ANZ Australian Staff Superannuation Scheme Super direction...SuperStream applies for all...

ANZ Australian Staff Superannuation Scheme

Super directionNEWSLETTER TO MEMBERS | JUNE 2016

www.anzstaffsuper.com

Section A members (current ANZ employees) – Increase your insurance cover with no need to complete a health questionnaireOffer closes 30 June 2016 | See page 4 for more info (including terms and conditions)

In this issue:Seven ways to make the most of super in the coming tax year page 2

Is your cover right for you? page 4

SuperStream applies for all contributions paid by employers from 1 July 2016 page 5

$16 billion in lost super – is some of it yours? page 5

Do we have your email address? page 5

ANZ Staff Super is mobile page 5

Retirement doesn’t come cheap page 6

Let us help you with your pension page 7

Contact details page 8

The Federal Budget last month proposed to introduce several changes to superannuation. Most are not scheduled to take effect until 1 July 2017, and may change depending on the outcome of the Federal Election on 2 July this year.

Seven ways to make the most of your super in the coming tax year

1. Salary sacrifice The caps will be less generous from 1 July 2017 if the Federal Budget proposal to reduce

the annual cap on before-tax contributions to $25,000 is passed into legislation so 2016/17 may be the last year you can take advantage of the current concessional contribution caps ($35,000 if you are 49 or over at 30 June 2016; $30,000 for others). Remember to keep a close eye on your combined contributions, particularly if you have accounts with more than one super fund.

Concessional contributions are made up of all before-tax contributions and include the Superannuation Guarantee from your employer, salary sacrifice contributions and any contributions that you claim a tax deduction on.

Consider ways to take advantage of the existing, more generous caps in case they change next year.


2. After-tax contributions If you have excess savings or investments that you don’t need access to before retirement,

consider contributing extra money to super. This may reduce your personal income tax and build your wealth for retirement. A lifetime cap of $500,000 on after-tax contributions may be legislated after the Federal Election so you’ll need to be careful not to go over this limit after 3 May 2016 and take into account any after-tax amounts you’ve put into super over the past 10 years. Check with the Australian Taxation Office (ATO) to see what you’ve put into super as after-tax contributions since 1 January 2007.

Remember that this lifetime approach to contributions means you need to be more engaged in building your retirement savings earlier, rather than waiting to hit certain milestones closer to retirement.

If you’re close to or in the process of planning for your retirement, you might need to revisit your strategy to ensure you’re taking full advantage of, but not exceeding, the lifetime cap.

3. Spouse contributions If your spouse earns less than $13,800, consider making an after-tax contribution on behalf

of your spouse. This will boost your partner’s super and reduce your tax. You may receive a tax offset of up to $540.

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Super Direction Newsletter June 2016

5. Contribution splitting If your spouse has less super than you, consider splitting up to 85% of a financial year’s ‘taxed

splittable contributions’ with your spouse. This will help to even up your account balances.

7. Speak to a financial adviser Use the financial year to your advantage. Speaking to an expert can help you understand

where you’re at and determine the best way to achieve your goals.

Call 1800 000 086 to talk to an ANZ Staff Super financial adviser*.

4. Co-contributions If your taxable income plus reportable employer super contributions is less than $51,021 for

the 2016/17 financial year and more than 10% of this income came from working, consider making a personal after-tax contribution to super. This may qualify you for a government co-contribution of up to $500.

6. Low income super contribution If you earn up to $37,000 you may also get a ‘low income super contribution’ of up to $500

from the government. This is designed to ensure you don’t pay more tax on your super contributions than you pay on your income. The ATO will automatically make these payments if you meet the criteria.

* ANZ Staff Superannuation (Australia) Pty Ltd, the Trustee of the Scheme, has entered into an agreement with Australia and New Zealand Banking Group Limited (ANZ) under which ANZ's financial advisers have been engaged to provide Scheme members with general or limited personal financial advice about options available within the Scheme over the phone for no extra charge. If you require more complex personal advice, you'll be given the option of receiving comprehensive personal advice from an ANZ financial adviser and ANZ will charge you a fee for this advice. These financial planning services are provided by ANZ's financial advisers under AFSL 234527. Any advice provided by ANZ's financial advisers is not provided or endorsed by the Trustee and is not provided under the Trustee's AFSL.


Is your cover right for you? ANZ employees in Section A can apply for an extra half block of death and Total and Permanent Disablement cover before 30 June without the need to complete a health questionnaire unless your cover would then exceed $1 million.It's a good idea to check that your insurance cover meets your needs as you go through different stages in life. For example, if you’re young and single your cover needs are probably different to someone who is married with two young children, or an older person with a teenager at high school.

An annoying thing about increasing your insurance cover is often the need to get underwritten, i.e. provide satisfactory evidence of good health by completing a health questionnaire and providing other health evidence requested by the Insurer.

However, if you are a current employee who is a member of Section A, you can apply to increase your death and Total and Permanent Disablement cover by half a block each year without the need to provide a health statement if you apply in June (effective from 1 July) and the resulting cover would not exceed $1 million.

Any extra cover provided under this option will not commence until 1 July. Contact ANZ Staff Super on 1800 000 086

for help with your insurance with the SchemeApply for an extra half block of death

and TPD insurance effective 1 July without having to provide health evidenceApplies only for Section A members (i.e. most current ANZ employees) and closes 30 June 2016

If your existing cover is subject to loadings, special conditions or exclusions, any additional cover will be subject to the same loadings, special conditions or exclusions. If you have previously been declined insurance cover or your insurance cover is restricted, you are not eligible to apply in June for an additional half block of insurance cover without providing health evidence.

Any increase to the insurance cover provided for you through the Scheme will increase the premium you pay. Premiums for death and Total and Permanent Disablement cover are deducted from your Scheme account monthly or on leaving Section A.

So if you're in Section A make sure you have the right insurance cover to suit your needs and get your application in by 30 June.

To apply to increase your death and Total and Permanent Disablement insurance cover by half a block effective 1 July, use the 'Application to increase death and Total and Permanent Disablement insurance cover by half a block – Section A' form in Forms & publications > Member forms at www.anzstaffsuper.com and return it to ANZ Staff Super before 30 June 2016.

*SA008.A02Z11*

Title Mr Mrs Ms Miss Other Date of birth / /

Given names

Surname

Postal address

Suburb

State Postcode

Daytime Telephone

Mobile

E-mail

Membership number Gender Male Female

Step 1 – Complete your personal details

Please complete this form if you are a Section A member and you are applying in June to increase your level of insurance cover for death

and Total and Permanent Disablement (TPD) by half a block effective from 1 July.

If you need helpFor assistance call ANZ Staff Super on 1800 000 086 or refer to www.anzstaffsuper.com.

ANZ Australian Staff Superannuation SchemeApplication to increase death and Total and Permanent Disablement insurance cover by half a block – Section A

Please print in black or blue pen, in uppercase, one character per box. A ✓

Issued by ANZ Staff Superannuation (Australia) Pty Limited ABN 92 006 680 664 AFSL 238268 as Trustee for the ANZ Australian Staff Superannuation Scheme ABN 83 810 127 567

I wish to apply for an additional half a block of insurance cover to be effective from 1 July*.

* Refer to the Product Disclosure Statement (PDS) for Section A members for details of the amount of cover and cost of each block

of death and TPD insurance cover. This option to apply for an additional half a block of insurance cover to be effective from 1 July

is only available to Section A members applying in June and is subject to the terms and conditions of the Policy.

Please note:1. If this additional half block of insurance cover would result in your insurance cover exceeding $1 million, you will need to

provide health evidence and complete the Application to change death and Total and Permanent Disablement insurance cover

– Section A form. If you are required to provide health evidence, any additional insurance cover will not commence until the

Insurer has accepted your application. Your cover will be subject to any terms and conditions imposed by the Insurer.

2. If your existing cover is subject to loadings, special conditions or exclusions, any additional cover will be subject to the same

loadings, special conditions or exclusions. If you have previously been declined insurance cover or your insurance cover

is restricted, you are not eligible to apply in June for an additional half block of insurance cover without providing health

evidence.3. The cost of your insurance cover is deducted from your account balance monthly or on exit by redeeming some units.

Step 2 – Apply for additional half a block of insurance cover


Insurance cover is provided by OnePath Life Limited ABN 33 009 657 176 AFSL 238 341 (the “Insurer”) and subject to the terms and conditions of the insurance policy issued to ANZ Staff Superannuation (Australia) Pty Limited ABN 92 006 680 664 AFSL 238268 RSEL L0000543 (the Trustee of the Scheme) by the Insurer (the “Policy”). You should read the Product DisclosureStatement (PDS) for Section A members for a summary of the terms and conditions of the Policy. You can download the PDS from www.anzstaffsuper.com or contact ANZ Staff Super on 1800 000 086 if you would like a copy of the Policy.

Producing 26 sheets of paper creates the same amount of greenhouse gas as driving a car 1km.

SuperStream applies for all contributions paid by employers from 1 July 2016From 1 July 2016, employers will be required to use a SuperStream-ready method for remitting contribution data and payments to their employees' superannuation funds.

ANZ already complies with these SuperStream requirements.

$16 billion in lost super – is some of it yours?At the end of 2015 there was over $16 billion in lost or other accounts held by the Australian Taxation Office.

More than $1 billion of this was for people 65 or older. When we have ‘lost’ a member over 65 years of age – we have not received any contributions for you for two years and have not had any contact from you for five years, we are required to try and contact you.

If we can’t contact you after making reasonable efforts we then need to send your account balance to the ATO as unclaimed super.

If you do receive a letter from us asking to verify your membership, please reply. Otherwise we will be obliged to send your super to the ATO as unclaimed super. You'll then need to track it down.

4 – 5

Do we have your email address?Stay in touchWe’re committed to helping you make the most of your super. From time to time we’ll need to let you know important things about your super. That’s why it’s important that we can easily contact you, and emailing lets us keep in touch in an environmentally friendly way.

Current ANZ employees should update their details on PeopleSoft Employee Self Service on MAX. If you are not a current ANZ employee, keep your email, mobile phone and mailing address details up to date at www.anzstaffsuper.com or call 1800 000 086 from 8am to 6pm (Eastern Standard Time) Monday to Friday.


More than $1 billion in lost super belongs to people 65 or over.

ANZ Staff Super is mobileYou can keep all your super info at your fingertips while you’re on the go.The mobile-friendly version of our site www.anzstaffsuper.com allows you to see your:

super balance

transaction history

personal details

investments

contributions.

You can also update your PIN and, if you have any questions, there is a click-through capability to call ANZ Staff Super.

To access our mobile site, enter www.anzstaffsuper.com into your smartphone browser and get your super on the go.


Retirement doesn’t come cheapIt’s something we all dream about; the day we finally finish work and answer only to ourselves. You might want to sail around the world in a yacht, caravan across the country, indulge in your passion for baking, or spend more time with family. But dreams don’t come cheap and whatever yours may be, the million dollar question is - how much money is enough?

There are a few things to think about when determining how much is enough for you - and it really depends on the lifestyle you want to live, and sometimes, what you’re willing to give up.

Your income expectations: how much will you need to support your lifestyle expectations?

Your life expectancy: how many years will you live in retirement?

Investment returns: how much money will you earn on your pension account in retirement?

Work: do you intend to continue working, and do you intend to contribute to your super fund in retirement?

Unexpected expenses: Will you have the ability to withdraw a lump sum payment if you need to?

Living standards, what does that mean?The Association of Superannuation Funds of Australia (ASFA) releases quarterly figures outlining annual budget needs for retirees to fund a comfortable standard of living.

ASFA’s Retirement Standard report provides two benchmarks: one for retirees aged around 65, and another for older retirees aged around 85, to demonstrate how spending requirements change as we age.

At 65As a healthy retiree living “comfortably” you’d have the opportunity to be involved in a range of leisure and recreational activities. You’d have a good standard of living and be able to purchase household goods, private health insurance, a reasonable car, good clothes, a range of electronic equipment, and some domestic and occasional international holiday travel.

If you’re living a "moderate" retirement, you’d only be able to afford basic activities according to ASFA. While it’s considered to be better than the Age Pension, is it really enough?

At 85Older retirees tend to spend more on assistance in their homes, including cleaning and meal services. They’re also more likely to have increased out-of-pocket expenses for major medical procedures, chemist and medical expenses. However, they don’t spend as much on holidays and other leisure activities resulting in a lower annual budget than younger retirees.

Retirees around the age of 85 could expect to spend slightly less each year; a “comfortable” retirement is estimated to cost $38,587 for older retired singles and $54,122 for couples. A "moderate" retirement comes with an estimated price tag of $23,160 for a single person and $34,363 for a couple.

The Age Pension alone just won’t cut itThe maximum annual rate for the Age Pension as at 20 March 2016 – $22,721.40 for singles and $34,252.40 for couples – will at best fund a moderate retirement.

Relying solely on the Age Pension in retirement would require a fairly modest lifestyle, with less money available to pay for heating in winter, no private health insurance and no budget for home repairs.

There are many ways that you can boost your super to ensure you’re living the retirement you deserve – even the smallest additional contribution can help.

Retire your wayTo live the life you want consider using ANZ Staff Super to help boost your super before you retire and enjoy a regular income in retirement. Call 1800 000 086 to talk to an ANZ Staff Super financial adviser.

How much is enough?

Singles will need

$42,893 per annum

Singles will need

$23,651 per annum

$22,721.40 for singles

Couples will need

$58,922 per annum

Couples will need

$34,064 per annum

$34,252.40 for couples

Comfortable

Moderate

Aged pension

Source: ASFA Retirement Standard (March quarter 2016, national)

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Features that distinguish between the ABP and TRAP

Account Based Pension (ABP)

Transition to Retirement Account

Based Pension (TRAP)

Eligibility to join Must be:

• over preservation age and

permanently retired; or

• over age 60 and ceased

employment; or

• aged 65 or more; or

• successfully claimed a TPD benefit

Must have reached preservation age

but be under age 65 and still employed

Lump sum withdrawals

Yes – one withdrawal per calendar year*

($5,000 minimum)

No (see page 13)

Commutation YesNo – unless cashing out the TRAP in specific

circumstances (see page 13)

Payment amount Must be above Government set

minimum. Can be changed once a yearMust be within Government minimum and

maximum limits. Can be changed once a year

Term Payments continue until the account

balance runs out

Payments continue until the account

balance runs out

Pension payment

frequency

Monthly, quarterly, half yearly or annually

at your option

Monthly, quarterly, half yearly or annually at

your option

Assets test exemption

NoNo

Income test exemption

NoNo

* The Trustee will consider other requests for lump sum withdrawals in special circumstances (eg. emergencies).

6 – 7

Let us help you with your pensionThe day will come when you're staring retirement in the face. You’re ready to take your super and look for a suitable account based pension product. Why not start by looking a little closer to home.ANZ Staff Super offers pension products, tailor made for our members. Before you look elsewhere, make sure you consider the pensions the Scheme has to offer. Compare the features of our pension account options:

Regular pension

Withdraw lump sums

Stay in favourably taxed super environment

Supplement your income whilst you’re working

ANZ Staff Super Account Based Pension

4 4 4 8

ANZ Staff Super Transition to Retirement Account Based Pension

4 8* 4 4

* The ability to make lump sum withdrawals from TTRs is restricted by government regulations.

So, don’t take your money and run! Make sure you’ve considered ANZ Staff Super when you’re making your retirement decisions.

Call 1800 000 086 to speak to an ANZ Staff Super financial adviser.

Investigate options as you near retirementConvert your super to a retirement income with an Account Based Pension and enjoy regular pension payments, the ability to make lump sum withdrawals and the benefits of ANZ Staff Super's competitive fees.

Access your super as you phase into retirement with a Transition to Retirement Account Based Pension and supplement your regular income with an account-based pension income stream after you’re reached your preservation age.

Go to Forms & publications > Product disclosure statements > Account Based Pension Section for more information.


Account Based Pension SectionConverting your super to retirement income

PRODUCT DISCLOSURE STATEMENT | 15 DECEMBER 2015


Source: ASFA Retirement Standard (March quarter 2016, national)

Issued by ANZ Staff Superannuation (Australia) Pty Limited ABN 92 006 680 664 AFSL 238268 as Trustee for the ANZ Australian Staff Superannuation Scheme ABN 83 810 127 567

www.anzstaffsuper.com

Important notice:In preparing this document, the Trustee has not taken into account the investment objectives, financial situation and particular needs (“financial circumstances”) of any person. Accordingly, before acting on the advice contained in this document, you should assess whether the advice is appropriate in light of your own financial circumstances and consider contacting your financial adviser. This document and interests in the ANZ Australian Staff Superannuation Scheme (“the Scheme”) are issued by ANZ Staff Superannuation (Australia) Pty Limited. You should consider the relevant Product Disclosure Statement before making a decision in relation to a financial product.

Contact detailsWrite to ANZ Staff Super GPO Box 4303 Melbourne VIC 3001

Phone 1800 000 086 (8am to 6pm AEST Australian Eastern Standard Time) Outside Australia: 61 3 8687 1829

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Fax 61 3 9245 5827

Email [email protected]

Website www.anzstaffsuper.com

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