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Questions & Answers on Australian
Enterprise Super - Transfer
Based on common queries lodged with Australian Enterprise
Super, we have compiled a list of frequently asked questions and
their corresponding answers to help you find the answers you need.
If you require further information, clarification or need to lodge
an enquiry not covered below, contact
AESuper directly.
INTRODUCTION:
As you are aware, a number of beneficial changes
to Australian Enterprise Super (AES) superannuation arrangements
are scheduled to take effect from 1 April 2007.
This Q & A document is based on some of the
more common questions likely to be asked by members about the changes
and will assist any members who may raise questions with you.
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Remember: No member benefits will be impacted
adversely by the transfer. Investment and insurance
arrangements have remained the same.
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Review the list of questions provided below then
click to advance to the full question and answer provided in document
below.
- Why have
the existing arrangements changed?
- Who is Professional
Association Superannuation Fund (PASF)?
- Do
I have to do anything?
- Do I need to provide
any authorisation for the transfer?
- Freeze
period on investment switches or benefit payments?
- What
is changing?
- Will I receive communication
about the change?
- What are the fees and charges
going to be?
- Will the transfer affect my insurance
cover?
- What
insurance premiums apply?
- Will
the transfer affect my investment choice?
- Can
I change (switch) my investment choice?
- Can
I transfer (rollover) other super monies to my AES account?
- Will
I continue to receive contributions to my account?
- Will
I still be able to receive a Government Co-Contribution?
- Access
to AES’s call centre and internet services:
- Who
oversees the Professional Association Super Fund?
- How
will investment managers be monitored?
- Need
assistance or financial planning advice?
- Need
more information?
Additional Q &
A for AES Employers
- What
is required for new starters from 1 April 2007?
- How
do I remit employer contributions?
| Q |
Why
have the existing arrangements changed? |
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| A |
Due to increasing complexity of the superannuation
industry, constantly changing legislation and the upward
pressure on costs of running a superannuation fund,
Australian Enterprise Superannuation Pty Ltd, as trustee
of the Australian Enterprise Superannuation Fund (AES),
has decided that it would be in the best interests of
members to have their benefits transferred to the Professional
Association Superannuation Fund (PASF).
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| Q |
Who
is Professional Association Superannuation Fund (PASF)? |
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| A |
Australian Enterprise Super will become a division of Professional
Association Superannuation Fund (PASF), a large established
Fund managing in excess of $1.1 Billion in assets with
strong investment performance, low fees and a range
of member services which can help you to manage your
superannuation.
Professional Association Superannuation Ltd (PASL)
is the Trustee for Professional Association Superannuation
Fund (PASF).
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| Q |
Do
I have to do anything? |
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| A |
No. You do not need to take any action yourself as
the transfer will occur automatically. Your assets
will be established into a super account in your name
in the new Fund from 1 April 2007.
Details of
the transfer will be confirmed with you in writing.
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| Q |
Do
I need to provide any authorisation for the transfer? |
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| A |
No. The Australian Enterprise Super Fund is being
transferred under what is called a ‘Successor Fund Transfer’
arrangement which is only possible provided no member
is adversely affected by the transfer in any way.
A
due diligence process was undertaken by the Trustee
to ensure that the 'Successor Fund Transfer’ is to the
advantage of all members. That is, after the transfer,
you will have equivalent or better rights in respect
of benefits transferred.
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| Q |
Freeze
period on investment switches or benefit payments? |
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| A |
Initially while assets are being transferred between
funds and accounts reconciled there will be a need to
restrict members from making an investment switch or
withdrawals from the Fund.
This is known as the ‘freeze period’ and it is anticipated
that this restriction will finish around the beginning
of June.
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| Q |
What
is changing? |
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| A |
One immediate benefit of the transfer is that it
will provide you with reduced overall costs as well
as additional member services. These services
include:
» regular communications
» website access 24/7
to information about your super
» increased Customer
Service Centre access (8:00am – 10:00pm EDST)
» access
to competitive banking products including housing loans,
credit cards and savings accounts
»
opportunity to join a low cost corporate health plan
» a diverse range of investment options
» investor
education services and
» dedicated member service
representatives.
It is anticipated that over time these services will
help provide you with greater control and flexibility
in managing your superannuation investment.
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| Q |
Will
I receive communication about the change? |
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| A |
Yes. You should have already received a letter from
the current trustee, Australian Enterprise Superannuation
Pty. Ltd., outlining the changes that are taking place.
As part of the transfer process all assets being
transferred are required to be reconciled both on exit
of the current arrangements and upon transfer into the
new arrangement. You will receive:
- confirmation in the form of an exit statement
from the existing Trustee; and
- you will also receive a communication from the
new Trustee confirming your personal details and
your account balance transferred.
In addition to the above, you will be sent a new
Product Disclosure Statement that will provide you with
all the details on Australian Enterprise Super Division
as part of PASF.
As well as the printed materials to be received,
further details, including regular updates on the progress
of the transfer, will appear on the AESuper website.
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| Q |
What
are the fees and charges going to be? |
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| A |
Overall the fees and charges under the new arrangement
will be less than previously charged. This makes
the Australian Enterprise Superannuation Fund one of
the most competitively priced super funds in the market
place. For comparative purpose the fees and charges
from 1 April 2007 are shown in the below table.
They are gross of any available tax deduction, which
is retained in Australian Enterprise Super. Fees
and charges are inclusive of Goods and Services Tax
(GST) and any Reduced Tax Input Credit (RTIC).
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Fees and Charges
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Amount
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How & When Paid
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Fees when your money moves in or out of the Fund
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Establishment fee
The
fee to open your investment.
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Nil
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Not
applicable
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Contribution fee
The
fee on each amount contributed to your investment.
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Nil
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Not
applicable
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Withdrawal fee
The
fee on each amount you take out of your investment.
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$30.00
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Charged
when the benefit payment is made. It is deducted from the benefit payment
amount.
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Termination fee
The
fee to close your account.
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Nil
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Not
applicable
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Management costs – the fees and
costs for managing your investment
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Administration fee
This
fee covers the general administration of the AESuper, the operations of the
Trustee office, and communications and marketing.
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$0.95
per week
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Deducted
from Member’s accounts monthly on the last day of the month or on the date of
withdrawal.
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Investment management fee
This
fee covers the administration cost of managing the AESuper investment options.
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0.45%
p.a.
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Charged
daily and deducted from the investment portfolios before the investment
return is determined each day.
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Investment related fee
This
fee covers the total cost of investment managers and transaction costs of
managing the assets of AESuper.
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0.12%
p.a. Cash
0.28%
p.a. Security focus
0.38%
p.a. Balanced Growth
0.41%
p.a. Growth Maximiser
(Note: Based on historical amounts
for the period 1 July 2005 – 30 June 2006)
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Charged
daily and deducted from the investment portfolios before the investment
return is determined each day.
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Expense recovery
This
is any expense the Trustee is entitled to deduct for costs of running AESuper
which are not covered elsewhere.
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up to
0.25% pa
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Deducted
as incurred from investment portfolios and reflected in member’s account
balances as a result of the interim and final interest rate calculations.
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Service fees
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Adviser service fee
The
fee charged by AESuper for advice about your investment.
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Nil
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Not
applicable
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Investment switching fee
The
fee charged to switch investment options.
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Nil
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Not
applicable
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Insurance premiums
(See
insurance table below)
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$1.00
to $3.50 per week per member
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Deducted
from Member’s accounts monthly on the last day of the month or on the date of
withdrawal.
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All periodic fees are calculated and charged to member
accounts on a monthly basis and pro-rata at exit.
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| Q |
Will
the transfer affect my insurance cover? |
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| A |
No. Your existing insurance arrangement will
be unaffected by the transfer.
At the time of transfer, the new
Australian Enterprise Super Division will provide you
with Death and Total and Permanent Disability insurance
benefits on the same basis as your existing arrangements.
Insurance premiums will continue
to be deducted monthly from your Member account.
Insurance arrangements will vary
according to your membership, eligibility and choices
you make.
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| Q |
What
insurance premiums apply? |
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| A |
The cost of insurance depends on your age,
and the amount of insurance cover you have chosen.
The following table shows the weekly
premium you will pay and the cover based on your age.
For example, an eligible member aged 40 next birthday
qualifies for Death cover of $53,000 and TPD cover of
$40,000 at a cost of $1.00 per week. This equals a total
of $52.00 per year (or $4.33 per month).
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Age Next Birthday |
Death Cover |
TPD Cover |
Cost per Week |
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16-35 |
$ 63,600.00 |
$ 50,000.00 |
$ 1.00 |
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36-40 |
$ 53,000.00 |
$ 40,000.00 |
$ 1.00 |
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41 |
$ 47,700.00 |
$ 30,000.00 |
$ 1.50 |
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42 |
$ 45,600.00 |
$ 28,000.00 |
$ 1.50 |
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43 |
$ 43,500.00 |
$ 26,000.00 |
$ 1.50 |
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44 |
$ 41,300.00 |
$ 24,000.00 |
$ 1.50 |
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45 |
$ 39,200.00 |
$ 22,000.00 |
$ 1.50 |
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46 |
$ 37,100.00 |
$ 20,000.00 |
$ 1.50 |
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47 |
$ 36,000.00 |
$ 19,000.00 |
$ 1.50 |
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48 |
$ 35,000.00 |
$ 18,000.00 |
$ 1.50 |
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49 |
$ 33,900.00 |
$ 17,000.00 |
$ 1.50 |
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50 |
$ 32,900.00 |
$ 16,000.00 |
$ 1.50 |
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51 |
$ 32,000.00 |
$ 15,000.00 |
$ 2.00 |
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52 |
$ 30,700.00 |
$ 14,000.00 |
$ 2.00 |
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53 |
$ 30,600.00 |
$ 13,000.00 |
$ 2.00 |
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54 |
$ 28,600.00 |
$ 12,000.00 |
$ 2.00 |
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55 |
$ 27,600.00 |
$ 11,000.00 |
$ 2.00 |
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56-60 |
$ 26,500.00 |
$ 10,000.00 |
$ 2.50 |
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61-65 |
$ 23,800.00 |
Not available |
$ 3.00 |
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66-70 |
$ 20,000.00 |
Not available |
$ 3.50 |
Death only Premiums
Death
Only cover has a benefit of $15,000.00 at
a premium of $0.50pw currently.
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| Q |
Will the transfer
affect my investment choice? |
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| A |
No. You will remain invested in the exact same manner
upon transfer to the new Australian Enterprise Super
Division as you were prior to the transfer.
One of the key benefits of AES is the ability to
be able to choose where you would like to invest your
retirement savings. It is important to remember however,
that if you did not make an investment choice, your
benefit entitlements would have been automatically invested
in the Trustee Default Investment option which is:
Trustee Default Investment Option - Balanced
Growth
How the Balanced Growth super assets are allocated
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Asset
Classes
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30
Jun 2006
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Australian
Equities
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35
– 45%
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Overseas
Equities
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30
– 40%
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Property
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0
– 24%
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Unlisted
investments
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0
– 6%
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Australian
Fixed Interest
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0
– 10%
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Overseas
Fixed Interest
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0
– 10%
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Cash
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0
– 10%
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| Q |
Can I change
(switch) my investment choice? |
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| A |
If you did not make an investment choice when you
first joined AES you will remain in the initial Trustee
Investment Default Strategy (Balanced Growth) until
you decide to make a change.
You may switch your investment mix at any time, once
the freeze period is over (anticipated to be early in
June). There is no fee charged for making an investment
switch.
To change your investment choice you will need to
obtain a copy of the ‘Investment Choice
Form’.
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| Q |
Can I transfer
(rollover) other super monies to my AES account? |
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| A |
You may transfer all your superannuation investments
into your new AES Account by rolling over any other
super accounts that you may have elsewhere. This can
help you to keep track of your total investment and
you will not be paying fees on more than one account.
A ‘Transfer in Form’ will be enclosed with your Welcome
Kit, which will be sent to you upon commencement once
your details have been confirmed. Additional copies
are available from the website or by contacting our
Customer Service Centre.
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| Q |
Will I continue
to receive contributions to my account? |
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| A |
Contributions will continue to be made into your
Australian Enterprise Super Division super account.
These contributions will include your employer
compulsory Superannuation Guarantee contributions and
any addition salary sacrifice contributions arrangements
that you may have with your employer.
Should you have any personal voluntary contributions
arranged via a direct debit to your Bank account then
you will need to notify your Bank/Financial Institution
of a change in these arrangements.
To notify us of your direct debit details you will
need to obtain a copy of the ‘Direct
Debit Request Form.
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| Q |
Will I still
be able to receive a Government Co-Contribution? |
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| A |
The Government Co-contribution can be accepted into
Australian Enterprise Super Division and is a great
way to help to boost your super savings.
Depending on your eligibility you may be able to
receive a co-contribution of up to $1,500 from the Federal
Government, if you make an after tax voluntary contribution
to your super account and you earn “total income” of
less than $58,000 per annum!
If your super account could do with a boost, make
an after tax member contribution before 30 June 2007
and you could be eligible for a co-contribution.
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| Q |
Access to AES’s
call centre and internet services: |
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| A |
As part of your transfer to the new arrangement,
you will continue to have access to assistance and help
when you need it via AESuper’s Customer Service Centre
on: 1800 555 024 (The
hours of operation have been extended from 1 April 2007
to be 8:00am – 10:00pm business days, Melbourne time).
The AESuper website will also be available
24/7 to keep you up-to-date with the latest news surrounding
your superannuation fund and to provide you access to
any forms or other documents that you may require on
the Fund. The website address will change from 1 April
2007 to:
www.aesuper.com.au
In addition, should you prefer to email a query to
us you can do so at info@aesuper.com.au
from 1 April 2007.
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| Q |
Who oversees
the Professional Association Super Fund? |
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| A |
The Trustee, Professional Association Superannuation
Limited, is responsible for ensuring that the Fund abides
by all legislation and rules associated with managing
a complying superannuation fund. The Trustee
comprises an equal number of employer and member elected
representatives. The role of the Trustee is to represent
members’ interests, monitor the investment managers
and member services, and to ensure that benefits stay
competitive and beneficial for all members.
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| Q |
How will investment
managers be monitored? |
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| A |
The Trustee sets rigorous criteria in selecting the
range of investment options, including the manager’s
capacity to consistently deliver results in the long-term.
AES monitors the investment managers and reports on
performances on a regular basis.
Members can also review all the investment option
performance by calling AESuper’s Customer Service Centre
on 1800 555 024
or by visiting 'Investment
earnings'.
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| Q |
Need assistance
or financial planning advice? |
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| A |
If you are considering your superannuation options
then the trustee recommends that you seek appropriate
advice from a qualified and appropriately licensed financial
adviser.
Remember it is important that you compare all aspects
of any other super fund carefully including investment
performance, insurance provided, fees and charges, member
services offered and ensure that they are a complying
superannuation fund before making a decision to change
your super arrangements.
Please note, we are unable to provide you with personal
financial advice, and information provided should not
be construed as, providing such advice.
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| Q |
Need more information? |
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| A |
If you have any queries, or would like further information,
please call our Customer Service Centre or alternatively
email your questions to us.
Please note, however, we are unable to provide you
with personal financial advice and information provided
should not be construed as, providing such advice.
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