May 2007

Enquiries/Feedback
Contact your Account Manager,
phone 1300 880 588 or email us

Improvements and changes to investments and insurance

Following a recent review of the Aon Master Trust’s investment menu and insurance arrangements, the trustee is making a number of improvements and changes for Corporate Super members. These are outlined in Directions for members and summarised here.

Investments

  • Tier 1: Pre-mixed options:
    • objectives and strategic asset allocations are being revised to offer greater risk/return choices to members investing in this Tier
    • the Balanced Growth option will be renamed Growth to more accurately reflect its underlying assets.
  • Tier 2: Sector options:
    • the establishment of two new options that will offer a growth and a defensive alternative investment
    • revised objectives and benchmarks for Property and Diversified fixed interest.
  • Tier 3: Specialist options
    • the termination of a number of options. We have written to affected members about these terminations and their asset transfer options.

Insurance

Discounted premiums and an age-based minimum level of insurance cover# allow eligible members* to automatically have at least a minimum, but reasonable, level of cover at value-for-money rates – a big improvement for members with very little or no cover at all. This minimum is significantly higher than the cover required by law from 1 July 2008^ and, by introducing it from 1 July 2007, the Aon Master Trust is ahead of the requirement in terms of time and level of cover.

Members can opt out of the minimum cover if they wish.

These, and other insurance improvements and changes, are outlined on page 7 of Directions for members and explained in more detail in the factsheet A better fit – improved insurance in Corporate Super.

# The minimum is $200,000 of death and total and permanent disablement cover, reducing from age 42 to nil at age 65.
* Eligible members exclude TPD claimants, defined benefit members, members who have had cover reduced or declined by the insurer, who are covered by a non-AIG policy, who do not meet ‘At Work’ requirements, who are in uninsurable occupations, or whose employer meets the cost of insurance, and may exclude members whose employer or adviser has negotiated other insurance arrangements.
^ From 1 July 2008, employer-chosen default funds will be required to provide a minimum death-only default cover of $50,000 or the amount of cover that can be provided at a unit cost of 50 cents per week.
If you have a special arrangement such as:
  • an insurer other than AIG
  • employer-paid insurance premiums, or
  • cover for defined benefit members

the minimum level of cover will not apply.

Helping members find their lost super and get it back

In September this year, we’ll be helping members to find any ‘lost super’ they may have by doing a search with SuperMatch. This is an online service that the Australian Taxation Office (ATO) service makes available to super funds for the specific purpose of tracking down their members’ lost super.

Directions for members (page 6) advises members about our upcoming search, outlines the SuperMatch process and asks members who don’t want us to search on their behalf to let us know.

If SuperMatch turns up any lost super for a member, we’ll let the member know and will also send them a form to complete if they want to transfer their lost super into their Aon Master Trust account.

Members who prefer to do their own search can use SuperSeeker, the ATO’s service for individuals.

Tax file numbers (TFNs) – worth a reminder

We had a tremendous response from the TFN article in the February issue of Directions for members, with thousands of members heeding the message and providing us with their TFN.

With the new rules coming in from 1 July 2007, there is still time to remind members who will be most affected. In early June, we will be writing to members who (a) have made contributions in the last 12 months and (b) who have not yet provided their TFN to us. That letter will invite them to provide their TFN (we’ll include a form) and re-iterate that, if they don’t provide it:

  • they won’t be allowed to make any after-tax contributions from 1 July 2007
  • taxable contributions (ie employer SG and any salary sacrifice contributions) they make above $1,000 will be taxed at 46.5% (including Medicare levy), compared with the current rate of 15%.

We have also included a general reminder in Directions for members.

And here is a reminder for you too. From 1 July 2007, where an employee quotes a TFN for employment purposes, it will automatically be taken as quoted for superannuation purposes and you will need to forward the TFN to the employee’s super fund – generally within 14 days.

New bank details

The Aon Master Trust is changing its custodian in June. Therefore it is important that you make all contributions cheques payable to 'Aon Master Trust'.

The 30 June window of opportunity is closing soon

Most of the Government’s Simplified Super measures take effect from 1 July 2007. With that date fast approaching, now’s a good time for members to focus on the one-off contribution opportunities that are available only until 30 June 2007. Looking ahead, they may be able to use some new contribution strategies from 1 July.

In Directions for members (page 2), we offer some ‘food for thought’ on how members might be able to make the most of these opportunities and strategies. For example, more employees may be asking you about salary sacrificing into super (if so, here’s a sample form you can adapt for your workplace).

Federal Budget 2007/08

A one-off doubling of the government’s co-contribution for contributions made in 2005/06 and employers no longer needing to sign a participating employer agreement for public offer funds are the main super announcements in this year’s Budget. See Aon’s Shortwave for more information.

For feedback, questions or more information…

  • contact your Account Manager, or
  • call us on 1300 880 588, or
  • email us

 

Disclaimer

The information in this document is general in nature. Your personal objectives, needs or general situations were not taken into account when preparing this information. You should consider the appropriateness of any general advice before acting on it, having regard to your own objectives, financial situation and needs. If the information relates to a financial product, you should obtain and consider the relevant Product Disclosure Statement before making any decision to purchase that financial product.

Depending on the terms of the particular Plan, the Trustee may receive remuneration in respect of the superannuation interests that it issues. For providing personal advice that results in the issue of an interest in the Aon Master Trust, Aon Consulting Pty Limited may receive remuneration from the Trustee. Employees and directors of Aon Consulting Pty Limited are remunerated by way of salary, but may receive bonuses based on the quality and amount of services provided.

This document has been prepared by Aon Consulting Pty Limited (ABN 48 002 288 646, AFSL 236667) a related body corporate of the trustee of the Aon Master Trust (RSE R1000566), Aon Superannuation Pty Limited (AFSL 237465, RSE L0000437). This is a relationship that might reasonably be expected to be capable of influencing Aon Consulting Pty Limited when the company provides financial product advice to clients in respect of the Aon Master Trust.