Superannuation and Retirement

Documents and forms

  • PDS
  • Updates

    01/10/2015: Global Thematic Share objective (ZSP / ZABP)

    Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Information Booklet on Investment options: Change in objective for the Zurich Global Thematic Share option

    With effect 1 October 2015, the primary objective of the option is to provide long term capital growth with the benefits of global diversification. The option aims to achieve risk adjusted returns that exceed the MSCI World (ex-Australia) Accumulation Index in $A (net dividends reinvested) over periods of seven or more years.

    KDEG-010735-2015

    01/10/2015: Global Thematic Share objective (ZSTIP)

    Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Information Booklet on Investment options: Change in objective for the Zurich Global Thematic Share option

    With effect 1 October 2015, the primary objective of the option is to provide long term capital growth with the benefits of global diversification. The option aims to achieve risk adjusted returns that exceed the MSCI World (ex-Australia) Accumulation Index in $A (net dividends reinvested) over periods of seven or more years.

    KDEG-010735-2015

    17/09/15: Death Benefits (ZSP/ZABP)

    17 September 2015

    Update to the Zurich Superannuation Plan / Zurich Account-Based Pension Additional information guide: death benefits

    The following text is added at the end of the booklet:

    From 1 July 2016 there will be a change in the way death benefits are paid. From that date, the arrangements described elsewhere in this booklet will no longer apply and the following will apply instead:

    What happens on death?

    Binding Death Benefit Nomination (ZSP and ZSBP)

    If you die with a valid Binding Death Benefit Nomination, the Trustee must pay your death benefit to your nominated beneficiaries in the proportions specified in the nomination.  

    For a nomination to be valid:

    • the proportion  of your death benefit to be paid to each beneficiary must be clearly set out (and total 100 per cent)
    • the nomination must be signed and dated by you in the presence of two witnesses, both of whom are over 18 years of age and are not nominated to receive a benefit
    • the nomination must have been made, or confirmed within 3 years of the your death and
    • you must not have revoked your nomination.

     

    Each nominated beneficiary must be your Dependant (refer below), or your Legal Personal Representative (generally the executor of your will or the administrator of your estate).

    Generally, you may choose for benefits to be paid as a lump sum or as a pension.  However, it must be paid as a lump sum if  the benefits are payable to your Legal Personal Representative or to a child aged over 18, unless the child is: 

    • under 25 and financially dependent on you immediately prior to your death, or
    • permanently disabled.

    Definition of Dependant

    A Dependant includes:

    • your current spouse (including de facto spouse) of either gender,
    • your children of any age (including adopted children, stepchildren and your spouse’s children),
    • someone who is financially dependent on you, or
    • someone with whom you have an ‘interdependency relationship’

     

    Two people have an ‘interdependency relationship’ if:

    • they have a close personal relationship;
    • they live together; and
    • one or each of them provides the other with financial support; and
    • one or each of them provides the other with:
      • domestic support and personal care, but not if one of them provides domestic support and personal care to the other under an employment contract or a contract for services or on behalf of another person or organisation such as a government agency, a body corporate or a benevolent or charitable organisation; or
      • support or care of a type and quality normally provided in a close personal relationship, rather than by a mere friend or flatmate 
    • two people also have an interdependency relationship if they have a close personal relationship but they do not meet the other requirements of interdependency because:
      • due to either or both of them suffering from a disability including a physical, intellectual or psychiatric disability, or
      • they are temporarily living apart. 

     

    A Dependant must be alive and meet the definition of Dependant immediately before your death.

    What if a nominated beneficiary is not your Dependant or your Legal Personal Representative?

    In such cases, the portion of the benefit to be paid to that nominated beneficiary will be paid as if there is no valid Binding Death Benefit Nomination.

    No nomination

    Where there is no valid Binding Death Benefit Nomination, the Trustee must pay the death benefit (or applicable proportion) in accordance with the trust deed. This generally means that the benefit will be paid to your Legal Personal Representative, unless the Trustee:

    • is unable to identify  your Legal Personal Representative within 6 months of the Trustee being notified of your death; or
    • has reason to believe your estate is insolvent

     

    If either of the above apply, benefits are instead paid to spouses or, if none, children in equal shares (where there are more than one).  For example, if you have no spouse and two children, both children would receive 50 per cent. 

    Note that a person is only a 'spouse' or a 'child' if the Trustee is aware of the person's existence and is satisfied of their status as such.

    If there is no spouse or child, then the Trustee must pay the death benefit to your Legal Personal Representative (even if the estate is insolvent) or deal with the death benefit under applicable laws relating to unclaimed super. 

    Making a Binding Death Benefit nomination

    For further information on binding nominations, including the nomination form, please ask your financial adviser to provide you with a copy of the Zurich Super Estate Management Binding Nomination brochure. Alternatively a copy of the brochure can also be obtained by contacting the Zurich Client Service Centre on 131 551 or through our website at www.zurich.com.au. There may be taxation or other implications to consider. You should consult your financial adviser for information regarding the nomination of a beneficiary.

    You must confirm your nomination every 3 years in order for it to remain valid. You can do this by giving us a written notice, signed and dated by you, to that effect before it expires, or simply complete the confirmation form we send to you. It is your responsibility to ensure your Binding Death Benefit Nomination is confirmed before it expires.

    If you wish to amend your nomination, you need to complete and submit a new binding nomination form which will then completely replace all previous nominations.

    Reversionary pensioner nomination (ZABP only)

    Instead of a Binding Death Benefit Nomination, under the ZABP, you can alternatively elect a reversionary pensioner. Your reversionary pensioner must be a Dependant who is eligible to receive a pension (as explained above).

    If you elect a reversionary pensioner, in the event of your death, the regular payments will continue to be made to the Dependant you nominate as a reversionary pensioner on the application form. Only one reversionary pensioner can be nominated, who must be nominated when your pension is commenced.

    If your reversionary pensioner dies before you, or your reversionary pensioner is not a Dependant (or in the case of a spouse, no longer your spouse) at the time of your death, your nomination will become invalid and the money will be paid as if there is no nomination in place (as explained above).

    If payments to the reversionary pensioner have commenced, and the reversionary pensioner subsequently dies whilst still entitled to a pension, the balance of the benefit will be paid as if the reversionary pensioner is you and there is no nomination in place (refer above).

    A reversionary pensioner nomination is binding on the Trustee and is irrevocable. This means that you cannot change your decision once you have nominated a reversionary pensioner. The only way to change your nomination  is to commute your pension (provided you did not elect to make it non-commutable when setting it up) and then set up a new one.

    Making a reversionary pensioner nomination may have taxation and other implications. We recommend you discuss the appropriateness of such a nomination with your financial adviser.

    KDEG-010554-2015

    01/07/15: Taxable component of super lump sum (ZSP/ZABP)

    1 July 2015

    Update to the Zurich Superannuation Plan & Zurich Account-Based Pension PDS: Taxable component of superannuation lump sum

    The taxable component of a superannuation lump sum is as follows:

    Below preservation age*:             Whole amount - 20% + medicare levy

    Preservation age* to 59:               Amount up to low rate cap* - Nil
                                                           Amount above low rate cap* - 15% + medicare levy

    Age 60 and above:                        Whole amount - Nil

    *For information regarding your preservation age and the low rate cap amount, refer to the Superannuation Rates & Thresholds page.

    KDEG-010274-2015

    01/07/15: Zurich Equity Income fee reduction (ZSP/ZABP)

    1 July 2015

    Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Information Booklet on Investment options: Zurich Equity Income option fee reduction

    With effect 1 July 2015, the Indirect Cost Ratio (Investment management cost deducted from the underlying assets) reduced from 1.87% pa to 1.39% pa.

    KDEG-010274-2015

    01/07/15: Zurich Equity Income fee reduction (ZSTIP)

    1 July 2015

    Update to the Zurich Superannuation Trustee Investment Plan Information Booklet on Investment options: Zurich Equity Income option fee reduction

    With effect 1 July 2015, the Indirect Cost Ratio (Investment management cost deducted from the underlying assets) reduced from 1.87% pa to 1.39% pa.

    KDEG-0102735-2015

    01/04/15: Increase to minimum monthly PMC (ZSP/ZABP)

    1 April 2015

    Update to the Zurich Superannuation Plan & Zurich Account-Based Pension PDS and Fee Guide: Increase to the minimum Monthly Portfolio Management Charge

    Effective 1 April 2015 the minimum monthly Portfolio Management Charge for the Zurich Superannuation Plan and Zurich Account-Based Pension, increased from $20.85 to $21.20.

    As disclosed in the PDS, the increase has been calculated on the Consumer Price Index (‘CPI’) increase measured over the 12 months ending 31 December of the previous year (ie. 2014). The CPI is the “Weighted Average of Eight Capital Cities Index” published by the Australian Bureau of Statistics.

    KDEG-010274-2015

    01/04/15: Increase to minimum monthly PMC (ZSTIP)

    1 April 2015

    Update to the Zurich Superannuation Trustee Investment Plan PDS:  Increase to the minimum Monthly Portfolio Management Charge

    Effective 1 April 2015 the minimum monthly Portfolio Management Charge for the Zurich Superannuation Trustee Investment Plan (ZSTIP), increased from $20.85 to $21.20.

    As disclosed in the PDS, the increase has been calculated on the Consumer Price Index (‘CPI’) increase measured over the 12 months ending 31 December of the previous year (ie. 2014). The CPI is the “Weighted Average of Eight Capital Cities Index” published by the Australian Bureau of Statistics.

    KDEG-0102735-2015

    31/12/14: Standard Risk Measure information (ZSP/ZABP)

    31 December 2014

    Updates to the Zurich Superannuation Plan and Zurich Account-Based Pension PDS (and Investment Option Booklet): Standard Risk Measure information
    The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period.
    Investment options are graded across seven ‘risk bands’, from ‘very low risk’ to ‘very high risk’ (refer to the table below).

    Risk Band Risk Label Estimated number of negative annual returns over any 20-year period
     
    1 Very low Less than 0.5
    2 Low 0.5 to less than 1
    3 Low to medium 1 to less than 2
    4 Medium 2 to less than 3
    5 Medium to high 3 to less than 4
    6 High 4 to less than 6
    7 Very high 6 or greater

     

    The system also estimates how many negative annual returns are expected for each option over a 20-year period, to give you a clear idea of how a particular risk level may affect a long-term investment.


    The Standard Risk Measures at 31 December 2014 are as follows:

    Investment option Standard Risk Measure
     
    Capital Stable Low
    Cash Very Low
    Australian Fixed Income Low
    Balanced Medium
    Managed Growth Medium to High
    Australian Property Securities Very High
    Global Property Securities High
    Equity Income High
    Global Equity Income Very High
    Priority Growth High
    Managed Share High
    Australian Value Share High
    Global Thematic Share Very High
    Global Growth Share Very High
    Colonial First State – Australian Shares High

     

    Note:

    • The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return.
    • Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.

     

    KDEG-009888-2015

  • Archive
  • Fee Definitions

    The following types of fees shown in the Zurich Superannuation Plan / Zurich Account-Based Pension PDS ('PDS') have the following meaning in superannuation legislation.

    How the fees apply is set out in the PDS.

    PDS issued by Zurich Australian Superannuation Pty Limited (ABN 000 880 553 AFSL 232500)

    Activity fees

    A fee is an activity fee if:

    a) the fee relates to costs incurred by the trustee of the superannuation entity that are directly related to an activity of the trustee,
       i) that is engaged in at the request, or with the consent, of a member, or
       ii) that relates to a member and is required by law, and
    b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an exit fee, an advice fee or an insurance fee.

    Administration fees

    An administration fee is a fee that relates to the administration or operation of the superannuation entity and includes costs incurred by the trustee of the entity that:
       a) relate to the administration or operation of the entity, and
       b) are not otherwise charged as an investment fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

    Advice fees

    A fee is an advice fee if:

       a)   the fee relates directly to costs incurred by the trustee of the superannuation entity because of the provision of financial product advice to a member by:
          i. a trustee of the entity, or
          ii. another person acting as an employee of, or under an arrangement with, the trustee of the entity, and

       b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an insurance fee.

    Buy-sell spreads

    A buy-sell spread is a fee to recover transaction costs incurred by the trustee of the superannuation entity in relation to the sale and purchase of assets of the entity.

    Exit fees

    An exit fee is a fee to recover the costs of disposing of all or part of members’ interests in the superannuation entity.

    Indirect cost ratio

    The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation entity, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation entity attributed to the MySuper product or investment option.

    Note: A dollar-based fee deducted directly from a member’s account is not included in the indirect cost ratio.

    Insurance fee

    A fee is an insurance fee if:

    a)   the fee relates directly to either or both of the following:
       i. insurance premiums paid by the trustee of a superannuation entity in relation to a member or members of the entity,
       ii. costs incurred by the trustee of a superannuation entity in relation to the provision of insurance for a member or members of the entity, and
       b) the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk, and
       c) the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an exit fee, an activity fee or an advice fee.

    Investment fees

    An investment fee is a fee that relates to the investment of the assets of a superannuation entity and includes:
       a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees), and
       b) costs incurred by the trustee of the entity that:
          i. relate to the investment of assets of the entity, and
          ii. are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit fee, an activity fee, an advice fee or an insurance fee.

    Switching fees

    A switching fee is a fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one class of beneficial interest in the entity to another.