TELSTRASUPER DIVISION 2 DEFINED BENEFIT - 1 JULY 2018

 
TelstraSuper Division 2
Super Guide

                     Defined Benefit
                                 1 July 2018
Telephone 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 29.

2
Contents
01   Main features and benefits of TelstraSuper Division 2   4

02   Calculating your defined benefit                        4

03   Additional Multiples                                    7

04   More information about your defined benefit             8

05   Contributing to your super                              9

06   Calculating your defined benefit contributions          11

07   Access the investment market                            12

08   You’re covered with TelstraSuper insurance              14

09   Fees and other costs                                    18

10   Tax and super                                           25

11   Moving on – changing jobs or changing funds             26

12   Important super information                             27

13   Glossary                                                29

14   Easy access to your super online                        32

15   Privacy information                                     32

                                                                  3
01/                                         02/
    Main features                               Calculating your
    and benefits of                             defined benefit
    TelstraSuper Division 2

                                                TelstraSuper Division 2 is principally a
      • Telstra sponsored defined benefit
                                                defined benefit arrangement. With a
      • the option of opening a Voluntary      defined benefit, the benefits payable to
         Accumulation Account to access         members are based on set calculations
         a broad range of investment            independent of investment performance.
         options for the conservative           The defined benefit formula for
         through to the aggressive investor,    TelstraSuper Division 2 on resignation,
         including the ability to invest in     retirement or retrenchment is equal to:
         term deposits and listed securities,
         including ASX300 shares and             Final Average Salary (FAS)
         Exchange Traded Funds (ETFs)
                                                 x Benefit Multiple
      • s ecurity for your family through
         default* base level Death and           = Defined benefit
         Total & Permanent Disablement
         Cover (TPD)                            Step 1 – Calculate your
      • a
         pply for any amount of top-up         Final Average Salary (FAS)
        Death cover and up to $5 million
                                                Your FAS will be worked out when
        top-up TPD cover
                                                you leave Telstra as the average of your
      • a
         ccess to expert financial             last three years of Superannuation
        advice through TelstraSuper             Salary. Telstra determines your
        Financial Planning                      Superannuation Salary and advises
                                                TelstraSuper. Superannuation Salary is
      • s ecure, online access to your         your annual salary at your birthday each
         personal details at                    year and may include some allowances.
         telstrasuper.com.au                    Your Superannuation Salary does not
                                                decrease even if your actual salary
                                                decreases.

    This Super Guide makes reference to           Example
    the Investment Guide, which is available
    at telstrasuper.com.au/pds or                 Peter, a member for 5 years, left
    by calling us. We encourage you to            Telstra on 3 September 2017 and
    read it before making any investment          his birthday is 5 August. At his last
    decisions regarding your Voluntary            birthday, his Superannuation Salary
    Accumulation Account (if applicable).         was $60,000. His FAS is calculated
    The Investment Guide outlines                 as the average of his salary at 5
    the investment options available to           August 2017 and 5 August for the
    you for your Voluntary Accumulation           previous two years.
    Account, as well as explaining important
    investment concepts to help you make          + Salary 5 August 2017       $60,000
    any investment choices.                       + Salary 5 August 2016       $58,000
                                                  + Salary 5 August 2015       $56,000
                                                  = Total                     $174,000
                                                  ÷ divided by 3
                                                  = Peter’s FAS is             $58,000

    *P
      lease see section 08 for more details.

4
Step 2 – Work out your                       Table A – Average Contribution
                                                                                 You can contribute between 0% and 10%
Benefit Multiple                             Rate less than 5%
                                                                                 (in multiples of 1%) of your Superannuation
Your Benefit Multiple is used to calculate                                       Salary towards your defined benefit at any
your defined benefit and depends upon        Your Elected       Accrual          time. However, an Average Contribution
the rate or rates at which you contribute    Contribution       Percentage       Rate of 5% will attract the maximum
to your defined benefit and for how long     Rate                                level of Telstra support and therefore the
you contribute at that particular rate.                                          maximum Telstra Support Multiple (see
                                                        0%                 8%    Tables A & B).
To calculate your Benefit Multiple you
need to multiply the Accural Percentage                 1%               10.4%   Contribution rates above 5% exist to
applicable to your Elected Contribution                                          allow you to make up for periods during
Rate by the TelstraSuper Division 2
                                                        2%               12.8%   which your Average Contribution Rate
                                                                                 is less than 5% and make the most of
membership period during which the                      3%               15.2%   Telstra’s support (see next page).
contribution rate applied. A separate
multiple is calculated for each period of               4%               17.6%
                                                                                 Average Contribution Rate
TelstraSuper Division 2 membership
for which you have a different                          5%                20%    less than 5%
contribution rate.                                      6%               22.4%   Use Table A to work out your Benefit
These multiples are added together                                               Multiple if your Average Contribution
                                                        7%               24.8%   Rate is less than 5%.
with any Additional Multiples to make
up your Benefit Multiple. You may have                  8%               27.2%   As Table A shows, if your Average
Additional Multiples if you transferred                                          Contribution Rate is less than 5%,
from the Commonwealth Superannuation                    9%               29.6%   you will receive Telstra support for your
Scheme (CSS), or from the former Telstra               10%                32%
                                                                                 defined benefit contributions up to 10%.
Productivity Superannuation Scheme                                               Once your Average Contribution Rate
(TPSS) before July 1996 or if you rolled                                         is equal to or greater than 5%, you will
money into TelstraSuper Division 2 prior     Table B – Average Contribution      need to use Table B to calculate your
to July 1996 (see page 7).                   Rate equal to or greater than 5%    Benefit Multiple.
The percentage that will be used in          Your Elected       Accrual
the calculation of your Benefit Multiple,    Contribution       Percentage
                                                                                   Example
known as your Accrual Percentage,            Rate                                  Alec is 58 and leaving Telstra with
depends on whether your Average
                                                                                   a FAS of $70,000. He has been a
Contribution Rate is above, below or                    0%                 8%
                                                                                   member of TelstraSuper Division 2
equal to 5%.
                                                        1%               10.4%     for 20 years. He has no Additional
The following tables will assist you                                               Multiples. So, using Table A, Alec’s
in calculating your Benefit Multiple.                   2%               12.8%     Benefit Multiple is calculated for each
If you are unsure whether your Average                                             contribution period as follows:
Contribution Rate is above, below or                    3%               15.2%
                                                                                   Alec’s                         Benefit
equal to 5%, call us on 1300 033 166.                   4%               17.6%     Contribution history          Multiple
                                                        5%                20%                                   (20% x 10)
                                                                                   5% for 10 years
                                                                                                                      = 2.0
                                                        6%                21%                                   (17.6% x 5)
                                                                                   4% for 5 years
                                                        7%                22%
                                                                                                                     = 0.88
                                                                                                                  (20% x 5)
                                                        8%                23%      5% for 5 years
                                                                                                                      = 1.0
                                                        9%                24%      Alec’s Benefit Multiple
                                                                                                                    = 3.88
                                                                                   at Retirement
                                                       10%                25%      Alec’s defined benefit is equal to:

                                              Includes Telstra support             FAS                           $70,000
                                                                                   x Benefit Multiple                3.88
                                                                                   = Alec’s defined
                                                                                                               $271,600
                                                                                   benefit

                                                                                                                               5
Average Contribution Rate                    As Telstra does not provide support for a    TelstraSuper Division 2 provides
    equal to or greater than 5%                  TelstraSuper Division 2 member’s defined     members with the flexibility to change
                                                 benefit contributions above an Average       their Elected Contribution Rate at any
    Use Table B on page 5 to work out            Contribution Rate of 5%, you may want        time. This means you can lower your
    your Benefit Multiple if your Average        to consider other options to increase        Elected Contribution Rate if you need to
    Contribution Rate is equal to or greater     your super savings. (See Access the          and increase your Elected Contribution
    than 5%. As Table B shows, if your           investment market on page 12.)               Rate when feasible to meet your own
    Average Contribution Rate is equal to                                                     financial needs whilst making the most of
    or greater than 5%, you will only receive    Making the most of                           Telstra’s support.
    Telstra support for your contributions up
    to 5%.
                                                 Telstra’s support                            To change your contribution rate, please
                                                                                              see your Payroll Officer.
                                                 The optimal Average Contribution Rate
      Example                                    for TelstraSuper Division 2 is 5%. By        Please note that limits apply to pre and post-tax
                                                                                              contributions. See page 10 for details.
                                                 achieving an Average Contribution Rate
      Kate is 60 and is leaving Telstra with     of 5% you make the most of Telstra’s
      a FAS of $70,000. She has been a           support throughout your TelstraSuper
      member of TelstraSuper Division 2          Division 2 membership.
      for 20 years. Using Table B, Kate’s
      Benefit Multiple is calculated for each
      contribution period as follows:              Example
      Kate’s                       Benefit         Nicole joined TelstraSuper Division 2 at age 25 and resigned at age 50. The table
      Contribution history         Multiple        below shows how, over her career, Nicole was able to catch up those periods
                                    (22% x 5)      during which she was not able to contribute 5% of her Superannuation Salary
      7% for 5 years                               to achieve an Average Contribution Rate of 5% (equal to the maximum Telstra
                                        = 1.1
                                                   Support Rate) over her period of employment with Telstra.
                                   (21% x 10)
      6% for 10 years
                                        = 2.1                                                                         Benefit
                                                   Age                Situation               Contributions
                                    (20% x 5)                                                                         Multiple
      5% for 5 years
                                        = 1.0             Some spare cash.
                                                 25–30                                        5% for 5 years       (20% x 5)         =1.00
      Kate’s Benefit Multiple                             No family or major debts.
                                         = 4.2
      at Retirement                                       Needs extra money. Buying
                                                 30–40                                        3% for 10 years      (15.2% x 10) =1.52
      Kate’s defined benefit is equal to:                 house, raising young family.

      FAS                           $70,000               Rise in income. More cash
                                                          to spare. Increases
                                                 40–50                                        7% for 10 years      (24.8 x 10)       =2.48
      x Benefit Multiple                 4.2              contributions to make the most
                                                          of Telstra's support.
      = Kate’s defined
                                  $294,000
      benefit                                      Nicole’s Benefit Multiple at resignation                                           =5.00

6
03/
Additional Multiples

If you have Additional Multiples, these         Excess Contribution Multiple               Roll-ins prior to July 1996
will be added to your Benefit Multiple to
work out your total TelstraSuper Division       If your Average Contribution Rate is       If you rolled in money from another super
2 Defined Benefit.                              above 5%, those contributions in excess    arrangement prior to July 1996, you will
                                                of the 5% average will be shown as an      have a Roll-in Multiple. Before July 1996,
You may have one or more of the                 Excess Contribution Multiple on your       TelstraSuper did not offer a Voluntary
following Additional Multiples:                 Super Summary Payment Advice and           Accumulation Account, so any money
•   CSS Multiple                                quarterly statements.                      rolled into TelstraSuper was converted
•   CSS Supplementary Multiple                  Your Excess Contribution Multiple is the   into a Roll-in Multiple.
•   TPSS Multiple                               difference between your current Benefit    This Roll-in Multiple is calculated by
                                                Multiple and the Benefit Multiple which    dividing the amount of the roll-in by
•   Roll-in Multiple
                                                would have resulted from an Average        your FAS at the date of the roll-in. Your
•   Excess Contribution Multiple.               Contribution Rate of 5% over the same      Roll-in Multiple is included in your total
                                                period of time, known as your maximum      TelstraSuper Division 2 Benefit Multiple
Members who transferred                         Telstra Support Multiple.                  shown on your quarterly statement and is
                                                                                           shown as an Additional Multiple on your
from the Commonwealth
                                                  Example                                  Super Summary and Payment Advice.
Superannuation Scheme
(CSS)                                             If we take the example of Kate on          Example
                                                  page 6, Kate’s Average Contribution
If you transferred from the CSS into
                                                  Rate was above 5% over her 20              Rob rolled in an amount of $10,000 in
TelstraSuper Division 2, you received
                                                  years of service, equal to a Benefit       July 1994. At that time, his FAS was
a CSS Multiple and perhaps a CSS
                                                  Multiple of 4.2. Kate does not receive     $40,000. Rob retired in July 2000 and
Supplementary Multiple. These are
                                                  Telstra support for the contributions      his FAS on retirement was $60,000.
included in your total TelstraSuper
                                                  she made above a 5% Average
Division 2 Benefit Multiple shown on
                                                  Contribution Rate. Instead, this
your quarterly statement and are shown                                                       First we calculate Rob’s Roll-in
                                                  amount is represented by an Excess
as Additional Multiples on your Super                                                        Multiple:
                                                  Contribution Multiple of 0.2%.
Summary and Payment Advice.
                                                  Average                                    Roll-in Multiple              $10,000
                                                                            Benefit
Members who transferred                           Contributions       4.2
                                                                            Multiple         FAS at time of roll out       $40,000
from the former Telstra                           Rate above 5%
Productivity Superannuation                       Average
                                                                            Maximum          Rob’s Roll-in Multiple             0.25
Scheme (TPSS) before                                                        Telstra
                                                  Contribution        4.0                    When Rob retired, his Roll-in Multiple
                                                                            Support
1 July 1996                                       Rate of 5%
                                                                            Multiple
                                                                                             was applied to his FAS as part of his
                                                                                             Benefit Multiple:
If you transferred into TelstraSuper Division                               Excess
2 before 1 July 1996, from the former                                 0.2   Contribution     Roll-in Multiple                    0.25
TPSS, but were not a member of the CSS                                      Multiple
immediately before your transfer, your                                                       x FAS at time of
                                                                                                                            $60,000
former TPSS benefit was automatically                                                        roll out
rolled into your TelstraSuper Division 2                                                     = Roll-in Multiple
                                                                                                                            $15,000
arrangement as a TPSS Multiple. Your                                                         on retirement
TPSS Multiple is equal to the transfer
amount at the date of transfer divided
by your FAS at the transfer date. Your
TPSS multiple is included in your total
TelstraSuper Division 2 Benefit Multiple
shown on your quarterly statement and is
shown as an Additional Multiple on your
Super Summary and Payment Advice.

                                                                                                                                        7
04/
    More information
    about your defined
    benefit

    Part-time employees                                  Leave without pay                           Arrears
    Members of TelstraSuper Division 2 who               Periods of leave without pay may not        If your actual contributions are lower than
    work less than full-time hours are able to           count as superannuation membership          your Elected Contribution Rate, you will
    contribute and build a defined benefit on            for the purposes of calculating your        be in arrears.
    a pro-rata basis of actual hours worked              TelstraSuper Division 2 Defined Benefit.    TelstraSuper recovers arrears through
    to normal full-time hours for that position.         For details regarding the treatment         Telstra’s payroll system to ensure that
    A Service Fraction, which represents                 of leave without pay, check with your       members:
    the proportion of full-time hours you                HR/personnel unit. If you would like
                                                         information regarding contributions         • are not financially disadvantaged due
    worked, will be applied to your Benefit                                                             to reduced super benefits resulting
    Multiple. Your Service Fraction is equal to          during leave without pay, or how leave
                                                         without pay affects the calculation            from arrears
    your actual hours worked divided by the
    prescribed full-time hours for the position.         of your benefit, please call us on          • are fully insured for death and
                                                         1300 033 166.                                  TPD benefits
    The Superannuation Salary used to
                                                                                                     • fulfill their super obligations
    determine your FAS is the equivalent full            Surplus and arrears                            to Telstra Super Pty Ltd.
    time salary for your position.
                                                         If for some reason your actual              If you have arrears, Telstra’s payroll may
      Example                                            contributions differ from your Elected      deduct arrears at the rate of 2.5% of your
                                                         Contribution Rate, you may have either      Superannuation Salary.
      Susan retires after being a member                 surplus contributions or be in arrears.
      of TelstraSuper Division 2 for 5 years.                                                        Members have the option to:
                                                         If you have surplus contributions or are
      Susan always worked 18 hours                       in arrears, these will be shown on your     • increase the arrears payment
      per week. The prescribed full-time                 quarterly statement, Super Summary and          automatically deducted
      hours for her position is 36 hours per             Payment Advice.                             • reduce the arrears payment
      week. Susan’s equivalent full-time                                                                 (minimum $20 per pay)
      Superannuation Salary when she
      left was $52,000 and her equivalent
                                                         Surplus                                     • not pay the arrears.
      FAS was $50,000. As Susan always                   If your actual contributions are higher     If you’re in arrears when your defined
      contributed to her defined benefit at              than your Elected Contribution Rate, you    benefit is due to be paid you can pay the
      a rate of 5%, her Benefit Multiple for             will have surplus contributions.            arrears as a lump sum or your defined
      her 5 years of service is 1.0.                                                                 benefit will be reduced by:
                                                         If your quarterly statement or Super
                                                         Summary shows that you have surplus         • the amount of arrears
      Susan’s Service Fraction
                                                         contributions, you should contact Telstra   • the amount representing Telstra’s
      Actual hours                              18       Payroll or call us on 1300 033 166.            support for these unpaid contributions.
      divided by full-time hours               36        If you have surplus contributions when
                                                         your defined benefit is due to be paid,     Minimum benefit
      =                                        0.5       your surplus will be added to the total     In all cases the benefit payable to
                                                         of your defined benefit, but it does not    TelstraSuper Division 2 members must
      Susan’s defined benefit
                                                         count towards an Excess Contribution        be equal to or greater than the benefit
       FAS                              $50,000          Multiple (see page 7).                      required under the Superannuation
                                                                                                     Guarantee (SG) legislation. This means
       x Benefit Multiple                      1.0
                                                                                                     that as a TelstraSuper Division 2 member,
       x Service Fraction                      0.5                                                   the benefit payable to you will be the
                                                                                                     greater of your defined benefit and
       =                                $25,000                                                      the SG benefit. The SG benefit is the
                                                                                                     minimum amount of superannuation
    Note: If you change from full-time to part-time                                                  support your employer must provide to
    employment, your Defined Benefit entitlements on
    Death and TPD will progressively reduce as part-
                                                                                                     you by law.
    time employment becomes a bigger proportion of
    your TelstraSuper Division 2 membership, see pages
    14 and 15 for details.

8
05/
 Contributing to
 your super

 If you’re under age 65 you can make                    Contributions splitting                                 To make a spouse contribution you
 regular or one-off contributions to your                                                                       can do so via BPay® or cheque. If you
 super at any time.                                     Contributions splitting legislation allows              make a contribution via cheque you
                                                        you to split your super contributions into              will need to complete a Member and
 If you’re aged between 65 and 74                       your spouse’s† account annually after
 (inclusive) you can contribute to your                                                                         Spouse Contribution form available
                                                        30 June each year. Contributions your                   at telstrasuper.com.au/forms or by
 super providing you’re gainfully employed              spouse has made to their super account
 on at least a part-time basis in the                                                                           calling us.
                                                        can be received into your TelstraSuper
 financial year in which the contributions              Division 2 Voluntary Accumulation
 were made. To be considered ‘gainfully                 Account. The following contributions
                                                                                                                First Home Super Saver
 employed on a part-time basis’ you need                can be split between spouses at any                     Scheme
 to have worked at least 40 hours in a                  time in the financial year in which the
 period of not more than 30 consecutive                                                                         The First Home Super Saver Scheme
                                                        contributions were made.                                (FHSSS) allows eligible first home
 days in that financial year.
                                                        Employer Superannuation Guarantee                       buyers to withdraw voluntary super
 Once you reach age 75 you cannot                       (SG) contributions and pre-tax (salary                  contributions, along with deemed
 make contributions to your super.                      sacrifice) contributions – you can split                earnings, to put towards a house deposit.
 Your employer may contribute to                        any amount, less the 15% contributions
 your super including SG and Award                                                                              You can only withdraw contributions
                                                        tax payable on these contributions.                     under the Scheme once and you can’t
 mandated contributions.                                So, effectively you can split up to 85%                 withdraw the super that your employer is
                                                        of these gross contributions.                           obliged to pay. Only additional voluntary
 Co-contributions                                       Splits can be made between spouses’                     contributions you’ve made after 1 July
 The government may make                                accumulation accounts within the                        2017 are eligible for withdrawal.
 co-contributions for members who make                  same super fund, or to another super                    The FHSSS is administered by the
 post-tax contributions and meet eligibility            fund or retirement savings account you                  ATO, however you make contributions
 conditions (which includes an earnings                 nominate. Amounts split to a spouse’s                   as normal into your TelstraSuper
 threshold).                                            account are preserved on entry to the                   account. Contributions are made using
                                                        receiving account. To arrange a split you               a salary sacrifice arrangement with
 You will not be eligible for the government
                                                        will need to complete a Contributions                   your employer, through tax-deductible
 co-contribution in a financial year if:
                                                        Splitting Application form available                    super contributions or alternatively, you
 • your total superannuation balance is                 at telstrasuper.com.au/forms or by                      can make non-concessional (after-tax)
   equal to or greater than $1.6m as at                 calling us.                                             contributions to your account.
   the end of 30 June of the previous
                                                        Contributions to defined benefits cannot                To be eligible to withdraw contributions
   financial year, or
                                                        be split out to a spouse’s account.                     under the FHSSS, you must:
 • you have exceeded your non-                          Only contributions made to a Voluntary
   concessional contributions cap in that               Accumulation Account can be split out to                • be over 18
   financial year.                                      your spouse’s account.                                  • have never owned a home in
 For more information on co-contributions                                                                         Australia, or have previously owned
 including an online calculator please                  Spouse contributions                                      a home but are currently eligible for
 visit telstrasuper.com.au or the                                                                                 financial hardship as determined by
                                                        A spouse contribution allows you to                       the ATO, and
 Australian Taxation Office (ATO) website               make post-tax (non-concessional)
 at www.ato.gov.au                                                                                              • have not previously accessed the
                                                        contributions to your spouse’s account.
                                                                                                                  Scheme.
                                                        You may be eligible to claim a tax offset
 Low Income Superannuation                              of 18% (up to a maximum of $540) on the                 While there is no change to the amount
 Tax Offset (LISTO)                                     first $3,000 of the contributions if your               of money you can contribute to super,
                                                        spouse's income for the financial year is               annual contribution caps still apply,
 The Government will refund the tax paid                below $40,000. You will not be eligible to              and limits apply to how much you can
 on pre-tax (concessional) contributions,               claim a tax offset if:                                  withdraw for the FHSSS. A $15,000
 up to a cap of $500 for low income
                                                        • your spouse earns more than $40,000                   limit applies to contributions that can be
 earners with an adjusted taxable income
                                                                                                                eligible for withdrawal in one financial
 up to $37,000.                                         • your spouse's total superannuation
                                                                                                                year and a $30,000 limit applies to total
                                                          balance is greater than $1.6m as at the
                                                                                                                contributions eligible across all years.
                                                          end of 30 June of the previous financial
                                                                                                                This means a couple saving for a first
                                                          year, or
                                                                                                                home could contribute up to $60,000
                                                        • your spouse has exceeded their non-                   combined.
                                                          concessional contributions cap in that
                                                          financial year.

 To be eligible for contributions splitting you and your spouse must be living together. Your spouse must be under 65 years of age, even if they are still working.
†

 If your spouse is over their preservation age, they must declare they have not retired in order to receive contributions from your account. Further eligibility
 conditions may apply, visit telstrsuper.com.au for details.                                                                                                          9
The ATO will calculate the amount you                To make a downsizer contribution,                carried forward that have not been
     contribute as part of the FHSSS and the              you will need to complete a downsizer            used after five years will expire. You
     amount those contributions are deemed                contribution form from the ATO and               can access the unused concessional
     to have earned and include that in the               provide it to TelstraSuper when making           contributions cap from 1 July 2019. For
     releasable amount.                                   or prior to making the contribution. If you      further information visit the ATO website
     Applications for withdrawal are made                 make multiple contributions, you must            at www.ato.gov.au
     via the ATO, with TelstraSuper advised               provide a form for each contribution.
                                                                                                             Please be aware that if you have more
     of the amount that can be released after             All downsizer contributions must be
                                                                                                             than one fund, all contributions made
     submission of an application.                        made within 90 days of receiving the
                                                                                                             to all your funds are added together
     Release of your concessional                         proceeds of sale, with extensions granted
                                                                                                             and count towards the caps.
     contributions and deemed earnings will               by the ATO in limited circumstances.
     be taxed at your marginal tax rate less a            Where the ATO determines that a
                                                          downsizer contribution is invalid and you        Limits on post-tax (non-
     30% tax offset.
                                                          are unable to meet other contribution            concessional) contributions
     The ATO will not require proof of a                  eligibility criteria, the contribution will be
     home purchase before allowing release,                                                                If your balance is less than $1.6m as
                                                          refunded.
     but once the ATO does release your                                                                    at 30 June in the previous financial
     contributions, you must purchase                     For more information on downsizer                year, your post-tax contributions cap is
     your home within 12 months, or sign                  contributions and to see a full list of          $100,000. If your balance is greater than
     a contract within 12 months to build                 eligibility criteria, visit the ATO website      $1.6m, you are not permitted to make
     a house. If this does not happen, you                at www.ato.gov.au.                               post-tax contributions to your account.
     can apply for an extension of up to 12                                                                Contributions included in the post-tax
     months, or recontribute the amount to                Limits on pre-tax                                cap are:
     your super fund, or use the money for                (concessional) contributions
                                                                                                           • contributions you make from post-
     other purposes and pay additional tax.
                                                          The 2018/19 pre-tax contributions cap is           tax income (where no deduction is
     For more information on FHSSS and to                 $25,000 for all individuals.                       claimed)
     see a full list of eligibility criteria, visit the                                                    • contributions your spouse makes for
                                                          Contributions included in the pre-tax cap
     ATO website at www.ato.gov.au.                                                                          you
                                                          includes:
                                                          • employer Superannuation Guarantee              • pre-tax contributions in excess of the
     Downsizer contributions                                                                                 pre-tax contributions cap
                                                            (SG) and award contributions
     If you're 65 years old or over and sell your         • salary sacrifice contributions                 • transfers from overseas funds.
     primary residence after 1 July 2018, you
                                                          • insurance premiums paid directly by            Contributions that are not included in the
     may be eligible to contribute a portion of
                                                            your employer.                                 cap include:
     the proceeds into super. Contributions up
     to $300,000 for individuals or $600,000              Pre-tax contributions that you                   • rollovers from other super funds
     for couples can be made with existing                subsequently split to your spouse still
                                                                                                           • government co-contributions
     contribution caps and restrictions not               count towards your own cap; they do not
     applicable to the downsizer contribution.            count towards your spouse’s cap.                 • proceeds from the disposal of
     There is no restriction on making                                                                       eligible small business assets up
                                                          Contributions up to the caps will be               to an indexed lifetime limit (for further
     non-concessional contributions under
                                                          subject to 15% contributions tax.                  conditions and to find out the
     the downsizing cap, even if you have
                                                          This tax is 30% for any amount of                  current limit, visit the ATO website
     over $1.6 million in your total super
                                                          eligible income over $250,000. Pre-tax             www.ato.gov.au)
     balance. However, if you have reached
                                                          contributions in excess of the pre-tax
     your $1.6 million transfer balance cap,                                                               • proceeds from certain settlements
                                                          contributions cap will be taxed at your
     these contributions must remain in the                                                                  for injuries resulting in permanent
                                                          marginal tax rate if they are not withdrawn
     accumulation phase.                                                                                     disablement
                                                          from the fund and will count towards your
     It is important to note that downsizer               post-tax contributions cap. These caps           • downsizer contributions.
     contributions will count towards your Age            and taxes may change in the future.
     Pension assets test.                                                                                  The post-tax contributions cap will not be
                                                          From 1 July 2018, you will be able to            directly indexed but is set at four times
     To be eligible to make a downsizer                   'carry-forward' any unused amount of             the pre-tax contributions cap, which is
     contribution:                                        your concessional contributions cap.             usually indexed.
     • you must be 65 years old or over.                  You will be able to access your unused
                                                          concessional contributions cap on a              If you’re aged under 65 years, you will be
     • the house must be in Australia and                 rolling basis for five years if your Total       able to bring forward two years of post-
       cannot be a caravan, houseboat or                  Superannuation Balance (including all            tax contributions limited to the number
       mobile home.                                       balances if you have more than one               of years that would take your balance to
     • you or your spouse must have owned                 super account) is less than $500,000             $1.6m and make a lump sum contribution
       the residence for more than ten years.             at the end of a financial year. Amounts
10
06/
                                                                                                        Calculating your
                                                                                                        defined benefit
                                                                                                        contributions

of $300,000 in one financial year. For                If you’re aged 63 or 64 you’re able to            Post-tax (non-concessional)
example, if you made a $300,000                       bring forward two years’ contributions            contributions
contribution during the 2018/19 financial             without meeting the work test in the              Post-tax contributions to your defined
year, you would not be allowed to make                subsequent two years. If you’re aged              benefit are shown on your quarterly
any further post-tax contributions until the          65 years or over you cannot bring                 statement or Super Summary. Your total
2021/22 financial year.*                              forward contributions.                            post-tax contributions for the purposes
Where your balance is close to                        Transitional arrangements will apply if           of the contribution caps will include your
$1.6m, you will only be able to make                  you have made a post-tax contribution in          post-tax defined benefit contributions
a contribution in that year and access                the 2015/16 or 2016/17 financial year. If         and any post-tax contributions made
the bring forward of future years’                    you have triggered the bring forward rule         to an accumulation account such as a
contributions that would take your                    but haven’t fully met your bring forward          Voluntary Accumulation Account.
balance to $1.6m, as highlighted in the               cap, the transitional arrangements will
table below:                                          reflect the reduced annual post-tax               Pre-tax (concessional) contributions
                                                      contributions cap, as highlighted in the          Remember that even if you only make
                         Contribution                 table at the bottom of the page.                  pre-tax contributions to your defined
 Superannuation          and bring                                                                      benefit, your employer still makes pre-
 Balance                 forward                      The ATO will monitor your pre and
                                                                                                        tax contributions to fund your defined
                         available                    post-tax contributions and send you a
                                                                                                        benefit. Pre-tax member and employer
                                                      tax bill if you exceed the caps.
 Less than $1.3                                                                                         contributions to defined benefits (which
                         3 years ($300,000)
 million                                                                                                count towards contribution caps) will
                                                                                                        be calculated using the formula on
 $1.3 –
07/
                                                                                                                  Access the
                                                                                                                  investment market

     Exemption for Defined                                increase in contribution rate will result in            All TelstraSuper Division 2 members
     Benefit members                                      the forfeit of the exemption.                           have the opportunity to open a Voluntary
                                                          However, a change from a 5%                             Accumulation Account and access the
     If you were a Defined Benefit member                                                                         investment market.
                                                          contribution rate to a 10% contribution
     on 12 May 2009 and your Notional
                                                          rate (or any rate in between) will not                   Your Voluntary Accumulation
     Taxed Contributions exceed the pre-tax
                                                          result in the loss of the exemption as                   Account is made up of
     contribution cap, they will be taken to
                                                          contributions between 5% and 10%
     equal the cap and no additional tax will                                                                           Member contributions
                                                          (inclusive) represent a 12% Notional
     be applied (provided TelstraSuper has
                                                          Contribution Rate. A change from a 4%
                                                                                                                   +    (if you make any)
     your TFN)*.
                                                          contribution rate to a 5% contribution rate                   Government co-contributions
     However, for this dispensation to apply,             will result in a loss of the exemption as                +    (as applicable)
     no changes can have been made to                     this represents a change from a Notional
     your defined benefit from 12 May 2009                                                                              Super you may roll-in (transfer)
                                                          Contribution Rate of 10% to a Notional                   +    from another super fund
     onwards.                                             Contribution Rate of 12% and will also
     A change of contribution rate will be                result in a greater defined benefit.                     –    Administration fees
     considered a change to the defined                   Before changing your contribution
     benefit arrangement and result in the                rate, you should consider seeking                        –    Tax payable
     loss of this exemption if the change in              financial advice from TelstraSuper                       =    Your units
     contribution rate increases the Notional             Financial Planning about the impact this
     Taxed Contribution rate and also results             may have on the calculation of your pre-                 x    Unit prices
     in a greater defined benefit.                        tax contributions. To discuss your advice
                                                                                                                        Your Voluntary Accumulation
     In general, when a member decreases                  needs, please call TelstraSuper Financial                =    Account’s value
     their contribution rate they will remain             Planning on 1300 033 166 between
     entitled to the exemption, while an                  8.30am and 5.30pm (Melbourne time),
                                                                                                                  Unlike your TelstraSuper Division 2
                                                          Monday to Friday.
                                                                                                                  Defined Benefit, the balance of your
                                                                                                                  Voluntary Accumulation Account
                                                                                                                  increases or decreases according to
       Calculating Notional Taxed Contributions                                                                   investment performance. This gives
       The formula for the calculation of Notional Taxed Contributions is:                                        you the opportunity to use the Member
                                                                                                                  Investment Choice to build your super
       [(Notional Contribution Rate x Superannuation Salary at 1 July)                                            the way you want.
       less any post-tax member contributions] x 1.2
                                                                                                                  For more information on investment
       Example                                                                                                    choice see the Investment Guide
                                                                                                                  available at telstrasuper.com.au/pds
       Terry is a 41 year old TelstraSuper Division 2 member with a Superannuation                                or call us.
       Salary of $75,000. For the 2018/19 financial year he makes pre-tax contributions
       of 5% of his Superannuation Salary to his defined benefit, giving him a Notional                           A Voluntary Accumulation Account is
       Taxed Contribution Rate of 12%. Terry’s Notional Taxed Contributions are                                   opened in your name:
       calculated as:                                                                                             • at your request
       (Terry’s Notional Taxed Contribution Rate 12%                                                              • when government co-contributions
                                                                                                    $9,000           are received on your behalf
       x Super Salary at 1 July $75,000)
                                                                                                                  • when you roll-in* money from
       Less post-tax member contributions to his defined benefit                                         -$0         another super fund.
       Sub total                                                                                    $9,000        The balance of your Voluntary
       Multiplied by                                                                                   x 1.2      Accumulation Account is paid in addition
                                                                                                                  to your TelstraSuper Division 2 Defined
       Equals Terry’s Notional Taxed Contributions                                              = $10,800         Benefit in all instances.

       So Terry’s Notional Taxed Contributions are under the pre-tax contribution cap.
       Note: when calculating notional contributions you need to use your Superannuation Salary at
       1 July and not your Superannuation Salary as at your birthday.

     *P
       rovided the roll-in was made after 1 July 1996.   ^
                                                               ithin limits. See contributing to your super on
                                                              W
      See page 7 for more information on roll-ins prior       page 9 for more details.
      to 1 July 1996.

12
Member contributions                          Tax payable                                     Number of units held
With a Voluntary Accumulation                 As an incentive for retirement savings, the
                                                                                              x daily unit price
Account you can boost your super by           government provides pre-tax tax rates for
making additional member contributions.       super contributions and earnings:               =Y
                                                                                                our Voluntary Accumulation
You can choose to:                                                                             Account's value
                                              • any pre-tax contributions, including
• m ake additional contributions from           voluntary contributions made from
                                                                                             Percentage based administration and
   your pre-tax salary^                          your pre-tax salary, and any deductible
                                                                                             investment fees, transaction costs and
• make regular pre-tax or post-tax              member contributions up to the pre-
                                                                                             taxes are deducted when calculating
   member contributions in multiples of          tax contributions cap are subject to
                                                                                             daily unit prices.
   $1 each fortnight from your salary^           a 15% contributions tax. This tax is
                                                 30% for members with eligible income        Unit prices reflect the earnings on the
• make contributions at any time.                                                            investments of your chosen investment
                                                 over $250,000. Contributions tax is
To make a one-off contribution to                deducted from your account                  option. A new unit price is set each
your account please complete a                                                               Victorian business day, reflecting the
                                              • investment earnings are taxed at the
Member and Spouse Contribution                                                               changing value of the underlying assets
                                                 low (pre-tax) rate of up to 15%. This tax
form available on our website                                                                in the investment option(s).
                                                 on earnings is taken out as part of the
telstrasuper.com.au/forms                        calculation of unit prices                  Unit prices are released on our website
or call us. Alternatively, if you                                                            at telstrasuper.com.au and by calling
want to make regular contributions            • an additional tax called surcharge may
                                                                                             1300 033 166.
to your account you can do so via               be payable. The government abolished
People Express.                                 the surcharge from 1 July 2005,
                                                however assessments may still be               Example
                                                issued for previous years. See page 25
Government co-contributions                     for more information on tax and super.         Barry’s opening Voluntary
The government may make                                                                        Accumulation Account balance
co-contributions for members who make         Your units                                       is $50,000. The unit price for his
post-tax contributions and meet eligibility                                                    chosen investment option the day he
                                              Your contributions and roll-ins buy
conditions (which includes an earnings                                                         opened this account and purchased
                                              units in our broad range of investment
threshold). Visit telstrasuper.com.au for                                                      his units was $1.00000. Therefore,
                                              options, covering all major asset classes,
more detail.                                                                                   Barry has 50,000 units.
                                              to suit the conservative through to the
                                              aggressive investor. You can choose              After one month, the unit price
Roll-ins (transfers)                          an option that suits your own personal           for Barry’s chosen investment
You can also boost your super by              circumstances and financial goals. If you        option has risen to $1.05375.
rolling in (transferring) any super           decide not to make a choice now, your            As he has made no contributions
you may have in other super                   super will be invested in a default option       or withdrawals and no dollar based
arrangements into your Voluntary              based on your age.                               administration fees have been
Accumulation Account. To do this visit        For more information on investment               deducted during the month, his
telstrasuper.com.au/consolidate               choice options and default options,              number of units is still 50,000 but his
or call us.                                   please see the Investment Guide                  account balance is now $52,687.50
                                              available at telstrasuper.com.au/pds             (50,000 x $1.05375).
Administration fees                           You can update your investment option
TelstraSuper Division 2 members               anytime via your online account or by
currently do not pay the $1.50 weekly         completing an Investment Choice form
administration fee for their Voluntary        available at telstrasuper.com.au/forms
Accumulation Account. This fee is
currently paid by Telstra Corporation         Unit prices
Limited. A percentage based
                                              All contributions and roll-ins buy units in
administration fee of 0.20% pa of the
                                              the investment options you have chosen.
balance of your Voluntary Accumulation
                                              Any money withdrawn from your account
Account is deducted daily as part of the
                                              reduces the number of units held using
unit price calculation.
                                              the sell price.
Fees and other costs apply. See page 18
for details.

                                                                                                                                         13
08/
     You’re covered with
     TelstraSuper insurance

     The cover described on these pages is          Calculating your Death and
     insured by TAL Life Limited (TAL) ABN 70                                                     Example
                                                    TPD benefit
     050 109 450 AFSL 237848.                                                                     Russell has been a member of
     As a member of TelstraSuper Division 2,        If you’re younger than age 60                 TelstraSuper Division 2 for 8 years.
     you get default cover for Death and Total      Your Death and TPD benefits are               In October 2013, he is seriously hurt
     and Permanent Disablement (TPD) at             calculated as if you had retired at age       in an accident and will never be able
     no cost. You’re covered 24 hours a day,        60. If you die or qualify for a TPD benefit   to work again. Russell was 53 at the
     seven days a week, 365 days a year.            before age 60, your defined benefit will      time of his TPD and his FAS was
                                                    be calculated using the Benefit Multiple      $85,000. Over the eight years he has
     When are the Death and TPD                     you had built up at the date of death or      worked for Telstra, Russell has always
                                                    TPD plus a Prospective Multiple† that         contributed 5% to his defined benefit.
     payments made?
                                                    represents the period of time between
     Death benefits will be processed                                                             First we must calculate Russell’s
                                                    your date of death or TPD and the
     promptly and paid to your dependants                                                         Benefit Multiple for the period of
                                                    date you would have reached age 60.
     or legal personal representative at the                                                      TelstraSuper Division 2 membership
                                                    The Prospective Multiple assumes an
     discretion of Telstra Super Pty Ltd.                                                         leading up to his TPD:
                                                    Average Contribution Rate of 5% from
     To be eligible for a TPD benefit, you must:    the date of your death or TPD until age       5% member contributions
                                                                                                                                  = 1.6
                                                    60, and assumes that your FAS remains         for 8 years (20% x 8)
     • have ceased work with Telstra because        the same for that period.
       of TPD (and having not worked for six                                                      Russell’s Benefit
                                                                                                                                  = 1.6
       consecutive months)*                         If you’re older than age 60                   Multiple
     • satisfy the definition of TPD.               If you’re older than 60 at the date of your   As Russell was younger than 60 at
                                                    death or TPD, your death or TPD benefit       the date of TPD, we now need to
     A TPD benefit is only payable if you leave     is calculated the same as if you had          calculate his Prospective Benefit
     Telstra before age 60 because you are          retired on the day of your death or TPD,      Multiple†:
     seriously ill or injured and are unable to     using the Benefit Multiple you had
     ever work again in a job for which you         accrued to that date.                         20% (5% assumed
                                                                                                                                      0.2
     are reasonably qualified by education,                                                       contributions)
     training or experience. In all instances,                                                    x 7 years until age 60                   7
     the definition of TPD contained within the
     insurance policy will prevail.                                                               = Russell’s
                                                                                                     Prospective                      1.4
     Should you be unable to take care of
                                                                                                     Benefit Multiple†
     your financial affairs at the time the TPD
     benefit becomes payable, Telstra Super                                                       These multiples are then
     Pty Ltd has the right to pay your TPD                                                        added together and multiplied by
     benefit to a separate trust.                                                                 Russell’s FAS:
                                                                                                  Benefit Multiple                    1.6
                                                                                                  +P
                                                                                                    rospective Benefit
                                                                                                                                      1.4
                                                                                                   Multiple†
                                                                                                  =                                   3.0
                                                                                                  Benefit Multiple on
                                                                                                                                      3.0
                                                                                                  death or TPD
                                                                                                  x FAS                         $85,000
                                                                                                  = Russell’s TPD
                                                                                                                               $255,000
                                                                                                     Benefit
                                                                                                  Had Russell been older than 60 at
                                                                                                  the time of his accident, his TPD
                                                                                                  benefit would have been the same as
                                                                                                  his retirement benefit on the day
                                                                                                  of his TPD.
     *S
       ix month waiting period may be waived
      in some circumstances.
     †
          rospective benefit is insured by TAL
         P
         for claims that are incurred on or after
         26 September 2005.

14
Part-time employees                                Cancel or reduce your cover                   Leave without pay
If you have been employed for less than            You can cancel or reduce your top-            Subject to all Policy conditions,
                                                                                                 including the payment of premiums,
full-time hours during your period of              up cover at any time by emailing
                                                                                                 top-up cover will continue while you
TelstraSuper Division 2 membership,                underwriting@telstrasuper.com.au or
                                                                                                 are on paid or unpaid leave.
your Prospective Benefit Multiple* will be         calling us on 1300 033 166. Alternatively,
adjusted to reflect your average hours             you can complete a Cancel or Reduce           Overseas members
actually worked during the last two                Insurance form available on our website
years of your TelstraSuper Division 2              telstrasuper.com.au/forms                     Subject to satisfying the relevant Policy
                                                                                                 conditions, worldwide cover is provided
membership before you became entitled              If you do cancel or reduce your top-          24 hours a day, seven days a week for
to receive a Death or TPD benefit.                 up cover and you wish to increase or          insured members who are overseas, as
                                                   recommence cover at a later date,             well as members who are on leave.
Special conditions                                 you’ll need to supply detailed health
Special conditions or restrictions may             information as part of your application,
apply regarding rehabilitation, deliberately       which will be assessed by the insurer.
caused or aggravated TPD and
circumstances where insurance cover                 Table 1 — Top-Up Death and TPD cover
for your Prospective Benefit Multiple* is
commonly refused or restricted. These                                     Member’s total sum insured            Initial requirements
special conditions and restrictions may             Under age 55
affect the availability or amount of the                                 Up to $1,500,000                 Personal statement
TPD benefit.                                                                                              Personal statement and blood
                                                                         $1,500,001 up to $2,000,000
                                                                                                          tests
Top-up Death and TPD cover                                                                                Personal statement, blood tests
                                                                         $2,000,001 up to $3,000,000
                                                                                                          and mini health check
You can apply to increase your level of
insurance cover above your base level†.                                                                   Personal statement, blood
Any insurance in addition to your base                                                                    tests, medical examination by
                                                                         $3,000,001 up to $5,000,000      own doctor, Personal Medical
level† of cover is referred to and reported
                                                                                                          Attendants Report (PMAR) (if TPD)
as top-up cover. You can apply for any
                                                                                                          and financial questionnaire
amount of top-up Death cover and up
to $5 million in total TPD cover‡.                                                                        Personal statement, blood
You will need to supply evidence of your                                                                  tests, medical examination by a
                                                                                                          specialist, medical report, financial
occupation, health and lifestyle, which will                             $5,000,001 up to $10,000,000
                                                                                                          questionnaire and tax return and
be assessed by our insurer, TAL.
                                                                                                          assessment notices for the last
To apply for top-up insurance over the                                                                    2 years
phone with our insurer TAL, complete                Age 55 and over      Up to $1,500,000                 Personal statement
an Insurance Telephone Application
Request form available at                                                $1,500,001 up to $2,000,000
                                                                                                          Personal statement and blood
telstrasuper.com.au/forms                                                                                 tests
or call us on 1300 033 166 to have the                                                                    Personal statement, blood tests,
                                                                         $2,000,001 up to $3,000,000
form sent to you.                                                                                         mini health check and PMAR
For all terms and conditions, please                                                                      Personal statement, blood tests,
call us to obtain a copy of the Policy                                                                    medical examination by own
                                                                         $3,000,001 up to $5,000,000
Document.                                                                                                 doctor, PMAR and financial
                                                                                                          questionnaire
                                                                                                          Personal statement, blood
                                                                                                          tests, medical examination by a
                                                                                                          specialist, stress ECG, medical
                                                                         $5,000,001 up to $10,000,000
                                                                                                          report, financial questionnaire
*	Prospective benefit is insured by TAL                                                                  and tax return and assessment
   for claims that are incurred on or after                                                               notices for the last 2 years
   26 September 2005.
	Your base level is the level of cover provided
†

  under your prospective benefit as described
  on page 14.
	Death cover must be equal to or higher
‡

  than your level of TPD cover.

                                                                                                                                                  15
Transfer your insurance to                     1. 	 your application is withdrawn,        Premium Rates
     TelstraSuper                                         accepted or rejected                  Any premiums for top-up cover will vary
     If you currently have Death only or Death      2. the policy is terminated                 annually in line with your age. Premium
     & TPD insurance with another super fund                                                    rates are also reviewed regularly by
                                                    3. the Insurer cancels your interim
     or life insurance company, you may be                                                      Telstra Super Pty Ltd and the fund’s
                                                       accident cover
     able to transfer that cover to TelstraSuper.                                               insurer, TAL. See Table 3 for current
                                                    4. you reach cover cessation age,           premium rates.
     To transfer your external cover to
                                                       which is 65 for TPD, 75 for Death
     TelstraSuper, please complete                                                              These top-up premium rates are
                                                       cover
     the Transfer External Insurance                                                            applicable to white collar employees.
     Application form available at                  5. the date any existing cover under the    Additional occupational and health
     telstrasuper.com.au/forms or by                   policy ceases                            loadings may apply to these rates
     calling us.                                    6. or 120 days has passed (whichever is     depending on your occupation (e.g.
     Upon receipt of your completed form,              earliest).                               blue collar) and current health status.
     we’ll forward it on to TAL for assessment.                                                 Members who are given a premium
     If your application is successful, you will    Insurance premiums                          loading during the underwriting process
     be provided with the equivalent top-up         Insurance premiums for base Death and       will be given the opportunity to cancel
     cover in TelstraSuper as provided by your      TPD cover are currently paid for by your    their application for cover if they do not
     previous super fund or insurer. See Table      employer.                                   want the premium loading.
     3 on page 17 for top-up premium rates.                                                     Occupational loadings that may also
                                                    Insurance premiums for top-up
     Any transferred Death only or Death &          cover are payable by you and will be        be applicable to your cover are outlined
     TPD cover will apply in addition to any        applied to an Insurance Premium             in Table 2 below:
     existing cover you currently hold with         Account in your name. Interest will be
     TAL. A cap of $2,000,000 on all transfers      charged on the balance of this account       Table 2 – Premium loadings
     applies and the cap is exclusive of any        at a rate equivalent to the daily earning                                    Death
     cover you may already have with TAL.           rate of TelstraSuper’s Balanced              Occupation      Death only
                                                                                                                               and TPD
     It is important that you do not cancel         investment option.
     your cover with your other super fund                                                       Light blue             1.25        1.40
                                                    You’re under no obligation to make a
     or insurer until TelstraSuper has advised                                                   Medium blue            1.50        2.00
                                                    payment toward your premiums. If you
     you in writing that your insurance transfer
                                                    choose not to make a payment, the            Heavy blue             1.75        2.50
     application has been accepted.
                                                    balance of your Insurance Premium
                                                    Account will be deducted from your total
     Interim accident cover                         benefit when it becomes payable.
     If you apply for additional insurance          If you would like to make a payment
     cover, you will receive interim accident       into your Insurance Premium Account,
     cover for the period of time your              you will need to complete an
     application is being assessed (known as        Insurance Premium Payment
     the interim accident cover period).            Defined Benefit form, available at
     If you have an accident during the             telstrasuper.com.au/forms or call us.
     interim accident cover period that             If you have a Voluntary Accumulation
     results in your death or TPD, you will be      Account (VAA), you can request that
     covered for the applied amount (up to          funds be transferred from your VAA
     the maximum interim accident benefit           into your Insurance Premium Account.
     of $1.5 million for Death or TPD) for          Transferring funds from your VAA
     the period starting from the date your         offers the advantage of paying for your
     completed application is received by           insurance premium with concessionally
     TelstraSuper and finishing when:               taxed dollars.

16
Table 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

                                                                                                                          17
09/
                                                  Fees and other costs

     Leaving your employer                        There are no fees or charges attached     This document shows fees and other
     If you cease employment with Telstra,        to your TelstraSuper Division 2 Defined   costs that you may be charged. These
     you receive 30 days extended Death &         Benefit, the fees and charges described   fees and other costs may be deducted
     TPD insurance cover. This cover ceases       on the following pages apply to your      from your money, from the returns on
     30 days after ceasing employment or          Voluntary Accumulation Account only.      your investment or from the assets of the
     immediately upon withdrawal of your                                                    superannuation entity as a whole. Other
     entire benefit from TelstraSuper.              DID YOU KNOW?                           fees, such as activity fees, advice fees for
                                                                                            personal advice and insurance fees, may
     When we receive notification that you’re       Small differences in both               also be charged, but these will depend
     leaving Telstra, your account balance will     investment performance and fees         on the nature of the activity, advice or
     be transferred into our portable, flexible     and costs can have a substantial        insurance chosen by you.
     product, TelstraSuper Personal Plus.           impact on your long term returns.
                                                                                            Taxes, insurance fees and other
     Your current level of Death only or            For example, total annual fees          costs relating to insurance are set
     Death & TPD cover will be transferred          and costs of 2% of your account         out in another part of this document.
     to TelstraSuper Personal Plus and may          balance rather than 1% could            You should read all the information
     be split between base cover and top-up         reduce your final return by up to       about fees and other costs because
     cover, to the same total value, without        20% over a 30 year period (for          it is important to understand their impact
     the need for assessment by TAL.* If you        example, reduce it from $100,000        on your investment.
     remain in TelstraSuper Personal Plus,          to $80,000).
     premiums will be payable for this cover.
                                                    You should consider whether
     If you had top-up Death only or top-up         features such as superior
     Death & TPD cover as a TelstraSuper            investment performance or the
     Division 2 member, this will continue          provision of better member
     in TelstraSuper Personal Plus. You will        services justify higher fees and
     also have the opportunity to apply for         costs.
     Income Protection cover provided you
     are continuously employed and working          Your employer may be able
     at least 15 hours per week. Applications       to negotiate to pay lower
     for additional cover are subject to            administration fees. Ask the fund
     assessment by TAL. Please refer to             or you financial adviser.
     the TelstraSuper Personal Plus
     Product Disclosure Statement and               TO FIND OUT MORE
     TelstraSuper Personal Plus Insurance           If you would like to find out more,
     Guide for more information. These are          or see the impact of the fees
     available at telstrasuper.com.au/pds           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.

     *S
       ubject to the ‘active employment’ test
      contained in the Policy.

18
TelstraSuper Division 2 Voluntary Accumulation Account
  Type of fee                                                             Amount                                                             How and when paid
  Investment fee         3                                                0.42% pa for Growth                                                Deducted in the calculation of unit prices daily.
                                                                          0.38% pa for Balanced
                                                                          0.26% pa for Diversified Income
                                                                          0.25% pa for Defensive Growth
                                                                          0.27% pa for Conservative
                                                                          0.58% pa for International Shares
                                                                          0.43% pa for Australian Shares
                                                                          0.14% pa for Property
                                                                          0.25% pa for Fixed Interest
                                                                          0.10% pa for Cash
                                                                          0.20% pa subject to a maximum of $3,000 pa                         Refer to the Direct Access Product Guide for
                                                                          for the Direct Access investment option.                           more information.

  Administration fee                                                      $1.50 per week                                                     Currently paid for by Telstra Corporation
                                                                                                                                             Limited.
                                                                                                                                             Indirect Administration fees of 0.20% are included
                                                                          Plus
                                                                                                                                             in the indirect cost ratio for each investment
                                                                                                                                             option listed below (excludes Direct Access).
                                                                          $172 pa if you are invested in the Direct                          If you are invested in the Direct Access
                                                                          Access Investment option.                                          investment option, Administration fees of
                                                                                                                                             0.20% pa will be deducted from the amount
                                                                                                                                             invested in Direct Access (see the Direct
                                                                                                                                             Access Product Guide for more information).
  Buy-sell spread                                                         The buy cost or sell cost ranges from 0.00%                        Deducted in the calculation of unit prices at the
                                                                          to 0.30% depending on the investment                               time of the transaction.
                                                                          option. Refer to the ‘Additional explanation
                                                                          of fees and costs’ section on page 21 for
                                                                          more details.

  Switching fee                                                                                         Nil                                                                 N/A

  Exit fee                                                                                              Nil                                                                 N/A

  Advice fee                                                                                            Nil                                  The cost of general and simple personal
                                                                                                                                             advice about your TelstraSuper account is
                                                                                                                                             included in the Administration fee currently
                                                                                                                                             paid for by Telstra Corporation Limited.

  Other fees and costs 1
  Indirect cost ratio                                                     0.50% pa for Growth                                                Deducted in the calculation of unit prices daily.
                                                                          0.47% pa for Balanced
                                                                          0.27% pa for Diversified Income
                                                                          0.34% pa for Defensive Growth
                                                                          0.35% pa for Conservative
                                                                          0.09% pa for International Shares
                                                                          0.13% pa for Australian Shares
                                                                          0.91% pa for Property
                                                                          0.03% pa for Fixed Interest
                                                                          0.00% pa for Cash
                                                                          +
                                                                          Administration fee of: 0.20% pa.

Estimated borrowing costs ranged between 0.00%-0.94% of the value of the options and reduced the value of the options over the last financial year. These costs were additional to the fees,
indirect costs and other transactional and operational costs. Refer to the table on page 22 for further details.
1. Other fees and costs such as activity fees, advice fees for personal advice or insurance fees may apply. Refer to the 'Additional explanation of fees and costs' section on page 21.
2. T
    he indirect cost ratios (ICRs) are indicative and are based on the ICR for each investment option for the year ending 30 June 2018. They include costs which are known or, if not known, are reasonably
   estimated, and which reduce either directly or indirectly the return of the investment option. The ICRs may vary from time to time. The actual amount that you will incur in subsequent financial years will
   depend on the actual ICRs incurred by the Trustee in managing the investment option. Refer to the 'Additional explanation of fees and costs' section for further information about indirect costs.
3. The investment fees are estimates and include fees which are paid directly by the Trustee such as management fees, any applicable performance fees charged by investment managers and custodian
    fees. The investment fees are based on the investment fees for the year ended 30 June 2018. The actual amount you will be charged in subsequent financial years will depend on the actual investment
    fees incurred for the relevant period.
                                                                                                                                                                                                                  19
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