Your super when you leave your job

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    19-Jan-2017

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  • A Nadia Radice, University of South Australia

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

  • PROPOSED CHANGES TO SUPER: FEDERAL BUDGET 2017

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

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

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

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

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

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

    Weve heard youre moving on

    Whether youre staying within the higher education or research sector, changing careers or leaving work altogether, we know youve got a lot going on right now. So your supers probably the last thing on your mind.

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

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

  • Contents Defined Benefit Division (DBD) 13

    Accumulation 2 23

    Accumulation 1 25

    WHERE TO BEGIN?

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

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

    NOT SURE WHICH UNISUPER PRODUCT YOU HAVE?

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

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

    3

  • Leaving your job because of illness or injury?

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

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

    4

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

    WEHI SUPER FUND MEMBERS

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

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

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

    By remaining a UniSuper member you can:

    A continue contributing to UniSuper1 A defer your defined benefit component

    if youre in the DBD (see page 14 for what it means to defer)

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

    A transfer any other super you may have into UniSuper

    A start a UniSuper pension (if youre eligible)

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

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

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

    Your super when you leave your job STAYING WITH UNISUPER

  • 5

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

    5

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

    Choice of Fund isnt available to employees under certain types of industrial agreements or awards (which specify which super fund employer contributions must be paid into). This applies to most employees in the higher education and research sector.

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

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

    the Forms and Documents section of our website.

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

    What happens if

    UNISUPER IS YOUR NEW EMPLOYERS DEFAULT SUPER FUND?

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

    UNISUPER IS NOT YOUR NEW EMPLOYERS DEFAULT SUPER FUND, BUT YOU ARE ELIGIBLE FOR CHOICE OF FUND?

    If UniSuper isnt your new employers default super fund but you are eligible for Choice of Fund, you can nominate UniSuper as your chosen fund for your new employer to contribute to.

    UNISUPER IS NOT YOUR NEW EMPLOYERS DEFAULT SUPER FUND AND YOU ARE NOT ELIGIBLE FOR CHOICE OF FUND?

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

  • 7 Your super when you leave your jobFUND PERFORMANCE

  • 8

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

    2 VALUE FOR MONEYWere a large value-for-money fund offering competitive fees. All our profits go to our members or are reinvested to improve our products and services. We dont pay commissions to our financial advisers and we dont pay dividends to external shareholders.

    3 COMPETITIVE FEESAs a UniSuper member, you wont be charged:

    A any entry or withdrawal fees A for the first investment option switch you

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

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

    contributions or transfers are invested in.

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

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

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

    Why stay with UniSuper?

    1 A RECORD OF STRONG LONG-TERM INVESTMENT PERFORMANCEInvesting your money well to achieve greater retirement outcomes is at the heart of what we do. Its because we know strong investment returns helps you reach your retirement goals sooner.

    You can rely on our in-house investment teamrecognised to be one of the best in Australiaand experience, to manage your money wisely. Thats why our Accumulation Balanced optionwhere most of our members investhas delivered consistently strong returns for the past 10 years.*

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

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

    4 EXCLUSIVE MEMBERSHIPWe specialise in super for people who work in higher education and research, just like you. And you can choose to stay with us right through to retirement and beyondeven if you leave the sector.

    5 CONTROL AND CHOICE OVER YOUR INVESTMENTSEveryone has different needs and preferences, so its good to know you have the flexibility to tailor your own investment strategy or leave it to our team of experts.

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

    SEE FOR YOURSELF

    Dont just take our word for it. See how our fees and investment returns for our Accumulation 1 and Accumulation 2 accounts stack up against other funds using the Chant West Apple Check tool via MemberOnline (which you can access at unisuper.com.au/memberonline).

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

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

  • With a string of awards and high ratings from top Australian ratings agencies SuperRatings, Chant West and Selecting Super, were one of Australias most award-winning super funds.

    Chant West awarded UniSuper Super Fund of the Year in both 2015 and 2016, and Pension Fund of the Year in 2017. UniSuper was also awarded Best Fund: Advice Services in 2017. UniSupers Accumulation 2 product has received a 5 Apples rating. For information about the methodology used, see www.chantwest.com.au. Chant West has consented to the inclusion in this document of the references to Chant West and the inclusion of its logos in the form and context in which they are included.

    SuperRatings, a superannuation research company, has awarded UniSuper a Platinum Choice rating for its accumulation products, something only the best value for money funds receive. Our Accumulation products have also achieved a 10-year Platinum Performance rating. Go to www.superratings.com.au for details of its rating criteria. SuperRatings doesnt issue, sell, guarantee or underwrite this product. SuperRatings has consented to the inclusion in this document of the references to SuperRatings and the inclusion of its logos in the form and context in which they are included.

    An award-winning super fund

  • 11

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

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

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

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

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

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

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

  • 12

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

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

    I...

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