MLC Wrap Super Series 2 - How to Guide
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MLC Wrap Super Series 2
How to Guide
Preparation date Issued by The Trustee, ABN 93 002 814 959 The Universal Super Scheme
1 July 2017 date
Preparation Issued by the Trustee
MLC Nominees Pty Ltd NULIS
(MLC) AFSL
ABN230702
80 008 515 633 The
(The Fund MLC Superannuation Fund
Scheme)
2 November 2020 Nominees (Australia) Limited AFSL 236465 ABN
ABN4440
928 361701
022 101955The purpose of this document is to give you
enough information to manage your account
with your financial adviser.Contents
Your financial adviser 4
Within the Series 2 accounts you
Accessing your account online 5 have the option to select from
our Core Investment List or the
full Investment List. The Core
How your MLC Wrap account works 6
Investment List gives you access
to a focused range of investment
About your Cash Account 7
options and a simpler fee structure.
Alternatively, you can choose to select
Core Investment List 8
from our full range of investment
options on the Investment List.
Adding to your super – the rules 9
Speak with your financial adviser to
Adding to your super – the mechanics 11 determine which works best for you.
For more information about the Core
Asset transfers into your account 13 Investment List please refer to page 8.
Transferring your super to MLC 14
Starting a pension 15 Want to change your mind?
You can mail, fax or email us to
Starting a pension – Transition to Retirement pension 16 close your account within 14 days
of opening it.
Pension payments – the rules 17
Please make sure you include your
Pension payments – the mechanics 18 name and account details.
We’ll send you confirmation once we
Accessing your money – the rules 19 have closed your account.
Accessing your money – the mechanics 21 If you do close your account, we’ll
return the account balance to you
if it isn’t preserved. Alternatively
Managing your investments 22
we’ll transfer it to another eligible
super fund or, subject to cashing
Changes to the Investment List 28
restrictions, a pension product of
your choice.
Corporate actions 29
Your account balance will be
Receiving distribution income and dividends 30 adjusted for any:
• increase or decrease in the unit
Fees and costs 31 prices or value of your investment
Tax – the rules 33 • insurance premium paid
• pension payments or lump sum
Tax – the mechanics 38 payments made to you
• tax payable, and
Insurance41 • administration costs incurred
in establishing or closing
Nominating a beneficiary 42 your account.
Appointing someone to act on your behalf 44 Please note: This cooling off period
doesn’t apply if you transact on your
How we keep you informed 45 account within the 14 days.
Additional information you need to know 46
Privacy49
References to MLC Wrap refers to MLC Wrap Super Series 2.
If you want more information please contact us on 132 652.
The information in this guide may change from time to time.
How to Guide – MLC Wrap Super | 3Your financial adviser
Your financial adviser will play a pivotal If you change your
role in the continuing review and financial adviser Your financial adviser
management of your account. MLC Wrap is only available to
At some stage you may decide to change you through a licensed financial
Your financial adviser will instruct us your financial adviser. You’ll need to tell adviser or through their authorised
how to invest your money and on any us in writing and provide details of your representative.
other matters relating to your account. MLC Wrap Super account and your new At MLC we believe in the value of
This includes instructions to: financial adviser. financial advice and strongly
recommend you regularly keep in
• switch between investments This will include any fee arrangements
touch with your financial adviser.
• make additional contributions you’ve agreed.
If you choose to no longer receive
• change your account details, and We’ll need to first check your new financial advice, you can still use
financial adviser is an authorised MLC Wrap and we’ll continue
• make withdrawals to your nominated
to provide product updates and
bank account. financial adviser and is licensed to
statements to you at your last
provide advice on our products.
known email or postal address.
We’ll contact your financial adviser if we
You can update your personal
need to: details or manage your account
• give you instructions, or at mlc.com.au/login
• obtain information from you.
4 | How to Guide – MLC Wrap SuperAccessing your
account online
Investor Online is MLC Wrap’s secure Through Investor Online, you can also run the following reports.
site where you have 24-hour access to
Report What information it provides
your accounts.
Portfolio Valuation Gives a list of all your investment holdings within
Once you’ve logged in via your account at a specified date and the:
mlc.com.au/login you can:
• current share or unit price
• view all your MLC Wrap accounts in • total value, and
one place • percentage of your portfolio.
• keep track of your investments and
account balances Market Exposure Shows the current market exposure and sector
allocation across your investment portfolio.
• view your transactions
Transaction Summary Shows the transactions that occurred over
• get your Bpay® details for investing
the specified period for each investment in
• register for Electronic Funds Transfer your portfolio.
(EFT) details for contributions
Centrelink Pension Schedule Provides you with information to enable Centrelink
• update your contact details and
(pension accounts only) to assess Social Security or Service Pension
password entitlements.
• view your insurance, and
• find out how your investments are
tracking with consolidated reporting.
® Registered to Bpay Pty Ltd
ABN 69 079 137 518
How to Guide – MLC Wrap Super | 5How your MLC
Wrap account works
MLC Wrap allows you, together with your financial adviser, to manage your investment
portfolio on your terms.
Your account
Investment 1
Buy and sell
Your contributions investments
Investment 2
Cash Account Earnings from
You investments
Investment 3
Payment of Premiums
withdrawals
Insurance
Insurance proceeds
Fees, charges & taxes
6 | How to Guide – MLC Wrap SuperAbout your
Cash Account
The Cash Account is used for all Minimum cash requirement If you don’t make a nomination, we’ll
transactions on your account including sell your investments in the order
You need to invest a minimum amount
pension payments. Where applicable, the investment groups are listed
in your Cash Account as shown in the
insurance premiums are also deducted on the Investment List available at
table below.
from your Cash Account. mlc.com.au/forms_and_brochures
Super 1% of your account balance
Where you hold multiple investments
Your Cash Account Investment to a maximum of $5,000.
from the same group, the first
Like other cash investments, you earn Pension 1% of your account balance investment we’ll sell is the one that
interest on a positive cash balance in to a maximum of $5,000 hasn’t been bought or sold for the longest
your Cash Account. However, interest plus an amount to cover the period of time.
will be charged if your Cash Account is next two months of
pension payments (for Please note: Separately Managed Account
negative. This may happen if you buy
monthly and fortnightly
investments using proceeds from sales (SMA) model portfolios and term deposits
payments) or the next
that aren’t final, or if you haven’t allowed pension payment (for other will be included last in the default sell
for fees or other payments. The interest payment frequencies). down order.
rate charged will be equivalent to the rate
applied where your Cash Account balance There may be tax implications
is positive. Monitoring your Cash Account
if we have to sell some of your
You and your financial adviser are investments. You should make
Interest is calculated daily and paid to sure your minimum cash
responsible for maintaining the
your Cash Account quarterly. balance is always maintained.
balance in your Cash Account above
Your Cash Account is currently allocated the minimum cash requirement.
to cash investments, managed by NAB. Cash Account fee
You can top up your Cash Account by
Please go to mlc.com.au/cashaccount
transferring money into it, or requesting
or speak with your financial adviser A fee of 0.75% pa is calculated on the
to sell down other investments in
for information on your Cash Account daily Cash Account balance. The Cash
your account.
including: Account fee does not count toward the
If your Cash Account balance falls below maximum or minimum Administration
• the relevant product information
fee. The Cash Account fee does not
and/or terms and conditions for the minimum cash requirement, we
may sell some of your investments to apply to the cash allocation for your
the investments
pay for any outstanding fees, charges investments in the SMA.
• the approximate allocation to each
and expenses and to provide at least the
investment, and The Cash Account fee is calculated daily
minimum cash requirement. We’ll review
and deducted from the investment
• the indicative earning rates and this quarterly and let your financial
returns, before interest is calculated
performance information. adviser know before taking action.
and applied to your Cash Account each
With the exception of listed investments quarter or on withdrawal. It is not an
and term deposits, you can nominate the explicit deduction from your Cash
order you’d like your investments to be Account balance and will be included
sold should the need arise. in the ‘other fees of your investment’ in
your statement.
How to Guide – MLC Wrap Super | 7Core Investment List
With MLC Wrap Super Series 2 you have How do I move in and out of the How do fees work if in the
access to the full range of investment Core Investment List? Core Investment List?
options on the Investment List. This is
You can apply to move your account The Administration fees you pay will
known as the full Investment List.
between the Core Investment List and depend on the Investment List
Alternatively, you can choose to select
full Investment List at any time by: applicable to your account at the end
our Core Investment List, which gives
of the month or when you close
you access to a focused range of • Speaking to your financial adviser; or your account.
investment options and a simpler
fee structure. • Completing the Switch &
Re-weight form You and your financial adviser are
responsible for the investments held in
The Core Investment List is made up of a
You can obtain this form at your account. Where there are holdings
selection of MLC investment options and
mlc.com.au/forms_and_brochures outside of the Core Investment List in
includes the Cash Account.
or by calling us. your account, you’ll be charged the
To understand the range of investment Administration fee applicable to the full
Any active transactions, current Investment List even where the Core
options available through the
investment holdings, or current Investment List has been selected on
Core Investment List, see the
investment facilities on the account your account.
Investment List available at
which include investments not available
mlc.com.au/forms_and_brochures
on the Core Investment List may delay The Administration fee is based on your
When you open your account, you must the request to move to the Core combined super and pension account
select from either the Core Investment Investment List. balances that are within the same
List or the full Investment List. Investment List structure. For example,
We may also update the Investment List you are not able to combine balances
You can’t choose to operate under both selected on your account to be the full from a pension account where you have
the Core Investment List and full Investment List should the holdings selected the Core Investment List, with a
Investment List within the one account outside of the Core Investment List super account where the full Investment
at the same time. continue to be held in your account. List has been selected.
Both of these scenarios will impact the If you have selected the Core Investment
Administration fees you pay. List, you can’t receive the benefit of
family group linking. Members of the
You can review your investments at any
family group will also not be able to
time by speaking with your financial
benefit from your account.
adviser, logging in to your account at
mlc.com.au/login or by calling us. Please speak to your financial adviser
about which option is most appropriate
for your circumstances.
8 | How to Guide – MLC Wrap SuperAdding to your super –
the rules
Eligibility to contribute
The law requires that any
contribution that can’t be allocated Your age Employer contributions Contributions Contributions
to your account within 30 days be Mandated Voluntary from you from your
returned. We may therefore return spouse
contributions to the source of the
payment as early as 10 days after
Under 67 • • • •
we receive it to make sure that we
meet this requirement.
67 but less than 75
• must satisfy
work test
must satisfy
work test*
must satisfy
work test
(unless (unless eligible (unless eligible
eligible for for work test for work test
work test exemption) exemption)
Who can contribute to exemption)
your super account?
Most commonly, contributions to your
75 and over • not eligible not eligible* not eligible
* This does not apply for members who are applying and eligible for a Downsizer contribution.
super account can be made by you, your
Please find more information at ato.gov.au
spouse or your employer.
You may also be able to grow your super If you’re aged between 67 and 75,
faster with strategies that include: all contributions, except mandated Some useful definitions
• Government co-contributions based employer contributions and downsizer Mandated employer contributions
on your personal contributions and contributions, can only be made provided are those required to be paid under
subject to income, or you have been gainfully employed on at the Superannuation Guarantee laws,
least a part-time basis. This means you’ve a certified award or a registered
• salary sacrifice contributions by
worked for at least 40 hours over a 30-day workplace agreement.
arranging with your employer to
consecutive period in the financial year in Voluntary employer contributions
sacrifice some of your pre-tax salary.
which the contribution is made. include salary sacrifice contributions
Your financial adviser will be able to help and employer additional contributions.
Before you make a contribution, it’s your
you decide what contribution strategies Further information on
responsibility to make sure you meet the
are suitable for you. contributions can be found in the
work test requirements.
‘Tax—the rules’ section under the
Check your eligibility heading ‘Contribution types and
From age 75, only mandated employer
caps for tax purposes’.
contributions (those required by
The type of contribution, and whether
Superannuation Guarantee laws, an
it can be accepted, will depend on your
award or registered workplace agreement)
age and work status.
and downsizer contributions can superannuation balance at the prior 30
Here’s a quick guide to help you decide be made. June must be less than $300,000 and the
whether you or others can contribute to exemption can only be applied once in
An exemption from the work test is your lifetime.
your super account. Please note: You can
available to recently retired individuals
transfer other super money from most
age 67 – 74. It allows voluntary The rules around contributions may
other funds to your account at any time.
contributions to superannuation without change, so you’ll need to speak to your
the need to satisfy the work test if the financial adviser. Alternatively you can
test has been met in the previous visit moneysmart.gov.au, ato.gov.au or
financial year. In addition, your total call us.
How to Guide – MLC Wrap Super | 9Splitting contributions What are downsizer The ATO is responsible for administering
with your spouse contributions? the downsizer contribution scheme so
you will need to complete the ATO
You may be able to split particular types If you sell a property that has been your
downsizer contribution to super form,
of contributions with your spouse by main residence at some point and you’ve
and provide this to us when making, or
asking us to transfer these contributions owned it for at least 10 years and are aged
prior to making, the contribution.
into your spouse’s super account. 65 or more, you may be eligible to
We recommend speaking to your
contribute an after-tax superannuation
financial adviser and learning more
To do this, you and your spouse need contribution of up to $300,000
at ato.gov.au
to complete a Contribution split (or $600,000 for couples) from the
to spouse account form. You can sale proceeds of your home to boost * The total super balance measures the
obtain this form at mlc.com.au/ your super balance. 30 June value of your super savings in
accumulation accounts and retirement
forms_and_brochures or by calling us.
phase income streams and is used to
You may make more than one
calculate your eligibility for making
As there are some limitations and tax contribution from the sale of the eligible certain contributions.
implications, we recommend you property, but the total must not exceed
speak with your financial adviser or this maximum. You may contribute less
go to ato.gov.au than the maximum. These contributions
can be made to your super account
First Home Super Saver Scheme regardless of your work status, total
super balance or what you’ve already
The First Home Super Saver Scheme
contributed to super under the ordinary
(FHSSS) is a government initiative
contribution caps.
intended to help first home buyers
save for a home. Downsizer contributions are not
tax-deductible. The downsizer
Once you’ve established a super account,
contribution will also form part of your
net of tax future voluntary concessional
total super balance* and consequently
and non-concessional super
may affect your ability to make
contributions you make (within the
certain types of super contributions
specified limits) may become eligible to
in the future.
withdraw, plus a deemed rate of return
determined by the ATO (based on the Unlike your home which is not assessed
90 day Bank Bill rate + 3%) to purchase by Centrelink while it is your main
your first home. residence, your super is assessed under
the assets and income tests once you
Limits apply to the amounts you can
reach Age Pension age. If you receive any
save and withdraw through the FHSSS.
means-tested social security or
If you decide not to purchase a home or
Department of Veterans’ Affairs income
do not qualify for the scheme, you won’t
support payments, you should seek
be able to withdraw your voluntary
advice to understand the impact that
contributions until you retire or meet
making a downsizer contribution will
certain other conditions.
have on your entitlements.
To determine your eligibility or to apply
for this scheme you must contact the
ATO. We recommend speaking to your
financial adviser and learning more at
ato.gov.au
10 | How to Guide – MLC Wrap SuperAdding to your super –
the mechanics There are conditions applicable to
making contributions. For further
information please see Adding
money to your super – the rules
How you can make Certain contributions such as CGT
contributions small business and downsizer
Once you’ve started your account, one- All forms are available at mlc.com.au/ contributions can only be made via
off and regular contribution can be made. forms_and_brochures or by contacting cheque. The relevant forms need to
us. All forms and written requests can be provided to us before or at the
All contributions will be shown in your be scanned and emailed, faxed or mailed time the contribution is made.
statements. You can also view your most to us. For further information, please
recent transactions and investments at visit ato.gov.au
mlc.com.au/login
Method Who and what How
Bpay® You, your spouse or your 1. Either call your financial institution or use internet banking.
Paying employer can make You don’t need to complete any forms if you’re using Bpay®.
contributions one‑off and regular 2. You’ll need to use the following information, which is also available at
from a bank or contributions. mlc.com.au
similar account.
Bpay® Biller Code 10959
Customer Reference Number
Your Customer Reference Number is provided in your Welcome letter we send to
you when we set up your account or by accessing your account details at
mlc.com.au/login. Alternatively you can call us to obtain this number.
The reference number will be the two digit Contribution code to specify what
contribution is being made followed by the eleven digit BPAY Reference Number.
The table below lists the Contribution types and relevant codes.
Contribution type Contribution code
Employer – Super Guarantee and
Voluntary Employer 11
Personal 13
Spouse 15
Salary Sacrifice 16
Direct Debit You, your spouse or your 1. Check your financial institution account can accept direct debit requests.
Paying employer can make 2. Complete and sign the Update account details form available at
contributions one-off and regular mlc.com.au/forms_and_brochures
from a bank or contributions.
3. Send the form to us.
similar account.
You need to make sure you have sufficient cleared funds available in your account
on the due date of each direct debit.
Regular Investment Facility
Regular contributions can be made by setting up a Regular Investment Facility
with a nominated financial institution account for monthly, quarterly, half-yearly
or yearly payments.
Changes to direct debits
1. Complete and sign the Update account details form available at
mlc.com.au/forms_and_brochures
2. Send the form to us.
We may cancel regular direct debit drawings if three consecutive drawings are
dishonoured by your financial institution. We’ll contact your financial adviser if
this happens and ask what course of action to take.
® Registered to Bpay Pty Ltd
ABN 69 079 137 518
How to Guide – MLC Wrap Super | 11Adding to your super
– the mechanics
Method Who and what How
Electronic You or your employer can 1. Check with your financial institution if it has any requirements relating to EFT
Funds Transfer make one-off and payments and how they can be made.
(EFT) regular contributions. 2. Register at mlc.com.au/eft to obtain our bank details for EFT.
Please note: salary sacrifice 3. Use these bank details to make your payment.
contributions cannot be made
by EFT.
Credit Card You, your spouse or your Credit card contributions can be made by calling us.
Payments employer can make one-off
(via VISA or contributions.
Mastercard)
Cheque You, your spouse or your 1. Complete and sign the Additional investments form available at
employer can make one-off mlc.com.au/forms_and_brochures
contributions. 2. Attach a cheque payable to ‘MLC Wrap Super’ crossed ‘Not Negotiable’.
If it’s a personal cheque make sure you have sufficient cleared funds in your
account to enable us to bank the cheque.
3. Send the cheque and form to us.
Please note: An election form must be provided to us at or before the time a small
business CGT or downsizer contribution is made.
Asset Transfer You can contribute by 1. Speak with your financial adviser to make sure the asset you wish to transfer
(also known transferring assets you own to can be added to your MLC Wrap account.
as In specie your account without 2. Complete the Asset transfer (in specie) deposit form and send it to us.
transfer) having to sell them. Please note: For more information on asset transfers please refer to page 13.
If the contribution type isn’t provided when it’s paid, we’ll contact you or your financial adviser. If we’re unable to get the
information we need, then processing of the contribution may be delayed or it may not be accepted.
Please check your statements to ensure all contributions made to your account have been correctly classified. Contributions
classified incorrectly may be taxed incorrectly.
How you can make sure your • wish to have capital gains tax (CGT) (see page 24 for more information on
contributions go smoothly exempt contributions arising from these facilities).
the sale of a qualifying small business
When you make a contribution please If you don’t want your contribution
asset counted towards your CGT
make sure you’ve identified the correct invested in line with the investment
contribution cap (to be submitted
type of contribution for your payment. facilities you have in place, you or your
by cheque only)
All contributions have to be identified as: financial adviser will need to let us know
• are eligible to make contributions that before the contribution is made.
• Mandated employer (such as Super are exempt from the contribution caps
Guarantee), under the personal injury rules, (to be
submitted by cheque only), or When we can’t process
• Salary Sacrifice,
your contribution
• Personal, or • are eligible to contribute as a downsizer
contribution. Refer to Adding to your If we don’t have all the information
• Spouse. we need to process your
super – the rules for more information
contribution, we’ll contact your
In some cases, where you’re making on this type of contribution.
financial adviser.
personal contributions, you may need
to provide us with additional information How we process Any contributions we can’t process
or forms at or before the time the
your contribution will be held in an interest bearing
trust account for up to 30 days.
contribution is made. As long as we have all the correct details If after 30 days we can’t get the
we’ll process your contributions to your information we need, we’ll return
These include cases where you:
Cash Account. If you have investment your money. Any interest earned is
facilities in place, your contribution will retained for the benefit of members
be invested in line with your instruction of the Fund.
12 | How to Guide – MLC Wrap SuperAsset transfers into
your account
Before you make a decision on transferring We’ll then arrange to have your investments
your investments make sure you: transferred into your super account.
• speak with your financial adviser Please note: Assets cannot be transferred
• check whether we can accept the out of MLC Wrap super accounts (in
investments you want to transfer in specie).
• compare the features and fees of the What happens next?
service you’re transferring from
As long as we have all the correct details
• consider that any investments
we’ll arrange to transfer the investments
transferred into your super or pension
into your account. The transfer process may
account will be transferred to the
take a few weeks as we work with your other
Trustee, NULIS Nominees (Australia)
service provider to move your investments.
Limited, resulting in a change of
ownership. This may result in a Once the process is complete, we’ll confirm
Capital Gains Tax (CGT) liability the details of the transfer in writing to you.
Also, the transfer will appear on your next
• consider that you cannot in specie
transfer assets out of the super or Statement available at mlc.com.au/login
pension account. All investments will
need to be sold if exiting the Fund.
• consider any exit penalties you may
be charged, and
• work out any differences in fees you
may be charged.
If your investment doesn’t appear
in the Investment List (available at
mlc.com.au/forms_and_brochures)
or your holding exceeds the Trustee’s
diversification limits, please contact
us to discuss your request.
Transfers in
Keeping your investments in one place
makes sense because you’ll reduce your
paperwork and it’ll be easier to keep track
of how your investments are performing.
You also may save on fees.
Transferring your investments is easy
with MLC Wrap. Just speak with your
financial adviser who’ll arrange for the
appropriate forms to be completed and
sent to us or complete the Asset transfer
(in specie) deposit form available at
mlc.com.au/forms_and_brochures
How to Guide – MLC Wrap Super | 13Transferring your
super to MLC
Keeping your super in one place reduces your paperwork making it easier to
keep track of your investments. You may also save on fees.
What happens next?
Before you make a decision on
transferring your super make Transfers will be processed to your Cash
sure you: Account. Then we’ll invest your money
according to the instructions you have
• speak with your financial adviser
given us for your existing balance or your
• compare benefit and
regular contributions (if applicable).
investment options
• check any differences in the If you want to invest your money
insurance cover you may have, differently, you or your financial adviser
and will need to let us know before your
• work out any differences in fees money is transferred.
you may be charged.
Please note: Rollovers/transfers
from certain funds may be subject
to tax in MLC Wrap Super.
Transferring your super
is easy with MLC
You can:
• speak with your financial adviser
• view and complete the online super
consolidation form at mlc.com.au
• complete a Consolidate your super
form, available at mlc.com.au/
forms_and_brochures, or
• call us.
You can then either:
• send the form to us and we’ll arrange
to have your super balance transferred
to MLC,
OR
• send the form directly to your other
super fund and they’ll then arrange
for your super balance to be
transferred to MLC.
Once we’ve received your money from the
other fund, we’ll write to you confirming
the amount and details.
14 | How to Guide – MLC Wrap SuperStarting a pension
Provided you’re eligible, contributions
A limit applies to the amount that can be transferred to the retirement phase can be made before starting your
to support superannuation income streams. The limit is known as the Transfer pension. Refer to Adding to our super
Balance Cap and is $1.6 million for the 2020/21 year of income. This cap applies to
– the rules for more information.
all your retirement phase superannuation income streams such as Account-based
and Transition to Retirement (TTR) pensions in the retirement phase. A TTR
pension will qualify as a retirement phase superannuation income stream and How your pension is started
count towards the cap when you meet an eligible condition of release. If you don’t have an MLC Wrap
Individuals who exceed this cap may be subject to excess transfer balance tax and super account, please see the
will be required to withdraw or transfer the excess back into the accumulation phase. Product Disclosure Statement at
If the request is not actioned, the Trustee may be required to process the request. mlc.com.au/pds/mlcwrapsuper2
Refer to Accessing your money – the rules for more information or visit ato.gov.au
If you have an MLC Wrap super account,
If you’re invested in a Term Deposit you need to consider that the accrued interest
your financial adviser can complete your
may impact your Transfer Balance Cap. Pending income from your investments
may also impact your Transfer Balance Cap. For more information speak to your application online.
financial adviser or call us on 132 652. Alternatively, you can complete and
sign a Transfer to pension form. See
‘Pension payments—the rules’ for
A pension is a way in which you can be eligible conditions of release) the TTR details about the amount of pension you
paid your super benefits. It is designed will move into the retirement phase. can choose to receive.
to provide you with a regular income Refer to Transition to Retirement (TTR) Your pension must be started with a
stream instead of a one-off lump pension on page 16 for more information. lump sum. So if you intend to start your
sum payment. Once you’ve determined your eligibility pension with money from different
MLC Wrap Super Series 2 offers the to start a pension, you can transfer your sources, you should first consolidate all
following types of pensions: account balances from your: amounts in a super account.
• Account-based pensions, and • MLC account To consolidate your other super accounts
to your MLC Wrap super account,
• ransition to Retirement (TTR)
T • other super funds, or
pensions. complete a Consolidate your super form.
• both. See ‘Transferring your super to MLC’
for more information.
Account-based Pensions
These are considered to be in the Once we’ve received and processed
Maintain your MLC
‘retirement phase’ as you’ve met an all specified rollovers and contributions,
Wrap super account
eligible condition of release before you we’ll transfer the lump sum amount that
entered into the product. You can choose to leave some you want over to your pension account.
money in your MLC Wrap super
We can then confirm your pension
Transition to Retirement (TTR) account so you can continue to:
account and investment details and
pensions • make additional contributions, start your pension payments.
To commence a TTR pension you or
would’ve reached your preservation • pay your insurance premiums
age and are not eligible to commence (if you wish to maintain your We’re unable to transfer your
insurance policy). lump sum amount if there
an Account-based pension. Your
are outstanding investment
TTR pension is considered to be in You need to maintain a minimum instructions for the investments
accumulation phase. Once you reach age balance in your account of $3,000. in your super account.
65 (or notify us of meeting one of the
How to Guide – MLC Wrap Super | 15Starting a pension
If we’re unable to process your Transition to Retirement (TTR) If you have met another condition of
application, we’ll contact you or your pension release, such as permanent incapacity or
financial adviser seeking further terminal illness, please call us on 132 652.
If you haven’t retired but have reached
information. If we’re still unable to accept
your preservation age, you can access Once you’ve met an eligible condition
your application we’ll return the monies
your preserved benefits in the form of of release, there’s no maximum pension
to the source of payment.
a TTR pension. amount you can withdraw each year
Pension Refresh and you can access unlimited lump sum
Any investment earnings you receive,
payments from your pension account.
You can’t add further contributions or as well as any realised capital gains, are
Your TTR pension balance at the time
other amounts directly to your pension taxed at a rate of up to 15%. You can
you meet the eligible condition of release
account after it has started. draw up to 10% of the account balance
will count towards your transfer balance
However, you can transfer your pension each year. You’re unable to make lump
cap (please refer to the call out box at the
account balance back to your MLC Wrap sum withdrawals until you meet one of
start of page 15).
super account (if still open or a new MLC the eligible conditions of release, though
Wrap super account), add more money some very limited exceptions apply. Preservation age
(if eligible) and then start a new pension. The eligible conditions of release are: Preservation age is 55 for those born
You can do this by speaking to your • reaching age 65 before 1 July 1960 and gradually increases
financial adviser or by completing the to 60 depending on your date of birth.
• being permanently retired (as defined
See the table below for more details.
Transfer to super and Transfer to by law)
pension forms available at mlc.com.au/
forms_and_brochures • permanent incapacity, and
Date of Birth Preservation
Alternatively, you can start a separate • terminal illness. Age
pension by:
When you’ve reached age 65, investment Before 1/07/1960 55
• speaking with your financial adviser, earnings and realised capital gains
1/07/1960 - 30/06/1961 56
or automatically become tax exempt
without you having to notify us. If you 1/07/1961 - 30/06/1962 57
• completing the Pension Application
form available at meet one of the other eligible conditions 1/07/1962 - 30/06/1963 58
mlc.com.au/pds/mlcwrapsuper2 of release, as described above, you’ll need
to notify us in order for the investment 1/07/1963 - 30/06/1964 59
earnings and realised capital gains to From 1/07/1964 60
become tax exempt.
You can notify us of your permanent
retirement by completing our
Condition of release form available
at mlc.com.au/forms_and_brochures
16 | How to Guide – MLC Wrap SuperPension payments –
the rules
You can choose the amount of pension you receive, provided the amount
meets the payment rules. This section describes the rules you must follow
when making your choice.
Minimum pension payment You will need to notify us if you
permanently retire before age 65 because
Once you start your pension, you must receive the legislated age-based minimum
the maximum payment limit will no
amount each financial year. The minimum amount depends on your age and your
longer apply and your investment
account balance when you start your pension and is recalculated at 1 July each year.
earnings will not be taxed.
The minimum amount is rounded to the nearest $10.
Age-based minimums Specified payment
You can choose an amount within
Age at start of pension Default minimum Reduced minimum
the required minimum or maximum
and each 1 July percentage of account percentage of account
balance (%) balance (%)1 (if applicable), and you can elect to have
that amount increased annually by the
Under 65 4 2 Consumer Price Index or a percentage of
65 to 74 5 2.5 your choice.
75 to 79 6 3 Information to Centrelink
Just let Centrelink know you receive a
80 to 84 7 3.5
pension from us and it will request the
85 to 89 9 4.5 information it needs from us.
90 to 94 11 5.5 The information we’ll send includes the:
95 or more 14 7 • balance of your account, and
• annual income you’ve received.
1 The reduced minimum is available for the 2020/2021 financial year.
The minimum may be suject to change from time to time. For more information go to ato.gov.au This information, along with other
information you provide, will be used to
The minimum amount is pro-rated in the financial year you start your pension. If you
determine your social security benefits.
start your pension in June, you do not have to take any payments until the
next financial year. Please speak to your financial adviser
to make sure you’re giving all the
Shortly after 1 July each year we’ll send you a letter showing you the legislative information you need to Centrelink.
age-based minimum annual amount for your pension for the following financial year.
Term Allocated Pension (TAP)
Maximum pension payment
For TAP’s we’ll send you an update of
If you have a TTR pension in the accumulation phase, the rules are: your minimum and maximum annual
• your pension payment needs to meet the legislative age-based minimums (refer to pension amount shortly after 1 July each
Age-based minimums table) or a pro rata amount year.
• a maximum pension payment of 10% of your account balance can be withdrawn in a
financial year (until you meet an eligible condition of release). This amount is not
calculated on a pro rata basis.
• you must reach your preservation age to able to draw a pension.
These rules will generally apply until you either:
• permanently retire
• stop working on or after age 60, or
• reach age 65.
How to Guide – MLC Wrap Super | 17Pension payments –
the mechanics
Choosing your Changing your Low balance pensions
pension payments pension payments
When the balance in your pension
Payments will be made from your Generally you can change your pension account falls below $3,000, and so long
Cash Account to your nominated bank payment details at any time during the as your investment options can all be
account. You can choose one of the year by: sold to cash, we may close your account
following payment frequencies: and pay the balance (net of any
• contacting your financial adviser
withholding tax) to your nominated
• fortnightly
• completing the Update account bank account—and of course we’ll let you
• monthly details form available at know if that happens.
mlc.com.au/forms_and_brochures, or
• quarterly
If you hold any illiquid or suspended
• half-yearly, or • calling us.
funds in your pension account that
• yearly. You can change the: prevent us from making this payment (or
making your mandated minimum
You can also choose the date these • amount of pension payments
pension payment), we’ll move your
payments are made from your • payment date pension account to a super account, and
pension account. If the selected date
• payment frequency, or contact you to let you know the details.
falls on a weekend or public holiday, we’ll These assets may be able to be sold
generally process the payment on the • indexing of pension payments.
during a future period of redemption set
prior business day. by the fund.
You can add or update the financial
institution account details for
pension payments.
If you nominate an account that isn’t in
your name or that you share jointly, we
may need to confirm the identity of the
account holder.
18 | How to Guide – MLC Wrap SuperAccessing your money –
the rules
Because super is a long-term investment, there are strict rules
around how and when you can access your money.
Super • become temporarily incapacitated
(subject to withdrawal restrictions) You will need to lodge a Notice of
You’ll only have access to your super intent to claim or vary a deduction
when you have: • been given a release authority to pay form if you wish to claim a tax
excess contributions tax, or deduction for contributions you
• reached age 65
have made before transferring
• had temporary residency which has
• reached your ‘preservation age’ (see
expired and you’ve permanently some or all of your balance to
page 16) and are permanently retired pension or closing your super
departed Australia, and satisfy the
account. This form is available at
• reached your ‘preservation age’ and superannuation law requirements.
mlc.com.au/forms_and_brochures
are starting a TTR pension
The restrictions on access to your We are unable to accept a request
• been granted access due to financial
super are usually referred to as the to claim a tax deduction for
hardship contributions you have made
‘preservation rules’. You can find out
• been granted access on compassionate more by visiting moneysmart.gov.au, after you have transferred some
or other grounds, approved by the ato.gov.au or speaking with your or all of your balance to pension
Australian Taxation Office (ATO) financial adviser. or your super account is closed.
Please note: the amount you can
• a permanent disability (as set out in law)
You can transfer your super account claim as a tax deduction may also
• a terminal medical condition (as set balance at any time to another eligible be impacted if any partial rollovers
out in law) super fund. or withdrawals have been processed
on your super account. Please speak
• terminated employment after age 60
If you request a partial withdrawal, you to your financial adviser or call us
• terminated employment at any age need to make sure there’s sufficient for more information.
with restricted non-preserved benefits money in your account to pay any
in the account and that employer has insurance premiums (if applicable)
contributed to your account and/or fees.
Special rules for temporary residents
If you are or have been a temporary resident you can generally only access your super
benefits as a single lump sum where your visa has ceased to have effect and you’ve
departed Australia. Withholding taxes may apply to the lump sum payment.
Exceptions apply if you become permanently disabled or suffer a terminal medical
condition or, in the event of your death.
If you don’t claim your super benefit within six months of becoming eligible, we may have to
pay it to the Australian Tax Office (ATO) as unclaimed super. In these circumstances, relying
on relief from ASIC, we’re not required to notify you or give you an exit statement, and you’ll
need to make an application directly to the ATO to have any entitlements paid to you.
These rules don’t apply if you are, or become, a New Zealand citizen, Australian citizen
or permanent resident, or you hold a relevant Retirement visa.
How to Guide – MLC Wrap Super | 19Pension • where the withdrawal occurs within
Excess transfer balance the first six months of the pension
The ATO may require you to Account-based Pensions and only when the pension hasn’t
commute an amount out of your If you need more than your regular been purchased with the lump sum
superannuation income stream. withdrawal proceeds of another
pension payments, you can request an
The amount is called your excess complying income stream
additional amount to be paid to you
transfer balance and includes the
excess transferred into your pension as a lump sum payment or additional • for a payment split under family law,
account, plus excess transfer pension payment. or
balance earnings.
Unless you have a Transition to • upon death, or to fund the payment
You might be able to commute the Retirement Pension, there’s no of a death benefit.
excess transfer balance amount into limit on the amount of lump sum or
your super account, or withdraw it additional pension payments you can Social Security considerations
from your pension account.
receive each year. Any decisions you make regarding the
If the ATO hasn’t been notified level of pension payments and lump sum
that the excess transfer balance Transition to Retirement (TTR) withdrawals you receive may impact any
amount has been commuted within Pensions income and support payments you’re
60 days from the date of the letter,
If you’ve reached your preservation entitled to (if applicable).
they may send a Commutation
Authority letter to us instructing us age (see page 16), you can start a TTR We recommend you speak with
to commute the excess amount. pension. Your total pension payments in your financial adviser or go to
any financial year must not exceed 10% servicesaustralia.gov.au to find out
If we receive a notice we will
of your account balance. more about the implications.
endeavor to contact you to confirm
your instruction for withdrawing If you request an additional payment,
this money from your pension which causes you to exceed your Transferring your pension
account. If we have not heard from
maximum level, we won’t be able to You can transfer your pension to most
you, we’ll withdraw the money from
process your request. If this occurs, we’ll other super or pension funds at any time,
your pension account and pay the
amount to the same bank account contact you or your financial adviser. however, you’ll need to have received
where your pension payments your minimum annual payment. If you
Also, with only limited exceptions, you
are paid. haven’t, we may pay you an additional
can’t make lump sum withdrawals until
If you would like more information, amount and then transfer the balance
you’ve met an access condition.
or you disagree with the amount of of your account.
your excess transfer balance please Term Allocated Pensions TTR pensions can only be transferred
contact the ATO at ato.gov.au
You can generally only access money in to a super account or another TTR
term allocated pensions via regular pension. Term Allocated Pensions
pension payments. Lump sum can only be transferred to a new
withdrawals are only available in limited Term Allocated Pension.
circumstances. These are:
• to pay a surcharge liability
• to purchase another complying
income stream
20 | How to Guide – MLC Wrap SuperAccessing your money –
the mechanics
You can choose where your money What happens if we’re unable
Before you make any withdrawal is paid. Withdrawals can be paid: to process your request?
request you should check any
limitations and implications • to another MLC account Sometimes there’ll be reasons why
that may apply. You may speak • directly to another nominated we can’t process your request. It could
to your financial adviser or go financial institution account either be because we don’t have enough
to ato.gov.au or call us. in your name or to a third party information or some outstanding
nominated by you, or requirements haven’t been met.
• by cheque payable to you. It will be If this is the case, we’ll try our best to
Taking money out forwarded to the address recorded contact you or your financial adviser to
If you want to take some money out, on our system unless you notify us find out any extra information we need.
you’ll need to make sure you still have otherwise in writing.
Once we’ve received the outstanding
at least $3,000 left in your account. Rollovers will be paid by EFT or cheque information, we’ll process your request
You should be aware that your account to the nominated rollover institution. as usual and confirm your transaction.
balance doesn’t fully reflect the tax
impact of any unrealised gains or losses Fast-track withdrawals
that may arise if you request a full If you need to access your money quickly, Where your account holds
withdrawal of your account. The amount you can request to have your withdrawal investments that can’t be sold down
that would be available if you request Fast-tracked. to cash, we’re unable to close your
a full withdrawal is referred to as your account until these investments can
‘Withdrawal Benefit’, which does allow It’ll be processed within five business be sold down to cash.
for any additional tax arising from the days and can provide you with up to 75% If this happens, we’ll pay out as
sale of your investments. of your account balance before the sale of much of your account balance as
your investments are complete. possible. However, you’ll be required
Your account balance and your to maintain a cash reserve in your
Withdrawal Benefit are both disclosed A Fast-track withdrawal is paid from account equal to two years of fees
in your statements. your Cash Account. We’ll pay the money and costs relevant to your account.
to you even if your Cash Account
How to make a withdrawal balance becomes negative, however,
you’ll need to pay interest (see page 7
You can make a withdrawal by: for more information).
• contacting your financial adviser
Please note: Fast-track withdrawals
• completing either the aren’t available for certain investments
Withdrawal or Rollover form at such as:
mlc.com.au/forms_and_brochures, or
• illiquid investments
• calling us.
• hedge funds
All forms and written requests can be
• term deposits
scanned and emailed, faxed or mailed to
us. We may need to verify your identity • debentures
before we can process your request. • property diversified investments, or
• capital protected products.
How to Guide – MLC Wrap Super | 21Managing your
investments
Placing investment instructions Single buy or sell transaction
Investment instructions can be submitted either as: Investments are purchased from the
available cash in your Cash Account.
• a single buy or sell transaction, or
Available cash is the amount of money
• part of a switch or re-weight transaction. in your Cash Account that is available
to invest or withdraw (see page 7).
Your financial adviser can submit investment instructions online or you can submit
The proceeds from investment sales are
investment instructions by completing a Switch and Re-weight form available at
paid to your Cash Account.
mlc.com.au/forms_and_brochures
When you’re purchasing investments
All instructions must be completed accurately. We aren’t liable for any loss where
(as opposed to switching between
we’re unable to complete an investment instruction because of inaccurate or
investments), there must be sufficient
incomplete instructions.
available cash in your Cash Account
Prices used for buying and selling investments and the minimum purchase amounts before we can action the instruction.
for investments are shown in the following tables.
Switching and re-weighting
Prices used for buying or selling investments transactions
Investment type Determination of price All switch instructions are submitted
By the investment manager when the trade occurs. as Fast-track switches, unless you
Managed investments
specify otherwise.
Listed investments The price at which the trade occurs on the ASX.
Fast-track switches are those where
Term deposits Interest rate applicable on the date the investment is made.
the proceeds from sales of investments
SMA The price at which the trade occurs on the ASX. not yet finalised may be used to buy
the investments included in your
switch transaction.
Minimum investment amounts
Minimums Initial Additional Please note: Purchasing investments
using the proceeds from these pending
Managed investments No minimum. No minimum.
sales may result in your Cash Account
Listed investments $2,000 $500 becoming negative. Interest is payable
on negative balances (see page 7).
Term deposits Varies by issuer. Varies by issuer.
SMA Variable by model portfolio. No minimum.
22 | How to Guide – MLC Wrap SuperManaging your
investments
Diversification limits
To help you diversify your investments we’ve placed limits on how much you can have in some investment types, as specified in the
table below. We may also apply limits to individual investments and may change these limits from time to time. These limits are
monitored, and purchases or asset transfers in that breach these limits won’t be allowed. You and your financial adviser are responsible
for observing these limits for changes in asset value and withdrawals.
Investment type How much you will be able to invest
Term deposits You can only invest up to 80% of your pension account balance in term deposits with terms of
more than 12 months. No restriction applies to term deposits of 12 months or less.
Managed investments You can invest up to:
(excluding any investments you hold in • 85% of your account balance in Fixed Interest – Annuities
an SMA model portfolio) • 25% of your account balance in Fixed Interest – Specialist investments
• 25% of your account balance in Hedge, Hybrid Property and Mortgage Funds
• 10% of your account balance in Alternatives – Private Equity
• 50% of your pension balance in High Growth - Real Return (geared) Funds
• 25% of your account balance in Alternatives - Single Strategy investments.
Listed investments S&P/ASX All Ordinaries Index
(excluding any investments you hold You can invest up to:
in an SMA model portfolio) • 30% of your account balance in any single ASX top 50 investment
• 20% of your account balance in any single ASX top 51– 300 investment
• 10% of your account balance in any single listed investment outside the ASX top 300
investments
• 40% of your account balance in listed investments outside the ASX top 300 investments.
Instalment warrants
You can invest up to:
• 10% of your account balance in a single instalment warrant, and
• 20% of your account balance in total instalment warrants.
Exchange traded commodities
You can invest up to:
• 10% of your account balance in a single exchange traded commodity, and
• 20% of your account balance in total exchange traded commodities.
The Trustee reserves the right to change these limits.
How to Guide – MLC Wrap Super | 23Managed investments Selling managed investments • Custom Cash Facility: You can select a
maximum threshold (maximum cash
Buying managed investments You or your financial adviser may
trigger) for your Cash Account balance.
instruct us to sell part or all of a
You or your financial adviser can provide Once exceeded, we’ll purchase your
managed investment.
instructions for: chosen investments and bring your
A partial sale can be requested as a: Cash Account balance down to the
• one-off investments – an instruction
higher of; your nominated cash target
to make a single specified • dollar amount amount, or the minimum cash
investment, and/or
• number of units, or requirement for your account. The
• ongoing investments – a standing
• percentage amount. Custom Cash facility will be run
instruction to automatically invest monthly on the last weekend
additional contributions into When investments are sold you’ll have of every month.
managed investments. the option to choose which investments
you sell. This will help you manage your Your facility continues until:
When buying managed investments,
tax more effectively. • you or your financial adviser changes
a specified dollar amount must the original instruction, or
be provided. You’ll be able to sell investments that:
• one or more investments nominated
We’ll generally act upon managed • cost you the most are no longer available. If this
investment instructions within • you bought first, or happens, your money for that
five business days of receiving particular investment will stay in your
your instructions. • you specify.
Cash Account.
The tax treatment of super can be
It generally takes investment managers Please note: The Custom Cash Facility
complex and your financial adviser can
a number of days to complete cannot be set up together with a
help you understand what will work best
an instruction. Progressive Investment or a Automatic
for your personal circumstances.
re-weight Facility (described on page 25).
All instructions must be Investment facilities Also, you need to make sure that you
completed accurately, and there have enough money in your Cash
Four facilities are available:
must be sufficient available Account to cover your Progressive
cash in your account before • Additional Investment Facility: You
Investment Facility otherwise it won’t be
we can action the instruction. can invest your contributions in one
processed.
We aren’t liable for any loss or more managed investments or SMA
where we’re unable to complete model portfolios
an investment instruction
How to set up, change or cancel
because of inaccurate or • Regular Investment Facility: an investment facility.
incomplete instructions. You can invest your regular (monthly,
You can start or change an investment
quarterly, half-yearly or yearly) direct
facility by:
debit investments in one or more
managed investments or SMA model • contacting your financial adviser
portfolios • completing an Update account details
• Progressive Investment Facility: form available at mlc.com.au/
You can invest a fixed amount monthly forms_and_brochures, or
or quarterly from your Cash Account
• calling us.
in one or more managed investments
or term deposits (provided the issuer’s
minimum is met).
24 | How to Guide – MLC Wrap SuperYou can also read
