May 2008

Enquiries/Feedback
Contact your account manager,
phone 1300 880 588 or email us

Appointment of Russell and new investment menu

Aon has recently made the decision to appoint the global investment specialist Russell Investment Group to manage most of the Aon Master Trust’s investments via its range of multi-manager funds (see the media release).

Whilst retaining product ownership, this new partnership is part of Aon’s strategy to position the Aon Master Trust for long-term growth by gaining access to Russell’s scale, expert specialist resources and future investment in process improvement and technology. This will enable us to continue to provide our clients with quality services and value.

Currently the Aon Master Trust offers more than 40 investment options across three ‘tiers’. As noted in Directions for members, our partnership with Russell allows us to streamline the investment menu that members can choose from. More information will be available on the website shortly.

We expect the transition to the new arrangement will be completed in October.

5% more cover, same discounted rates

The Aon Master Trust’s minimum level default insurance cover* means that eligible Corporate Super members** have at least a reasonable amount of cover against death and total and permanent disablement (TPD). But as the cost of living goes up, it’s important for that cover to keep pace.

Minimum level default cover will increase by 5% from 1 July 2008. The new minimum cover will be $210,000 to age 42 reducing to nil at age 65. For more information, including the new table of cover at all ages, please see Directions for members. The discounted premium rates introduced last year continue to apply and will not increase at 1 July 2008.

 

* This minimum level default cover is not the same as the minimum cover required by Choice of Fund legislation from 1 July 2008. That legislation requires you, as an employer, to contribute to a fund that provides a minimum level of death cover for your employees. The Aon Master Trust’s minimum level default cover meets this new requirement (subject to certain conditions). We have reviewed all our clients’ minimums but cannot be certain that the new requirement applies to all employees who are members of your fund. Note also that the design of your particular fund may not be adequate in all instances. If you are in any doubt about the new requirement, we recommend you contact your financial adviser or Aon account manager.
** 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.
If you have a special arrangement such as:
  • an insurer other than AIG
  • employer-paid insurance premiums, or
  • cover for defined benefit members

the Trust's minimum level default cover does not apply.

Standard member fee

Although we’re making lots of improvements to Aon Master Trust features and options, we have been able to contain the impact on membership fees. The trustee has approved an increase in the standard member fee from $60 to $63 a year (an increase of less than 6 cents a week). This rise is in line with increases in Average Weekly Ordinary Time Earnings and will apply from 1 July 2008.

Please note that the May 2008 issue of Directions for members, which is being mailed out this week, advises members of this increase.

Exceptions

If you have a non-standard agreement with the Aon Master Trust, the 1 July 2008 increase will not apply. We will be in touch with you in due course regarding the application and timing of the member fee increase for your employees, and will notify your employees separately and in advance of any changes.

Federal Budget 2008

As expected there are no major changes to superannuation. Particularly::

  • there is no re-introduction of the surcharge
  • there is no increase in contributions tax
  • there is no reintroduction of the end-benefit tax for benefits taken after age 60.

End of financial year transactions

Please note that, in order for your members to be eligible for the Government co-contribution for this financial year (if applicable), and for contributions to be included on their 30 June 2008 benefit statement, monies must be banked by 30 June 2008.

All cheque deposits must be received by no later than 10am on 23 June 2008. Contributions received after this may not be banked and allocated until the new financial year, so please allow enough time for the contributions and supporting documents to arrive by the deadline. Cheques should be made payable to the Aon Master Trust.

We thank you for your co-operation during this busy period.

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 (ABN 83 057 982 822, 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 advice to clients in respect of the Aon Master Trust.

© 2008 This work is copyright. Apart from any use permitted under the Copyright Act 1968, no part may be reproduced by any process nor may any other exclusive right be exercised without the permission of Aon Consulting Pty Limited.