Significant Event Notice for Super Members

25 May 2014

Fee changes

Administration and investment management fees will change from 30 June 2014. The amount you pay will depend on the investment option(s) you have chosen.

This section provides information on the fees and other costs that will be charged from 30 June 2014. Other fees such as activity fees, advice fees for personal advice and insurance fees have not changed but may also be charged. The actual fees charged will depend on the nature of the activity, advice or insurance chosen by you. Further information about the fees that will apply to your investment can be found at australianethical.com.au/fees.

If you consult a financial adviser, additional fees may be payable to the adviser. You should refer to the Adviser’s Statement of Advice for details.

You should read all the information about fees and costs because it is important to understand their impact on your investment. You can also use this information to compare Australian Ethical Super with other super funds.

 

Type of fee or cost Amount[1] How and when paid
Investment fee Defensive 0.50% p.a. Investment fees are paid from the Fund’s assets prior to unit prices being calculated. The investment fee you pay will depend on the investment options you have chosen.
Conservative 0.65% p.a.
Balanced (accumulation) 0.72% p.a.
Balanced (pension) 0.75% p.a.
Growth 1.20% p.a.
Advocacy 1.30% p.a.
International Shares 1.40% p.a.
Smaller Companies 1.25% p.a.
Administration fee $97[2] per annum, plus 0.93% of your account balance per annum. Dollar based fees are deducted from your account monthly. Percentage administration fees are paid from the Fund’s assets prior to unit prices being calculated.
Buy-sell spread Defensive 0.00% Applied to the unit price before processing each buy and sell transaction.
Conservative 0.00%
Balanced (accumulation) 0.01%
Balanced (pension) 0.01%
Growth 0.02%
Advocacy 0.02%
International Shares 0.05%
Smaller Companies 0.01%
Switching fee Nil
Exit fee $50 Deducted from your account balance at the time of withdrawing either a full or partial benefit from your account.
Advice fees Nil Additional fees may be payable if a financial adviser is consulted.
Other fees and costs Nil
Indirect cost ratio Nil

[1] The fees shown are current for the 2014/15 financial year and are subject to change.

[2] Your employer may be able to negotiate to pay lower administration fees. You may also be eligible for discounts if you have a large balance or are a member of an association. Refer to the Fee Discounts section of the Product Disclosure Statement for further information.

 

Changes to insurance

As a result of legislative changes, we have been required to amend the Total and Permanent Disablement (TPD) definition that applies to the Fund’s group life policy. The new definition shown below will apply to all TPD cover held in the Fund on and after 30 June 2014.

There are no changes to insurance premiums, the level of cover or other terms and conditions of the group life policy. The new Insurance Guide will be available from 30 June 2014 and you can obtain a copy from our website athttp://www.australianethical.com.au/insurance, or by calling us on 1300 134 337.

If you hold TPD insurance through the Fund, or you are considering applying for TPD insurance in the future, you should review the new TPD definition and decide if this insurance is right for you. Insurance is complex and we recommend you seek professional advice that is tailored to your personal circumstances.

 

Total and Permanent Disablement (TPD) means:

 

A:         When a Covered Person is under age 65 and was Employed within the 12 months prior to their Date of Disablement and has provided proof to the Insurer’s reasonable satisfaction that the Covered Person, as a result of Illness or Injury, has become incapacitated to such an extent that it is unlikely that the Covered Person will ever be capable of engaging in Gainful Employment for which the Covered Person is reasonably qualified by education, training or experience and one of the following applies:

(i)         the Covered Person has suffered at least 25% Whole Person Impairment and is not engaged in any occupation; or

(ii)       the Covered Person has suffered the permanent loss of use of 2 limbs or the sight of both eyes or the loss of use of one limb and the sight of one eye (where limb is defined as the whole hand or the whole foot); or

(iii)       the Covered Person has been absent from Employment with their Employer through Illness or Injury for 3 consecutive months or such lesser period the Insurer may approve where the extent of the Covered Person’s Illness or Injury is such that it is apparent that the Covered Person will be absent from Employment due to Illness or Injury for 3 consecutive months even though the period of 3 consecutive months has not concluded. Where a Covered Person’s Employment is terminated following their Date of Disablement, the period of 3 consecutive months absence will commence from the date they ceased to work due to Illness or Injury.

B:         When a Covered Person:

(i)             has not been Employed within the 12 months prior to the Date of Disablement; or

(ii)            has been on employer approved leave for more than 24 months; or

(iii)           is aged 65 or older

Total and Permanent Disablement shall mean that the Covered Person has provided proof to the Insurer’s reasonable satisfaction that the Covered Person, as a result of Illness or Injury has become incapacitated to such an extent that it is unlikely that the Covered Person will ever be capable of engaging in Gainful Employment for which the Covered Person is reasonably qualified by education, training or experience and one of the following applies:

 

(i)         the Covered Person has suffered at least 25% Whole Person Impairment and is not engaged in any occupation; or

(ii)        the Covered Person has suffered the permanent loss of use of 2 limbs or the sight of both eyes or the loss of use of one limb and the sight of one eye (where limb is defined as the whole hand or the whole foot); or

(iii)       the Covered Person through Illness or Injury, and having provided proof to the satisfaction of the Insurer, is permanently unable to perform at least 2 of the following 6 basic activities of everyday living:

·       Bathing – to shower or bathe;

·       Dressing – to dress or undress;

·       Toileting – to use the toilet including getting on and off;

·       Feeding – to eat and drink;

·       Mobility – to get out of a bed or a chair or a wheelchair; or

·       Continence – to control bladder and bowel function.

If the Covered Person can perform the activity by using special equipment, they will be considered able to undertake that activity; or

(iv)       the Covered Person through Illness or Injury, and having provided proof to the satisfaction of the Insurer, is suffering from the permanent deterioration or loss of intellectual capacity that has required the Covered Person to be under continuous care and supervision by another adult person for 3 consecutive months and this care is likely to be ongoing on a permanent daily basis.

 

C:         When a Covered Person is under age 65, was not Employed and was engaged in unpaid Domestic Duties at home on their Date of Disablement and has provided proof to the Insurer’s reasonable satisfaction that the Covered Person, as a result of Illness or Injury has become incapacitated to such an extent that it is unlikely that the Covered Person will ever be capable of engaging in Gainful Employment for which the Covered Person is reasonably qualified by education, training or experience and one of the following applies:

(i)         the Covered Person has suffered at least 25% Whole Person Impairment is not engaged in any occupation; or

(ii)       the Covered Person is as a result of Illness or Injury under the care of a Medical Practitioner; and

·       the Covered Person is unable to perform their Domestic Duties; and

·       the Covered Person is unable to leave their home unaided; and

·       from the Date of Disablement, the Covered Person has not been gainfully Employed for a period of 6 consecutive months; and

·       at the end of a period of 6 months from the Date of Disablement, in the Insurer’s opinion, after consideration of all relevant evidence, the Covered Person is disabled to such an extent as to render them unlikely to again be able to perform their Domestic Duties.

A Covered Person will be Totally and Permanently Disabled if that person satisfies either Part A or B or C of this definition where these apply.

Gainful Employment

Gainful employment means employment or self-employment for gain or reward in any business, trade, profession, vocation, calling, occupation or employment.

General information only

This information is general information only and does not take account of your individual investment objectives, financial situation or needs. Before acting on it, consider seeking independent financial advice.