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Archived news
From 1 July 2009, a number of significant changes are being made both to super and to your super fund.
These changes are a result of improvements to TWUSUPER, changes to superannuation law and changes announced in the 2009 Federal budget. Read on for a summary of how they are likely to affect you. Before acting on any of this information we recommend you talk to a professional financial adviser.
Changes to TWUSUPER from 1 July 2009:
Changes to super from 1 July 2009:
Changes to TWUSUPER from 1 July 2009
TWUSUPER moves to monthly crediting rates
On 1 July 2009 TWUSUPER moved from year to date crediting rates updated monthly, to monthly crediting rates updated weekly. TWUSUPER uses crediting rates to determine the investment earnings that are applied to a member’s account. Crediting rates are based on the investment earnings for each investment option, adjusted for estimated tax, investment management and other costs.
Crediting rates are applied to a member’s account at the end of each financial year. They are also applied when a member switches investment options, leaves the Fund, makes a withdrawal or transfers into another division of the Fund.
Weekly investment option switching launched
From 1 July 2009, members of TWUSUPER and other divisions will be able to switch their investment options weekly instead of monthly. Changing the way your super is invested is a big decision. This decision should only be made with your long-term investment and risk strategy in mind. We suggest that you talk to a professional financial adviser before you make any changes to your super - it could make a big difference to the amount of money you retire with. Money Solutions*, TWUSUPER’s financial advice partner can help with your investment decisions.
* The Trustee is not responsible for and does not accept liability for the products or services or actions of Money Solutions AFSL: 258145. You should use your own judgement before taking up any products or services offered by Money Solutions.
Balanced investment option adjusted
Over a period of time from 1 July 2009, TWUSUPER’s default balanced investment option will be adjusted to an asset allocation of 80% in growth assets and 20% in defensive assets. Previously the asset allocation was maintained at 75% growth assets and 25% defensive assets. This will allow us to take advantage of investments that offer attractive returns on a risk-adjusted basis, without altering the long term strategic asset allocation of the balanced investment option.
Cap on admin fee for protected members
TWUSUPER protects members’ accounts when they are less than $1,000 from erosion by fees. We do this by ensuring that fees deducted (excluding insurance premiums and taxes) do not exceed the investment earnings credited to the account. When the investment earnings credited or debited to your account are insufficient to cover the administration fee, then the administration fee will be capped at $10 (plus an amount equal to any investment earnings credited).
This administration fee has previously only been applied at the annual review date but from 1 July 2009 it will apply to all account closures throughout any year.
Lost accounts to be transferred to AUSfund monthly
From 1 July 2009, TWUSUPER will transfer a member’s benefit to AUSfund monthly where:
- the member’s account balance is less than $1,000 and
- no contribution has been received for at least 15 months.
Previously, TWUSUPER transferred these accounts quarterly.
Changes to super from 1 July 2009
Concessional contribution cap reduced
From 1 July 2009, the concessional contribution cap will be reduced to $25,000 each year for people under 50. Concessional contributions include SG, salary sacrifice contributions, voluntary contributions made by your employer and tax-deductible personal contributions.
This is an important change because some people (particularly people who salary sacrifice into super) might accidentally exceed the reduced cap and be subject to an extra 31.5% tax on that excess. All members who salary sacrifice into super or receive voluntary employer contributions (above 9% SG) should review their contributions for the new financial year. Call us on 1800 222 071 for more information or contact Money Solutions* for professional financial advice.
| 2009-2010 |
People under 50 |
People 50 and over (until 2012) |
| Concessional contribution cap |
$25,000
(was $50,000) |
$50,000
(was $100,000) |
The non-concessional contribution cap will stay the same at $150,000 each year. The bring-forward rule still stands, allowing members aged under 65 to make a total of $450,000 in non-concessional contributions over a three year period without penalty.
Click here to read more about contribution limits.
* The Trustee is not responsible for and does not accept liability for the products or services or actions of Money Solutions AFSL: 258145. You should use your own judgement before taking up any products or services offered by Money Solutions.
Government co-contribution scaled back
From 1 July 2009, the Government will reduce the co-contribution to a maximum of $1,000 or $1 for every $1 an eligible person contributes. This will only be a temporary cut, with the co-contribution gradually increasing back to a maximum of $1,500 or $1.50 for every $1 contributed in the 2014/15 financial year.
The co-contribution is still a great way for people earning less than $61,920 a year (for the 2009/2010 financial year) to boost their super. To find out if you are eligible for the co-contribution, click here or use the ATO’s co-contribution calculator to find out your maximum possible co-contribution (this link will open in a new window).
Salary sacrifice now counted as income for co-contribution and other benefits
From 1 July 2009, salary sacrifice and other voluntary employer contributions no longer reduce total income for people trying to qualify for:
- the government co-contribution;
- certain means-tested benefits, like the $5,000 baby bonus; or
- the tax offset for spouse contributions.
The co-contribution can only be claimed by people whose total income is less than $61,920 for the 2009/2010 financial year. Click here to read more about the co-contribution.
Pension payment relief extended
The Government has extended the temporary 50% reduction in the minimum pension drawdown for the 2009-2010 financial year. This reduction was introduced in February 2009 as a way to help superannuation pensioners avoid crystallising losses caused by the downturn in global financial markets.
| Age |
Minimum annual payment |
Minimum annual payment 18 February 2009 - 30 June 2010 |
| Under 65 |
4% |
2% |
| 65 - 74 |
5% |
2.5% |
| 75 - 79 |
6% |
3% |
| 80 - 84 |
7% |
3.5% |
| 85 - 89 |
9% |
4.5% |
| 90 - 94 |
11% |
5.5% |
| 95 + |
14% |
7% |
TransPension members will receive a letter informing them of this change and the impact on their pension payments.
Changes to Age Pension qualifying age
The 2009 Federal Budget announced that the Age Pension qualifying age will gradually increase to age 67 in 2023. The transition to the higher Age Pension qualifying age will commence in July 2017, with the qualifying age increasing by six months every two years, to reach 67 on 1 July 2023. For more information about qualifying for the Age Pension, please visit the Centrelink website or call Centrelink on 13 23 00.
Same sex reform
The Government has recently changed a range of Commonwealth laws, including taxation and superannuation laws, to provide same sex couples with access to the same entitlements as opposite-sex couples.
The new laws apply to the distribution and taxation of superannuation death benefit entitlements, splitting superannuation benefits after the breakdown of a relationship and access to the tax offset for eligible spouse contributions. The legal definitions of ‘Spouse’ and ‘Child’ have also changed. If you would like to know more, please call us on 1800 222 071 or visit the Australian Government Attorney-General’s web page on same sex reform.
Negative returns and your super
Investment performance has generated a lot of attention in the past two years. Previously, investment markets were extremely strong, and we had grown accustomed to seeing double-digit returns on our super statements.
We know that some of you are concerned about negative returns. While weak investment markets and negative returns can be unpleasant, they are a completely normal part of the investment cycle. History has shown that after a downturn, investment markets tend to bounce back, usually to higher levels.
- Why does investment market performance influence super performance?
- What do negative returns mean for your super?
- Fight the urge to switch
- If you’re worried, talk to a professional
- What we are doing to protect your super
Why does investment market performance influence super performance?
Your super is invested in shares, property, cash and other types of assets, depending on which of our investment options you may have chosen since you joined (if you didn’t make a choice, your super was invested in our Balanced investment option). When the value of these assets falls, so does the value of your super
What do negative returns mean for your super?
Your super has the best potential earning power over the long term when you invest it in our Balanced or Equity Plus investment options, but there will always be years where you will experience negative returns.
Fight the urge to switch
In negative markets it’s natural to want to protect your super by switching out of investment strategies with negative returns and into a defensive option like Cash Plus.
You should only consider switching to a defensive investment option like Cash Plus if it is in line with your long term investment strategy
A reactive switch into Cash after a negative return means that you may run the risk of missing out on a rebound when investment markets recover. In addition, switching to Cash means you may achieve lower returns over the long term. You should always seek professional advice before making changes to the way your super is invested.
If you're worried talk to a professional
The most important thing you can do to ensure you have comfort and control over your super is to get access to the right advice, and set yourself a long-term investment strategy.
We know how important it is for you to seek professional advice about super. That’s why we’ll get you started by paying for your first single-issue superannuation advice phone call to our advice partner
Money Solutions: Providing TWUSUPER members with straightforward professional advice
February 2008: Do you have questions about your super?
- How much will I save if I combine my super accounts?
- Should I be making extra contributions to my super now or later?
- Am I eligible to receive the co-contribution payment from the Government?
- Have I chosen the right investment strategy for my needs?
- Should I take my super as a lump sum or put it in a pension?
TWUSUPER has teamed up with Money Solutions* (AFSL 258145) to give Fund members access to low-cost practical financial advice when they need it.
TWUSUPER’s partnership with Money Solutions is aimed at helping members make the most of the earning power of their super now, so they can enjoy the benefits later. Money Solutions do not take commissions. They work on a flat fee for service basis – so their advisers are focussed on recommending strategies that work for you.
Because TWUSUPER believe advice is important for fund members, TWUSUPER will pay for each member’s first ‘single issue’ superannuation advice phonecall to a Money Solutions* Money Coach. To contact Money Solutions, call the TWUSUPER Customer Service Team on 1800 222 071, 8am – 8pm Mon – Fri (EDT) or Money Solutions direct on 1800 046 144, 8am - 6pm Mon-Fri (EDT).
*The Trustee is not responsible for, and does not accept liability for the products or services or actions of Money Solutions. You should use your own judgment before taking up any product or services offered by Money Solutions.
TWUSUPER offers enhanced insurance cover for members
February 2008: TWUSUPER and CommInsure have completed new insurance arrangements that will offer Fund members an enhanced insurance offering that will provide significant benefits for the majority of members.“We are delighted that, together with CommInsure, we have been able to increase the options and cover available to members while retaining competitive premiums,” said Bill McMillin, TWUSUPER CEO.
Under the new arrangements, effective from 26 April 2008, the level of basic insurance cover provided to the majority of members without the need for any application for insurance forms or evidence of health, will increase from 1 unit of basic death cover to 2 units of basic death cover plus 1 unit of basic Total and Permanent Disablement cover.
Additional improvements for members of TWUSUPER include: an option to acquire an extra unit of basic death cover; the option to fix cover; an optional 30-day waiting period for income protection cover and an overall reduction in the cost per unit of insurance cover (for most members).
TWUSUPER retains Platinum SuperRating
January 2008: see www.superratings.com.au
TWUSUPER launches a Transition to Retirement Pension
December 2007: TWUSUPER has announced that it has extended its pension range to include a ‘Transition to Retirement’ Pension. TWUSUPER has had an in-house pension product since 1998. “TransPension” was formerly an allocated pension and on 1 July 2007 converted to an account based pension.
The addition of the transitional pension option gives employed Fund members who have reached their preservation age more options.
“TWUSUPER has had a great deal of interest in the transitional pension from members whose age allows them to use and benefit from pension products,” said Bill McMillin, CEO of TWUSUPER.
“That, combined with our public offer status, makes us confident that the transitional pension is a growth area for the Fund.”
Members of TWUSUPER have access to financial advice through Money Solutions*. Money Solutions offers practical and transparent advice that focuses on personal goals and needs. TransPension is open to eligible members and non-members of TWUSUPER.
Further information regarding TWUSUPER’s Transition to Retirement Pension and Account Based Pension is available on www.transpension.com.au
*The Trustee is not responsible for, and does not accept liability for the products or services or actions of Money Solutions. You should use your own judgment before taking up any product or services offered by Money Solutions.
TWUSUPER signs up to UN PRI
November 2007: TWUSUPER is pleased to announce that it has become a signatory to the United Nations’ Principles for Responsible Investment (UN PRI), with the goal of ultimately increasing long-term benefits to members.
This makes TWUSUPER one of a small number of Australian superannuation funds to commit to this program. According to TWUSUPER Chief Executive Officer, Bill McMillin, “We believe the implementation of these principles will be a positive for investment returns and will prove to be in the best long term interests of our members.”
The Principles for Responsible Investment is an investor initiative in partnership with the United Nations Environment Program Finance Initiative and the United Nations Global Compact. The principles provide a framework of global standards developed in April 2006. The six overarching principles recognize the direct link between environmental, social and governance practices to investment performance. The principles include voluntary actions related to investment decision-making, active ownership, transparency and collaboration.
The PRI initiative has developed into a global network of institutions working together to share best practice and collaborate on emerging environmental, social and governance (ESG) issues in order to deliver long-term returns to beneficiaries and clients. More and more mainstream investors are embracing the view that ESG issues can be material to long term results and, therefore, must be factored into the investment process.
TWU Nominees Pty Limited ABN 67 002 835 412, AFSL 239163, is the trustee of TWUSUPER (ABN 77 343 563 307) and the issuer of interests in it. Prior to any investment in TWUSUPER you should consider whether or not the investment is appropriate for you. Before you make any decision regarding our product, you should consider the Product Disclosure Statement.
Money Solutions
With Money Solutions, there are no trailing fees or hidden commission payments- you just get reliable, professional advice for a flat fee.
When you call Money Solutions, your personal Money Coach will work with you to set a long-term investment strategy so you can keep your eye on the bigger picture. Call us on 1800 222 071 and ask to be put through to a Money Solution Money Coach.
*The Trustee is not responsible for, and does not accept liability for, the products or services or actions of Money Solutions. You should use your own judgement before taking up any product or services offered by Money Solutions (AFSL 258145).
What we are doing to protect your super
The investment of your super is outsourced to a mix of professional investment managers. Each appointed investment manager is an expert in their field, and invests your super according to strict rules.
Outsourcing the investment of your super also reduces risk by making sure that your eggs are not all in the one basket. Diversification means that your super is protected from short term volatility because it is invested in a range of asset classes.
We have a long term investment focus (just like we suggest that each of our members should have) so the potential for short term negative returns is factored into our performance benchmarks and our investment methodology. We’re not taking risks with your super by changing the way we invest money just because of short term performance. Instead, we continue to focus on delivering the best possible performance for our members, with an appropriate level of risk.
Important Information: The information in this document is of a general nature only and is not a comprehensive study. It has been prepared without taking account of any of your objectives, financial situation or needs, and before acting on the information, you should consider its appropriateness having regard to your objectives, financial situation and needs. You may wish to consult a licensed financial adviser when doing this. A copy of the current TWUSUPER Product Disclosure Statement should be obtained from us and considered carefully before you make any decision about whether to acquire the product or continue to hold our products. Issued by TWU Nominees Pty Ltd, ABN 67 002 835 412, AFSL No 239163 as the trustee of TWUSUPER (ABN 77 343 563 307).
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