also collect this information from you because we are
required or authorised by or under an Australian law or a court/
tribunal order to collect that information.
If you do not provide this information, we may not be able to
administer your account, or provide you with a product or service.
We may disclose your information to any service provider we engage
(for example mail-houses, auditors, insurers, actuaries, lawyers) to
carry out or assist us to provide your membership benefits, services
and products. This includes overseas entities. Where information
is transferred overseas, we will seek to ensure the recipient of the
data has security systems to prevent misuse, loss or unauthorised
disclosure in line with Australian laws and standards.
Our Privacy Policy contains information about how you may
access any personal information held by us, how to correct your
information and how to make a complaint about a breach of the
Privacy Act. Our Privacy Policy is available from our website at
unisuper.com.au or by calling us on 1800 331 685.
Page 7 of 8
Note
You only need to complete the Application for insurance
at UniSuper form on the next page if you want to:
apply for more than three units of cover, or
apply for other changes to your cover
Application for insurance at UniSuper
Who should use this form?
Eligible members who want to:
apply for or increase their Death, TPD or Income Protection
cover (Sections 1-14)
convert their unitised cover to fixed cover (Sections 1-4, 6, 13)
apply for or increase their fixed cover (Sections 1-4, 6, 8-14)
decrease their Income Protection waiting period
(Sections 1-4, 7-14)
increase their Income Protection benefit period
(Sections 1-4, 7-14) and/or
AA
AA
AA
AA
AA
If you want to decrease your Income Protection benefit period or
increase your Income Protection waiting period, you can do this
via MemberOnline at unisuper.com.au. Alternatively, complete
the Changing your insurance cover form.
If you are in your first 180 days of membership and want to
apply for additional default cover without going through the
underwriting process (providing evidence of your health and
having it accepted by the Insurer), please use the application
form attached to the Product Disclosure Statement (PDS) for
your membership category.
Eligibility to apply for insurance cover
Before you complete this form, please read the Insurance in your
super booklet for detailed information on the eligibility criteria
applicable and the terms, features, and conditions of Death, TPD
and Income Protection cover provided by the Fund. Applications
for cover require you to provide evidence of your health and must
be approved by the Insurer. The Insurer, after assessing your
application, may also accept, reject or apply loadings, restrictions
and/or exclusions to your cover. Please ensure that you’re eligible for
the cover that you are applying for.
For Defined Benefit Division (DBD) members only: If you are
provided with cover it is in addition to any inbuilt cover you may
already have. DBD members are not eligible to apply for Income
Protection cover.
Insurer
Insurance cover is provided by TAL Life Limited
(ABN 70 050 109 450, AFSL 237848).
Further information
If you need further information or help to complete this form:
call us on 1800 331 685, or
email enquiry@unisuper.com.au.
Privacy information
UniSuper and TAL recognise the importance of protecting your
personal information and are committed to complying with
our privacy law obligations. For more information on how we
collect and manage your information, please refer to the Privacy
statement at the end of this form.
Fund:
Trustee:
Administrator:
Don’t want to complete a form?
You can apply for insurance cover by logging in to
MemberOnline at unisuper.com.au or you can arrange
an appointment over the phone with the Insurer by
calling us on 1800 331 685.
SECTION 1 — Member details
Please use BLACK or BLUE BALL POINT PEN and
print in CAPITAL LETTERS. Cross where required
UniSuper member number
■■■■■■■■■■
If you are unsure of your member number, refer to your most
recent UniSuper correspondence or call us on 1800 331 685.
■Mrs ■Ms ■Dr ■Professor ■
Title
Mr
Other
■■■■■■■■■■■■■■■
Surname
■■■■■■■■■■■■■■■■■
Given name
■■■■■■■■■■■■■■■■■
Date of birth (DDMMYYYY)
■■■■■■■■
Contact number
( ■■)■■■■■■■■■■
Email address
■■■■■■■■■■■■■■■■■
@ ■■■■■■■■■■■■■■■■
Residential address, number and street (not PO Box)
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
Suburb/Town
■■■■■■■■■■■■■■■■■
Postcode ■■■■
State ■■■
Country (if not Australia)
■■■■■■■■■■■■■■■■■
UNISF00013 1015
UniSuper ABN 91 385 943 850
October 2015
UniSuper Limited ABN 54 006 027 121
Level 35, 385 Bourke Street, Melbourne VIC 3000
UniSuper Management Pty Ltd ABN 91 006 961 799 AFSL 235907
SECTION 1 — Continued
SECTION 2 — Continued
Is your postal address different from your residential address?
Have you ever held or applied for any life, disability, accident
and sickness or trauma insurance, that was declined,
postponed, had the premium increased or modified, or had a
current policy cancelled or renewal refused?
■
■
No. Go to SECTION 2.
Yes. Please provide your postal address below.
Postal address, number and street (or PO Box if applicable)
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
■
■
No
Yes. If yes please provide details below.
Company name
Suburb/Town
■■■■■■■■■■■■■■■■■
Postcode ■■■■
State ■■■
Country (if not Australia)
■■■■■■■■■■■■■■■■■
Type of policy
Cover amount
From (DDMMYYYY)
■■■■■■■■
SECTION 2 — General details
■■■ cms
Weight ■■■ kgs
Height
OR
OR
Reason for decision
■■ ft ■■ ins
■■ st ■■ lbs
Are you an Australian citizen, a New Zealand citizen residing
in Australia, a holder of an Australian permanent visa or a
person who resides in Australia on an approved working visa?
■
■
No
State any loadings/restrictions/exclusions
Yes
Other than this application, do you have or are you applying
for any Life, TPD, Disability Income or Group Salary
Continuance insurance with any other company?
■
■
No
Is cover to be fully replaced?
Yes. Provide the following details
■
■
Company name
Yes
No. Provide details.
Type of policy
Benefit amount
If this current application is successful, do you intend
to continue your insurance cover with the company
above?
■
No
■
Have you claimed on any type of disability, trauma, accident
and sickness or such benefits as Workers Compensation or
Motor Vehicle Third party?
■
■
Yes
Page 2 of 12
No
Yes. If yes please provide details on the next page.
SECTION 2 — Continued
SECTION 3 — Continued
Company name
What is your current occupation and what duties do you
perform (including % of time spent in each)?
Type of policy
Cover amount
■■■■■■■■
What is your gross annual salary?
(including employer superannuation contributions and
packaged items but excluding bonuses/commission)
Was the claim accepted or declined? If declined, what was the reason?
$
Claim date (DDMMYYYY)
■■■,■■■
How many hours per week do you work?
■■■
To what extent have you recovered from the condition you
claimed for?
Recovery
SECTION 4 — Insurance cover
■■■ %
Please complete a separate sheet if required and attach to this
form.
SECTION 3 — Employment and income details
Are you actively performing—or capable of actively performing
—all of your normal duties of your usual occupation on a
full-time basis and free from any limitations due to injury or
illness?
■
■
What insurance cover would you like to apply for or change?
You may be eligible to apply for multiple types of cover.
■
■
■
■
Yes
No. Provide details.
Are you on employer approved leave for reasons other than
illness or injury?
■
■
See the Insurance in your super booklet for more
information about eligibility for insurance cover.
No
Yes. Provide details.
Death-only cover
TPD-only cover
Death and TPD cover
Income Protection cover (DBD members cannot apply
for Income Protection cover)
SECTION 5 — I want to apply to for unitised Death
and/or TPD cover
If you want to apply for additional default cover that
you may be eligible for within 180 days of becoming a
member, please use the application form attached to the
PDS for your membership category. If you want to apply
for fixed cover, please go straight to SECTION 6.
How many units of Death cover do you want in total, including
any units you may have already? (The amount of Death
insurance cover you can apply for is unlimited.)
■■ unit(s)
How many units of TPD cover do you want in total, including
any units you may have already? (The maximum amount of
TPD cover available in the Fund is limited to $3 million.)
■■ unit(s)
Page 3 of 12
SECTION 7 — I want to apply for or change my Income
Protection cover
SECTION 6 — I want to apply for fixed cover, convert
unitised insurance cover to fixed cover or
increase fixed cover
Income Protection cover is unit-based and provided
in multiples of $100 worth of cover per week. The
premiums are based on age, level of cover required and
benefit payment period and waiting periods applicable.
See the Insurance in your super booklet for more detailed
information. Not available to DBD members.
Fixed cover is not available for Income Protection cover.
If you have UniSuper Death and/or TPD insurance cover
already, how many units of cover do you currently have?
■■ unit(s) of Death cover
■■ unit(s) of TPD cover
Are you under 61 years of age?
If you want to decrease your benefit period or increase
your waiting period, you can do this via MemberOnline at
unisuper.com.au. Alternatively, complete the Changing your
insurance cover form.
■
Do you currently have Income Protection insurance cover?
No. You are ineligible to convert your existing unitised
cover to fixed cover.
■
■
■
■
■
■ Yes
Yes. See below.
Would you like to convert your unitised insurance cover to fixed
cover?
Yes. This is a once-only election only available if you
are under age 61. You will be unable to elect unitised
cover in the future.
■
No. Go to SECTION 7
Please note, your request will take effect when your form is
received.
If you are applying for or wanting to increase your fixed Death
and/or TPD cover, what is the amount of fixed insurance
you want to have in total, including what you already have?
(This must be rounded to the nearest $1,000 and includes any
unitised or fixed cover you already have that will be converted
to fixed cover.)
Death
TPD
No.
Do you want to apply for Income Protection cover?
Yes. Go to SECTION 7A
No. Go to SECTION 8
Do you want to increase the number of units of Income
Protection cover you have?
■
■
■
■
Yes. Go to SECTION 7A
No. Go to next question
Do you want to decrease your waiting period or increase your benefit period?
■■■,■■■,■0 ■0 ■0
$■■■,■■■,■
0■
0■
0
$
(Refer to the Insurance in your super booklet for the fixed
cover premiums.)
Page 4 of 12
Yes. Go to SECTION 7B
No. Go to SECTION 8
SECTION 7A — Applying for or increasing your Income
Protection cover
SECTION 8 — Habits and activities
How many $100 weekly units of cover do you want to have in
total, including what you already have? (Refer to the Insurance
in your super booklet.)
■■units
Please note, eligible members can select cover up to 69 units
(or $29,900 per month) of Income Protection insurance cover.
Note, however, that cover cannot exceed 85% of your monthly
salary (with any amount above 75% to be paid directly into
your superannuation account). All applications for additional
insurance are subject to evidence of your health and must be
approved by the Insurer.
Which waiting period would you like to select?
■
30 days
■
60 days
■
2 years
■
5 years
■
Do you drink alcohol?
■
■
Standard drink = 1 nip spirit, 1 wine glass (100ml), 10oz/285ml beer.
Have you smoked tobacco in the past 12 months?
■
■
■
■
Do you want to decrease your Income Protection waiting period?
No
■
■
30 days
60 days
Do you want to increase you Income Protection benefit period?
■
■
No
Yes. I want to increase my Income Protection benefit
period to:
■
■
5 years
age 65
No
Yes. State daily quantity:
No
Yes. You may be asked to complete a drug use or alcohol
consumption questionnaire by our Insurer.
Do you currently, or do you intend to engage in any hazardous
pastime and/or sporting activity such as aviation (other than
as a fare paying passenger on a commercial airline), football,
scuba diving, motor sports, trail bike riding or rock climbing?
Yes. I want to decrease my waiting period to:
Yes. State type, number of standard drinks per day and
number of days per week when alcohol is consumed:
Have you ever used or injected yourself with any drug not
prescribed by a doctor, or received counselling or treatment
for the use of alcohol or drugs?
to age 65
SECTION 7B — Changing your Income Protection waiting
period or benefit period
■
■
No
90 days
Which benefit payment period would you like to select?
■
Please answer all questions in this section.
■
■
No
Yes. You may be asked to complete a sports and
pastimes statement by our Insurer.
Do you intend travelling outside Australia within the next two
years?
■
■
Page 5 of 12
No
Yes. Provide details (where, when, duration and
reason):
SECTION 9 — Continued
SECTION 9 — Personal statement
Within the last three years have you consulted, been
examined, treated by, or received advice from any doctor,
psychologist, psychiatrist, counsellor, chiropractor,
physiotherapist or any other health care professional
(naturopath etc.) or been in a hospital or been advised to
have an operation or taken any medication, drugs, stimulants,
sedatives or tranquilisers?
■
■
No
Yes. Provide details:
From (DDMMYYYY)
To (DDMMYYYY)
■■■■■■■■
■■■■■■■■
Have you ever had any blood tests which revealed an
abnormality e.g. raised blood sugar, liver function, renal
function results, or anaemia etc?
■
■
No
Yes. Provide details:
From (DDMMYYYY)
To (DDMMYYYY)
■■■■■■■■
■■■■■■■■
Name/address of doctor, hospital or clinic:
Name/address of doctor, hospital or clinic:
Condition, medications, treatments and time off work:
Condition, medications, treatments and time off work:
To what extent have you recovered from your condition/s?
Recovery
To what extent have you recovered from your condition/s?
Recovery
■■■ %
Have you ever had an ECG, x-ray, transfusion, mammogram,
ultrasound, surgery or any other investigation?
■
■
No
Yes. Provide details:
From (DDMMYYYY)
To (DDMMYYYY)
■■■■■■■■
■■■■■■■■
■■■ %
Do you contemplate seeking any medical examination, advice,
treatment or surgery for any other current health condition, in
the future?
■
■
No
Yes. Provide details:
From (DDMMYYYY)
To (DDMMYYYY)
■■■■■■■■
■■■■■■■■
Name/address of doctor, hospital or clinic:
Name/address of doctor, hospital or clinic:
Condition, medications, treatments and expected time off
work:
Condition, medications, treatments and time off work:
To what extent have you recovered from your condition/s?
To what extent have you recovered from your condition/s?
Recovery
Recovery
■■■ %
Page 6 of 12
■■■ %
SECTION 10 — Personal statement (General medical
questions)
SECTION 10 — Continued
Please provide details for all ‘Yes’ answers in the General
medical questionnaire in Section 11.
1. Have you ever had, been advised that you
had or received advice or treatment for any
of the following:
No
A. High blood pressure, raised cholesterol,
chest pain, heart attack, rheumatic fever,
stroke or circulatory disorder?
B. Bowel, stomach or intestinal problem,
gall bladder, hepatitis or liver disease?
C. Epilepsy, stroke, paralysis, multiple
sclerosis, fainting attacks?
■ ■
■ ■
■
■
D. Depression, anxiety, panic attacks, stress,
chronic fatigue, fibromyalgia, or any mental
or nervous condition?
E. Diabetes, sugar in urine, pancreatic or
thyroid problem?
F. Cancer, tumour, melanoma, sunspots,
mole or growth of any kind?
G. Disease, injury, or disorder of joints,
neck, back or bones, gout, arthritis or a
repetitive strain injury or tendonitis?
H. Impairment of sight, hearing or speech?
I. Asthma, bronchitis, sleep apnoea, or any
lung compliant?
J. Leukaemia, haemochromatosis, anaemia,
or any blood problems?
K. Kidney, prostate, or bladder problems?
L. Psoriasis, eczema, or any skin problem?
Yes
Females only
No
P. Have you ever had any gynaecological
conditions (e.g. endometriosis, abnormal
Pap smear, etc)?
Q. Have you ever had any complication of
pregnancy or childbirth?
R. Are you currently pregnant?
If yes, what is the expected delivery date?
(DDMMYYYY)
■■■■■■■■
S. Have you ever had a breast lump (even if
you have not seen a doctor about it)?
Yes
■ ■
■ ■
■ ■
■ ■
■ ■
■ ■
■
■
■ ■
■
■
■
■
■
M. Any other disability, congenital
abnormality, deformity, or symptoms of ill
health, illness or injury?
N. Has the virus which causes AIDS (the
Human Immunodeficiency Virus) ever
infected you or are you carrying antibodies
to that virus?
O. Have you ever engaged in any activity/ies
reasonably accepted to having an increased
risk of exposure to the HIV/AIDS virus?
■
■
■
■
■
Family history
Has any of your immediate family (mother, father, brother
or sister), suffered from diabetes, heart disease, cancer,
kidney disease, high blood pressure, mental health condition,
haemophilia, Huntington’s disease or any other hereditary
disease before the age of 65?
■
■
No
Yes. If yes, provide details:
Relationship to
member:
■ ■
■ ■
■ ■
Page 7 of 12
Medical
condition
(e.g. breast
cancer, heart
attack, type 2
diabetes):
Age when
diagnosed
Age at death
(if
applicable)
SECTION 11 — General medical questionnaire
Please provide detail for all ‘Yes’ answers in Section 10 A to S. Please complete a separate sheet if required.
Question number
Question
■■
Question
■■
Specific condition
Date symptoms first started
and description of symptoms
What was the condition and
which part and side of the
body was affected?
What was the medical
diagnosis including results of
x-rays and investigations?
What was the frequency
(daily, weekly etc) of attacks
or symptoms?
What was the severity
(mild/moderate/severe)
and duration of attacks or
symptoms?
How long were you unable to
work or perform your normal
duties/activities?
If a hospital visit was
required, please provide date
and duration of your stay.
Date treatment/medication
ceased.
When did you last suffer from
any symptoms?
What advice/treatment did
you receive?
Are you still receiving
treatment? If so, please
advise nature and frequency
of treatment.
Degree of recovery (%)
Please supply the name
and address of all doctors,
hospitals or other
practitioners consulted.
Page 8 of 12
Question
■■
Question
■■
SECTION 12 — Doctor’s details
SECTION 12 — Continued
Please provide details of your usual doctor.
Please give details of your last consultation with any doctors
and, if applicable, the outcome or degree of recovery.
Name of usual doctor
Surname
■■■■■■■■■■■■■■■■■
Given names
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Postal address, number and street (or PO Box if applicable)
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
Suburb/Town
■■■■■■■■■■■■■■■■■
Postcode ■■■■
State ■■■
Contact number (during business hours)
Name of doctor
Surname
■■■■■■■■■■■■■■■■■
Given names
■■■■■■■■■■■■■■■■■
Postal address, number and street (or PO Box if applicable)
■■■■■■■■■■■■■■■■■
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Suburb/Town
■■■■■■■■■■■■■■■■■
Postcode ■■■■
State ■■■
Contact number (during business hours)
( ■■)■■■■■■■■■■
( ■■)■■■■■■■■■■
Email address
■■■■■■■■■■■■■■■■■
@ ■■■■■■■■■■■■■■■■
How long have you been attending this doctor?
Consultation details
Date of last consultation (DDMMYYYY)
■■■■■■■■
Reason for consultation
■■ Years ■■ Months
If less than one year (12 months), please advise the name and
address of the doctor who has details of your medical history.
Name of doctor
Surname
■■■■■■■■■■■■■■■■■
Given names
■■■■■■■■■■■■■■■■■
Outcome or degree of recovery
Postal address, number and street (or PO Box if applicable)
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
Suburb/Town
■■■■■■■■■■■■■■■■■
Postcode ■■■■
State ■■■
Contact number (during business hours)
( ■■)■■■■■■■■■■
Email address
■■■■■■■■■■■■■■■■■
@ ■■■■■■■■■■■■■■■■
Page 9 of 12
SECTION 13 — Member declaration and signature
SECTION 13 — Continued
Please read Your duty of disclosure and Your declaration
before you sign and date your form.
Your duty of disclosure
Before you enter into a life insurance contract, you have a duty
to tell the Insurer anything that you know, or could reasonably
be expected to know, that may affect their decision to insure
you and on what terms.
You have this duty until the Insurer agrees to insure you.
You have the same duty before you extend, vary or reinstate
the contract.
You do not need to tell the Insurer anything that:
• reduces the risk they insure you for, or
• is common knowledge, or
• they know or should know as an insurer, or
• they waive your duty to tell them about.
If you do not tell the Insurer something
In exercising the following rights, the Insurer may consider
whether different types of cover can constitute separate
contracts of life insurance. If they do, they may apply the
following rights separately to each type of cover.
If you do not tell the Insurer anything you are required to, and
they would not have insured you if you had told them, they may
avoid the contract within three years of entering into it.
If the Insurer chooses not to avoid the contract, they may, at
any time, reduce the amount you have been insured for. This
would be worked out using a formula that takes into account
the premium that would have been payable if you had told
them everything you should have. However, if the contract has
a surrender value, or provides cover on death, the Insurer may
only exercise this right within three years of entering into the
contract.
If the Insurer chooses not to avoid the contract or reduce the
amount you have been insured for, they may, at any time, vary
the contract in a way that places them in the same position
they would have been in if you had told them everything you
should have. However, this right does not apply if the contract
has a surrender value or provides cover on death.
If your failure to tell the Insurer is fraudulent, they may refuse
to pay a claim and treat the contract as if it never existed.
Your declaration
• I declare that the information I have given on this form (and
any accompanying pages) is true and correct.
• I acknowledge that I have received, read and understood the
information in my UniSuper membership PDS and in the
Insurance in your super booklet.
• I have read and understand the ‘Duty of Disclosure’ and
‘Non-disclosure’ and understand my obligations under the
Insurance Contracts Act 1984 as described above.
• I understand that all insurance cover is subject to the terms
and conditions of the policies.
• I confirm that at the date of this application I am not absent
from work for reasons of illness or injury.
• I acknowledge that if I fail to provide all or part of the
information required or consent to the Insurer obtaining
such information, as required, this application will not be
assessed and processed.
• I consent to UniSuper, on behalf of the Insurer, seeking
health evidence from any medical practitioner that I have
consulted either before or after the date of this application,
and hereby authorise the release of any such medical
information. A photocopy of this authorisation shall be as
valid as the original.
• I acknowledge that I have read and understood the privacy
information at the back of this form and consent to my
personal information being used in accordance with
UniSuper’s Privacy Policy.
• I consent to my health and sensitive information being
collected, used and disclosed in accordance with UniSuper’s
Privacy Policy to enable the Insurer to underwrite my
application for insurance cover.
• I acknowledge that cover commences on the date the
Insurer accepts my application for cover.
• I acknowledge that I must maintain an accumulation
component/account balance from which insurance
premiums can be deducted in order to apply and maintain
my insurance cover.
Signature
7
Date (DDMMYYYY)
■■■■■■■■
Page 10 of 12
UniSuper’s privacy statement
SECTION 14 — An authorisation to doctor
UniSuper recognises the importance of protecting your personal
information and we’re committed to complying with our privacy
law obligations.
To be completed and signed by the applicant.
Please sign this authorisation.
To Doctor
I hereby authorise you to release details of my personal
medical history to UniSuper Management Pty Ltd (USM)
(ABN 91 006 961 799, AFSL 235907), UniSuper Limited
(ABN 54 006 027 121) (the Trustee) and TAL Life Limited
(ABN 70 050 109 450, AFSL 237848) or any organisation
duly appointed by TAL Life Limited, USM or the Trustee. A
photocopy (or similar) of this authorisation shall be as valid as
the original.
My name
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
Date of birth (DDMMYYYY)
■■■■■■■■
Signature of applicant
Date (DDMMYYYY)
■■■■■■■■
Postal address, number and street (or PO Box if applicable)
■■■■■■■■■■■■■■■■■
■■■■■■■■■■■■■■■■■
We collect your personal information to administer your account,
improve our products and services and to provide you with, and
promote, UniSuper membership benefits, services and products.
You consent to our collecting sensitive information about you,
where collecting that information is reasonably necessary for us
to perform one or more of our functions or activities. We usually
collect personal and sensitive information directly from you,
however, it may also be collected from third parties, such as your
employer.
We may also collect this information from you because we are
required or authorised by or under an Australian law or a court/
tribunal order to collect that information.
If you do not provide this information, we may not be able to
administer your account, or provide you with a product or service.
We may disclose your information to any service provider we
engage (for example mail-houses, auditors, insurers, actuaries,
lawyers) to carry out or assist us to provide your membership
benefits, services and products. This includes overseas entities.
Where information is transferred overseas, we will seek to ensure
the recipient of the data has security systems to prevent misuse,
loss or unauthorised disclosure in line with Australian laws and
standards.
Our Privacy Policy contains information about how you may
access any personal information held by us, how to correct your
information and how to make a complaint about a breach of the
Privacy Act. Our Privacy Policy is available from our website at
unisuper.com.au or by calling us on 1800 331 685.
Suburb/Town
■■■■■■■■■■■■■■■■■
Postcode ■■■■
State ■■■
Email address
■■■■■■■■■■■■■■■■■
@ ■■■■■■■■■■■■■■■■
Return your form together with any
additional documentation to:
UniSuper, Level 35, 385 Bourke Street
Melbourne VIC 3000
Page 11 of 12
Your privacy with TAL Life Limited
ABN 70 050 109 450 AFSL 237848 (‘TAL’ and the ‘Insurer’)
The privacy of TAL customers is important and TAL is bound
by obligations imposed by current privacy laws including the
Australian Privacy Principles. The way in which TAL collects,
uses, secures and discloses your personal information is set out in
the TAL Privacy Policy available at ww.tal.com.au/Privacy-Policy
or free of charge on request to TAL by telephoning 1800 666 136.
Collection and use of personal information
We collect personal information, including your name,
age, gender, contact details, health information, salary, and
employment information so that we may assess and administer
our products and services to you. In certain circumstances, such
as applications for life insurance products and claims, we may be
required to collect personal information of a sensitive nature such
as lifestyle and medical history information. If you do not supply
the information that is required, we may not be able to provide
our products and services to you or pay the claim.
We may take steps to verify the information we collect; for
example, a birth certificate provided as identification may be
verified with records held by Births, Deaths and Marriages to
protect against impersonation, or we may verify with an employer
regarding remuneration information provided in a claim for
income protection to ensure that it is accurate.
Disclosure of personal information
We disclose relevant personal information to external
organisations that help us provide our services and may also
disclose some of your personal information to other parties, when
required to do so to provide our products and services to you,
such as the following:
• claims assessors and investigators, claims managers and
reinsurers;
• medical practitioners (to verify or clarify, if necessary, any
health information you may provide);
• any person acting on your behalf, including your financial
advisor, solicitor, accountant, executor, administrator,
trustee, guardian or attorney;
• other insurers;
• for members of superannuation funds where TAL
is the insurer, to the trustee, or administrator of the
superannuation fund; and
• other organisations to whom we outsource certain
functions during the underwriting and claims processes,
such as obtaining blood tests for underwriting purposes,
rehabilitation providers, surveillance providers and forensic
accountants.
There are situations where we may also disclose your personal
information in circumstances where it is required by law (such as
to the police or Australian Tax Office), and authorised by law (e.g.
under court orders or statutory notices).
Page 12 of 12
Helpline
1800 331 685
+61 3 8831 7901 (overseas members)
Website
unisuper.com.au
Email
enquiry@unisuper.com.au
Fax
1300 224 037
+61 3 8831 6141 (overseas members)
unisuper advice
1300 331 685
+61 3 8831 7916 (overseas members)
Address
UniSuper
Level 35, 385 Bourke Street
Melbourne VIC 3000
Australia
Printed on environmentally responsible paper.
UNIS000007 1015