SENSIS SUPER PLUS DEFINED BENEFIT - 1 JULY 2018 - TELSTRASUPER
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Sensis Super Plus
Super Guide
Defined Benefit
1 July 2018Telephone 1300 033 166
Facsimile 03 9653 6060
www.telstrasuper.com.au
contact@telstrasuper.com.au Keeping you up-to-date
The information in this document is general information only and does not take
It’s important that you’re kept informed about your super.
into account your personal financial situation or needs. You should obtain financial
advice tailored to your personal circumstances before making an investment You will receive from us:
decision. • quarterly statements showing your contributions,
© Telstra Super Pty Ltd. investment returns, and deductions
® is a registered trademark in Australia of the Telstra Corporation Limited. • an annual report available online at
telstrasuper.com.au which gives details of
BPay® Registered to BPAY Pty Ltd, ACN 079 137 518.
TelstraSuper's investment performance, financial
Telstra Super Pty Ltd ABN 86 007 422 522, AFSL 236709 is the trustee of the details and products, and other relevant information.
Telstra Superannuation Scheme ABN 85 502 108 833 (TelstraSuper).
You can access or update your account details by calling
Information in this Super Guide that does not materially affect your super 1300 033 166 between 8.30am and 5.30pm (Melbourne
may change from time to time. Any updated information will be available at time) Monday to Friday, or visit your online account at
telstrasuper.com.au or a copy of any updated information can be requested free
of charge by calling 1300 033 166.
telstrasuper.com.au
TelstraSuper is a super fund that provides super benefits to employees and
former employees of Telstra Corporation Limited (Telstra) and associated
Glossary
companies as well as eligible family members of TelstraSuper members. To help keep super as simple as possible for you, we
TelstraSuper has a licence to deal in and provide general advice about products. have included explanations of some super terms in our
Telstra Super Pty Ltd acts on its own behalf in providing these services. glossary on page 31.Contents
01 Main features and benefits 04
02 TelstraSuper Sensis Super Plus, what's it all about? 05
03 Understanding your benefits 05
04 Retirement and retrenchment benefits 06
05 Resignation benefit 07
06 Other accumulation accounts 08
07 Contributing to your super 09
08 Calculating your defined benefit contributions 12
09 Access the investment market 13
10 You’re covered with TelstraSuper insurance 14
11 Fees and other costs 20
12 Additional explanation of fees and costs 23
for your Voluntary Accumulation Account
13 Moving on – changing jobs or changing funds 27
14 Tax and super 28
15 Important super information 29
16 Glossary 31
17 Privacy information 34
18 Easy access to your super online 36
301
Main features and benefits of
Sensis Super Plus Defined Benefit
This Super Guide makes reference to
• Sensis sponsored defined benefit. the Investment Guide and is available
• the option of opening a Voluntary at telstrasuper.com.au/pds or
Accumulation Account, to access by calling us. We encourage you to
a broad range of investment read it before making any investment
options for the conservative decisions regarding your Voluntary
through to the aggressive investor, Accumulation Account (if applicable).
including the ability to invest in The Investment Guide outlines the
term deposits and listed securities, investment options available to you for
including ASX300 shares and your Voluntary Accumulation Account, as
Exchange Traded Funds (ETFs) well as explaining important investment
• security for your family through concepts to help you make any choices.
default* Death and Total &
Permanent Invalidity (TPI) cover
and Income Protection cover
• apply for any amount of top-up
Death cover and up to $5 million
top-up Total & Permanent
Disablement (TPD) cover
• access to expert financial
planning through TelstraSuper
Financial Planning
• secure, online access to your
account details at
telstrasuper.com.au
* Conditions apply, see page 14.
402 03
TelstraSuper Understanding
Sensis Super Plus, your benefits
what's it all about?
Sensis Super Plus Defined Benefit is a Your Sensis Super Plus Defined Your contributions
complete retirement savings package Benefit is based on your previous
designed for Sensis Pty Ltd (Sensis) PASF arrangement. As a member of You must contribute 5% of your
employees who were previously Sensis Super Plus Defined Benefit, Superannuation Salary towards
members of the Pacific Access the retirement benefit payable to you your defined benefit. This amount is
Superannuation Fund (PASF). is based on set calculations independent recorded in your Defined Benefit Member
of investment performance. Account. The balance of this account is
The main component of your Sensis currently invested by Telstra Super Pty
Super Plus arrangement, your defined The way in which your benefit is calculated Ltd in the Growth investment option, and
benefit, is not affected by investment depends on your age and whether you is not subject to investment choice – see
performance, but you can also access resign, retire or are retrenched. the Investment Guide for more detail.
the investment market by opening a
Voluntary Accumulation Account, see Your retirement benefit You may also make voluntary
page 13 for details. Your retirement benefit is dependent contributions in addition to the
on your Accrual Rate, how long you compulsory 5% contribution to your
While Sensis Super Plus caters Defined Benefit. Any voluntary member
specifically for Sensis employees, have been with Sensis and your
Superannuation Salary. contributions or roll-ins will accumulate
as a member you can also enjoy the in a Voluntary Accumulation Account,
advantages of being associated with the the balance of this account is subject to
Other leaving service benefits
largest corporate super fund in Australia. investment choice – see the Investment
Through TelstraSuper you have access to All other leaving service benefits
Guide for more detail.
additional products and services, as well are based on your Defined Benefit
as competitive returns and flexibility in Member Account.
reaching your super goals.
Employer contributions
In all cases, the benefit payable to
Sensis Super Plus Defined Benefit Sensis does not make fixed contributions
members must be equal to or greater to each member’s benefit. Sensis
than the benefit required under the contributes the amount required to fund
Superannuation Guarantee (SG) all benefits as advised by an independent
legislation. This means that as a Sensis actuary. All super contributions
Super Plus member, the benefit payable (whether they are member or employer
to you will be the greater of your Sensis contributions) and any money your super
Super Plus benefit and the SG benefit. earns from investment performance must
The SG benefit is the minimum amount be preserved. For more information on
of super support your employer must preservation, see page 29.
provide to you by law.
504
Retirement and
retrenchment benefits
Your retirement benefit If you retire after age 65 Your retrenchment benefit
Upon reaching age 65, your benefit Your retrenchment benefit cannot be less
If you retire between age 55 and 65 will be calculated in the same way than your resignation benefit and will not
Your retirement benefit is the greater of as if you had retired at age 65. be lower than the minimum government
your resignation benefit (see Resignation Your benefit will then be transferred requirement under SG legislation.
Benefit) and your retirement benefit, to an accumulation arrangement.
calculated as follows: From your 65th birthday until you If you’re retrenched before age 50
retire, you will receive employer If you’re less than 50 years old your
Accrual Rate
contributions at a rate of 9.5% of your retrenchment benefit is a lump sum
x Final Average Salary (FAS) Superannuation Salary. equal to:
x years of membership Your benefit will be invested in the
investment option of your choice or, Twice the balance of your Defined
if you don’t make a choice, in the Benefit Member Account and your
Plus any of the following applicable Bridging Account (if applicable).
Conservative option which is the default
positive or negative balances:
option for the age group. See the
• Voluntary Accumulation Account Plus any of the following applicable
Investment Guide for more detail.
positive or negative balances:
• Telstra Top-Up Account When you subsequently retire your
• Voluntary Accumulation Account
• Productivity Account benefit will be equal to:
• Telstra Top-Up Account
• Surcharge Account
The balance of your TelstraSuper • Productivity Account
• Insurance Premium Account. Personal Plus accumulation
• Surcharge Account
Please note: Years of membership are adjusted account
• Insurance Premium Account.
to allow for any Additional Account or Bridging
Account if applicable, see page 8. Your years of
Plus any of the following applicable
membership will also be adjusted if you worked less
positive or negative balances:
If you’re retrenched between age 50
than full time for a period during your membership. • Voluntary Accumulation Account and 54
Refer to Service Fraction on page 33. • Telstra Top-Up Account The retrenchment benefit for members
• Productivity Account who are retrenched between the ages
Example • Surcharge Account of 50 and 54 is generally calculated
in the same way as it is for members
James is 57 years old and is retiring. • Insurance Premium Account
under 50. Between ages 50 and 54,
James has been a member of your retrenchment benefit increases
Sensis Super Plus Defined Benefit gradually for each year of membership
(formerly PASF) for 17 years. He is after the age of 50 in a similar way to the
a Category C member and has a resignation benefit for members aged 50
FAS of $60,000. James also has a to 54 until it is equal to the age 55 early
Voluntary Accumulation Account retirement benefit.
with a balance of $12,000. His
retirement benefit is equal to: If you’re retrenched between age 55
and 65
Accrual Rate 15% The retrenchment benefit for members
x FAS $60,000 who are retrenched between the ages of
55 and 65 is equal to the greater of:
x Years of Membership 17
• your retrenchment benefit calculated at
$153,000 the relevant date
Plus balance of • your retirement benefit calculated at
Voluntary Accumulation $12,000 the relevant date.
Account
James’ retirement
$165,000
benefit
605
Resignation
benefit
Your resignation benefit This increase is equal to a proportion
Example of the difference between the following
will not be lower than the
benefits calculated at the actual date
minimum government Mary is 45 and has been a member of resignation:
requirement under SG of Sensis Super Plus Defined
Benefit for 9 years. She has $25,000 • resignation benefit, and
legislation in her Defined Benefit Member • an amount equal to the retirement
Account, a Bridging Account with benefit payable.
If you resign before age 50
a $2,000 balance and a Voluntary
Accumulation Account with a This proportion is:
Your Defined Benefit Member Account
forms the basis of your resignation balance of $9,000. If she were to
resign, her resignation benefit would Age Proportion
benefit. If you resign from Sensis prior to
your 50th birthday, you will receive: be equal to: 51 20% of the difference
The balance of your Defined Benefit The balances of: 52 40% of the difference
Member Account. 53 60% of the difference
Defined Benefit Member
$25,000
Account
Plus any of the following applicable 54 80% of the difference
positive or negative balances: Bridging Account $2,000 55 100% of the difference
• Voluntary Accumulation Account
Voluntary Accumulation
• Telstra Top-Up Account $9,000 The proportion increases by 1.6667%
Account
• Productivity Account for each complete month between ages
$36,000 50 and 55.
• Bridging Account
• Additional Account Plus an additional 10% of the
balances of her Defined Benefit
• Surcharge Account
Member Account and Bridging
• Insurance Premium Account. Account for each year of membership.
Plus an additional 10% of your Defined (10% x 27,000) x 9 years $24,300
Benefit Member Account and your Mary’s total resignation
Bridging Account (if applicable) for $60,300
benefit is equal to:
each complete year of membership up
to a maximum of 100%.
If you resign between age 50 and 55
The resignation benefit for members who
resign between the ages of 50 and 55 is
generally calculated in the same way as it
is for members under 50. However, your
resignation benefit increases gradually
for each year of membership after age
50 until it is equal to the age 55 early
retirement benefit.
706
Other accumulation
accounts
As a member of Sensis Super Plus
Example Defined Benefit you may also have one
or more of the following accounts from
Judy resigned at the age of 52, after 15 years of membership. Judy has a FAS of previous arrangements or transfers.
$40,000, has $40,000 accumulated in her Defined Benefit Member Account and
$15,000 in her Productivity Account. Judy is a Category C member and so her
Accrual Rate is equal to 15%.
Additional Account
If you were previously a member of the
Step 1 ADS Staff Superannuation Fund you will
First we must work out Judy’s resignation benefit in the same way as if she had have an Additional Account. The balance
resigned before age 50, calculated as at Judy’s actual resignation date: of this account is currently invested by
Telstra Super Pty Ltd in the Growth
Defined Benefit Member Account Balance $40,000 investment option, and is not subject to
investment choice.
Plus additional 100% of the balance of her Defined Benefit Member Account for her
Your retirement, Death and Total and
15 years membership.
Permanent Invalidity (TPI) benefit will
(100% x $40,000) $40,000 be adjusted to allow for any Additional
Accounts you may have by increasing
Resignation benefit $80,000 your membership period in the
calculation of the defined benefit.
Step 2
Next we must work out Judy’s retirement benefit in the same way as if she had Bridging Account
retired after age 55 calculated as at Judy’s actual resignation date:
If you joined Sensis prior to July 1992
Accrual Rate 15% you may have a Bridging Account. The
balance of this account is currently
x FAS $40,000 invested by Telstra Super Pty Ltd in the
x Years of Membership 15 Growth investment option, and is not
subject to investment choice.
Retirement benefit $90,000
Your retirement, Death and TPI benefit
Step 3 will be adjusted to allow for any Bridging
Account you may have by increasing your
Now we work out the difference between the two amounts: membership period in the calculation of
the defined benefit.
Retirement benefit $90,000
Resignation benefit $80,000 Productivity Account
Difference $10,000 You will have a Productivity Account
if Sensis contributes an additional 3%
So in addition to her $80,000 resignation benefit, as Judy is 52 she is entitled to:
of your Superannuation Salary because
40% of $10,000.
of a previous award. If you have a
(40% of $10,000) $4,000 Productivity Account, you may also be
entitled to additional Death and TPI cover,
Plus resignation benefit $80,000 see page 14.
Plus Productivity Account $15,000 Your Productivity Account balance
is paid in addition to your Sensis Super
Resignation benefit $99,000
Plus Defined Benefit in all instances.
The balance of this account is invested in
the investment option of your choice, or
the default option for your age. For details
refer to the Investment Guide available
at telstrasuper.com.au/pds
807
Contributing to
your super
Telstra Top-Up Account If you’re under age 65 you can make Employer Superannuation
regular or one-off contributions to your Guarantee
If you changed employment from super at any time.
Telstra Corporation Limited to Sensis Employer Superannuation Guarantee
on 1 November 1997, and didn’t take the If you’re aged between 65 and 74
(SG) contributions and concessional
one-off 15% lump sum option, Telstra (inclusive) you can contribute to your
(salary sacrifice) contributions can be
agreed to make additional contributions super providing you’re gainfully employed
split between spouses at any time in the
into a separate account within the PASF on at least a part-time basis in the
financial year following the financial year
for 5 years (or earlier if you ceased financial year in which the contributions
in which the contributions were made.
employment with Sensis). This account is were made. To be considered ‘gainfully
called your Telstra Top-Up Account. employed on a part-time basis’ you need You can split any amount less the 15%
to have worked at least 40 hours in a contributions tax payable on these
Your Telstra Top-Up Account balance period of not more than 30 consecutive contributions. So effectively you can split
is paid in addition to your Sensis Super days in that financial year. up to 85% of these gross contributions.
Plus Defined Benefit in all instances. The Splits can be made between spouses’
balance of this account is invested in Once you reach age 75 you cannot
accumulation accounts within the same
the investment option of your choice, or make contributions to your super.
super fund, or to another super fund
the default option for your age – see the Your employer may contribute to
or Retirement Savings Account you
Investment Guide for more details. your super including SG and Award
nominate. Amounts split to a spouse’s
mandated contributions.
account are preserved on entry to the
Refer to the Investment Guide for Co-contributions receiving account.
details of investment options or our
The government may make To arrange a split you will need
website telstrasuper.com.au
co-contributions for members who to complete a Contributions
make post-tax contributions and Splitting Application, available by
meet eligibility conditions (which calling 1300 033 166 or visiting
includes an earnings threshold). telstrasuper.com.au
You will not be eligible for the government
co-contribution in a financial year if: Spouse contributions
• your total superannuation balance is A spouse contribution allows you to
equal to or greater than $1.6m as at make post-tax (non-concessional)
the end of 30 June of the previous contributions to your spouse's account.
financial year, or You may be eligible to claim a tax offset
of 18% (up to a maximum of $540) on the
• you have exceeded your non- first $3,000 of the contributions if your
concessional contributions cap in spouse's income for the financial year is
that financial year. below $40,000. You will not be eligible to
For more information on co-contributions claim a tax offset if:
including an online calculator, please • your spouse earns more than
visit telstrasuper.com.au or the $40,000
Australian Taxation Office (ATO) website
at www.ato.gov.au • your spouse's total superannuation
balance is greater than $1.6m as at
the end of 30 June of the previous
Contributions splitting financial year, or
Contributions splitting legislation allows
• your spouse has exceeded their non-
you to split your super contributions into
concessional contributions cap in
your spouse’s* account annually after
that financial year.
30 June each year. Contributions your
spouse has made to their super account To make a spouse contribution you
*T
o be eligible for contributions splitting you
can be rolled into your account. can do so via BPay® or cheque. If you
and your spouse must be living together. Your Contributions splitting can only be make a contribution via cheque you
spouse must be under 65 years of age, even if applied to accumulation arrangements. will need to complete a Member and
they are still working. If your spouse is over their Defined benefit members can split Spouse Contribution form available at
preservation age, they must declare they have their Voluntary Accumulation Account telstrasuper.com.au/forms or by
not retired in order to receive contributions from contributions with their spouse, calling us.
your account. Further eligibility conditions may but are unable to split their defined
apply, visit telstrasuper.com.au for details. benefit entitlement.
9Low Income Superannuation Applications for withdrawal are made To make a downsizer contribution,
Tax Offset (LISTO) via the ATO, with TelstraSuper advised you will need to complete a downsizer
of the amount that can be released after contribution form from the ATO and
The Government will refund the tax paid submission of an application. provide it to TelstraSuper when making or
on pre-tax (concessional) contributions, prior to making the contribution.
Release of your concessional
up to a cap of $500 for low income
contributions and deemed earnings will If you make multiple contributions,
earners with an adjusted taxable income
be taxed at your marginal tax rate less a you must provide a form for each
up to $37,000.
30% tax offset. contribution.
First Home Super Saver The ATO will not require proof of a All downsizer contributions must be made
home purchase before allowing release, within 90 days of receiving the proceeds
Scheme but once the ATO does release your of sale, with extensions granted by the
The First Home Super Saver Scheme contributions, you must purchase ATO in limited circumstances. Where
(FHSSS) allows eligible first home your home within 12 months, or sign the ATO determines that a downsizer
buyers to withdraw voluntary super a contract within 12 months to build contribution is invalid and you are unable
contributions, along with deemed a house. If this does not happen, you to meet other contribution eligibility criteria,
earnings, to put towards a house deposit. can apply for an extension of up to 12 the contribution will be refunded.
You can only withdraw contributions months, or recontribute the amount to For more information on downsizer
under the Scheme once and you can’t your super fund, or use the money for contributions and to see a full list of
withdraw the super that your employer is other purposes and pay additional tax. eligibility criteria, visit the ATO website.
obliged to pay. Only additional voluntary For more information on FHSSS and to
contributions you’ve made after 1 July see a full list of eligibility criteria, visit the Limits on concessional
2017 are eligible for withdrawal. ATO website at www.ato.gov.au
(pre-tax) contributions
The FHSSS is administered by the
ATO, however you make contributions Downsizer contributions The 2018/19 pre-tax contributions cap is
as normal into your TelstraSuper $25,000 for everyone.
If you're 65 years old or over and sell your
account. Contributions are made using Contributions included in the pre-tax cap
primary residence after 1 July 2018, you
a salary sacrifice arrangement with includes:
may be eligible to contribute a portion of
your employer, through tax-deductible
the proceeds into super. Contributions up • employer Superannuation Guarantee
super contributions or alternatively, you
to $300,000 for individuals or $600,000 (SG) and award contributions
can make non-concessional (after-tax)
contributions to your account. for couples can be made with existing • salary sacrifice contributions
contribution caps and restrictions not
To be eligible to withdraw contributions applicable to the downsizer contribution. • insurance premiums paid directly by
under the FHSSS, you must: There is no restriction on making your employer.
• be over 18 non-concessional contributions under Pre-tax contributions that you
the downsizing cap, even if you have subsequently split to your spouse (under
• have never owned a home in Australia,
over $1.6 million in your total super the Contribution Splitting rules - see page
or have previously owned a home
balance. However, if you have reached 9) still count towards your own cap; they
but are currently eligible for financial
your $1.6 million transfer balance cap, do not count towards your spouse's cap.
hardship as determined by the ATO,
and these contributions must remain in the Contributions up to your cap will be
accumulation phase. subject to 15% contributions tax. This tax
• have not previously accessed the
Scheme. It is important to note that downsizer is 30% for any amount of eligible income
contributions will count towards your Age over $250,000. Pre-tax contributions in
While there is no change to the amount excess of the pre-tax contributions cap
Pension assets test.
of money you can contribute to super, will be taxed at your marginal tax rate
annual contribution caps still apply, To be eligible to make a downsizer
if they are not withdrawn from the fund
and limits apply to how much you can contribution:
and will count towards your post-tax
withdraw for the FHSSS. A $15,000 • you must be 65 years old or over. contributions cap. These caps and taxes
limit applies to contributions that can be
• the house must be in Australia and may change in the future.
eligible for withdrawal in one financial
year and a $30,000 limit applies to total cannot be a caravan, houseboat or From 1 July 2018, you will be able to
contributions eligible across all years. mobile home. 'carry-forward' any unused amount of
This means a couple saving for a first • you or your spouse must have owned your concessional contributions cap.
home could contribute up to $60,000 the residence for more than ten years. You will be able to access your unused
combined. concessional contributions cap on a
rolling basis for five years if your Total
The ATO will calculate the amount you
contribute as part of the FHSSS and the Superannuation Balance (including all
amount those contributions are deemed
to have earned and include that in the
releasable amount.
10balances if you have more than one tax contributions limited to the number
super account) is less than $500,000 of years that would take your balance to If you’re aged 63 or 64 you’re able to
at the end of a financial year. Amounts $1.6m and make a lump sum contribution bring forward two years contributions
carried forward that have not been of $300,000 in one financial year. For without meeting the work test in the
used after five years will expire. You example, if you made a $300,000 subsequent two years. If you’re aged
can access the unused concessional contribution during the 2018/19 financial 65 years or over you cannot bring
contributions cap from 1 July 2019. For year, you would not be allowed to make forward contributions.
further information visit the ATO website any further post-tax contributions until the
at www.ato.gov.au 2021/22 financial year. Transitional arrangements will apply if
you have made a non-concessional
Where your balance is close to contribution in the 2015/16 or 2016/17
Limits on non-concessional $1.6m, you will only be able to make financial year. If you have triggered the
(post-tax) contributions a contribution in that year and access bring forward rule but haven't fully met
the bring forward of future years your bring forward cap, the transitional
If your balance is less than $1.6m as contributions that would take your
at 30 June in the previous financial arrangements will reflect the reduced
balance to $1.6m, as highlighted in the annual non-concessional contributions
year, your post-tax contributions cap is table below:
$100,000. If your balance is greater than cap, as highlighted in the table below:
$1.6m, you are not permitted to make
post-tax contributions to your account. Contribution
Superannuation and bring
Contributions included in the post-tax Balance forward
cap are:
available
• contributions you make from
Less than $1.3 million 3 years ($300,000)
post-tax income (where no
deduction is claimed) $1.3 –08
Calculating your
defined benefit
contributions
Non-concessional Exemption for defined benefit members
contributions If you were a defined benefit member on 12 May 2009 and your Notional Taxed
Non-concessional contributions to Contributions exceed the pre-tax contribution cap, they will be taken to equal the cap
your defined benefit are shown on and no additional tax will be applied (provided TelstraSuper has your TFN)*.
your Super or Benefit quote. Your total However for this dispensation to apply, no changes can be made to your defined
non-concessional contributions for benefit from 12 May 2009 onwards.
the purposes of the contribution caps
Before transferring into an accumulation arrangement, you should consider seeking
will include your non-concessional
financial advice from TelstraSuper Financial Planning. To discuss your advice needs,
defined benefit contributions and any
please call TelstraSuper Financial Planning on 1300 033 166 between 8.30am and
non-concessional contributions made
5.30pm (Melbourne time), Monday to Friday.
to an accumulation account such as a
Voluntary Accumulation Account.
Concessional contributions Calculating Notional Taxed Contributions
Remember that even if you only The formula for the calculation of Notional Taxed Contributions is:
make non-concessional contributions
[(Notional Contribution Rate x Superannuation Salary at 1 July)
to your defined benefit, your employer
less any post-tax member contributions] x 1.2
still makes concessional contributions
to fund your defined benefit.
Concessional member and employer
Example
contributions to defined benefits Terry is a 41 year old Sensis Super Plus member with a Superannuation Salary
(which count towards contribution caps) of $75,000. Terry was an accruing member for the entire 2017/18 financial year
will be calculated using the formula and made pre-tax contributions of 5% of his Superannuation Salary to his
on page 12 known as Notional Taxed defined benefit. As a Category B member he has a 17.5% Accrual Rate and a
Contributions. This formula will be Notional Taxed Contribution Rate of 9%. Terry’s Notional Taxed Contributions are
adapted for members who work calculated as:
part-time or leave during the year.
(Terry’s Notional Taxed Contribution Rate 9%
Notional Taxed Contributions plus any $6,750
x Super Salary at 1 July $75,000)
voluntary concessional contributions
made to an accumulation account such Less post-tax member contributions to his defined benefit -$0
as a Voluntary Accumulation Account will
be included in your total concessional Sub total $6,750
contributions reported to the ATO for the
purposes of the contribution caps. Multiplied by x 1.2
Equals Terry’s Notional Taxed Contributions = $8,100
2017/18 So Terry’s Notional Taxed Contributions are under the pre-tax contribution cap.
Notional Contribution Rates Note: when calculating notional contributions you need to use your
Notional Superannuation Salary at 1 July.
Membership Accrual Taxed
category rate Contribution * The exemption for Defined Benefit members does not apply to the Section 293 contributions tax on
rate high income earners. For more information please visit www.ato.gov.au.
Category B 17.5% 9%
Category C 15% 9%
1209
Access the
investment market
All TelstraSuper Sensis Super Plus Member contributions Tax payable
Defined Benefit members have the
opportunity to open a Voluntary With a Voluntary Accumulation Account As an incentive for retirement savings,
Accumulation Account and access the you can boost your super by making the Government provides concessional
investment market. additional member contributions. tax rates for super contributions and
You can choose to: earnings:
Your Voluntary Accumulation • make additional contributions from • any concessional contributions,
Account is made up of your pre-tax salary ^ including voluntary contributions
Member contributions • make regular pre or post-tax member made from your pre-tax salary, and any
+ (if you make any) contributions in multiples of $1 each deductible member contributions up to
fortnight from your salary ^ the concessional contributions cap are
Government co-contributions
+ (as applicable) • make an additional member
subject to a 15% contributions tax. This
tax is 30% for any amount of eligible
contribution as a one-off payment
Super you may roll-in (transfer) income over $250,000. Contributions
+ from another super fund
at any time.^
tax is deducted from your account.
To make a contribution(s) to your account • investment earnings are taxed at the
– Administration fees
please see your Payroll Officer. You can low (concessional) rate of up to 15%.
– Tax payable also make regular payments online. This tax on earnings is taken out as
Simply use the BPAY® number generator part of the calculation of unit prices.
= Your units at telstrasuper.com.au to obtain your • an additional tax called a surcharge
BPAY® Payment Reference Number and
x Unit prices
then make an online payment through
may be payable. The government
abolished the surcharge from 1 July
Your Voluntary Accumulation your banking institution.
= Account’s value
2005, however assessments may
still be issued for previous years.
Roll-ins (transfers) See page 28 for more information
The balance of your Voluntary on tax and super.
Accumulation Account increases or You can also boost your super
decreases according to investment by rolling in (transferring) any super
you may have in other super Your units
performance. This gives you the
opportunity to use member investment arrangements into your Voluntary Your contributions and roll-ins buy
choice to build your super the way Accumulation Account. To do this units in our broad range of investment
you want. visit telstrasuper.com.au/consolidate options, covering all major asset classes,
or call us. to suit the conservative through to the
For more information on member
aggressive investor. You can choose
investment choice see the
Investment Guide available at Administration fees an option that suits your own personal
circumstances and financial goals.
telstrasuper.com.au/pds or by Sensis Super Plus Defined Benefit
calling 1300 033 166. members do not pay dollar based If you decide not to make a choice now,
administration fees for their Voluntary your super will be invested in a default
A Voluntary Accumulation Account is
Accumulation Account. This fee is option based on your age.
opened in your name:
currently paid by Sensis. An indirect For more information on member
• at your request administration cost of the balance of investment choice options and default
• when government co-contributions are your Voluntary Accumulation Account is options, please see the Investment
received on your behalf or deducted daily as part of the unit price Guide available at
• when you roll-in money from another calculation. telstrasuper.com.au/pds You can
super fund. Fee and other costs apply, see page 20 update your investment option anytime
The balance of your Voluntary for more information. via your online account or by completing
Accumulation Account is paid in addition an Investment Choice form available at
to your TelstraSuper Sensis Super Plus telstrasuper.com.au/forms
Defined Benefit in all instances.
All contributions and roll-ins buy units
in the investment options you have
chosen. Any money withdrawn from your
Voluntary Accumulation Account reduces
the number of units held.
^ Within limits. See Contributing to your super on
page 9 for more details.
1310
You’re covered with
TelstraSuper insurance
Unit prices The cover described on these pages Note: Insurance payments are subject to
is insured by TAL Life Limited (TAL) insurance cover being in force at the time
All contributions and roll-ins buy units in
ABN 70 050 109 450 AFSL 237848. of your death or TPI and approval of your
the investment options you have chosen.
As a permanent employee of Sensis claim by the insurer and Telstra Super Pty
Any money withdrawn from your account
working more than 15 hours per week, Ltd. Should you be unable to take care
reduces the number of units held using
if you’re a member of Sensis Super Plus of your business or financial affairs at the
the sell price.
Defined Benefit, you get Death, Total & time the TPI benefit becomes payable,
Permanent Invalidity (TPI) and Income Telstra Super Pty Ltd has the right to pay
Number of units held
Protection cover at no cost. your TPI benefit to a separate trust.
x daily unit price
You’re covered 24 hours a day, Leave without pay
= Your Voluntary Accumulation seven days a week, 365 days a year,
Account's value whether at work or at play, while Death and TPI cover (if applicable)
employed by Sensis. will continue for up to one year of
Percentage based administration and leave without pay. Sensis will continue
investment fees, transaction costs and to pay death and TPI premiums for
When are death and TPI
taxes are deducted when calculating periods of leave without pay.
daily unit prices. payments made?
Death benefits will be processed Permanent part-time
Unit prices reflect the earnings on the
investments of your chosen investment promptly and paid to your dependants or and casual employees
option. A new unit price is set each legal personal representative at If you’re a casual employee or a
Victorian business day, reflecting the the discretion of Telstra Super Pty Ltd. permanent part-time employee who
changing value of the underlying assets To be eligible for a TPI benefit, you must: works less than 15 hours per week,
in the investment option(s). your death and TPI benefit will be
• have ceased work with Sensis
adjusted and Income Protection cover
because of TPI (and not have worked
Example no longer applies.
for six consecutive months) and,
• satisfy the Insurance Policy definition If you’re a permanent part-time employee
Barry’s opening Voluntary
of TPI. and work more than 15 hours per week,
Accumulation Account balance
your death, TPI and income protection
is $50,000. The unit price for his
If you have taken up income protection benefit will be adjusted to reflect your
chosen investment option the day he
cover for Temporary Total Disability (TTD) part-time hours.
opened this account and purchased
you may be eligible for income protection
his units was $1.00000. Therefore,
payments while you’re waiting for your
Barry has 50,000 units.
claim for a TPI benefit to be assessed.
After one month, the unit price
for Barry’s chosen investment
option has risen to $1.05375. As
he has made no contributions or Example
withdrawals and no dollar based
administration fees have been Calculating your death and TPI benefit
deducted during the month, his Karen had been a member of Sensis Super Plus Defined Benefit for 10 years,
number of units is still 50,000 but his she was a Category C member and therefore had an Accrual Rate of 15%.
account balance is now $52,687.50 Karen also had a Voluntary Accumulation Account with a balance of $10,000.
(50,000 x $1.05375). In October 2000, she was seriously hurt in an accident and was not able to work
again. Karen was 53 at the time of her TPI and her FAS was $60,000.
Unit prices are available on our website x (10 full years of membership
Accrual Rate x Final Average Salary
at telstrasuper.com.au and by calling + 12 years to age 65)
1300 033 166. 15% x $60,000 x 22
Karen’s TPI benefit = $198,000
Plus balance of
$10,000
Voluntary Accumulation Account
Karen’s total benefit = $208,000
14Calculating your death and If you were previously a If you have a
TPI benefit member of TelstraSuper Productivity Account
Division 2 or TelstraSuper If you have a Productivity Account
If you’re younger than age 65
Division 5 and are under age 55 you may be
Your death and TPI benefit is a lump entitled to additional death and TPI
sum equal to the retirement benefit In 1997, if you had been a TelstraSuper
insurance cover as shown in the
that would have been payable, had Division 2 or TelstraSuper Division 5
following table. If you’re aged between
you continued as a member of Sensis member, you also received guarantees
55 and 65 the additional amounts listed
Super Plus and retired at age 65. that, upon transfer to PASF, your death
in the table are for Death cover only. The
Plus, if applicable, the balance of any and TPI benefit would not be lower than
premiums for this additional cover are
Voluntary Accumulation, Telstra Top-Up, what you would have received from
paid by Sensis.
Productivity Account, Surcharge Account TelstraSuper on 1 November 1997. These
or Insurance Premium Account and any guarantees continue unchanged in Any insurance payment will be
applicable top-up cover. Sensis Super Plus. added to your death and TPI benefit,
upon approval of a claim. For more
The FAS used to calculate your death The death or TPI benefit payable to
information, please call TelstraSuper on
and TPI benefit assumes that your Sensis Super Plus Defined Benefit
1300 033 166.
salary remains unchanged from the date members who were previously
of your death or TPI. However the salary members of TelstraSuper Division 2 Additional
used for calculating FAS for death or TPI is the greater of: Age attained
Amount
benefits is the greater of your salary at
39 or less $21,500
the date of death or TPI and your salary Your Sensis Super Plus death or TPI
at the previous 1 July. See example on benefit (as above) 40 $21,000
page 14.
OR 41 $20,600
Please note: Years of membership
A lump sum equal to: 42 $20,200
are adjusted to allow for any
Additional Account or Bridging 43 $19,700
Account (if applicable). Your FAS as at 1 x 20% x years
November 1997 until age 44 $19,300
If you’re aged 65 or older 60 45 $18,900
If you’re aged 65 or older at the date 46 $18,400
Plus the balance of your Voluntary
of your death or TPI, your death or TPI Accumulation Account, if 47 $18,000
benefit is equal to your Sensis Super applicable.
Plus Defined Benefit account balance 48 $17,600
the same as if you had retired after age 49 $17,100
65) plus any of the following applicable The death or TPI benefit payable to
positive or negative balances: Sensis Super Plus Defined Benefit 50 $16,700
members who were previously
51 $16,300
• Voluntary Accumulation Account members of TelstraSuper Division 5 is
the greater of: 52 $15,800
• Telstra Top-up Account
• Productivity Account Your Sensis Super Plus death or TPI 53 $15,400
benefit (as above)
• Surcharge Account 54 $15,000
• Insurance Premium Account OR
55* $15,000
• Top-up Death insurance cover. A lump sum equal to:
56 $13,500
Your FAS as at 1 x 18% x years 57 $12,000
November 1997 until age 58 $10,500
65
59 $9,000
Plus the balance of your Voluntary 60 $7,500
Accumulation Account, if 61 $6,000
applicable.
62 $4,500
63 $3,000
64 $1,500
* From 55 years of age, this amount is applicable
to Death cover only.
15Top-up Death and TPD cover Table 1: Top-Up Death & TPD cover
You can apply to increase your level of
insurance cover above your base level. Member’s total sum insured
Initial requirements
Any insurance in addition to your base Death & TPD
level of cover is referred to and reported Under age 55 Up to $1,500,000 Personal statement
as top-up cover. You can apply for any
amount of Death cover and up to $1,500,001 up to $2,000,000 Personal statement and blood
$5 million top-up TPD cover*. You tests
will need to supply evidence of your
occupation, health and lifestyle, which $2,000,001 up to $3,000,000 Personal statement, blood
will be assessed by our insurer, TAL. tests and mini health check
To apply for top-up insurance over the $3,000,001 up to $5,000,000 Personal statement, blood
phone with our insurer TAL, complete tests, medical examination
an Insurance Telephone Application by own doctor, Personal
Request form available at Medical Attendants Report
telstrasuper.com.au/forms (PMAR) (if TPD) and financial
Alternatively, if you prefer to complete questionnaire
an Insurance Application Full Personal $5,000,001 up to $10,000,000 Personal statement, blood
Statement form, call us on 1300 033 166 tests, medical examination by
to have the form sent to you. a specialist, medical report,
For all terms and conditions, please financial questionnaire and tax
call us to obtain a copy of the return and assessment notices
Policy Document. for the last 2 years
Age 55 and over Up to $1,500,000 Personal statement
Leave without pay
Subject to all Policy conditions, $1,500,001 up to $2,000,000 Personal statement and blood
including the payment of premiums, tests
cover will continue while you’re on
paid or unpaid leave. $2,000,001 up to $3,000,000 Personal statement, blood
tests, mini health check and
Overseas members PMAR
Subject to satisfying the relevant
Policy conditions, worldwide cover is $3,000,001 up to $5,000,000 Personal statement, blood
provided 24 hours a day, seven days tests, medical examination
a week for insured members who are by own doctor, PMAR and
overseas, as well as members who are financial questionnaire
on leave. Income Protection cover (if $5,000,001 up to $10,000,000 Personal statement, blood
applicable) continues for two years for tests, medical examination
members who are on unpaid leave. by a specialist, stress ECG,
medical report, financial
Transfer your insurance to questionnaire and tax return
TelstraSuper† and assessment notices for
If you currently have Death only or the last 2 years
Death & TPD insurance with another
super fund or life insurance company,
you may be able to transfer that cover Upon receipt of your completed form, with TelstraSuper. A cap of $2,000,000
to TelstraSuper. we’ll forward it on to TAL for assessment. on all transfers applies. It is important
To transfer your external cover to If the application is accepted, you will that you do not cancel your cover with
TelstraSuper, please complete be provided with the equivalent top-up your current super fund or insurer until
the Transfer External Insurance cover in TelstraSuper as provided by your TelstraSuper has advised you in writing
Application form available at previous super fund or insurer. See Table that your insurance transfer application
telstrasuper.com.au/forms or by 3 on page 18 for top-up premium rates. has been accepted.
calling us. Any transferred Death only or Death
& TPD cover will apply in addition to
any existing cover you currently hold
†
ubject to the ‘Active Employment
S
* Death
cover must be equal to or higher than Requirements’ and other eligibility criteria and
your level of TPD cover. exclusions contained in the Policy.
16Interim accident cover Insurance premiums Premium rates
If you apply for additional insurance Insurance premiums for base Death Any premiums for top-up cover will
cover, you will receive interim accident and TPI cover are currently paid by vary annually in line with your age.
cover for the period of time whilst your your employer. Premium rates are also reviewed
application is being assessed (known as Insurance premiums for top-up cover regularly by Telstra Super Pty Ltd and
the interim accident cover period). are payable by you and will be applied to the fund’s insurer, TAL. See Table 3 on
an Insurance Premium Account in your page 18 for current premium rates.
If you have an accident during the
interim accident cover period which name. Interest will be charged on the These top-up premium rates are
results in your death or TPD, you will be balance of this account at a rate equivalent applicable to white collar employees.
covered for the applied amount (up to the to the daily earning rate of TelstraSuper’s Additional occupational and health
maximum interim accident benefit of Balanced investment option. loadings may apply to these rates
$1.5 million for death or TPD) for the You’re under no obligation to make depending on your occupation (e.g.
period starting from the date your a payment toward your premiums. blue collar) and current health status.
completed application is received by If you choose not to make a payment, Members given a premium loading
TelstraSuper and finishing when: the balance of your Insurance Premium during the underwriting process will be
Account will be deducted from your total given the opportunity to cancel their
1. your application is withdrawn, application for cover if they do not want
accepted or rejected benefit when it becomes payable.
the premium loading.
2. the policy is terminated If you would like to make a payment into
your Insurance Premium Account, you will Occupational loadings that may also be
3. the Insurer cancels your interim need to complete an Insurance Premium applicable to your cover are outlined in
accident cover Payment Defined Benefit form available Table 2 below:
4. you reach cover cessation age, at telstrasuper.com.au/forms or call us.
Table 2 – Premium loadings
which is 65 for TPD and 75 for
Death cover Occupation Death TPD
5. the date any existing cover under Light blue 1.25 1.40
the policy ceases
Medium blue 1.50 2.00
6. 120 days has passed
(whichever is earliest). Heavy blue 1.75 2.50
17Table 3 – Top-up insurance premiums per $1,000 Table 3 – Top-up insurance premiums per $1,000
sum insured sum insured
Age next Death only Death and TPD Age next Death only Death and TPD
birthday* Male Female Male Female birthday* Male Female Male Female
16 0.69 0.37 0.70 0.39 46 1.31 0.95 2.51 2.15
17 0.81 0.37 0.82 0.39 47 1.46 1.04 2.84 2.38
18 0.88 0.36 0.94 0.37 48 1.57 1.10 3.16 2.64
19 0.95 0.36 1.03 0.37 49 1.74 1.20 3.53 2.91
20 0.96 0.35 1.04 0.36 50 1.86 1.30 3.91 3.26
21 0.96 0.35 1.05 0.36 51 2.03 1.39 4.37 3.58
22 0.95 0.30 1.06 0.33 52 2.17 1.48 4.80 3.99
23 0.89 0.29 1.03 0.32 53 2.36 1.60 5.29 4.40
24 0.87 0.28 1.03 0.30 54 2.55 1.74 5.86 4.90
25 0.81 0.27 0.98 0.29 55 2.75 1.83 6.40 5.39
26 0.78 0.23 0.95 0.29 56 2.95 1.96 7.03 6.00
27 0.75 0.22 0.91 0.28 57 3.17 2.06 7.67 6.64
28 0.69 0.22 0.85 0.29 58 3.44 2.17 8.41 7.34
29 0.64 0.21 0.82 0.30 59 3.69 2.33 9.17 8.07
30 0.60 0.21 0.81 0.33 60 3.98 2.43 9.98 8.79
31 0.58 0.22 0.78 0.34 61 4.28 2.58 10.87 9.51
32 0.57 0.22 0.77 0.38 62 4.63 2.71 11.81 10.26
33 0.57 0.23 0.77 0.43 63 5.00 2.86 12.81 11.00
34 0.57 0.28 0.78 0.50 64 5.41 3.03 13.92 11.76
35 0.57 0.29 0.81 0.57 65 5.86 3.20 15.06 12.51
36 0.58 0.32 0.85 0.62 66 6.32 3.40 n/a n/a
37 0.60 0.36 0.90 0.74 67 6.82 3.61 n/a n/a
38 0.67 0.40 1.03 0.83 68 7.37 3.83 n/a n/a
39 0.71 0.46 1.11 0.96 69 7.97 4.07 n/a n/a
40 0.78 0.51 1.25 1.08 70 8.60 4.31 n/a n/a
41 0.82 0.57 1.39 1.24 71 9.29 4.57 n/a n/a
42 0.90 0.61 1.57 1.36 72 10.04 4.84 n/a n/a
43 1.00 0.71 1.76 1.53 73 10.84 5.13 n/a n/a
44 1.09 0.78 1.98 1.74 74 11.71 5.43 n/a n/a
45 1.20 0.85 2.24 1.94 75 12.65 5.76 n/a n/a
* As at last 1 July
18Leaving your employer Superannuation Salary, paid in monthly If eligible, your TTD payments are paid:
If you cease employment with Sensis, instalments for up to two years. • from three months after the date of
you receive 30 days extended Death and Income protection benefits will be disablement
TPI insurance cover. This cover ceases reduced by the amount of any other • monthly in arrears
30 days after ceasing employment or payments you receive or are entitled to
immediately upon withdrawal of your • under current legislation your income
receive during a payment period (such
entire benefit from TelstraSuper. protection payments are treated as
as sick leave payments or workers'
income and are taxable.
When we receive notification that you’re compensation payments). Social
leaving Sensis, your account balance will security benefits and motor accident When do payments stop?
be transferred into our portable, flexible compensation are not offset against
Your TTD payments cease when one of
product, TelstraSuper Personal Plus. insurance benefits.
the following occurs:
Your current level of death and TPI/TPD Leave without pay • you reach age 65
or death only cover will be transferred Sensis will continue to pay income • you die
to TelstraSuper Personal Plus and may protection premiums for periods of leave
be split between base cover and top-up • you have a claim for TPI and/or
without pay. You cannot receive benefits TPD accepted
cover, to the same total value, without under your Income Protection cover
the need for assessment by TAL.* If you during periods of leave without pay. • you return to work
remain in TelstraSuper Personal Plus, • you have received a total of 24 monthly
premiums will be payable for this cover. However, if you lodge a claim during your
payments.
period of leave without pay:
Sensis Super Plus Defined Benefit
members with existing Income • Income Protection cover will be TTD payments are subject to continued
Protection cover will also have that cover automatically reinstated as at the approval of your TTD benefits by
automatically† transferred to TelstraSuper date you were due to return to work TelstraSuper. If you’re on flexible
Personal Plus. The cover will be 75% (provided that TelstraSuper was given remuneration the cost for this cover
of your salary (excluding super) with an prior notification of the date you were forms part of your Total Employment
additional 10% of your salary (excluding due to return to work) Cost (TEC).
super) to be paid to your TelstraSuper • any period of incapacity immediately Insurance restrictions
account. For the cover to be retained you prior to and including the date you
will need to provide a Superannuation were due to return to work will count Criteria for receipt of a death, TPI or
Guarantee (SG) contribution from your towards your 3 month waiting period income protection benefit is determined
new employer, along with details of by satisfying the Insurance Policy
• Income protection payments will definitions. While the terms in this Super
your new salary and occupation within commence on the later of the end of
120 days of you leaving your previous Guide reflect current eligibility criteria,
the 3 month waiting period and the Telstra Super Pty Ltd provides no
employer. Details of these requirements date you were due to return to work
will be provided upon transfer. guarantee that the eligibility criteria or
• before you go on leave without pay, payment terms will continue indefinitely.
Please refer to the TelstraSuper you should contact our Insured TPI and TTD benefits are subject to the
Personal Plus Product Disclosure Benefits Group to advise terms and conditions of the Insurance
Statement and the TelstraSuper them of your impending period Policy. Payment of any “top-up”
Personal Plus Insurance Guide for of leave without pay and the date death or TPD benefit is subject to the
more information. These documents are you’re due to return to work. terms and conditions in the relevant
available at telstrasuper.com.au/pds insurance policy.
When are income protection
benefits paid? If for some reason the insurer does not
Income Protection approve the top-up part of the benefit,
To obtain monthly payments for TTD,
As a member of Sensis Super Plus then the benefit payable may be reduced
you must:
Defined Benefit you receive automatic by that amount. You will be advised by
Income Protection cover, also known as • have been unable to work for Telstra Super Pty Ltd if any reduction
Total & Temporary Disability (TTD) cover. Sensis (and off work) for three applies to you.
consecutive months
This provides you with regular income
while you’re temporarily unable to work • satisfy the Insurance Policy definition
and satisfy the definition of TTD. The of TTD.
benefit is calculated at 75% of your
*S
ubject to the ‘active employment’ test contained in the Policy.
†
ubject to the ‘At work’ requirements and other eligibility criteria and exclusions contained in the
S
Policy.
1911
Fees and
other costs
There are no fees or charges attached to This document shows fees and other
your Sensis Super Plus Defined Benefit, costs that you may be charged. These
the fees and charges described on the fees and other costs may be deducted
following pages apply to your Voluntary from your money, from the returns on
Accumulation Account only. your investment or from the assets of the
superannuation entity as a whole. Other
DID YOU KNOW? fees, such as activity fees, advice fees for
personal advice and insurance fees, may
Small differences in both also be charged, but these will depend
investment performance and fees on the nature of the activity, advice or
and costs can have a substantial insurance chosen by you.
impact on your long term returns.
Taxes, insurance fees and other
For example, total annual fees costs relating to insurance are set
and costs of 2% of your account out in another part of this document.
balance rather than 1% could You should read all the information
reduce your final return by up to about fees and other costs because
20% over a 30 year period (for it is important to understand their impact
example, reduce it from $100,000 on your investment.
to $80,000).
You should consider whether
features such as superior
investment performance or the
provision of better member
services justify higher fees and
costs.
Your employer may be able
to negotiate to pay lower
administration fees. Ask the fund
or you financial adviser.
TO FIND OUT MORE
If you would like to find out more,
or see the impact of the fees
based on your own circumstances,
the Australian Securities and
Investments Commission (ASIC)
website (www.moneysmart.gov.au)
has a superannuation fee
calculator to help you check out
different fee options.
20You can also read
