defined benefit division and accumulation 2 pds

A Benjamin Hay, the University of Notre Dame

Defined Benefit Division and

Accumulation 2 Product Disclosure Statement Issued 1 July 2017 by UniSuper Limited ABN 54 006 027 121

ABOUT THIS PRODUCT DISCLOSURE STATEMENTThis 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’s 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’d 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 them 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. 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. If changes (which aren’t materially adverse) are made to information in this booklet, updated information is available at unisuper.com.au or by calling 1800 331 685. You can request a paper or electronic copy of updated information without charge.UniSuper Management Pty Ltd, SuperRatings Pty Limited and Chant West Pty Limited 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being included in this booklet, in the form and context in which they have been included, and consent has not been withdrawn as at the date of this booklet.

IN THIS PDS UniSuper, ABN 91 385 943 850, MySuper Authorisation No. 91385943850448, is referred to as ‘UniSuper’ or ‘the Fund’. UniSuper Limited, ABN 54 006 027 121, AFSL No. 492806, is referred to as ‘USL’ or ‘the Trustee’. UniSuper Management Pty Ltd, ABN 91 006 961 799, AFSL No. 235907, is referred to as ‘UniSuper Management’ or ‘USM’. USL has delegated administration of UniSuper to USM, which is wholly owned by USL in its capacity as UniSuper’s Trustee. UniSuper Advice is operated by USM, which is licensed to deal in financial products and provide financial product 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 2017

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

Joining UniSuper or transferring to the DBD 21

Still not sure which type of super will suit you best? 22

Risks of super 25

24 months to make a decision about your membership 26

01

1Defined Benefit Division and Accumulation 2 Product Disclosure Statement CONTENTS

Defined Benefit Division

What is the Defined Benefit Division? 28

Risks associated with defined benefits 30

Making contributions 31

Inbuilt benefits 33

Insurance cover through your accumulation component 35

Your super 36

Accumulation 2

What is Accumulation 2? 44

Insurance 44


Accumulation 2 membership – types of benefits 47

General information


Investment options 60

Inbuilt benefits and insurance 62

Risks of super 63

Accessing your benefit 67

Fees and other costs 71

How super is taxed 81

Other information 85

Glossary and important definitions 91

02 03 04

2

The terms of your employment mean that you’re 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 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, insurance 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 help you with those decisions.

How to read this PDS

This PDS is broken up into four sections:

01 OVERVIEWPart 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 DIVISIONPart 2 provides more detailed information particular to the DBD.

03 ACCUMULATION 2Part 3 provides more detailed information specific to Accumulation 2.

04 GENERAL INFORMATIONPart 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.

Important information booklets

There are three booklets which are ‘incorporated by reference’ into this PDS—you should read them before making any decisions about your super. They are:

A How we invest your money A Insurance in your super, and A What happens to your inbuilt benefits if you

choose Accumulation 2?

We refer you to these booklets a lot throughout this PDS and when we do, we’ll shade them so they’re easy for you to spot.

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.

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.

Overview01

4

Benefits of UniSuper membership

WITH YOU ALL THE WAYNo 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:

A starting out in the workforce A progressing in your career A changing jobs A winding down your work hours A taking a well-earned break, or A transitioning-to-retirement

we offer a range of products and investment options to help you achieve your goals.

Since 1983, we’ve been Australia’s only super fund dedicated to people who work in the higher education and research sector. With approximately $60 billion in funds under management—and around 400,000 members—we’re one of Australia’s largest super funds. Since inception we’ve helped over 1.2 million Australians save and prepare for retirement. We’re committed to providing competitive and high-quality retirement saving products and services to our members, as well as a range of investment options.

About UniSuper

STAY WITH US EVEN IF YOU LEAVE YOUR EMPLOYERYou 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.

ACCESS OUR COMPETITIVE PENSION PRODUCTSYou 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.1 For more information, refer to the relevant Pension PDS and Your guide to a better retirement booklet available at unisuper.com.au/pds or by calling us on 1800 331 685.

COMPETITIVE FEESOur 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:

A any entry or exit fees, or A for 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.

DOWNLOAD OR ORDER OVER THE PHONEYou 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.

1 Past performance is not a reliable indicator of future performance.

5Defined Benefit Division and Accumulation 2 Product Disclosure Statement OVERVIEW

CONTROL AND CHOICE OVER YOUR INVESTMENTSEveryone has different needs when it comes to investments. So we offer you the flexibility and freedom to choose your own investment strategy for any accumulation super you have with us. 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 PERFORMANCEWe’re proud to have achieved returns that have exceeded industry benchmarks and averages for many of our investment options.1 For example, all of our pre-mixed accumulation options surveyed by SuperRatings (Conservative, Conservative Balanced, Balanced, Growth and High Growth) ranked in the top 25% of their respective peer fund surveys over three, five, seven and 10 years to 31 December 2016.1 ,2

WE’RE A MYSUPER-AUTHORISED FUNDUniSuper 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.

1 Past performance is not a reliable indicator of future performance.2 Source: SuperRatings Pty Ltd’s Fund Crediting Rate Survey

December 2016 published on 19 January 2017, 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.

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, 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 does not 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.

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

6 Defined Benefit Division and Accumulation 2 Product Disclosure Statement OVERVIEW

GENEROUS EMPLOYER CONTRIBUTIONSYour employer makes contributions that are well above those required by government Superannuation Guarantee (SG) legislation, which, when combined with your member contributions, can help you build your retirement savings.

MORE ABOUT USAt unisuper.com.au/governance you’ll 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 unisuper.com.au/mysuper/mysuper-dashboard.

3% before-tax

employer contributions

into accumulation component

(if applicable)17% before-tax employer contributions(or 14% if applicable)

14% before-tax

employer contributions into

defined benefit component

9.5% before-tax employer

contributions

7%2

after-tax employee contributions into defined benefit component

7%2

after-tax employee contributions

How UniSuper’s standard DBD and Accumulation 2 contribution rates compare to the standard Government contribution rate

STANDARD GOVERNMENT

CONTRIBUTIONS REQUIRED

UNISUPER DBD SUPER

CONTRIBUTIONS

UNISUPER ACCUMULATION

2 SUPER CONTRIBUTIONS

2 Contribution flexibility allows most members to reduce how much they pay down to zero.


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 deal in financial products and provide financial product advice. This means you can get financial advice from someone who understands the Fund and the higher education and research sector.

UniSuper Advice offers personal scaled advice on a few topics, or comprehensive personal advice. Personal scaled advice can cover topics like super contributions, investment options and insurance as they relate to your UniSuper account, as well as Flexi Pension set up and simple non-super savings. Comprehensive advice can help in areas like retirement planning, insurance, non-super investments and accumulating wealth. If you’ve already received advice, a review service is also available to help you stay on track with your goals.

Our advisers are required 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)—and each of our offices is an FPA Professional Practice.

UniSuper Advice operates on a fee-for-service basis. If you request personal advice services, UniSuper Advice will provide you with a quote before you proceed—there’s no obligation. UniSuper advisers are salaried employees and don’t receive any commissions. * 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.

We can help you make informed decisions

ATTEND ONE OF OUR SEMINARS OR WEBCASTSAs 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. Attendance is free, and they’re a great opportunity for you to learn more and ask questions about all sorts of super and pension-related topics.

We also offer live webcasts which you can participate in from the comfort of your own device. See unisuper.com.au/learning-centre to find out more.

ONLINE LEARNING TOOLSOur online Learning Centre lets you learn at your own pace, with videos, podcasts, tutorials and calculators to help simplify some of the more complex aspects of super.

MANAGE YOUR ACCOUNT ONLINEYou can also keep track of your super with MemberOnline—our secure, personalised member portal. MemberOnline allows you to:

A keep an eye on your account balance and contributions

A combine any super you’ve got in other funds into UniSuper without any paperwork

A prove your identity—online and free A update your details (including name and

date of birth) A see how your balance is invested by asset

class and major holdings A make investment switches A improve your—and your family’s—financial

literacy with the Money Savvy and T. Rowe Price’s Money Confident Kids® programs, and

A manage your insurance and do a range of other things to help you stay in control.

IT’S NOT TOO LATENo matter your stage of life, it’s never too late or early to plan your financial future. Contact UniSuper Advice on 1800 UADVICE (1800 823 842) or [email protected].


A Dr Jolynna Sinanan, RMIT

9

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’s intended that compulsory super will increasingly supplement the reliance on the Age Pension, and even fully-fund retirement for many Australians.

Superannuation (super) is a way to save for your retirement which is, in part, compulsory. It’s a long-term investment and is designed to provide you with a nest egg to help you fund your retirement.

How super works

The basics

Key features of Australia’s superannuation system include:

A compulsory contributions to super—these are made from your salary through the Superannuation Guarantee (SG)

A tax advantages—most people’s super will be taxed at a lower rate than similar investments outside of super

A 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

A limited access—you can only access your super in specific circumstances.

CONTRIBUTING TO SUPERAt 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 (in total and in each financial year) and still receive concessional tax treatment. It’s your responsibility to monitor the total contributions made 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 through MemberOnline. For more information on contributions and the limits, see ‘Making contributions’ from page 50.


TAX ADVANTAGESSuper 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 81.

Your super is one of the most important—and may be one of the biggest—investments you’ll have. Take the time to read through this PDS to work out the best options for you.

INSURANCE COVERIf 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 62 for more information, and read the Insurance in your super booklet at unisuper.com.au/pds.

ACCESSING YOUR SUPERSuper 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’ve reached your preservation age* and retired, but there are some special circumstances when you can withdraw it earlier. There may be additional restrictions if you’re a DBD member. For more information on accessing your super see page 67.

What does it mean?

STANDARD MEMBER CONTRIBUTIONSMembers of the DBD or Accumulation 2 are required to make the default level of standard member contributions—7% after-tax (or 8.25% before-tax and with the agreement of your employer). Members can elect to reduce this level under contribution flexibility arrangements, but this can have implications for their final benefit (see page 51 for more information).

VOLUNTARY MEMBER CONTRIBUTIONSVoluntary 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.

* See page 67 for information about your preservation age.

You’ve started your journey in the Defined Benefit Division

LEARN MORE ABOUT THE DBD

How does it work? page 28

How much can I contribute? page 50

What are my insurance and inbuilt benefit choices? page 33

What if I get sick? page 42

LEARN MORE ABOUT

ACCUMULATION 2

How does it work? page 44

How much can I contribute? page 50

What are my insurance choices? page 47

What if I get sick? page 47

Your account has two parts: defined benefit and accumulation. What next? You can keep both parts as a DBD member—or choose Accumulation 2 and forgo your defined benefits. You don’t have to pick straight away. You’ve got two years (24 months) to decide.

CHANGE TO ACCUMULATION-ONLY SUPER BY SWITCHING TO

ACCUMULATION 2

KEEP THE TWO PARTS AND STAY A DBD MEMBER

GETTING STARTED Page 12

WHAT STYLE OF SUPER WILL YOU CHOOSE? Page 12

HOW DO YOU INVEST YOUR SUPER? Page 60

WHO RECEIVES YOUR BENEFIT IF YOU DIE? Page 85

WHAT HAPPENS IF YOU LEAVE YOUR EMPLOYER? Page 70


12

Getting started: a guide to your decisionsTo help guide you through the decision-making process, we’ve provided a range of topics for you to consider. Before making any decision you may want to see one of our on-campus consultants for more details on the options and benefits available to you. Alternatively, you could consider getting personal financial advice from a qualified financial adviser.

What style of super will you choose?

You’re now a DBD member. Read the information on pages 18 and 19 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 to super each financial year at favourable tax rates (see page 50).

How do you want to invest your super?

With our wide range of investment options, you can tailor your accumulation super to suit your individual needs. You can’t make changes to the way your defined benefit is invested.

If you want to choose or change how you invest future contributions and transfers from other super funds—or even your existing balance—you can do this quickly and easily through MemberOnline. Read the How we invest your money booklet at unisuper.com.au/pds for more information.

ACCUMULATION 2 MEMBERSYou can choose the way all contributions made to your account—and any transfers into your account—are invested.

DBD MEMBERSYou can only choose the way contributions made to your accumulation component—and any transfers into your account—are invested. You can’t choose how your defined benefit component is invested.

3 You have 24 months from the earlier of 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’ve 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’ll remain a DBD member.


Do you want inbuilt benefits?

DBD MEMBERSDBD 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 change or opt out of them.

For more information on inbuilt benefits, including restrictions that may apply, read the ‘General information about inbuilt benefits’ section on page 41.

ACCUMULATION 2 MEMBERSIf DBD members choose to transfer to Accumulation 2, their inbuilt benefits will cease and they’ll instead receive external Death, Total and Permanent Disablement (TPD) and Income Protection cover through our Insurer, if they’re eligible. 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 you commenced in the DBD.

To find out how inbuilt benefits are transitioned to 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? booklet at unisuper.com.au/pds.

Accumulation 2 members can change or opt out of external insurance cover. For more information on the terms and conditions that apply to external insurance cover read the Insurance in your super booklet 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 default cover or apply for changes to your default 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 non-binding beneficiary nomination or a binding death benefit nomination (see pages 85-87).

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.

COMPARE FEATURES AT A GLANCE DBD MEMBERSHIP ACCUMULATION 2 MEMBERSHIPCONTRIBUTIONS

Up to 17% employer contributions Go to page 28

Go to page 45

7% standard member contributions (after-tax) Go to page 28

Go to page 45

Ability to reduce level of standard member contributions (contribution flexibility)

Go to page 51

Go to page 51

Ability to make standard member contributions on a before-tax (salary sacrifice) or after-tax basis

Go to page 50

Go to page 50

Regular and lump-sum voluntary member contributions accepted on before-tax (salary sacrifice) or after-tax basis

Into your accumulation component only. Go to page 31

Go to page 45

Ability to split super contributions with your spouse From your accumulation component only.

COMBINING YOUR SUPER

Transfers in from other funds accepted Into your accumulation component only. Go to page 61

Go to page 61

INVESTMENTS

Choice of how your super is invested For your accumulation component only. Go to page 60

Go to page 60

The value of your benefit is directly determined by the performance of your investment options

For your accumulation component only. Go to page 34

Go to page 44

INBUILT BENEFITS

Inbuilt benefits can be thought of as similar to death and disablement insurance, but they’re ‘built in’ to your defined benefits. In the event of temporary incapacity, disablement, terminal medical condition and death you may receive inbuilt benefits if you’re 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 38

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.

INSURANCE

In addition to your inbuilt benefits, 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.

Go to page 35, and read the Insurance in your

super booklet at unisuper.com.au/pds.

Go to page 44, and read the Insurance in

your super and What happens to your Inbuilt Benefits if you choose Accumulation 2?

booklets at unisuper.com.au/pds.

BENEFICIARIES

Options when nominating beneficiaries for your death benefit Go to page 85

Go to page 85

RISKS OF SUPER

Investment Accumulation component only Go to page 64

Go to page 64

DBD Go to page 25

Clause 34 may be enacted, requiring a change or reduction to the formula used to calculate your defined benefits

Go to page 30

General Go to page 63

Go to page 63

FEES

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 applicable to the DBD are allowed for

in the formula used to calculate your benefit and not deducted from your account balance.

Go to page 71

Go to page 71

16

Choose your style of superEveryone has different needs when it comes to 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 to invest your super. 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.

Accumulation 2 benefitUp 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 component3% employer contributions(if applicable)+ any voluntary member contributions, rollovers, and investment returns (positive or negative) -- any fees, costs, charges, insurance premiums and taxes

Defined benefit component14% employer contributions+ standard member contributions (if any)




Some of the key differences between the DBD and Accumulation 2

DBD

A Generally greater protection from investment market downturns—with the pooling of assets across the membership, the DBD provides benefits that are not directly subject to volatile market movements.

A Salary-linked benefits—these generally provide members with an increased ability to more effectively estimate their benefit at retirement.

A Inbuilt death, disablement and terminal medical condition benefits (you can’t opt out of these benefits).

A Generally steady, stable, reliable growth.

ACCUMULATION 2

A Ability to select your own mix of investment options for your whole account by choosing the strategy that works for you.

A Accumulation 2 members don’t 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 Accumulation 2 members can opt out of their external insurance cover, apply to scale it up or down, or mix and match the level and type of cover to suit their personal circumstances.

A 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.

WHAT’S BEST FOR YOU?When deciding what’s 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.

* 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? booklets available at unisuper.com.au/pds.


The Defined Benefit Formula

With both styles of super, you’re saving money for your retirement, but each uses a different method to arrive at the end amount.

What are the DBD and Accumulation 2?

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 (see page 30).

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 51.)

5-YEAR BENEFIT SALARY

BENEFIT SERVICE

LUMP SUM FACTOR

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.

For more information about inbuilt benefits, including restrictions, what happens if you cease service and the impact of exercising contribution flexibility, see page 41.

Not sure what these terms mean? See the Important definitions on page 91.


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 transitioned Death, Total & Permanent Disablement (TPD) and Income Protection insurance cover (if you’re eligible) provided through group insurance policies the Trustee has taken out with our Insurer.

While you won’t have inbuilt benefits as an Accumulation 2 member, you’ll have insurance cover which you can tailor to meet your personal needs (subject to acceptance by our Insurer).

Read the Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? booklets at unisuper.com.au/pds, to find out more about:

A what happens to your death, disablement and temporary incapacity benefits if you transfer to Accumulation 2

A how we determine the level of external insurance cover you receive on transition, and

A the terms, kinds of restrictions, exclusions or limitations that may apply to the insurance cover provided to Accumulation 2 members.

For more detail about how Accumulation 2 works, see page 44.


Insurance and inbuilt benefits

If you choose to transfer to Accumulation 2, the inbuilt benefits you have as a DBD member will cease and will be transitioned to external insurance cover. A pre-existing condition (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 on transferring to Accumulation 2, 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—together with this PDS—available at unisuper.com.au/pds.

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.


Joining UniSuper or transferring to the DBDIf you’re under 65 and the terms of your employment mean you’re eligible to join the DBD, simply follow these steps to get started.

If you want to transfer any other super you have to your UniSuper account, you can do this without any paperwork at unisuper.com.au/memberonline.

Alternatively, complete the Combine my super (rollover) form and return it to us.

UNISUPER ACCOUNT

OTHER ACCOUNT/S

Decide within the first 24 months of membership whether you want to remain in the DBD or transfer to Accumulation 2 (refer to page 26). For more information, watch the Choosing your style of super video at unisuper.com.au. Before you make a decision, consider seeing one of our on-campus consultants or seeking personal financial advice from a financial adviser.

ACCUMULATION 2

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 this form, you’ll 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.


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 takes into account your age, benefit salary, period of service, average service fraction, and average contribution fraction.

GENERALLY GREATER PROTECTION FROM MARKET DOWNTURNSThe defined benefit component of your super is not directly subject to market volatility, as investment returns don’t 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 BENEFITSThese 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 to be employed within the higher education and research sector for a reasonable period of time.

The following questions are just a few of the things you might want to think about when making your decision, but we haven’t considered your objectives, financial situation or needs. For that reason, you should carefully consider this information and how it applies to your personal circumstances.

Still not sure which type of super will suit you best?

* 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.


Age-based lump sum factors and time in the higher education and research sector

While employer contributions to the DBD are consistent relative to salary for most DBD members, the lump sum factors that are used to calculate your ultimate defined benefit increase with age.

Lump sum factors are based on your age when you leave the DBD (not the age at which you join the DBD). The table on page 94 shows how the lump sum factor changes as you near 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.

Remember, it’s the age at which you leave the sector that determines your lump sum—not your joining age. Your salary and service also play a very important role.

Do you want control over the way your super is invested?

With Accumulation 2, you can choose how all your super is invested from our range of investment options. In the DBD, you only choose how your accumulation component is invested.

External insurance cover or inbuilt benefits?

If you choose to transfer to Accumulation 2, your inbuilt benefits will be transitioned to external insurance cover provided through our Insurer (if you’re eligible). A PEC exclusion will apply to some or all of the transitioned cover. Once you receive this external insurance cover you can apply to tailor it to suit your personal circumstances.*

As a DBD member you’re 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 self-insured 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.

Eligible DBD members may also receive and pay for one unit of external default Death and TPD or Death-only cover through our Insurer. You can apply for more cover or opt out of the default cover if you want to.

What about fees and costs?

A As a DBD member, fees, costs, taxes and 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.

A As an Accumulation 2 member, fees, costs, taxes and premiums for insurance cover (if applicable) are deducted from your account.

Read the ‘Fees and other costs’ section on page 71 to find out more.

* To find out how we determine the level of cover you 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.


A Tony Roby, the University of Western Australia


When considering your investment in super, it’s important to understand that:

A the value of investments will vary and go up and down

A the level of investment returns will vary and future returns may differ from past returns

A investment returns are not guaranteed and you may lose some of your money

A super laws may change in the future A your future savings (including contributions

and returns) may not be enough to provide adequately for your retirement

A 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 of superAll 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.

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 you and your employer contribute, 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 isn’t 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 don’t contribute enough in standard member contributions or your period of service isn’t 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 63 to 65.


24 months to make a decision about your membershipIf you’re joining the DBD for the first time, you have 24 months from when you join to decide whether to remain in the DBD or transfer your benefit to Accumulation 2. If you don’t elect to transfer to Accumulation 2 within this period, you’ll remain a DBD member.

24 MONTHS TO DECIDEWhen you join as a DBD member you will have 24 months from the earlier of 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. We’ll write to you to remind you before your election period expires. Once you’ve made your decision, you can’t change your mind. If you don’t elect to transfer to Accumulation 2 within this period, you’ll remain a DBD member.

CHOOSING ACCUMULATION 2If you choose to transfer to Accumulation 2, your defined benefit will be converted to an accumulation benefit and transferred with your existing accumulation component to Accumulation 2. Your inbuilt benefits will also cease and be transitioned to external insurance cover. Read the What happens to your inbuilt benefits if you choose Accumulation 2? booklet at unisuper.com.au/pds.

If you stop work with your current employer during your 24-month decision 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’ll have a further 24-month election period from the date you re-join the DBD to make this decision, unless:

A your previous DBD membership was longer than the election period applicable at that time (in the past, members only had 12 months to make a decision), or

A you stopped being employed 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’ve 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 don’t elect to transfer to Accumulation 2 within the timeframe allowed, you won’t be able 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.

Defined Benefit Division02

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.

DOWNLOAD OR ORDER OVER THE PHONEYou 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.

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.

Typically, employer and member contributions make up both components as shown in this diagram.

A DBD member’s final defined benefit is 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.



29Defined Benefit Division and Accumulation 2 Product Disclosure Statement DEFINED BENEFIT DIVISION

As at 30 June 2017, the value of the assets in the DBD was approximately $22 billion. These assets are invested across 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 our range of investment options.

How your defined benefit component is calculated

Important note: The formula above calculates your benefit on resignation and retirement (other than retirement due to disablement). Not sure what these terms mean? See the Important definitions on page 91.

Performance of the DBD over 30 years

Over three decades—and many economic cycles—no DBD member has had any reduction to their accrued benefit. Even after market downturns over recent years, benefits accrued by members have not been impacted. Many Australians haven’t been so fortunate.

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.

Past performance is not an indicator of future performance.

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.

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.

The DBD has a track record of enduring challenging economic times, in part due to pooling the asset base across over 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.


BENEFIT SERVICE

LUMP SUM FACTOR

AVERAGE SERVICE

FRACTION


FACTOR


Clause 34 of the Trust Deed provides a process to manage the DBD’s financial position, including a mechanism to reduce benefits if necessary. The Trustee uses two key actuarial measures to track the financial position of the fund—the Vested Benefits Index (VBI) and the Accrued Benefits Index (ABI).

Under Clause 34, if the Actuary’s report of its annual investigation and valuation of the DBD advises that those measures have fallen below particular levels (or the level of contributions is such that those measures are likely to fall below those levels), we must notify members and employers.

Four years after receiving this advice, if the Actuary’s subsequent report advises that the Fund’s position has not improved sufficiently, the Trustee must consider whether it is in the interests of all DBD members to reduce benefits payable.

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.

Risks associated with defined benefits

The four-year monitoring periods mean that the Trustee can make decisions in DBD members’ best interests. If benefit reductions are required, the Trustee must do this on a fair and equitable basis for all DBD members.

There is currently a Clause 34 monitoring period in place which will end when the first Actuarial Report has been presented to the Trustee after 30 June 2017. The Trustee may then consider if defined benefit reductions are required. If benefit reductions are required, the approach would depend on the circumstances after the monitoring period concludes. However, it could include changes to the rate at which your defined benefits accrue, reductions to the accrued value of your defined benefit, or a combination of both. For more information, go to unisuper.com.au/dbdupdate.


As a DBD member, your employer is likely to be making contributions of up to either 14% or 17% of salary and you’re likely to be making standard member contributions into your super.

Making contributions

Making standard member contributions

In addition to the employer contributions, all DBD members are required to make standard member contributions at the default level of 7% (after-tax) of their salary unless they elect to reduce them through UniSuper’s contribution flexibility arrangements.

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 before-tax basis. If you make the contributions on a before-tax basis, you’ll 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 50.

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 it at a later stage. It may also mean there are no contributions going into your accumulation component, which can have flow-on impacts like not being able to pay premiums for any external insurance cover you have through UniSuper (if your balance can’t cover the cost). Contribution flexibility could have an impact on your inbuilt benefits. Read more about ‘Making contributions’ and ‘Contribution flexibility’ on pages 50 and 51.

Additional voluntary member contributions

Voluntary member contributions go into the accumulation component of the Defined Benefit Division and include:

A salary sacrifice or after-tax contributions above your standard member contributions

A after-tax lump sum contributions.


If your salary reduces

Salary reductions can be a result of any number of changes, including switching roles or a change in your duties at work. For DBD members, having a lower salary may reduce your retirement benefit and inbuilt benefits. That’s because your defined benefit component and inbuilt benefits are, in part, based on your five-year benefit salary.

If your salary reduces you may, in certain circumstances, be able to continue to make standard member contributions based on your previous salary. In this way, DBD members can ensure that, for benefit calculation purposes, their previous higher salary is used in place of their lower current 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.

For more details about the options that may be available to you if your salary reduces, see the What happens to my super if my salary is reduced? fact sheet at unisuper.com.au/brochures.


‘Inbuilt benefits’ can provide you (and/or your dependants) with benefits payable on disablement, temporary incapacity, suffering a terminal medical condition and death. They’re calculated based on formulae set out in the Trust Deed, contain a component self-insured by UniSuper, and you can’t opt out of them.

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 known 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, see pages 38 to 42 in this section.

Inbuilt benefitsDBD members also receive inbuilt benefits, subject to meeting certain conditions.


A Manekha Jacobs, the University of Melbourne


If you’re a DBD member who has transferred over from Accumulation 1, you may already have external Death and TPD insurance cover. This cover will continue when you join the DBD so long as you satisfy the requirements under the policy. Insurance premiums will be deducted from your accumulation component, and any Income Protection cover you had as an Accumulation 1 member will cease.

You may also have the option of applying for more Death and TPD insurance cover or opting out of the default insurance cover you receive on 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.

Please note—if you qualify for and receive both an inbuilt benefit through your DBD membership and an income protection insurance benefit outside of UniSuper, the income protection benefit outside of UniSuper may be reduced in order to offset your inbuilt benefit.

In addition to inbuilt benefits, DBD members may also be eligible to receive one unit of external default Death and TPD insurance cover through our Insurer.

Insurance cover through your accumulation component

You should read our Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? booklets at unisuper.com.au/pds, together with this PDS, before making any decisions about the external insurance cover available.

The following information summarises the benefit entitlements (including inbuilt benefits) of DBD members and the way they are calculated.


Your superWe 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 (refer to page 67), 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 using the formula set out on page 37. You can find examples of how the formula is applied if you retire or leave service on page 37.

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 39 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 leave and haven’t already re-commenced contributing to 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. We’ll give you some time to decide, known as your ‘option period’.

Your ‘option period’ is the later of 90 days after leaving your job, or 30 days after the Trustee writes to you about your options for transferring or deferring a benefit.

If you don’t provide us with instructions for your super within your ‘option period’—and you have not already re-commenced contributing to the DBD—the value of your defined benefit component (together with your accumulation component) will be transferred to Accumulation 1.

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. If you don’t have an accumulation component, or haven’t 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.

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.


Example – Liz’s leaving service benefit on 1 January 2027

Liz is 40 years old, joined the DBD on 1 January 2016 and has decided on 1 January 2027 to terminate her employment. She 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. Her five-year benefit salary is $50,000 and her accumulation component is $30,000. Liz’s leaving service benefit will be made up of the sum of her defined benefit component and her accumulation component. As Liz is 40, her benefit is preserved so she must retain it in the superannuation system.

SCENARIO 1: CONTINUOUS FULL-TIME EMPLOYMENT AND 7% STANDARD MEMBER CONTRIBUTIONSAs Liz worked full time with the same employer, her average service fraction is 100%. Having always made the default level of standard member contributions (7% after-tax), Liz’s average contribution factor is 100%.

Her defined benefit component[$50,000 x 11 x 18.0% x 100% x 100%] = $99,000

Liz’s leaving service benefitDefined benefit component: $99,000 Accumulation component: $30,000 Total leaving service benefit: $129,000

SCENARIO 2: PART-TIME EMPLOYMENT, PARENTAL LEAVE OR UNPAID LEAVEIf Liz worked part time, or took parental and/or unpaid leave for a while, her average service fraction would be less than 100%. For the purpose of this example, let’s assume it’s 75%. Her average contribution factor is still 100% as she’s always made the default level of standard member contributions (7% after-tax).

Her defined benefit component [$50,000 x 11 x 18.0% x 75% x 100%] = $74,250


SCENARIO 3: REDUCED STANDARD MEMBER CONTRIBUTIONSIf after 8 years, on 1 January 2024, Liz reduced her 7% after-tax standard member contributions to 3%, her average contribution factor will be less than 100%.

In this case, her average contribution factor = (8 x 100% + 3 x 91.7%) ÷ 11 = 97.74%

Liz is still working full-time, so her average service fraction is 100%.

Her defined benefit component[$50,000 x 11 x 18.0% x 100% x 97.74%] = $96,763


Defined benefit retirement and leaving service formula

The terms in this formula are defined from page 91.


BENEFIT SERVICE

LUMP SUM FACTOR

AVERAGE SERVICE

FRACTION


FACTOR


Inbuilt benefits

DISABLEMENT AND TEMPORARY INCAPACITY BENEFITSIf you qualify for a disablement benefit prior to age 65 or a temporary incapacity benefit, your monthly benefit will be: 60% of your five-year benefit salary, multiplied by your average service fraction, divided by 12.

Temporary incapacity benefitsTemporary 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 100% 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%).

For more information about how and when these benefits will be paid, refer to the Inbuilt disablement benefits for DBD members and Inbuilt temporary incapacity benefits for DBD members fact sheets at unisuper.com.au/brochures.

Disablement benefitDisablement 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 of your five-year benefit salary multiplied by your average service fraction as at your date of disablement. 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 (see ‘Partial withdrawals’ on page 42).

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 can 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 DBD members.


TERMINAL MEDICAL CONDITION BENEFITIf 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’ll 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 (see page 40 for a description of how death benefits are calculated).

If you have external insurance cover in addition to your inbuilt benefits, 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.

Example – Alison’s temporary incapacity benefit

Alison joined the DBD on 1 January 2016. She is working full time and making the default level of standard member contributions (7% after-tax) 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 makes the default level of standard member contributions (7% after-tax) and has had periods of working part-time during his employment. He’s 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 Inbuilt disablement benefits for DBD members and Inbuilt temporary incapacity benefits for DBD members fact sheets at unisuper.com.au/brochures.


Example – Anne’s inbuilt death benefit

Anne was aged 48 when she died on 1 January 2027. Her five-year benefit salary was $77,500 and she was a UniSuper member for 8 years.

She had not exercised contribution flexibility at the time of death, and her average service fraction and 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 8 x 19.6% x 100% x 100% = $121,520 + $77,500 x 12* x 21% x 100% = $195,300

Total death benefit under B) = $316,820

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.

*Includes 12 years of potential service to age 60.

DEATH BENEFITThe inbuilt death benefit is a lump sum amount calculated as the greater of the following amounts:

A A) A lump sum amount calculated as: five-year benefit salary x Benefit Service x 21% x Average Service Fraction (ASF), and

A 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.

Note that 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.

‘GF’ means the greater of: A your Service Fraction at the date of death;

and A 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.

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 your accumulation component plus—if you have external insurance cover—any insurance proceeds that may also be payable under the insurance policy.

* Based on service at the time of your death.


General information about inbuilt benefits

IF YOU CEASE SERVICEIf 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. For more information, read the Terminal medical condition benefit, Disablement benefits for Defined Benefit Division members, and Temporary incapacity benefits for Defined Benefit Division members fact sheets at unisuper.com.au/brochures.

You generally won’t be eligible to receive a continued inbuilt benefit if:

A you exit UniSuper and cease to be a member within the 90-day period,

A you again become a contributing member of the DBD within the 90-day period, or

A 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 BENEFITSInbuilt disablement and temporary incapacity benefits may be reduced if you’re receiving workers’ compensation or similar payments under legislation or an industrial award or agreement, or if you engage in work (whether paid or unpaid). Inbuilt benefits may not be payable or may be reduced if:

A you’ve completed less than three years of contributing service after joining UniSuper or transferring into the DBD from Accumulation 1 or a Spouse Account, and

A 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 you joined, transferred or resumed.

Inbuilt benefits may also not be payable if: A you fail to provide the Trustee with

requested medical or other information, A the information you provide is

unsatisfactory, false or misleading, or A you fail to disclose relevant information to

the Trustee.

To be eligible to receive an inbuilt disablement or temporary incapacity benefit, you need to have been absent from employment through injury or illness for three months, within a period of twelve consecutive months immediately prior to ceasing service (disablement) or immediately prior to lodging a claim (temporary incapacity).

Once eligible for this inbuilt benefit, you’ll need to satisfy the following additional conditions before you can receive your first payment:

A Disablement Benefits – exhausted any sick leave entitlements

A Temporary Incapacity Benefits – exhausted any sick leave

entitlements; and – been absent from work for a period of

seven consecutive days without pay at the end of the three-month qualifying period.


COST OF INBUILT BENEFITSIf you’re 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.

IMPACT OF CONTRIBUTION FLEXIBILITYIf you reduce your standard member contributions under our contribution flexibility arrangements, you’ll still be entitled to inbuilt benefits but the amount of inbuilt benefits may vary (for example, any inbuilt death benefit would be reduced). To read more about contribution flexibility, go to page 51.

OTHER LOWER CONTRIBUTION LEVELSIf you qualify for half contributions, your service fraction will be reduced by half—meaning your inbuilt benefits will be reduced as well (because your average service fraction will be lower over time).

Partial withdrawals

Under certain limited circumstances, you may be eligible to access some of the super in your defined benefit component.

If this occurs, the value of your defined benefit component will be reduced to reflect the lump sum paid. A ‘reduction factor’ will be determined and applied to your Benefit Service—the part of the formula which is used to calculate your defined benefit. The reduction factor will continue to apply to all future defined benefit lump sum calculations.

Given that the reduction factor decreases the value of your defined benefit component, the value of your inbuilt death benefit also reduces.

WHEN DOES THE REDUCTION FACTOR APPLY?The reduction factor applies if:

A you elect to take a lump sum Disablement benefit, or

A the value of your defined benefit component is adjusted to give effect to:

– a Family Law payment split, or – a payment on approved compassionate or

severe financial hardship grounds.

For more information, read the How your defined benefit component is impacted after a partial withdrawal fact sheet at unisuper.com.au/brochures.

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 UCLAIM (1800 825 246) to obtain the relevant claim forms. You can learn more about the claims process at unisuper.com.au/claims. 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. If you or your beneficiaries don’t agree with our decision in relation to the claim, you may ask for it to be reviewed by the Trustee.

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 on 1800 UCLAIM (1800 825 246) or writing to:

UniSuper Claims Department Level 1, 385 Bourke Street Melbourne VIC 3000

FIND OUT MOREFor more information about inbuilt benefits (including special conditions and limitations), refer to the following fact sheets available at unisuper.com.au/brochures:

A Temporary incapacity benefits for Defined Benefit Division members,

A Disablement benefits for Defined Benefit Division members, and

A Terminal medical condition benefit.

Accumulation 203

44 Defined Benefit Division and Accumulation 2 Product Disclosure Statement 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. It can help to think about this style of super as similar to a bank account.

What is Accumulation 2 ?

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.

If you don’t choose a future contributions investment strategy, your contributions will be invested in the Balanced option, our default investment option and MySuper offering. Please refer to the How we invest your money booklet at unisuper.com.au/pds for more information on investment options.

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 transitioned cover provided when they transfer from the DBD, which will be added to any existing cover they may already have. A pre-existing condition (PEC) exclusion applies to some or all of the transitioned cover for between 12 months to three years. For more information about the insurance provided to Accumulation 2 members, including eligibility criteria, the kinds of restrictions, exclusions and limitations that may apply, premium rates and how PEC applies to transitioned cover, read the Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? booklets at unisuper.com.au/pds.




45Defined Benefit Division and Accumulation 2 Product Disclosure Statement ACCUMULATION 2

Making standard member contributions

When you become an Accumulation 2 member, you’re still required to make standard member contributions at the rate of 7% (after-tax) of your salary, unless you’ve exercised contribution flexibility (read more about contribution flexibility on page 51). You have the choice of making them on an after-tax or equivalent before-tax basis.

Read more about making contributions and your options on page 50.

Reducing your standard member contributions—contribution flexibility

You can reduce your standard member contribution rate through an arrangement known as contribution flexibility. If you 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. Read more about ‘Making contributions’ on page 50.

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.

Additional voluntary member contributions

You can also make additional voluntary member contributions (subject to limits) including:

A regular member contributions in addition to your standard member contribution rate

A once-off lump sum member contributions.

Read more about this on page 57.

47Defined Benefit Division and Accumulation 2 Product Disclosure Statement ACCUMULATION 2

Retirement and leaving service benefit

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 leave your job and you’re no longer eligible for Accumulation 2 membership, your benefit will automatically be transferred to an Accumulation 1 account. 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, read the Insurance in your super booklet at unisuper.com.au/pds.

Accumulation 2 membership – types of benefits

Total and permanent disablement (TPD)

If you become totally and permanently disabled and your claim for a TPD benefit is approved by our Insurer, the insurance proceeds will be paid to us and released to you if you’ve satisfied a relevant condition of release.

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—read the Insurance in your super booklet at unisuper.com.au/pds. This booklet also outlines the kinds of restrictions, exclusions or limitations that may apply.

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.


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:

A the amount represented by the number of units our Insurer last accepted for you, and

A 85% of your monthly pre-disability income (with any amount above 75% of your pre-disability income to be paid as a super contribution).

For information about the cover available under the Salary Continuance group insurance policy, including the restrictions, exclusions or limitations that may apply, read the Insurance in your super booklet at unisuper.com.au/pds.

Death and terminal illness benefit

If you die or suffer a Terminal Illness and the relevant claim is approved by our Insurer, the insurance proceeds will be paid to us and released to you or your beneficiaries if a relevant condition of release is satisfied.

To the extent that our Insurer declines a claim for death or Terminal 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 Illness) cover available under the group life policy—including any restrictions, exclusions or limitations that may apply—read the Insurance in your super booklet at unisuper.com.au/pds.

General information04

50 Defined Benefit Division and Accumulation 2 Product Disclosure Statement GENERAL INFORMATION

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.

Making contributions

Employer contributions

Generally, contributions equal to 14% or 17% of your salary are made by your employer.

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 (providing you’re making standard member contributions).

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’re required to deduct a further 32% in ‘No-TFN contributions tax’.

Standard member contributions

In addition to your employer contributions, DBD and Accumulation 2 members are required to make the default level of standard member contributions of 7% (after-tax) of your salary. You can also make standard member contributions on a before-tax basis.

You can 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—see ‘What you need to consider’ on the next page.

In certain circumstances, you may qualify for ‘half contributions’. Under this arrangement, you’ll 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 choosing contribution flexibility.


51Defined 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 five-year period used to calculate five-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’re receiving 17% employer contributions, or to a minimum of 2.55% if you’re 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. Once you’ve elected to reduce your standard member contributions, you can’t increase them at a later date.

WHAT YOU NEED TO CONSIDERIf you reduce your standard member contributions, you’ll 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 53).

You can’t reinstate your previous level of standard member contributions at a later date once you’ve 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.

To make before-tax standard member contributions, you’ll need a salary sacrifice arrangement with your employer. Standard member contributions from your before-tax salary will be treated as employer contributions and be subject to 15% contributions tax—they’ll also count towards your concessional contributions cap. You can only make standard member contributions from your before-tax or after-tax salary—not a combination of both.

STANDARD MEMBER CONTRIBUTION LEVELSIf you’re receiving 17% employer contributions you can make your standard member contributions at the following levels

If you’re receiving 14% employer contributions you can make your standard member contributions at the following levels

7.00% after-tax (8.25% before-tax)












0.00% (zero)


ACCUMULATION 2 MEMBERSHIPContribution 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.

DBD MEMBERSHIPAny 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% (after-tax) to maintain your full defined benefit entitlement. Your entitlement to inbuilt benefits will not be affected, but the amount your beneficiaries receive on your death will be lower because you will have been making lower contributions. 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 above table.

STANDARD MEMBER CONTRIBUTION LEVELS (EMPLOYER CONTRIBUTES 17%)

EFFECT ON YOUR DEFINED BENEFIT

7% after-tax (8.25% before-tax) Your full defined benefit entitlement is maintained. Your 3% additional employer contribution is made into your accumulation component.

4.45% after-tax (5.25% before-tax) 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 external insurance cover, which are paid from your accumulation component.

4% after-tax (4.70% before-tax) Your defined benefit entitlement is scaled back to reflect your reduced standard member contributions. Your 3% additional employer contribution, formerly made to your accumulation component, is redirected to your defined benefit component.

3% after-tax (3.55% before-tax)2% after-tax (2.35% before-tax)1% after-tax (1.20% before-tax)Minimum level: 0%

IF YOUR EMPLOYER CONTRIBUTES 14% TO YOUR SUPERTo maintain your full defined benefit entitlements, you must make the default level of standard member contributions (7% after-tax). 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. More information about the effect of reducing standard member contributions is outlined in the tables on pages 52 and 53.

You will generally not be provided with default Death and TPD insurance cover through your accumulation component. 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 to cover your insurance premiums. Your application will also be subject to you providing evidence of your health, and will need to be approved by our Insurer.


ELIGIBILITY FOR INSURANCE COVER IF YOU ELECT CONTRIBUTION FLEXIBILITYAs a DBD member, if you’re receiving 17% employer contributions, your eligibility for external insurance cover under UniSuper’s group life policies may be affected if you reduce your standard member contributions, as outlined below:

A 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 default cover (one unit of Death and TPD cover) and up to three units of Death and TPD cover without having to provide our Insurer with evidence of your health:

– you’ll 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’ll 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, read the Insurance in your super booklet 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 56.

Salary sacrifice contributions are regarded as employer contributions and the 15% contributions tax applies, because you haven’t yet paid any tax on this income. If we don’t have your TFN, these contributions may be taxed at 47%. To make the equivalent of a 7% after-tax standard member contribution, you’ll 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.

STANDARD MEMBER CONTRIBUTION LEVELS (EMPLOYER CONTRIBUTES 14%)

EFFECT ON YOUR DEFINED BENEFIT

7% after-tax (8.25% before-tax) Your full defined benefit entitlement is maintained. 6.55% after-tax (7.70% before-tax)

Your defined benefit entitlement is scaled back to reflect your reduced standard member contributions.

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)Minimum level: 2.55% after-tax


Government co-contributions

If your total income is $36,813 per annum or less for 2017-18, the government will contribute $0.50 to your account for every dollar of non-concessional (after-tax) contributions you make into your super, up to a maximum of $500. This is called a co-contribution. If you earn more than $36,813 per annum for 2017-18, you may still benefit from government co-contributions. However, the amount of government co-contribution gradually reduces as your total income increases, before phasing out completely if you earn $51,813 per annum or more. Government co-contributions are tax-free.

The ATO will automatically match information from your tax return with information provided by us. If you’re eligible, the co-contribution will be automatically paid into your super account during the following financial year and will be preserved until you meet a condition of release.

ELIGIBILITY REQUIREMENTSGenerally, to be eligible for co-contributions you need to:

A earn an annual total income of less than the $51,813 threshold for the 2017-2018 financial year with at least 10% of your total income coming from eligible employment-related activities and/or carrying on a business

A make an eligible personal super contribution during the income year into a complying super fund and don’t claim a deduction for all of it

A be less than 71 years of age at the end of the financial year in which contributions are made

A be a permanent resident of Australia (limited exceptions apply to New Zealand citizens and other prescribed people holding temporary visas)

A lodge an income tax return for the relevant financial year,

A meet the requirements of superannuation law for making voluntary contributions,

A have a total super balance of less than the general transfer balance cap on 30 June for the previous financial year , and

A make sure the contribution/s you make to super don’t exceed your non-concessional (after tax) cap for that year.

We need your TFN before we can accept your government co-contribution or personal contribution. For tax purposes, your ‘total income’ is determined in accordance with applicable laws. Refer to the information about government co-contributions on the ATO website for details.

Low income superannuation tax offset

The Low Income Superannuation Tax Offset (LISTO) scheme provides a tax offset of up to $500 per year for individuals with a taxable income up to $37,000 who satisfy the eligibility criteria. Eligible members will receive a government super payment of 15% of their concessional (before-tax) super contributions.

To be eligible for the LISTO: A you must have concessional (before-tax)

contributions (including notional taxed contributions to a defined benefit fund) for the year of income

A your adjusted taxable income must not exceed $37,000

A you must not have held a temporary resident visa during the relevant financial year, and

A you must satisfy an income test in which 10% or more of your total income is derived from business or employment.

If you’re eligible, the ATO will assess your entitlement and pay the LISTO directly into your super account for you.


KEEP AN EYE ON YOUR CONTRIBUTIONSIt’s your responsibility to monitor the total contributions made into your UniSuper account—and to any other super accounts you have—to ensure you don’t exceed the caps or your total super balance (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.

Each cap applies to all contributions made by you or 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 (2017-18)Concessional cap Non-concessional cap^$25,000* $100,000

* There is 15% tax payable by your fund on concessional (before-tax) contributions paid into a super fund. Your super fund usually reduces your super account by your share of this tax.

^ An additional lifetime cap known as the total super balance applies to non-concessional (after-tax) contributions. See page 57 for more details.

IMPORTANTExceeding your contribution caps may have tax implications. See the ‘How super is taxed’ section from page 81 for more information.


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 of 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 or component.

DBD MEMBERS AND NOTIONAL TAXED CONTRIBUTIONSNotional Taxed Contributions (NTCs) are the notional amount of contributions (excluding non-concessional (after-tax) contributions) that relate to your defined benefit component. NTCs are counted towards your concessional contributions cap and are added to the other concessional (before-tax) contributions made to your accumulation component in a financial year.

What this meansNTC 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.

It’s important to remember that although your NTC value may be lower than the actual before-tax 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 via MemberOnline at unisuper.com.au. More details can also be found in the following fact sheets, available on our website:

A The concessional contributions cap and NTC rates for DBD members receiving 17% employer contributions

A The concessional contributions cap and NTC rates for DBD members receiving 14% employer contributions.

CAPS ON CONCESSIONAL (BEFORE-TAX) CONTRIBUTIONSConcessional contributions are generally contributions made by you, or for you, before tax is paid.

They include employer contributions (to accumulation divisions), notional taxed contributions (for members of the Defined Benefit Division), salary sacrifice contributions and eligible personal contributions 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. They’re generally taxed at 15% when received by your super fund, unless your relevant income is over $250,000 (including concessional contributions), in which case some or all are taxed at 30%.

A cap of $25,000 applies to concessional contributions in any given financial year.

From 1 July 2018, if you have a total super balance of less than $500,000 on 30 June of the previous financial year, you can carry forward any unused concessional contributions under your cap on a rolling basis for five years.

This means that from 1 July 2019 you may be able to access unused concessional contributions for one or more of the past five financial years on a rolling basis. You can add to your super balance by making additional concessional contributions, using your concessional cap allowance from the previous year(s).

If you exceed the 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’ve already paid the 15% contributions tax through your super. The offset is not refundable.

You may also be liable to pay an excess concessional contributions charge on the increase in your tax liability relating to the excess concessional contributions for the relevant financial year.


CAPS ON NON-CONCESSIONAL (AFTER-TAX) CONTRIBUTIONSThere’s a limit to the amount of non-concessional (after-tax) contributions that can be made each financial year without exceeding your non concessional contributions cap. The limit depends on the amount you already have in super—and your age.

If your total super balance at 30 June of the previous financial year is less than the general transfer balance cap (which is currently $1.6 million), you can generally contribute up to the annual non-concessional (after-tax) contributions cap of $100,000.

If you do make non-concessional contributions above the annual non-concessional cap you will have excess non concessional contributions.

If you’re under 65, you may be able to ‘bring forward’ up to three years of non-concessional contributions if your non-concessional contributions exceed the cap in a financial year.

The cap amount you can bring forward, and whether you have a two- or three-year bring-forward period, will depend on your total super balance at the end of June of the previous financial year.

The table below outlines the bring-forward entitlements apply for the 2017-18 financial year.

Your total super balance at 30 June of the previous financial year and your non-concessional contributions cap takes into account the total of all your super accounts, not just your UniSuper account/s.

See the ATO website, www.ato.gov.au, for more information.

What happens if you go over the cap?If you exceed your non-concessional contributions cap, you may choose to release the super contributions in excess of your non-concessional contributions cap plus 85% of any associated earnings. The associated earnings are taxed at your marginal tax rate. You’ll also receive a 15% tax offset on the associated earnings included in your assessable income. The offset is not refundable.

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. 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. In this case, you’ll be liable to pay tax on the excess contributions at a rate of 47%.If your contributions exceed the non-concessional contributions cap in a financial year, the excess amount could be taxed at up to 94% 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.

TOTAL SUPER BALANCE ON 30 JUNE 2017

NON-CONCESSIONAL CONTRIBUTIONS CAP FOR THE FIRST YEAR

‘BRING FORWARD’ PERIOD

Less than $1.4 million $300,000 Three years$1.4 million to less than $1.5 million

$200,000 Two years

$1.5 million to less than $1.6 million

$100,000 No bring-forward period, general non-concessional contributions cap applies

$1.6 million Nil N/A


Spouse contributions tax offsetYour spouse can contribute to your UniSuper account on your behalf and may be eligible to receive an 18% tax offset on spouse contributions they make for you of up to $3,000. However, this is subject to eligibility requirements and depends on the level of your assessable income and reportable fringe benefits and reportable super contributions. Both you and your spouse must be Australian residents when the contribution is made.

Your spouse will not be eligible for the tax offset where you have exceeded you non-concessional contributions cap for the relevant year or your total super balance is equal to or greater than the general transfer balance cap (currently $1.6 million for 2017-18).

The maximum spouse contribution tax offset of $540 is available where contributions of up to $3,000 are made on behalf of your spouse in an income year, and where the income threshold (noted above) of your spouse does not exceed $37,000.

Where the income of your spouse is greater than $37,000, the tax offset will gradually reduce and will completely phase out once the income level of your spouse reaches $40,000.

For more information about the spouse contributions tax offset, please refer to the ATO website, www.ato.gov.au.

WHEN WE CAN’T ACCEPT CONTRIBUTIONSIn some cases, certain requirements must be met before we’re permitted to accept your contributions.

If you don’t provide us with your TFNYour tax file number (TFN) is the unique, confidential number which links all your investments, super and taxation records to your identity.

While it’s not compulsory to give us your TFN, if you don’t, any contributions or transfers that would attract tax (such as employer contributions or salary sacrifice contributions) may be taxed at the highest marginal tax rate.

It’s important for us to have accurate and up-to-date information about you to manage your account efficiently and protect your retirement savings. We use details such as your name, date of birth and also your tax file number (TFN) to:

A match contributions and transfers from other super funds to your account, and

A verify your identity if you’re transferring super out of UniSuper.

You can give us your TFN by visiting unisuper.com.au/memberonline and going to the ‘Personal details’ page.

Age restrictions on contributing to superThe table on page 59 outlines the contributions we can and can’t accept for each age group.

Note: if you’re a DBD member and you reach age 75, your defined benefit component will be deferred and any future contributions will be made to your accumulation component


Meeting the work test requirementsTo meet the work test requirements you must 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. 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.

TEMPORARY ALLOWANCESIf 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’ five-year benefit salary, but increase their service fraction—whereas permanent allowances will form part of the five-year benefit salary. This ensures 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, but they’re generally classified as permanent or temporary by your employer when the allowance commences.

MEMBER’S AGE AT TIME OF CONTRIBUTION

PERSONAL CONTRIBUTION- MADE BY THE MEMBER

OTHER CONTRIBUTION- MADE BY SOMEONE OTHER THAN MEMBER OR EMPLOYER

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 Yes65 to 69 Work test Work test Work test Yes70 to 74 Work test No Work test Yes75 and over No No No Yes


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 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 UniSuper, you haven’t selected a future contributions strategy, any contributions received will automatically be invested in the Balanced option, our default investment option.

Members with an Accumulation 2 account or DBD accumulation component can decide which investment options their contributions and rollovers are invested in.

Investment options

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 don’t 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’ve transferred into the DBD or Accumulation 2 from another membership category in UniSuper and you haven’t 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.


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 via MemberOnline at any time and no fee applies for changes. If you haven’t 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 via MemberOnline. This is referred to as a switch. Switching doesn’t 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 72 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 or by calling us. A switching fee may apply—refer to the table on page 72 for details.

Our How we invest your money booklet explains when your switch will become effective.


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 38 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 don’t have inbuilt benefits. If you choose to transfer to Accumulation 2, your inbuilt benefits will cease and you’ll receive external Death, TPD and Income Protection insurance cover (referred to in this PDS as transitioned 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.

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.

MORE INFORMATION?To find out more about the types of cover, options and premium rates that apply to external insurance cover—including information about restrictions, exclusions or limitations that might apply—please read the Insurance in your super booklet at unisuper.com.au/pds.

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? booklet at unisuper.com.au/pds.


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

The impact of these risks may be short term or long term, depending on the conditions and circumstances that have given rise to them.

LEGISLATIVE RISKThis 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.

Risks of super

CYBER RISKThis 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.

OTHER GENERAL RISKS The fees and costs (including inbuilt charges and insurance premiums), associated with your membership may increase in future. However, we’ll give you 30 days’ written notice in advance of any increases in fees and charges (except in the case of annual indexation) payable to UniSuper (as opposed to third parties). There’s also the possibility that a new fee may 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’ll keep you informed of such changes, as required by law.


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 MEMBERSFor 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 don’t contribute enough in standard member contributions or your period of service isn’t 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 COMPONENTSFor 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’re 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) RISKThe 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 RISKThe 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 RISKThe 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.


COUNTRY RISKThe 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.

CURRENCY RISKThe 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 RISKThe risk that an organisation that deals with UniSuper will fail in its obligation and cause an investment option to incur a financial loss.

INFLATION RISKThe risk that inflation and/or interest rates may fluctuate and affect investment returns and the real value of your investment.

LIQUIDITY RISKThe 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 RISKUniSuper 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.

INVESTMENT OPTION RISKThere 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.

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:

A diversification – spreading your money across a number of different investments, rather than just a few or even a single investment, and

A 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 long-term view when it comes to your super. You should consider your individual circumstances when deciding how to manage investment risk.

You may decide to seek professional financial advice to help assess your investment risk tolerance and approach.


A The University of Melbourne


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 on page 69.

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.

Super is a long-term investment. Accordingly, the government has placed restrictions on when you can access your benefit.

Accessing your benefit

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:

A permanently retiring from the workforce on or after reaching your preservation age,

A terminating employment after you reach age 60,

A reaching age 65, A permanent incapacity, A terminating employment with an employer

who contributed to UniSuper on your behalf and your benefit is less than $200, or

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


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:

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

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

A 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 inbuilt benefits (DBD members only) and insurance.

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’ve already become entitled to, but have voluntarily decided to keep within the super system (for example, you’ve reached age 65 but you are still working).

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:

A permanent incapacity, A temporary incapacity, or A terminal medical condition.

Benefits are also payable when a member dies.

See page 84 for more information about taxation for temporary residents.

Further information about accessing your benefit under the departing Australia superannuation payment system is in our Departing Australia superannuation payment (DASP) fact sheet at unisuper.com.au/brochures.

PLEASE NOTEBefore 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 at unisuper.com.au/brochures, call us on 1800 UCLAIM (1800 825 246) to discuss your options, or speak to a qualified financial adviser.


You will no longer have inbuilt benefits and will instead receive transitioned 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? booklet at unisuper.com.au/pds.

Limit on the amount of super that can be taken into retirement

There’s a limit (or cap) on how much of your super you can transfer from your accumulation phase super account(s) to tax free ‘retirement phase’ account(s) to receive your pension income. This limit is known as the ‘transfer balance cap’. If you transfer an amount into the retirement phase during the 2017-18 financial year, for example by commencing a pension, your personal transfer balance cap will be $1.6 million.

For more information about the transfer balance cap and the impact of exceeding that cap, please refer to the ATO website at www.ato.com.au and the relevant retirement product PDS.

Special rules for members eligible to take a Defined Benefit Indexed Pension and Commercial Rate Indexed Pension

Fifty percent of the income exceeding $100,000 per annum from defined benefit pensions (such as Defined Benefit Indexed Pension) and lifetime pensions (such as Commercial Rate Indexed Pensions) will be:

A included in a member’s assessable income, and

A potentially subject to income tax.

For example, if your annual pension income is $120,000, half of the $20,000 excess amount (i.e. $10,000) will be included in your assessable income and we will be required to withhold some tax from your pension payment.

DBD members – additional restrictions

Restrictions are imposed under the Trust Deed 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 cease to be a DBD member and you will be transferred from DBD to Accumulation 2. Your benefit entitlements will then be based on your account balance.


We strongly recommend you speak to a qualified financial adviser about your situation if you expect your annual pension to exceed $100,000 per annum.

For more information about the transfer balance cap and the impact of exceeding that cap, please refer to the ATO website at www.ato.com.au and relevant retirement product PDS

If you leave your jobIf 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, refer to the ‘Your super’ section on page 36. Read on for more information about Choice of Fund.

Read the Your super when you leave your job booklet at unisuper.com.au/brochures for important information about what happens to your inbuilt benefits when you cease service or leave your job.

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, call us on 1800 331 685.

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 you having insufficient funds to cover insurance premiums. Refer to the relevant insurance section of this PDS for more information.

You can download a Portability and rollover form from unisuper.com.au/forms. Note: portability transfers do not apply to the defined benefit component for DBD members.

Choice of fund

A Under Choice of Fund legislation, certain employees can choose the super fund into which their Superannuation Guarantee contributions are paid.

A 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.

A If you are a DBD member, you may not be eligible for Choice of Fund.

A 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 at unisuper.com.au.


Fees and other costs

CONSUMER ADVISORY WARNINGDid 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 account balance rather than 1% could reduce your final return by up to 20% over a 30-year 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. You or your employer, as applicable, may be able to negotiate to pay lower fees1. Ask the fund or your financial adviser.

Find out moreIf 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 calculator to help you check out different fee options. 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.

Competitive fees and no commissions

UniSuper members benefit from the savings we achieve 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 account balance, from the returns on your investment, or from UniSuper’s assets 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 this PDS.

You should read all the information about fees and other costs because it is important to understand their impact on your investment.

The fees and other costs for the Balanced investment option, and each other investment option offered by UniSuper, are set out on pages 71-78.

This section shows the fees and other costs you might be charged through your UniSuper membership


DEFINED BENEFIT DIVISION AND ACCUMULATION 2TYPE OF FEE AMOUNT HOW AND WHEN PAIDInvestment fee DBD

(for the investment options your accumulation component is invested in) Balanced 0.39%* per year (estimate based on Investment fee for the 2017 financial year).

The Investment fee for the investment options your accumulation component is invested in accrues daily and is deducted from the Balanced investment option and any other option(s) you’re invested in (as relevant).*

Accumulation 2Balanced investment option 0.39%* per year (estimate based on Investment fee for the 2017 financial year).

The Investment fee accrues daily and is deducted from the Balanced investment option and any other investment option(s) (as relevant).*

Administration fee DBD$221 per year1. 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 year ($8 per month).

This figure is generally indexed each 1 July.

$8 per month is deducted directly from your Accumulation 2 account.

If you have any part of your Accumulation 2 account invested in the Balanced investment option, the whole of this amount will be deducted from this option.

If you don’t have an investment in the Balanced investment 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 $13.10 switching fee on the date the switch becomes effective.

For members with an investment in the Balanced investment option prior to submitting their request, the fee will be deducted in full from this option prior to the switch being completed.

For members who do not have an investment in the Balanced investment option, the fee is deducted proportionally from the investment option(s) you have chosen.

For DBD members, the fee will be deducted from the accumulation component.

Exit fee Nil. Not applicable.


DEFINED BENEFIT DIVISION AND ACCUMULATION 2TYPE OF FEE AMOUNT HOW AND WHEN PAIDAdvice fees2 relating to all members investing in the Balanced investment option or any other investment option

Nil. Not applicable.

Other fees and costs2

Indirect cost ratio (ICR)

DBD3 (for the investment options your accumulation component is invested in)

Balanced 0.17%* per year (estimate based on ICR for the 2017 financial year).

DBDThe ICR for the investment options your accumulation component is invested in accrues daily and is deducted from the Balanced investment option and any other option(s) you’re invested in (as relevant).*

Accumulation 2Balanced investment option 0.17%* per year (estimate based on ICR for the 2017 financial year).

Accumulation 2The ICR accrues daily and is deducted from the assets of the Balanced investment option and any other option(s) you’re invested in (as relevant).*

1 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 and investment fee shown above are indicative only and are based on the ICR and investment fee for this investment option

for the year ended 30 June 2017, including several components which are estimates only. The actual amount you’ll be charged in subsequent financial years will depend on the actual fees, costs and taxes incurred by the Trustee in managing the investment option. The amounts of Investment fees and ICRs for other investment options are set out on page 78, and these are paid at the same frequency and in the same manner as the Balanced investment option. For further details, refer to the fees and cost applicable to your investment option on page 78.

IMPORTANT INFORMATIONIf changes (which aren’t materially adverse) are made to fees and costs, updated information will be available at unisuper.com.au or by calling 1800 331 685. You can request a paper or electronic copy of updated information without charge.


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 investment option can affect your superannuation investment over a one-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 superannuation option. This example is not applicable to DBD members as MySuper is not available to DBD members.

EXAMPLE – BALANCED INVESTMENT OPTION BALANCE OF $50,000

Investment fees 0.39%1 For every $50,000 you have in the superannuation product, you will be charged $195 each year.

PLUS

Administration fees

$96 ($8 per month)

And, you will be charged $96 in administration fees regardless of your balance

PLUS

Indirect costs for the superannuation product

0.17%1 And, indirect costs of $85 each year1 will be deducted from your investment

EQUALS

Cost of product

If your balance was $50,000, then for that year you will be charged fees of $376* for the superannuation product.


* Additional fees may apply. If the accumulation component of your DBD or your Accumulation 2 account is invested in investment options other than the Balanced investment option, the investment fees and indirect costs will be different to those displayed. Refer to the ‘Additional explanation of fees and costs’ section for further details.

1 The ICR and investment fee shown above are indicative only and are based on the ICR and investment fee for this investment option for the year ended 30 June 2017, including several components which are estimates only. The actual amount you’ll be charged in subsequent financial years will depend on the actual fees, costs and taxes incurred by the Trustee in managing the investment option.


ADDITIONAL EXPLANATION OF FEES AND COSTSInvestment fees and indirect cost ratio (ICR)The Investment fees and ICRs for the year ending 30 June 2017 can be viewed on page 78 or at unisuper.com.au/investment-costs. These costs show the total investment fees and indirect costs attributed to each of our investment options (excluding the fees that are charged directly to your account) as a percentage of the total average net assets of the relevant investment option.

We don’t directly deduct any performance-based fees from member accounts. However, some external investment managers may be entitled to receive performance-based fees if they generate strong investment returns. These are included in the investment fee and are indirectly borne by members invested in an option.

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’s not possible to accurately predict the amount of performance-based fees that may be payable in respect of a particular investment option in the next financial year. This will depend on:

A the investment returns generated during the year ahead

A which managers generate excess returns within their portfolios

A whether there were negative amounts (or positive amounts) being carried forward for those managers

A the individual fee arrangements (if any) which had been negotiated with the relevant investment managers

A the size of the portfolios being managed by those managers, and

A the proportion of those portfolios which relate to the relevant investment option.

The table on page 77 sets out the performance fees for each option

Borrowing costsUniSuper invested in interposed vehicles which incurred borrowing costs. The amount borne by particular investment options varied and those amounts are set out in the table below. These borrowing costs are recovered from the revenues of the particular investment prior to the distribution of any earnings from the investment. Viewed this way, these costs are an additional cost to members in the same way that they are a cost for any investor in the investment.


What’s an interposed vehicle? An interposed vehicle is a complicated concept to define completely and accurately. The following example illustrates, on a simplistic level, how an investor might invest in an interposed vehicle.

A An investor buys shares in a particular company listed on the Australian Securities Exchange. In this case, the shares in that company are an investment in their own right.

A On the other hand, an investor could invest in another entity (Fund A) which, in turn, invests in that particular company listed on the Australian Securities Exchange. In this case, Fund A will often be regarded as an interposed vehicle. When super funds disclose their fees and costs, they include fees and costs incurred by interposed vehicles. However, Fund A will not necessarily be an interposed vehicle if this was an investment in its own right and not a means of gaining exposure to the listed company.

Determining whether an entity is an interposed vehicle involves three separate tests. For a detailed explanation, we recommend you refer to the latest version of ASIC Regulatory Guide 97 Disclosing fees and costs in PDSs and periodic statements as well as any guidance (including Frequently Asked Questions) issued by ASIC in conjunction with Regulatory Guide 97. The Guide is available at www.asic.gov.au/regulatory-resources/find-a-document/regulatory-guides.

Transactional and operational costsEach investment option incurs transactional and operational costs to different extents. These typically include items such as:

A brokerage A stamp duty A settlement and clearing costs A bid / ask spreads (note that spreads

pertaining to over-the-counter derivatives have already been factored into our Investment Fees and/or ICR)

A market impact, and A property operating costs for options which

invest in property-related interposed vehicles.

INSURANCE PREMIUMSSee the Insurance in your super booklet at unisuper.com.au/pds for information on the premiums, restrictions, exclusions and limitations associated with your insurance cover. 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 the Trustee.

OPERATIONAL RISK FINANCIAL REQUIREMENTAustralian super funds are required to have an Operational Risk Financial Requirement (ORFR). This is required by the Australian Prudential Regulation Authority (APRA) and is intended to ensure that super funds have access to financial resources to cover losses, costs and expenses that may be incurred in the event of an operational risk.

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% per year 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. This target was met for the first time as at 30 June 2016. If there is a material shortfall in the future, deductions from Fund assets may be required to fund the shortfall.

CHANGES TO FEES AND COSTSIf changes (that aren’t materially adverse) are made to fees and costs, updated information will be available at unisuper.com.au or by calling us. You can request a paper copy of updated information without charge.


1 The borrowing costs, transactional and operational costs, and performance-based fees shown above are indicative only and are based on the borrowing, transactional and operational costs, and performance-based fees for this investment option for the year ended 30 June 2017, including several components which are estimates only. The actual amount you’ll incur in subsequent financial years will depend on the actual borrowing, transactional and operational costs, and performance-based fees incurred by the Trustee in managing the investment option.

2 Performance-based fees are already included in the investment fees and/or ICRs for each option. 3 These amounts reflect the fees and costs which we have incurred in managing the Listed Property option, for example, fees and costs we

incur in the course of investing in listed property securities (i.e. REITs) for that option. These figures do not include any amounts incurred by the REITs which the Listed Property option has invested in—such as costs relating to any real property and the other business activities of those REITs.

ESTIMATED BORROWING, TRANSACTIONAL AND OPERATIONAL COSTS, AND PERFORMANCE-BASED FEES BY INVESTMENT OPTION FOR THE YEAR ENDED 30 JUNE 2017

Option Transactional and operational cost (%)1 Performance-based fees (%)1,2

Borrowing cost (%)1

Cash 0.00 0.00 0.00

Australian Bond 0.10 (of which 0.01 has already been included in the investment fee and/or ICR)

0.00 0.00

Conservative 0.19 (of which 0.11 has already been included in the investment fee and/or ICR)

0.00 0.01

Conservative Balanced

0.24 (of which 0.16 has already been included in the investment fee and/or ICR)

0.00 0.02

Diversified Credit Income


0.00 0.00

Balanced 0.32 (of which 0.12 has already been included in the investment fee and/or ICR)

0.02 0.01

Sustainable Balanced


0.00 0.00

Growth 0.42 (of which 0.18 has already been included in the investment fee and/or ICR)

0.02 0.01

High Growth 0.48 (of which 0.18 has already been included in the investment fee and/or ICR)

0.02 0.01

Sustainable High Growth


0.00 0.00

Listed Property3 0.27 (of which 0.08 has already been included in the investment fee and/or ICR)

0.00 0.00

Australian Shares 0.65 (of which 0.21 has already been included in the investment fee and/or ICR)

0.00 0.02

International Shares 0.21 (of which 0.03 has already been included in the investment fee and/or ICR)

0.00 0.01

Global Environmental Opportunities


0.00 0.00

Australian Equity Income


0.00 0.00

Global Companies in Asia


0.00 0.00


ESTIMATED INVESTMENT OPTION FEES AND COSTS FOR THE YEAR ENDED 30 JUNE 2017

Option ICR(%)1 Investment fee(%)1 Total(%)2

Cash 0.06 0.14 0.20

Australian Bond 0.06 0.21 0.27

Conservative 0.18 0.27 0.45

Conservative Balanced 0.23 0.30 0.52

Diversified Credit Income 0.06 0.32 0.38

Balanced 0.17 0.39 0.56

Sustainable Balanced 0.06 0.30 0.36

Growth 0.22 0.44 0.66

High Growth 0.20 0.48 0.68

Sustainable High Growth 0.06 0.35 0.41

Listed Property3 0.06 0.43 0.49

Australian Shares 0.18 0.46 0.63

International Shares 0.06 0.37 0.43

Global Environmental Opportunities 0.06 0.244 0.30

Australian Equity Income 0.06 0.36 0.42

Global Companies in Asia 0.06 0.47 0.53

1 The ICR and Investment fee shown above are indicative only and are based on the ICR and Investment fee for this investment option for the year ended 30 June 2017, including several components which are estimates only. The actual amount you’ll be charged in subsequent financial years will depend on the actual fees, costs and taxes incurred by the Trustee in managing the investment option.

2 Components may not add to ‘Total’ due to rounding.3 These amounts reflect the fees and costs which we have incurred in managing the Listed Property option, for example, fees and costs

we incur in the course of investing in listed property securities (i.e. REITs) for that option. These figures do not include any amounts incurred by the REITs which the Listed Property option has invested in – such as costs relating to any real property and the other business activities of those REITs.

4 From 1 July 2017, we anticipate future investment fees including an extra 0.15% per annum.



FEES FOR UNISUPER ADVICEUniSuper Advice is a financial planning service available to UniSuper members 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.If you’re a Defined Benefit Division member, we can only deduct advice fees from your accumulation component.

ALTERATIONS TO FEESFees are generally reviewed annually and may increase on 1 July each year in line with increases in the Consumer Price Index (CPI) for the previous 12 months ending 31 December. Fees may change without your consent. UniSuper reserves the right to introduce a new fee or change any fees. We will give you 30 days’ written notice (except in the case of annual indexation of fees) before a new or increased fee takes effect.

TAXTax may be applicable to your super. For more information, please refer to the ‘Making Contributions’ (from page 50) and ‘How your Super is Taxed’ (from page 81) sections. Where fees and costs are tax deductible to the Fund, members will indirectly receive the benefit of those tax deductions.

GST AND STAMP DUTYAll 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 FEESThe Trustee may recover any bank fees incurred on a cost recovery basis.

Defined fees

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.

ACTIVITY FEESActivity fees relate to costs incurred by UniSuper’s Trustee if they are directly related to a Trustee activity:

A that is engaged in at the request, or with the consent, of a member, or

A that relates to a member and is required by law

and those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

The only activity fees charged by UniSuper are external insurance premiums.

ADMINISTRATION FEESAn administration fee is a fee that relates to UniSuper’s administration or operation and includes costs that relate to the administration or operation, other than

A borrowing costs, and A indirect costs that are not paid out of the

superannuation entity that the Trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the entity or in an interposed vehicle or derivative financial product, and

A costs that are 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.

UniSuper’s administration fee is $96 per year for Accumulation 2 members (deducted directly from your account), or $221 per year for DBD members (allowed for in the formula used to calculate your benefit).


ADVICE FEESAdvice fees relate directly to costs incurred by UniSuper’s Trustee because of the provision of financial product advice to a member by the Trustee or another person acting as an employee of, or under an arrangement with, the Trustee; 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’ll only be charged an Advice fee if you agree to receive personal financial advice from UniSuper Advice. The fees will be discussed and agreed with you at this time.

BUY-SELL SPREADSA 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.

No buy-sell spreads currently apply to your UniSuper account.

EXIT FEESAn exit fee is a fee to recover the costs of disposing of all or part of members’ interests in UniSuper.

No exit fees currently apply to your UniSuper account.

INDIRECT COST RATIOThe indirect cost ratio (ICR)—for a MySuper investment option or another investment option offered by UniSuper—is the ratio of the total of the indirect costs for the MySuper product or investment option, to UniSuper’s total average net assets attributed to the MySuper product or investment option.

Note: A fee deducted from a member’s account or paid out of the superannuation entity is not an indirect cost.

ICRs are deducted indirectly from your accumulation component/account. A breakdown of these costs to 30 June 2017, for each investment option, is provided on page 78.

INVESTMENT FEESAn investment fee is a fee that relates to the investment of UniSuper’s assets and includes:

A fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and

A costs that relate to the investment of UniSuper’s assets, other than:

– borrowing costs, and – indirect costs that are not paid out of

UniSuper that the Trustee has elected in writing will be treated as indirect costs and not fees, incurred by UniSuper’s Trustee or in an interposed vehicle or derivative financial product, and

– costs that are 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.

Investment fees are deducted indirectly from your UniSuper account. A breakdown of these fees to 30 June 2017, for each investment option, is provided on page 78.

SWITCHING FEESA switching fee for a MySuper product is a fee to recover the costs of switching all or part of a member’s interest in UniSuper from one class of beneficial interest in UniSuper to another.

A switching fee for a superannuation product other than a MySuper product, is a fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one investment option or product in the entity to another.

UniSuper charges a switching fee of $13.10 for the second and subsequent switches in a financial year. The fee is charged on the date the switch becomes effective.


How super is taxed

MAIN TYPES OF CONTRIBUTIONS

HOW MUCH TAX IS PAID HOW THE TAX IS PAID

Concessional (before-tax) contributions are contributions from your before-tax income.

Concessional contributions include:

A Superannuation Guarantee (SG) employer contributions

A salary sacrifice contributions made by your employer from your before-tax salary

A personal contributions where you provide us with a valid form that states your intention to claim a tax deduction, and

A notional taxed contributions in respect to your defined benefit interest.

15% on contributions up to the concessional (before-tax) contributions cap.*

Where the concessional (before-tax) contributions are paid into your accumulation account (including the accumulation component for a DBD member), the tax is deducted from that account.

Tax on notional taxed contributions is deducted from the defined benefit pool of assets. No charge is deducted directly from your accumulation component.

Tax on contributions

The following tables provide an overview of tax on contributions and assume that you have provided your tax file number (TFN).

In addition to the fees and other costs that may apply, it’s just as important to understand how tax can affect your super.

* If you earn more than $250,000 in an income year, ‘Division 293 tax’ will apply to your concessional contributions. Refer to the section Additional tax for high income earners on page 83 for more information.

Table continued overleaf


MAIN TYPES OF CONTRIBUTIONS HOW MUCH TAX IS PAID HOW THE TAX IS PAID

Contributions which exceed your concessional (before-tax) contributions cap are included in your assessable income and taxed at your marginal tax rate. An excess concessional contributions charge will also apply.

You will also be entitled to a 15% tax offset on the excess concessional contribution (because you have already paid tax on this money). The offset is not refundable.

You can release up to 85% of your excess concessional contributions from your accumulation account/component. Amounts cannot be released from your defined benefit interest.

Any excess concessional contributions you release from your super account will no longer count toward your non-concessional contributions cap.

Any excess concessional contributions not released from super are counted towards your non-concessional (after-tax) contributions cap.

The Australian Taxation Office (ATO) will provide you with an assessment. The tax is paid ‘out of your pocket’ to the ATO.

Non-concessional (after-tax) contributions are contributions made from your take-home pay.

Non-concessional contributions include:

A personal contributions that have not been claimed as a tax deduction

A contributions your spouse makes on your behalf. These 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 you are not living separately from your spouse

A excess concessional contributions not released from your super account.

There is no tax payable on non-concessional contributions made up to your non-concessional contributions cap.

N/A

If you exceed the non-concessional 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 associated earnings released are taxed at your marginal tax rate. You will also be entitled to a 15% tax offset on the associated earnings included in your assessable income (because you have already paid contributions tax on this money). The offset is not refundable.

The ATO will provide you with an assessment.

The tax is paid on the associated earnings ‘out of your pocket’ to the ATO.

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 47%.

The excess contributions tax is paid out of your nominated super account.

Table continued from overleaf


ADDITIONAL TAX FOR HIGH INCOME EARNERSIf you’re a high income earner with an adjusted taxable income of more than $250,000 for a financial year, an additional tax of 15%—known as the Division 293 tax—applies to any concessional (before-tax) contributions into your super

Income for Division 293 tax purposes broadly includes your taxable income, reportable fringe benefits, total net investment income/losses, and concessional contributions, less certain superannuation lump sums received if you are entitled to a tax offset

The Division 293 tax isn’t applied to non-concessional (after-tax) contributions or excess concessional contributions.

If the Division 293 tax applies to you, it will be applied to the lower of:

A your concessional contributions (except excess concessional contributions), and

A the sum of your income for Division 293 purposes and concessional contributions above the $250,000 threshold.

Modified rules apply in calculating concessional contributions for members of the Defined Benefit Division.

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.

Former temporary residents who receive a Departing Australia Superannuation Payment may apply to the Commissioner for a refund of any Division 293 tax paid.

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. If you’re in the retirement phase, different taxes apply. See the relevant PDS for more information.

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 47% will generally be payable on the taxable component of a benefit payment made to you.

AGE 60 OR OVERIf you are 60 or over, the taxed element of a benefit payment you receive will generally be tax-free, 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 60If 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 low rate threshold for the 2017-18 financial year is $200,000. The low rate threshold is a lifetime limit. If the taxable component of your lump sum benefit exceeds the low rate threshold, the rate of tax which applies on amounts in excess of this threshold is up to 17%.


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.

Please note any untaxed component included in your benefit payment may be subject to a higher amount of tax.

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

The taxable component of benefits claimed by temporary residents upon departing Australia may be subject to up to 65% withholding tax. The amount of tax withheld will depend on the class of visa you have and when the benefit is paid. For more details, refer to our Departing Australia superannuation payment fact sheet available at unisuper.com.au/brochures or by calling us on 1800 331 685. The ATO website will also provide up-to-date tax information for temporary residents.

Transfers to a New Zealand KiwiSaver Scheme, however, are not taxed. They’re also tax free when withdrawn from your KiwiSaver Scheme once you’re legally allowed to access them

Taxation advice

Before you receive any benefits, UniSuper recommends that you obtain taxation advice from a taxation specialist.

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:

A finding and combining your superannuation benefits with your consent as required,

A 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,

A 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

A 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):

A we’ll be able to continue your DBD membership

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

A the tax on contributions to your super accounts will not increase

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

A 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.


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:

A non-binding beneficiary nominations, and A 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: A your spouse (including legal or de facto

spouse of same sex or opposite sex), A your children or the children of your spouse

(regardless of age), A any person who was in an interdependency

relationship with you at the date of your death, and

A 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.

Other information

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.

NON-BINDING BENEFICIARY NOMINATIONSWhen you complete your Defined Benefit Division/ Accumulation 2 application form, you can provide the Trustee with a non-binding 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.

So, while a non-binding nomination helps us identify potential beneficiaries, it doesn’t:

A guarantee your death benefit will be paid to those you nominate, or

A exclude others from receiving your benefit, if the Trustee determines them to be a dependant.

A non-binding beneficiary nomination will remain in place until it’s amended or replaced, or until you make a valid binding death benefit nomination.

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.


To make your non-binding beneficiary nomination, complete the relevant section of your Defined Benefit Division/Accumulation 2 application form. You can update your non-binding beneficiary nomination any time on MemberOnline or by completing the Change of details form on our website.

If you’d like to ensure your benefit is paid only to those you nominate, you must complete a valid binding nomination.

BINDING DEATH BENEFIT NOMINATIONSA 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. When a lapsing binding death benefit nomination expires, it is treated as a non-binding beneficiary nomination (see above for more information). 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:

A the nomination must be in favour of one or more of your dependants and/or your legal personal representative,

A each dependant nominated must be your dependant at the date of your death,

A the allocation of your benefit among the beneficiaries nominated must be clearly set out,

A 100% of your benefit must be allocated (the entire nomination will be invalid if the allocation does not equal exactly 100%),

A 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 non-lapsing 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 non-binding 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 NOMINATIONIf you have not made a non-binding 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.

KEEP YOUR NOMINATION UP TO DATERegardless 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

Anti-detriment payments are sometimes paid to certain beneficiaries of a deceased member in addition to the death benefit. It’s an additional amount that equates to a tax refund on the super contributions paid by a deceased member throughout their life.

The Government has removed the anti-detriment provision from 1 July 2017, which means from this date no new death benefit payments will be eligible for an anti-detriment payment. Payments for claims relating to members’ deaths prior to 1 July 2017 can still be made, but they must be made by 1 July 2019.

Transfers 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 $1,500 that have not received a contribution in the last four months will be identified and notified of our intention to close their 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 their account balance if they satisfy a condition of release.

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.

You can contact AUSfund at: AUSfund PO Box 543 Carlton South VIC 3053

Email: [email protected] Website: www.unclaimedsuper.com.au Phone: 1300 361 798


When we can’t find you

LOST MEMBERSGenerally, you become a lost member in the following circumstances:

A 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

A 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 MONEYIf 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 been 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:

A your account balance is less than $6,000, or

A 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.


Family Law and super

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.

For more detailed information, refer to the Super and Family Law fact sheet, available at unisuper.com.au/brochures.

Merging multiple accounts

Super legislation requires us to check annually whether a member of our fund has multiple super accounts with us. It also requires us to merge multiple super accounts for individuals where we believe it’s in your best interests to do so.

If we identify you as having more than one super account with us, we’ll merge the accounts so that you have only one account balance. In determining your best interests, we’ll consider the total amount of fees and charges you’re paying for these accounts, including any fees and charges you’re paying for insurance.

If we identify that you have multiple super accounts with us and merge them, we’ll contact you to advise you of the details.

If you have a super and a Flexi Pension account with us, you can view them in tandem on MemberOnline—you only need one login to see all your accounts.

How we protect your privacy

We recognise the importance of protecting your personal information and are committed to complying with our privacy law obligations.

We collect your personal information to administer your account, ensure you’re eligible for insurance cover, provide you with UniSuper membership benefits, services and products, verify your identity and improve our products and services. 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’re required or authorised by or under an Australian law or a court/tribunal order to collect that information.

If you don’t provide this information, we may not be able to administer your account, provide you with a product or service or you may be disadvantaged in some other way.

We may disclose your information to any service provider we engage (for example mail-houses, auditors, insurers, actuaries, lawyers and research consultants) to carry out or help us provide your membership benefits, services and products. This includes overseas entities. The countries we may disclose personal information to are Japan, Canada and the United States of America. Where information is transferred overseas, we’ll 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 can access any personal information we hold, how to correct your information and how to make a complaint about a breach of the Privacy Act. It’s available at unisuper.com.au or by calling us on 1800 331 685.


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 1, 385 Bourke Street Melbourne VIC 3000

Email: [email protected]

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, call us on 1800 331 685, quoting your member number. You can also email us at [email protected] or write to us at:

UniSuper Level 1, 385 Bourke Street Melbourne VIC 3000.

91Defined Benefit Division and Accumulation 2 Product Disclosure Statement GLOSSARY AND IMPORTANT DEFINITIONS

ACCUMULATION 1 ACCOUNTAn Accumulation 1 account refers to another ‘accumulation-style’ account within UniSuper. Accumulation 1 accounts are typically made up of employer super guarantee contributions, any voluntary member contributions made, investment returns (which can be positive or negative), money rolled over from other super funds and any other contributions such as spouse contributions.

Fees, costs, insurance premiums (if applicable) and taxes are deducted from these accounts.

ACCUMULATION COMPONENTThe 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.

Glossary and important definitions

ADJUSTED TAXABLE INCOMEAn income test measure used by the Australian Taxation Office to determine your liability to surcharge tax.

AUTOMATIC ACCEPTANCE LIMITmeans in respect of:

A a DBD member, three units of: – (i) death only cover; – (ii) TPD only cover; or – (iii) death and TPD cover, and

A an Accumulation 2 member, $1.2 million for: – (i) death only cover; – (ii) TPD only cover; or – (iii) death and TPD cover.

A an Accumulation 2 member, the lesser of 34 units of Income Protection cover per month and the next-highest number of units which equates to 85% of the member’s salary at the date insured cover commenced under the policy.

AVERAGE CONTRIBUTION FACTOR (ACF)This is the time-weighted average of your contribution factors. If you always make the standard 7% after-tax (or 8.25% before-tax) member contributions, your ACF is 100%.

Reducing your standard member contributions will generally decrease your ACF. See the definition of ‘Contribution factors’ for more information.

92 Defined Benefit Division and Accumulation 2 Product Disclosure Statement GLOSSARY AND IMPORTANT DEFINITIONS

AVERAGE SERVICE FRACTION (ASF)This refers to how much of your DBD 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 full-time 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.

BENEFIT SALARYThe 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 DBD 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 DBD member.

BENEFIT SERVICEYour period of service covers the years and days of your DBD membership. If you’re a contributing member and you die 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. If you’re a contributing member and you suffer disablement, your benefit service covers the period (years and days) from the date of your disablement up to age 65.

CEASE CONTRIBUTING SERVICECease 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/CHILDRENA 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 FUNDUnder 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 FACTORSContribution 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 51 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%


CONCESSIONAL CONTRIBUTIONSConcessional contributions are also known as before-tax contributions, and include:

A contributions made from before-tax money (i.e. before-tax contributions). They include employer contributions to an accumulation account (including any salary sacrifice contributions)

A personal member contributions made by you which you validly claim as a tax deduction

A the taxable component of all your directed termination payments in excess of $1 million

A 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 the high income earner threshold (refer to page 83 for more information).

DEFAULT COVERFor information about default cover, refer to the Insurance in your super booklet available at unisuper.com.au/pds.

DEFINED BENEFIT COMPONENTThe part of your Defined Benefit Division benefit that’s calculated in accordance with a formula that generally takes into account your five-year benefit salary, benefit service, lump sum factor, average service fraction (ASF) and average contribution factor (ACF).

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:

A the member has been absent from employment through injury or illness for three months within a period of 12 consecutive months immediately before ceasing service, and

A 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.

EMPLOYER CONTRIBUTIONSGenerally, contributions equal to 17% of your salary are made by your employer. Some employers contribute 14%.

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-CONTRIBUTIONAlso 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.

INJURY (EXTERNAL COVER)Refer to the ‘Definitions’ section of the Insurance in your super booklet, available at unisuper.com.au/pds.

INTERDEPENDENCY RELATIONSHIPAn 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.

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.


INCOME PROTECTION DEFINITIONS OF DISABILITY (EXTERNAL COVER)Partially Disabled/Partial Disability/ Partial DisablementRefer to the ‘Definitions’ section of the Insurance in your super booklet, available at unisuper.com.au/pds.

Totally Disabled/Total Disability/ Total Disablement Refer to the ‘Definitions’ section of the Insurance in your super booklet, available at unisuper.com.au/pds.

LEGAL PERSONAL REPRESENTATIVEYour 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.

LUMP SUM FACTORYour 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 18.041 18.242 18.443 18.644 18.845 19.046 19.247 19.448 19.649 19.850 20.051 20.252 20.453 20.654 20.855 21.056 21.257 21.458 21.659 21.860 22.061 22.262 22.463 22.664 22.865 and over 23.0

Please note that the proportion of days between your last birthday and next birthday is taken into account when determining your lump sum factor.


NON-CONCESSIONAL CONTRIBUTIONSThese are also known as voluntary or after-tax contributions, and are generally contributions made into your super from personal after-tax money. They include:

A personal contributions made from your take-home pay

A voluntary personal contributions you don’t claim an income tax deduction for

A most spouse contributions A certain amounts transferred from foreign

super funds A excess concessional contributions where

you choose not to release the excess amount from your super account.

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-DISABILITY INCOMERefer to the ‘Definitions’ section of the Insurance in your super booklet, available at unisuper.com.au/pds.

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 SERVICEThe number of years from your date of death until you would have reached age 60.

SERVICE FRACTIONRefers to how much of your DBD has been spent in full-time employment.

SPOUSE

A a person to whom you are legally married A a person, whether of the same sex or

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 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.

SPOUSE CONTRIBUTIONS Spouse contributions are non-concessional (after tax) contributions made by a person on behalf of their eligible spouse.

You may be able to claim an 18% tax offset on spouse contributions if you’re eligible.

STANDARD MEMBER CONTRIBUTIONSMembers 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 51 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:

A the member has been absent from employment through injury or illness for three months within a period of 12 consecutive months immediately before making a claim for the benefit, and

A 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.

TERMINAL MEDICAL CONDITION (INBUILT BENEFITS)A condition in relation to the member where the Trustee is satisfied that the following circumstances exist:

A 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,

A 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

A 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.

TOTAL SUPER BALANCEYour ‘total superannuation balance’ is generally made up of the balance of all of your superannuation and retirement saving accounts. This is reduced by the sum of any personal injury structured settlement amounts contributed to your super.

WORK TESTA 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 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 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 CONTRIBUTIONSVoluntary 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

UNISF00007 0717

Fund: UniSuper ABN 91 385 943 850 Trustee: UniSuper Limited ABN 54 006 027 121 AFSL 492806 Administrator: UniSuper Management Pty Ltd ABN 91 006 961 799 AFSL 235907Address: Level 1, 385 Bourke Street, Melbourne Vic 3000 Issue date: July 2017

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.

Existing member number (if known)

■■■■■■■■■■■Title Mr ■ Mrs ■ Ms ■ Dr ■ Professor ■

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)

( ■■) ■■■■■■■■■■

Before completing this formPlease 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.

Joining UniSuper or transferring membershipThe 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 super your workplace. You generally have 24 months from the date you first join the DBD to decide whether you’d like to remain in the DBD. This is a once-only, irrevocable election—once you’ve made your decision, you can’t change your mind. Your decision will continue to apply throughout the life of your UniSuper membership (see page 26 of the PDS for more information). After you join, we’ll 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 cover. To find out more about how we transition inbuilt benefits, 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 2006Under this Act, UniSuper is required by law to collect your full name, date of birth and residential address on this form.

Privacy informationUniSuper 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, refer to the Privacy statement at the end of this form.

Already a UniSuper member?If you’ve recently moved employers and are already a DBD member, you may not need to complete all sections of this form. If you’re comfortable maintaining your existing contribution, insurance and beneficiary arrangements, please only complete SECTIONS 1 and 10 of this form.If you want to change any of your other instructions to us, complete all relevant sections of this form or log into MemberOnline at unisuper.com.au to process your request online.Please also note:

If you’ve previously elected to reduce your standard member contributions under our contribution flexibility arrangements, you’re unable to increase them.

If you’ve been a UniSuper member for more than 180 days and you want to make changes to your external insurance cover, you can apply to make these changes via MemberOnline. Alternatively, complete the Application for insurance at UniSuper or Changing your insurance cover form at unisuper.com.au.

AVOID PROCESSING DELAYSWe make important changes to our forms at times. Check you’re using the latest version by comparing the issue date at the bottom of this page with the version at unisuper.com.au/forms.

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SECTION 4 — Reducing your standard member contributions

Using contribution flexibility to reduce the amount of standard member contributions is a significant decision that may affect how much super you retire with. If you choose to reduce your standard member contributions, you can’t increase them at a later date. Your eligibility for insurance cover will also be impacted. You don’t need to make a decision about reducing your standard member contributions when filling out this form—you can do it at any time.Please ensure you’ve read pages 51 to 53 of this PDS and that you review the Contribution flexibility fact sheet at unisuper.com.au before making your decision.Note: If you’ve previously elected to reduce your standard member contributions under our contribution flexibility arrangements, you’re unable to increase them.

SECTION 1 — Continued

Email address

■■■■■■■■■■■■■■■■■@■■■■■■■■■■■■■■■■

Residential address, number and street

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Suburb/Town

■■■■■■■■■■■■■■■■■State ■■■ Postcode ■■■■Country (if not Australia)

■■■■■■■■■■■■■■■■■Is your postal address different from your residential address?

■ No. Go to SECTION 2

■ Yes. Please provide your postal address below. Postal address, number and street (or PO Box if applicable)

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Suburb/Town


■■■■■■■■■■■■■■■■■

SECTION 2 — Tax file number (TFN)

Your Tax File Number (TFN) is the unique, confidential number which links all your investments, super and taxation records to your identity. While it’s not compulsory to give us your TFN, if you don’t, any contributions or transfers that would attract tax (such as employer contributions or salary sacrifice contributions) may be taxed at the highest marginal tax rate, and we may not be able to continue your DBD membership. See page 84 of this PDS for more information about the circumstances in which your TFN may be collected and used.

Your TFN

■■■—■■■—■■■

SECTION 3 — Standard member contributions

The default level of standard member contributions is 7% (after-tax) of your salary (8.25% before-tax). You can also choose to reduce your level of standard member contributions, or not make any at all.

Do you want to make standard member contributions?

■

Yes, the default level

■From your after-tax salary (7%) ■ From your before-tax salary (8.25%)*

Go to SECTION 5

■

Yes, a reduced level

■From your after-tax salary ■ From your before-tax salary*

Go to SECTION 4

■

No. Go to SECTION 5 *You’ll need a salary sacrifice arrangement with your employer for this to occur. Standard member contributions from your before-tax salary will be treated as employer contributions and be subject to 15% contributions tax—they’ll also count towards your concessional contributions cap. You can only make standard member contributions from your before-tax or after-tax salary—not a combination of both.

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SECTION 5 — Future contributions strategy

If you’re an existing UniSuper member, please only complete this section if you wish to change your future contributions strategy. To change your rollover strategy or the way your existing accumulation account/component is invested, log into MemberOnline at unisuper.com.au. 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’ve transferred to the Defined Benefit Division/Accumulation 2 from another membership category in UniSuper and you haven’t 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.

You should understand the risks and other implications of selecting your investment options. Please read pages 64 to 65 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.

SECTION 5A — Investment switch

As your application may be received after contributions have been processed to your account, we’ll switch those contributions from the default (Balanced) investment option to the options you chose in Section 5, as at the date we process this form.

■ If you do not want to have those contributions and your accumulation balance/component switched, please select this box.


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)

■ 4.45% after-tax (5.25% before-tax)




■ 1.00% after-tax (1.20% before-tax) ■ 0.00% (zero)

■

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)


PRE-

MIX

ED

Conservative %Conservative Balanced %

Balanced (MySuper) %Sustainable Balanced %

Growth %High Growth %

Sustainable High Growth %

SECT

OR

Cash %Australian Bond %

Diversified Credit Income %Listed Property %

Australian Shares %International Shares %

Global Environmental Opportunities %Australian Equity Income %Global Companies in Asia %

TOTAL 1 0 0 %

Refer to the PDS or the How we invest your money booklet for more information.Sector options are generally less diversified and are not intended to be used in isolation. They’re 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.

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SECTION 7 — Additional Death and TPD insurance cover

You may be eligible apply for up to two additional units of Death and/or TPD cover without having to provide evidence of your health to our Insurer.• If you’re receiving 17% employer contributions and

are eligible for one unit of Death and TPD default insurance cover, apply within 180 days of first being eligible to join UniSuper.

• If you chose to reduce your standard member contributions in SECTION 4, you’ll need to satisfy the criteria outlined in SECTION 6A in order to apply.

How many units of additional default Death and/or TPD cover do you want to apply for? (Select one box only)

1 additional unit 2 additional units

Death and TPD cover ■ ■

Death-only cover ■ ■

TPD-only cover ■ ■

To apply for more insurance cover than allowed for on this form, apply via MemberOnline at unisuper.com.au or complete the Application for insurance at UniSuper form (which is included in this PDS and the Insurance in your super booklet—both available at unisuper.com.au/pds).

SECTION 6A — Applying for insurance cover if you elect contribution flexibility upon first joining the DBD

If you chose to reduce your standard member contributions in SECTION 4, you need to satisfy the following criteria to receive your one unit of default cover and any additional default cover (up to three units in total) without having to provide evidence of your health:

• 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.

See page 51 of the PDS for more information.

Do you want to apply for additional default Death and/or TPD cover?

■ Yes


SECTION 6 — Default Death and Disablement insurance

If you’re joining UniSuper and have elected the default level of standard member contributions (7% after-tax or 8.25% before-tax), you’ll automatically receive one unit of Death and TPD cover when you join without needing to provide evidence of your health to our Insurer (subject to eligibility). This is known as your default cover. If eligible, you can apply for up to two units of additional default Death and/or TPD cover without providing health evidence.

See the PDS and the Insurance in your super booklet for more information.

Note: if you don’t opt out on this form and are otherwise eligible, you’ll receive and pay insurance premiums for default cover.

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. See page 51 of this PDS and Section 6A of this form.If you receive 14% employer contributions, you’re not eligible for default insurance cover upon joining the DBD. You can, however, apply for Death and 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, read the Insurance in your super booklet at unisuper.com.au/pds and use the application form provided.

To opt out of your default cover, please tick one of the options below: I want to opt out of:

■ All default Death and TPD insurance cover. Go to SECTION 9

■ Default Death cover only.

■ Default TPD cover only.

If you don’t complete this section, you’ll retain one unit of default Death and TPD insurance cover.

Have you previously made, or do you currently have pending, an insured disablement claim?

■ Yes. You may be eligible for Death-only cover.

■ No.

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SECTION 9 — Non-binding beneficiary nomination

You can make two types of beneficiary nomination: a non-binding beneficiary nomination and a binding death benefit nomination.

You can only make a non-binding beneficiary nomination on this form.See the PDS for more information about the two types of beneficiary nominations and who you can nominate.

Which type of beneficiary nomination would you like to make? (Select one box only)

Non-binding beneficiary nomination

■ Please make your nominations below.

Binding death benefit nomination

■ You need to complete a Binding death benefit nomination form, available from unisuper.com.au/forms or by calling us on 1800 331 685. Continue to SECTION 10.

Non-binding beneficiary nominationsPlease nominate your non-binding beneficiaries.The total percentage of benefit nominations must add up to 100%. A non-binding beneficiary nomination is not binding on the Trustee, but will be taken into account when determining who receives your death benefit.Beneficiary 1Surname

■■■■■■■■■■■■■■■■■Given names

■■■■■■■■■■■■■■■■■

SECTION 8 — Converting unitised insurance cover to fixed cover

If you’re under age 61, you have the option to convert your Death and TPD insurance cover to fixed cover. Would you like to do this?

■ Yes. This is a once-only election and you will be unable to elect unitised cover in the future. Your request will take effect when we receive your form.

■ No


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 2Surname

■■■■■■■■■■■■■■■■■Given names

■■■■■■■■■■■■■■■■■What is the beneficiary’s relationship to you? (Select only one of the below boxes)

■ Spouse

■ Child



Percentage ■■■ . ■■%

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SECTION 10 — 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 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.

• 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 ‘Non-disclosure’ information in the Insurance in your super booklet

- 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 MemberOnline 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.


Beneficiary 3Surname

■■■■■■■■■■■■■■■■■Given names

■■■■■■■■■■■■■■■■■What is the beneficiary’s relationship to you? (Select only one of the below boxes)

■ Spouse

■ Child



Percentage ■■■ . ■■%

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• I understand that UniSuper intends to provide me with regulatory documents such as Product Disclosure Statements, Benefit Statements and Significant Event Notifications by making them available digitally (e.g. as a hyperlink in an email). I acknowledge that UniSuper will use the email address provided in SECTION 1 of this form, and that I can opt out of this method of disclosure at any time by contacting UniSuper on 1800 331 685.

• I acknowledge that I have read and understood the privacy information on page 89 of this PDS and consent to my personal information being used in accordance with UniSuper’s Privacy Policy.

Signature

Date (DDMMYYYY)

■■■■■■■■

Further informationIf you need further information:

call us on 1800 331 685 visit our website at unisuper.com.au, or contact your employer’s Superannuation Officer

RETURNING YOUR FORM:Return your completed form to your employer’s Superannuation Officer or the person who is responsible for superannuation at your workplace.

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OFFICE USE ONLY — (to be completed by your employer)

To be completed by a Superannuation Officer or the person who is responsible for superannuation at the applicant’s workplace

Member number

■■■■■■■■■■■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.

Payroll number

■■■■■■■■■■■Employer number

■■■■■■Employer name

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Date the member was first eligible to join UniSuper’s Defined Benefit Division/Accumulation 2 membership (DDMMYYYY)

■■■■■■■■This is the later of the date that the member was employed or the date that Super Guarantee contributions first commenced.

Equivalent full-time salary Service Fraction (if not 100%)

$ ■■■ , ■■■ . ■■ ■■■ . ■■%

Ordinary Time Earnings (OTE) $ ■■■ , ■■■ . ■■■ 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

OFFICE USE ONLY - Continued

Name of Superannuation Officer or responsible person

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Signature of Superannuation Officer or responsible person

Date (DDMMYYYY)

■■■■■■■■Employer date stamp

Privacy statementWe recognise the importance of protecting your personal information and are committed to complying with our privacy law obligations.We collect your personal information to administer your account, ensure you’re eligible for insurance cover, provide you with UniSuper membership benefits, services and products, verify your identity and improve our products and services. 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’re required or authorised by or under an Australian law or a court/tribunal order to collect that information.If you don’t provide this information, we may not be able to administer your account, provide you with a product or service or you may be disadvantaged in some other way.We may disclose your information to any service provider we engage (for example mail-houses, auditors, insurers, actuaries, lawyers and research consultants) to carry out or help us provide your membership benefits, services and products. This includes overseas entities. The countries we may disclose personal information to are Japan, Canada and the United States of America. Where information is transferred overseas, we’ll 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 can access any personal information we hold, how to correct your information and how to make a complaint about a breach of the Privacy Act. It’s available at unisuper.com.au or by calling us on 1800 331 685.

UNISF00013 0717

Fund: UniSuper ABN 91 385 943 850 Trustee: UniSuper Limited ABN 54 006 027 121 AFSL 492806Administrator: UniSuper Management Pty Ltd ABN 91 006 961 799 AFSL 235907Address: Level 1, 385 Bourke Street, Melbourne Vic 3000 Issue date: July 2017

Who should use this form?Eligible members who want to:

A apply for or increase their Death, Total and Permanent Disablement (TPD) or Income Protection (IP) cover (Sections 1-14)

A convert their unitised cover to fixed cover (Sections 1-4, 6, 13) A apply for or increase their fixed cover (Sections 1-4, 6, 8-14) A decrease their Income Protection waiting period

(Sections 1-4, 7-14) A increase their Income Protection benefit period

(Sections 1-4, 7-14)If you want to decrease your Income Protection benefit period or increase your Income Protection waiting period, or make changes to your cover, you can do this via MemberOnline at unisuper.com.au. Alternatively, complete the Changing your insurance cover form available on our website.

If you’re 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 coverBefore 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 accept, reject or apply loadings, restrictions and/or exclusions to your cover. Please ensure that you’re eligible for the cover that you’re applying for.

For Defined Benefit Division (DBD) members only: If you’re provided with insurance cover it’s in addition to any inbuilt cover you may already have. DBD members are not eligible to apply for IP cover.

InsurerInsurance cover is provided by TAL Life Limited (ABN 70 050 109 450, AFSL 237848).

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’re unsure of your member number, refer to your most recent UniSuper correspondence or call us on 1800 331 685.

Title Mr ■ Mrs ■ Ms ■ Dr ■ Professor ■

Other ■■■■■■■■■■■■■■■Surname

■■■■■■■■■■■■■■■■■Given name

■■■■■■■■■■■■■■■■■Date of birth (DDMMYYYY)

■■■■■■■■Contact number

( ■■ ) ■■■■■■■■■■Email address

■■■■■■■■■■■■■■■■■@ ■■■■■■■■■■■■■■■■Residential address, number and street (not PO Box)

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Suburb/Town


■■■■■■■■■■■■■■■■■

Privacy informationUniSuper 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.

AVOID PROCESSING DELAYSCheck you’re using the latest version of this form. Compare the issue date at the bottom of this page with the version available at unisuper.com.au/forms.

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.

Application for insurance at UniSuper

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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

■ Yes. If yes, please provide details below.

Company name

Type of policy

Cover amount

From (DDMMYYYY)

■■■■■■■■ Reason for decision

State any loadings/restrictions/exclusions

Is cover to be fully replaced?

■ Yes

■ No. Provide details.

Have you claimed on any type of disability, trauma, accident and sickness or such benefits as workers’ compensation or Motor Vehicle Third party?

■ No

■ Yes. If yes, please provide details on the next page.

SECTION 2 — General details

Height ■■■ cms OR ■■ ft ■■ ins

Weight ■■■ kgs OR ■■ st ■■ lbs

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

■ Yes. Provide the following details

Company name

Type of policy

Benefit amount

If this current application is successful, do you intend to continue your insurance cover with the company above?

■ No ■ Yes


Is your postal address different from your residential address?

■ No. Go to SECTION 2.

■ Yes. Please provide your postal address below.

Postal address, number and street (or PO Box if applicable)

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Suburb/Town


■■■■■■■■■■■■■■■■■

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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 (30 hours or more per week) and free from any limitations due to injury or illness?

■ Yes

■ No. Provide details.

Are you on employer approved leave for reasons other than illness or injury?

■ No

■ Yes. Provide details.

SECTION 4 — Insurance cover

See the Insurance in your super booklet for more information about eligibility for insurance cover.

What insurance cover would you like to apply for or change? You may be eligible to apply for multiple types of cover.

■ 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 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 is limited to $3 million.)

■■ unit(s)


Company name

Type of policy

Cover amount

Claim date (DDMMYYYY)

■■■■■■■■Was the claim accepted or declined? If declined, what was the reason?

To what extent have you recovered from the condition you claimed for?

Recovery ■■■ %Please complete a separate sheet if required and attach to this form.


What’s your current occupation and what duties do you perform (including % of time spent in each)?

What’s your gross annual salary? (including employer superannuation contributions and packaged items but excluding bonuses/commission)

$ ■■■ , ■■■How many hours per week do you work?

■■■

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SECTION 7 — I want to apply for or change my Income Protection cover

Income Protection cover is unit-based and provided in multiples of $433 worth of cover per month or $100 per week. The premiums are based on age, level of cover required and benefit period and waiting periods applicable. See the Insurance in your super booklet for more detailed information. Note, this is not available to DBD members.

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 available on our website.

Do you currently have Income Protection insurance cover?

■ No.

Do you want to apply for Income Protection cover?

■ Yes. Go to SECTION 7A


■ Yes

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?

■ Yes. Go to SECTION 7B


SECTION 6 — I want to apply for fixed cover, convert unitised insurance cover to fixed cover or increase fixed cover

Note, 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?

■ No. You’re ineligible to convert your existing unitised cover to fixed cover.

■ 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’re under age 61. You’ll be unable to elect unitised cover in the future.


Please note, your request will take effect when your form is received by us.

If you’re applying for or wanting to increase your fixed Death and/or TPD cover, what’s 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 $ ■■■ , ■■■ , ■0 ■0 ■0

TPD $ ■■■ , ■■■ , ■0 ■0 ■0(Refer to the Insurance in your super booklet for the fixed cover premiums.)

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SECTION 8 — Habits and activities

Please answer all questions in this section.

Do you drink alcohol?

■ No

■ Yes. State type, number of standard drinks per day and number of days per week when alcohol is consumed:

Standard drink = 1 nip spirit, 1 wine glass (100ml), 10oz/285ml beer.

Have you smoked tobacco in the past 12 months?

■ No

■ Yes. State daily quantity:

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?

■ 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?

■ 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?

■ No

■ Yes. Provide details (where, when, duration and reason):

SECTION 7B — Changing your Income Protection waiting period or benefit period

Do you want to decrease your Income Protection waiting period?

■ No

■ Yes. I want to decrease my waiting period to:

■ 30 days

■ 60 days

Do you want to increase your Income Protection benefit period?

■ No

■ Yes. I want to increase my Income Protection benefit period to:

■ 5 years

■ age 65

SECTION 7A — Applying for or increasing your Income Protection cover

How many $433 per month or $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 (the amount between 75% - 85% 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 ■ 90 days

Which benefit payment period would you like to select?

■ 2 years ■ 5 years ■ to age 65

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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:

Condition, medications, treatments and time off work:

To what extent have you recovered from your condition/s?

Recovery ■■■ %

Do you contemplate seeking any medical examination, advice, treatment or surgery for any other current health condition, in the future?

■ No



Condition, medications, treatments and expected time off work:



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






Have you ever had an ECG, x-ray, transfusion, mammogram, ultrasound, surgery or any other investigation?

■ No






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Females only NO YES

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 haven’t seen a doctor about it)? ■ ■

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:

Medical condition (e.g. breast cancer, heart attack, type 2 diabetes):

Age when diagnosed

Age at death (if applicable)

SECTION 10 — Personal statement (General medical questions)

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 YES

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 complaint? ■ ■J. Leukaemia, haemochromatosis, anaemia, or any blood problems? ■ ■K. Kidney, prostate, or bladder problems?

■ ■L. Psoriasis, eczema, or any skin problem?

■ ■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?

■ ■

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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 ■ 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.

What advice/treatment did you receive?

Are you still receiving treatment? If so, please advise nature and frequency of treatment.

Date treatment/medication ceased.

When did you last suffer from any symptoms?

Degree of recovery (%)

Please supply the name and address of all doctors, hospitals or other practitioners consulted.

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Please give details of your last consultation with any doctors and, if applicable, the outcome or degree of recovery.

Name of doctorSurname

■■■■■■■■■■■■■■■■■Given names

■■■■■■■■■■■■■■■■■Postal address, number and street (or PO Box if applicable)

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Suburb/Town

■■■■■■■■■■■■■■■■■State ■■■ Postcode ■■■■Contact number (during business hours)

( ■■ ) ■■■■■■■■■■Consultation details

Date of last consultation (DDMMYYYY)

■■■■■■■■Reason for consultation

Outcome or degree of recovery

SECTION 12 — Doctor’s details

Please provide details of your usual doctor.

Name of usual doctorSurname

■■■■■■■■■■■■■■■■■Given names


■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Suburb/Town



■■■■■■■■■■■■■■■■■@ ■■■■■■■■■■■■■■■■How long have you been attending this doctor?

■■ 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 doctorSurname

■■■■■■■■■■■■■■■■■Given names


■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Suburb/Town



■■■■■■■■■■■■■■■■■@ ■■■■■■■■■■■■■■■■

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SECTION 13 — Member declaration and signature

Please read Your duty of disclosure and Your declaration before you sign and date your form.

Your duty of disclosureBefore 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 somethingIn 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’ve given on this form (and

any accompanying pages) is true and correct.• I acknowledge that I’ve 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’m 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 won’t be assessed and processed.

• I consent to UniSuper, on behalf of the Insurer, seeking health evidence from any medical practitioner that I’ve 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’ve 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)

■■■■■■■■

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SECTION 14 — An authorisation to doctor

To be completed and signed by the applicant. Please sign this authorisation.

To DoctorI 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, AFSL 492806) (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)

■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■■Suburb/Town

■■■■■■■■■■■■■■■■■State ■■■ Postcode ■■■■Email address

■■■■■■■■■■■■■■■■■@ ■■■■■■■■■■■■■■■■

RETURN YOUR FORM TOGETHER WITH ANY ADDITIONAL DOCUMENTATION TO:UniSuper Level 1, 385 Bourke Street Melbourne VIC 3000If you need further information or help to complete this form:

call us on 1800 331 685, or

email [email protected].

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 www.tal.com.au/Privacy-Policy or free of charge on request to TAL by telephoning 1800 666 136.Collection and use of personal informationWe 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 informationWe 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).

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Privacy statement We recognise the importance of protecting your personal information and are committed to complying with our privacy law obligations.We collect your personal information to administer your account, ensure you’re eligible for insurance cover, provide you with UniSuper membership benefits, services and products, verify your identity and improve our products and services. 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’re required or authorised by or under an Australian law or a court/tribunal order to collect that information.If you don’t provide this information, we may not be able to administer your account, provide you with a product or service or you may be disadvantaged in some other way.We may disclose your information to any service provider we engage (for example mail-houses, auditors, insurers, actuaries, lawyers and research consultants) to carry out or help us provide your membership benefits, services and products. This includes overseas entities. The countries we may disclose personal information to are Japan, Canada and the United States of America. Where information is transferred overseas, we’ll 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 can access any personal information we hold, how to correct your information and how to make a complaint about a breach of the Privacy Act. It’s available at unisuper.com.au or by calling us on 1800 331 685.

NEED HELP?For more information:

A email [email protected], or A call 1800 331 685.

UNIS000007 0717

HELPLINE 1800 331 685 +61 3 8831 7901

WEBSITE unisuper.com.au

EMAIL [email protected]

FAX 1300 224 037 +61 3 8831 6141

UNISUPER ADVICE 1800 UADVICE (1800 823 842) +61 3 8831 7916

ADDRESS UniSuper Level 1, 385 Bourke Street Melbourne VIC 3000 Australia

Printed on an environmentally responsible paper.

defined benefit division and accumulation 2 pds

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