SFL Short Form PDS A5 1300 Executive Btsfl

User Manual: 1300 Executive

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BT Super for Life
Super, Transition to Retirement and Retirement account
Product Disclosure Statement
Issued: 30 September 2017
Contents
3
1. About BT Super for
Life
3
2. How super works
4
3. Benefits of investing with
BT Super for Life
6
4. Risks of super
7
5. How we invest your
money
10
6. Fees and costs
13
7. How super is taxed
14
8. Insurance in your
super
16
9. How to open an
account
Things you should know
This Product Disclosure Statement (PDS)
provides a summary of significant
information and includes references to
important information in the Additional
Information Booklet (which forms part of
this PDS). You should consider this
information before making a decision
about BT Super for Life.
The information provided in this PDS is
general information only and does not take
into account your personal financial
situation or needs. You should obtain
financial advice tailored to suit your
personal circumstances. This product is
only offered to persons receiving the PDS
and Additional Information Booklet
(electronically or otherwise) in Australia.
Information in this PDS is subject to
change and may be updated by us from
time to time. A copy of this PDS and
updated information, if not materially
adverse, can be obtained, free of charge,
by going to bt.com.au/superforlife, or by
calling BT Customer Relations on 1300
653 553. We appreciate that privacy is
important to you. You should read the
important information about your privacy
to ensure you understand how our
companies may collect, use and disclose
your personal information before making
a decision. Go to the Additional
Information Booklet available at
bt.com.au/superforlife.
The Fund Trustee
BT Super for Life forms part of
the Retirement Wrap (‘the Fund’)
ABN 39 827 542 991 and is
issued by the trustee of the Fund,
BT Funds Management Limited
ABN 63 002 916 458, AFSL 233724
(referred to as ‘BTFM’, ‘the Trustee’,
‘we’, ‘our’ or ‘us’ in this PDS) which
is a member of the Westpac Group.
Insurance offered in this PDS is
issued by Westpac Life Insurance
Services Limited (‘the Insurer’)
ABN 31 003 149 157, AFSL 233728.
An investment in BT Super for Life is not
an investment in, deposit with, or any
other liability of, Westpac Banking
Corporation ABN 33 007 457 141
(Westpac), or any other company in the
Westpac Group. It is subject to
investment risk, including possible delays
in repayment or loss of income and
principal invested. Except as expressly
disclosed in the PDS or Additional
Information Booklet, Westpac and its
related entities (including the Trustee) do
not stand behind or otherwise guarantee
the capital value or investment
performance of any investment options or
any related assets of BT Super for Life.
You can find information on each trustee
and executive remuneration at bt.com.au
as well as other important information and
documents about BT Super for Life.
BTFM is authorised to offer the MySuper
option detailed in this PDS.
SuperRatings does not issue, sell,
guarantee or underwrite this product. Go
to www.superratings.com.au for details of
its ratings criteria.
1. About BT Super for Life
BT Financial Group (BT) is the wealth management arm of the Westpac
Group and has helped millions of Australians prepare for the best since
1969.
We understand that life is about more than
just growing your wealth. It’s about
preparing for the best – the best home, the
best retirement, the trip of a lifetime.
It’s about creating the best future for you
and your loved ones – and BT Super for
Life can help.
BT Super for Life offers you:
Super side by side with your online
banking
Manage your super right alongside
your everyday banking.
SuperCheck
Discover how much super you have
and where it is in a matter of
seconds with SuperCheck.
Intelligent investing
The MySuper Lifestage Investment
Option invests in a mix of assets which
Automatic Insurance
Standard (Death and Total and
Permanent Disability) cover provided
automatically after opening a BT Superautomatically adjust as you get older. for Life Super account, with the optionOr you can choose your own
investment mix. to apply for more protection as your
needs change (subject to eligibility
criteria and certain restrictions such as
if you have a pre-existing condition).
Retirement choices
You might be saving for retirement or
ready to retire. BT Super for Life
changes with you as life changes. Benefits Now
Enjoy a range of exclusive offers from
well-known banking, health, travel and
entertainment brands.
2. How super works
Your super is one of the most important long-term investments you’ll
make in your life. So it’s important to understand how you can make
the most of it by consolidating your super and taking advantage of the
tax concessions and benefits available to you.
How super can add up
Super is a partially compulsory long-term
savings plan that helps you save for your
best retirement. If you’re working, your
employer usually has to make Super
Guarantee (SG) contributions.
You can choose to make voluntary
contributions to help you increase your
savings in super, for example through
salary sacrifice, personal or spouse
contributions. You may also be eligible for
government contributions.
Please note, the Australian Government
provides tax concessions to help you save
more in super, however there are limits on
how much you can contribute.
3
Remember, you can either use the
super fund your employer has set up
for you, or choose your own. BT Super
for Life is easy to take with you from job
to job, helping you avoid multiple super
funds and fees.
Ensuring your best possible retirement
Super savings help you to live your best
retirement. You can access your super
when you reach age 65, and in limited
circumstances you can start accessing
your super when you reach your
preservation age (between ages 55 and
60, depending on your date of birth). When
you reach age 60 and retire, your super will
generally be tax-free.
Many Australians prefer to transition into
retirement gradually. A Transition to
Retirement account allows you to continue
to grow your super even after you reach
your preservation age. You may even be
able to put more money into your super
without reducing your take-home pay.
You should read the important
information about ‘How super
works’ before making a decision.
Go to the Additional Information
Booklet available at
bt.com.au/superforlife or by contacting
us. The material relating to ‘How super
works’ may change between the time
when you read this PDS and the day
when you acquire the product.
3. Benefits of investing with BT Super for Life
BT Super for Life is the super that changes with you
As your life changes, a BT Super for Life account supports you through each important
stage.
RetirementTransition to RetirementSuper
Now access your super
and enjoy your retirement.
You’ve reached your
preservation age and
approaching the end of
full-time work and want to
start withdrawing income
from your super.
You’re working and
building up your savings
for retirement.
Super side by side with your online
banking
With BT Super for Life, managing your
super is as easy as online banking. See
your banking and super balances together
online whenever you log into your account
via desktop, mobile or tablet using our
online service and apps. Check your super
balance, transfer funds, change your
investment options and beneficiary details.
Find your super in seconds
Use SuperCheck to find your super in
seconds. All you need is your Tax File
Number.
Search now through online or mobile
banking, or by calling our super
specialists on 1300 653 553.
4
Note: Before transferring your super
please check with your other funds to
see if you’ll pay any exit fees and if
there’s any loss of benefits (eg
insurance cover).
Take your super with you from job to
job
There’s no need to change super funds
when you change jobs. Your BT Super for
Life account can follow you whenever you
go from job to job and into retirement.
Simple and transparent fees – pay for
what you want
You don’t pay commissions, establishment,
contribution, withdrawal, termination or
investment switching fees.
Intelligent investing
With BT Super for Life, you can choose
how your super is invested.
We can invest your super based on your
age and automatically adjust it to a more
conservative asset mix as you get older,
or
You can choose your own investment
mix.
MySuper was introduced by the Australian
Government to provide a lower cost and
simple superannuation product for
members who are not actively engaged in
their superannuation and have not chosen
an investment option. For the latest product
dashboard for the Lifestage Investment
Options, please see bt.com.au/personal/
help/product-dashboard.html.
Nominate your beneficiaries
It’s important to name your beneficiaries in
case something happens to you. You can
nominate one or more of your dependents
(or your legal personal representative) to
receive your super and any insured death
benefit. Please refer to the Additional
Information Booklet for more information
about ‘Nominating your beneficiaries’.
Super and Life Insurance
You automatically receive Standard
insurance cover for Death and Total &
Permanent Disability (TPD) when you open
a BT Super for Life Super account (subject
to eligibility criteria and certain restrictions
such as if you have a pre-existing
condition). Please refer to the Additional
Information Booklet for more information
about ‘What exclusions apply to Standard
Cover'. Your cover starts once you have
money in your account. If you want to apply
for additional insurance cover, including
Salary Continuance Insurance (SCI) cover,
call our super specialists on 1300 653 553.
Benefits Now
Enjoy a range of exclusive offers from
well-known banking, health, travel and
entertainment brands through the Benefits
Now program.
Find out more at
bt.com.au/btbenefitsnow.
How we keep in touch
We’ll mainly communicate with you online,
via email or online banking. At important
times such as when your annual statement
is ready or when we need to provide you
with specific information about your
account we’ll notify you by email, SMS or
send you a secure message within online
banking. You can see your account details
online at any time simply by logging into
your online banking.
When you join – you'll receive a welcome
letter and a Welcome Pack with all your
account details and any information or
forms you need.
If you leave – you’ll receive an Exit
Statement showing your closing balance
and all transactions since the opening of
your account or since your last annual
statement.
5
4. Risks of super
Investment
All investments involve varying degrees of
risk. Super funds may invest in a range of
asset classes – for example, cash, fixed
interest, property and shares – that have
different levels of risk.
BT Super for Life offers a variety of
investment options, containing a different
mix of these asset classes. The likely
investment return, and the risk of losing
money, is different for each investment
option depending on the underlying mix of
assets.
Generally, the higher the potential return of
an investment over the longer term, the
greater the level of risk of loss in the shorter
term.
What are the investment risks
involved?
When considering your investment in super,
it’s important to understand the following:
Investments will fluctuate in value, as
markets may be volatile and go up and
down.
Investment returns are not guaranteed
and you may at times lose some of your
money.
Investments with the best long-term
returns, like shares and property, also
show the most short-term volatility and
risk.
Your returns may be less than inflation.
Past investment performance is not a
reliable guide to future performance, as
returns may fluctuate.
Super laws may change in the future.
Your future super savings and returns
may not be enough to provide an
adequate income for your retirement.
Processing of transactions may be delayed
in some circumstances, for example when
an investment manager delays issuing unit
prices. Investment options may also be
closed, varied or terminated, or investment
managers replaced without notice.
There are particular risks associated with
each investment option. These could
include (among other things) risks specific
to a certain security, market risk, currency
risk, interest rate risk, derivatives risk,
alternative investments risk, credit risk,
liquidity risk, and legal and regulatory risk.
The appropriate level of risk for you will
depend on a range of factors, including:
your age
investment time frame
where other parts of your wealth are
invested, and
your risk tolerance.
To help you assess the level of risk of each
Lifestage Investment Option refer to the
‘Lifestage Investment Option’ table in this
PDS.
Insurance
Insurance is a key feature offered through
BT Super for Life. While insurance is
designed to provide you and your loved
ones peace of mind, it’s important to
understand what you are covered for and
any restrictions that apply to your cover.
What are the insurance risks involved?
When considering whether the insurance
cover in BT Super for Life meets your
needs, it’s important to understand that BT
Super for Life Standard insurance cover
has a pre-existing condition exclusion for
a specified period.
This means that you will not be covered for
any pre-existing conditions, and therefore
your ability to receive a benefit could be
impacted where your insurance claim is
directly or indirectly related to a pre-existing
condition.
Other exclusions may also apply.
Important note: Further information
about insurance available through BT
Super for Life and the exclusions which
may apply are included in the Additional
Information Booklet.
6
5. How we invest your money
Let us do the hard work for you in a Lifestage Investment Option
Whether you’ve just begun to save for
retirement or you’ve already left the
workforce, a Lifestage Investment Option
can give you an efficient, well-diversified
portfolio – designed and managed
according to your age.
There’s a different Lifestage Investment
Option for each decade, designed to suit
members born within that decade, whose
investment needs and approach to risk
over time is typical of members around the
same age. For example, if you were born
in 1973 you will be invested in the 1970’s
Lifestage Investment Option.
The Lifestage Investment Option is the
MySuper Investment Option in BT Super
for Life.
How does your Lifestage Investment
Option change with you?
Your investment needs are likely to change
as you get older. Your Lifestage Investment
Option aims to achieve an appropriate level
of risk and return by automatically adjusting
the mix of assets throughout your life.
When you’re younger and have more time
to withstand rises and falls in the value of
your investment, your Lifestage Investment
Option will be more growth oriented to
target a higher return.
Over time the fund will gradually shift to a
more conservative asset mix by reducing
its allocation of growth assets – such as
shares and property – and increasing its
allocation of defensive assets – such as
fixed interest and cash.
How we change the super asset mix over time
Level of
risk/
expected
return
Your age
100 20 30 40 50 60
Growth assets
Defensive assets
70 80
2000’s 1990’s 1980’s 1970’s
1960’s
1950’s
1940’s
What is the investment return
objective and level of risk of your
Lifestage Investment Option?
Your Lifestage Investment Option has an
objective to provide an investment return
above inflation. To determine these
objectives we have used the Consumer
Price Index (CPI) which is a generally
accepted measure of inflation. The specific
investment objective for your Lifestage
Investment Option changes over time and
so does the level of risk. Please see the
‘Risks of super’ section for more
information about the relationship between
risk and investment returns.
The following table shows the investment
objective (after fees and taxes) and level of
risk for each Lifestage Investment Option
for your Super account as at 1 July 2017.
7
The Standard Risk Measure is a way of describing the level of risk of different investment
options (with 1 being the lowest and 7 the highest) and provides a guide on the expected
number of negative annual returns over any 20 year period. It doesn’t consider all forms
of investment risk. Please refer to the Additional Information Booklet for more
information about the Standard Risk Measure.
Minimum
suggested
investment
timeframe
Standard
Risk
Measure
Investment
objective
(over a 10
year period)
DescriptionLifestage
Investment
Option
4 years2. Low
CPI
+ 1.1% pa1
You’ve probably retired or are very
close to retirement. The focus is
on maintaining the real value of
1940’s
your investment. If you were born
before 1940 you may invest in this
investment option.
4 years
3. Low to
Medium
CPI
+ 1.3% pa1
Retirement is approaching or
you’ve just retired. The focus is on
protecting your investment while
still seeking some growth.
1950’s
5 years
5. Medium
to High
CPI
+ 2.1% pa
Retirement is getting closer. The
focus is on achieving a balance
between the potential for growth
and the level of risk through a mix
of growth and conservative assets.
1960’s
7 years6. High
CPI
+ 3.3% pa
Your savings are continuing with
many years until retirement.
Growth remains the main focus for
your investment.
1970’s
7 years6. High
CPI
+ 3.3% pa
You’re saving and have many
years to withstand rises and falls
in the value of your investment.
The focus is on maximising
growth.
1980’s,
1990’s
and
2000’s
1 The Investment objective (over a 10 year period) after fees and taxes for the 1940’s
Lifestage Investment Option for Retirement is CPI + 1.7% pa and for the 1950’s
Lifestage Investment Option for Retirement is CPI + 1.9% pa.
What does your Lifestage Investment
Option invest in?
Your Lifestage Investment Option
investments are made using the
‘multi-manager’ approach – combining high
quality investment managers from Australia
and around the world into a single fund.
The following table shows the strategic
asset allocation for each Lifestage
Investment Option as at 1 July 2017. The
strategic asset allocation is the mix of
growth and defensive assets that are set
with the aim of achieving the investment
objective. We may change the asset
allocation to suit market conditions
however we will stay within the minimum
and maximum range shown in the
Additional Information Booklet. The
investment return objective, strategic asset
allocation and ranges in your Lifestage
Investment Option changes as you get
older, and as your investment option
becomes more conservative.
8
2000’s1990’s1980’s1970’s1960’s1950’s1940’sAsset Type (%)
37373737261511Equity – Australian Listed
3939393926128Equity – International Listed
Property
2
7
1
2
2
7
1
2
2
7
1
2
2
7
1
2
1
4
1
2
1
2
1
2
1
2
1
2
– Australian Listed
– International Listed
– Australian Unlisted
– International Unlisted
2222100Commodities – International
Listed
1111132426Fixed Income – Australian
1111152629Fixed Income – International
0000000Other – Growth Alternatives
5555544Other – Defensive Alternatives
333361316Cash – Australian
10101010396775Total Defensive Assets
90909090613325Total Growth Assets
You can specify an investment mix
yourself
If you’d prefer to choose your own
investment mix, you can select a mix you
think is suitable by nominating the
percentage of your super that’s invested
in each of the following funds:
BT
S
uper
for L
ife
Super Cash
Conservative Fund
Moderate Fund
G
r
owth Fund
Important note: Please refer to the
Additional Information Booklet for
more information about these funds.
Do you have to make a choice?
When you apply you’ll be asked to make
a choice as to how your money will be
invested. However, you can always change
your investment choice at a later stage via
online banking. If you don’t make a choice,
we’ll invest your money in the appropriate
Lifestage Investment Option applicable to
your age. The Lifestage Investment Option
for your super account is the BT Super for
Life MySuper Investment Option.
How can you change your investments?
It’s easy to change your investment
option(s) at any time online or on your
mobile. Simply log in to your online or
mobile banking, click on your super
account and select ‘Change my
Investment’.
Important note: When deciding how
you want your super to be invested, you
must consider the likely investment
return, risk and your investment
timeframe.
You should read the important
information about ‘How we invest
your money’ before making a
decision. Go to the Additional
Information Booklet available at
bt.com.au/superforlife. The material
relating to ‘How we invest your money’
may change between the time when you
read this PDS and the day when you
acquire the product.
9
6. Fees and costs
DID YOU KNOW?
Small differences in both investment
performance and fees and costs can
have a substantial impact on your
long-term returns. For example, total
annual fees and costs of 2% of your
account balance rather than 1% could
reduce your final return by up to 20%
over a 30 year period (for example,
reduce it from $100,000 to $80,000).
You should consider whether features
such as superior investment
performance or the provision of better
member services justify higher fees and
costs. You or your employer, as
applicable, may be able to negotiate to
pay lower fees. Ask the fund or your
financial adviser.1
TO FIND OUT MORE
If you would like to find out more, or see
the impact of the fees based on your
own circumstances, the Australian
Securities and Investments Commission
(ASIC) website
(www.moneysmart.gov.au) has a
superannuation calculator to help you
check out different fee options.
This warning is prescribed by law. Fees
in BT Super for Life are not negotiable.
1
The calculator referred to above can be
used to calculate the effect of fees and
costs on account balances.
This document shows fees and other costs
that you may be charged. These fees and
other costs may be deducted from your
money, from the returns on your investment
or from the assets of BT Super for Life as
a whole. You can also use the information
set out in the table below to compare the
fees and costs with those for other super
products.
Other fees, such as activity fees, advice
fees for personal advice and insurance
premiums, may also be charged, but these
will depend on the nature of the activity,
advice or insurance you choose.
Taxes, insurance premiums and other costs
relating to insurance are set out in another
part of this document.
You should read all the information about
fees and other costs because it’s important
to understand their impact on your
investment.
The fees and other costs for the Lifestage
Investment Options offered by BT Super
for Life are set out below. You should refer
to the Additional Information Booklet for
the fees and other costs that apply to the
other investment options offered by BT
Super for Life.
BT Super for Life – MySuper Lifestage Investment Options
How & when paidAmountType of fee
Deducted from the assets of the
Lifestage Investment Option and
reflected in the daily unit price.
0.50% pa of your account
balance
Investment fee
Deducted from the assets of the
Lifestage Investment Option and
reflected in the daily unit price.
Deducted from your account balance
on the first day of every month.
0.45% pa of your account
balance
Plus
$6.50 per month ($78 pa)
Administration fee
The cost will be reflected in the
buy-sell price of the investment
option.
Estimated at 0.36%Buy-sell spread
Not applicableNilSwitching fee
Not applicableNilExit fee
10
BT Super for Life – MySuper Lifestage Investment Options
How & when paidAmountType of fee
Not applicableNilAdvice fees
relating to all
members
investing in a
particular
MySuper product
or investment
option
The advice fee and insurance
premiums are deducted from your
account balance on the date the fee
or cost is incurred.
Advice fee, if you agree a fee
with your financial adviser
Plus
Insurance premiums if you
have insurance cover in BT
Super for Life.
The amount of any advice fee
or insurance premiums may
vary. Please see the
Other fees
and costs1
Additional Information
Booklet for details of how
these fees are calculated.
Regulatory Change Expense Recovery
amounts are deducted from the assets
of the Lifestage Investment Option and
reflected in the daily unit price.
Includes the Regulatory
Change Expense Recovery
up to 0.05% pa (estimated)
of the investment option’s
asset value.
Indirect cost
ratio1
Plus
Estimated
performance-related fees
of 0.03% to 0.04% pa2 of the
investment option’s asset
value.
Performance-related fees are deducted
from the assets of the Lifestage
Investment Option and reflected in the
daily unit price when investment
performance targets are met.
Plus
Estimated other indirect
costs of 0.12% to 0.23%
pa2 of the investment
option's asset value.
Other indirect costs are incurred in
managing the underlying investment
assets of the Lifestage Investment
Option and are reflected in the daily
unit price.
Estimated total indirect
cost ratio: 0.20% to
0.32% pa of the investment
option’s asset value.
1Please refer to the 'Additional explanation of fees and costs' section of the Additional
Information Booklet, including other fees or costs that may apply such as activity
fees, advice fees for personal advice or insurance fees.
2 The performance-related fees and other indirect costs are estimated amounts in
relation to the 12 months to 30 June 2017.The performance-related fees shown are
not a representation of likely future performance.
11
Example of annual fees and costs
The following table gives an example of how the fees and costs for the BT Super for Life
1960’s Lifestage Investment Option for this superannuation product can affect your
super investment over a one year period. You should use this table to compare this
superannuation product with other superannuation products.
Balance of $50,000Example – BT Super for Life 1960’s
Lifestage Investment Option
For every $50,000 you have in the
superannuation product you will be
charged $250 each year.
0.50% paInvestment fees
And, you will be charged $225 in
administration fees each year plus $78
each year regardless of your balance.
0.45% pa
Plus
$6.50 per month
(or $78 pa)
PLUS
Administration fees
And, indirect costs of $130 each year will
be deducted from your investment.
0.26% pa1
PLUS
Indirect costs for the
superannuation product
If your balance was $50,000, then for that
year you will be charged fees of $683 for
the superannuation product.
EQUALS
Cost of product
1 The Indirect costs above comprises of an estimated Regulatory Change Expense
Recovery of 0.05% pa and estimated Performance-related fees of 0.03% pa and
estimated other indirect costs of 0.18%. Please see ‘Performance-related fees’ in
the Additional Information Booklet for more information.
Note: Additional fees may apply. Please refer to the ‘Additional explanation of fees and
costs’ section of the Additional Information Booklet. This example is illustrative only.
What it costs you will depend on the investment option you choose.
Additional explanation of fees and
costs
Defined fees
You can find definitions of fees in the
Additional Information Booklet available
at bt.com.au/superforlife
GST and taxes
The fees quoted in this section include the
Goods and Services Tax (GST) and are net
of any applicable Reduced Input Tax
Credits. The benefit of tax deductions to
BT Super for Life, if any, will be passed on
to account holders in the form of a reduced
fee or cost.
Adviser fees
Additional fees may be paid if a financial
adviser is consulted.
If you have an adviser who is registered
with BT, you can agree to pay them a fee
for their advice on BT Super for Life by
nominating an amount online. Details of
this fee should be set out in the Statement
of Advice provided by your adviser.
Insurance premiums
Details about how your insurance
premiums are calculated are set out in
section 8 of this PDS and in the ‘Insurance
in your super’ section of the Additional
Information Booklet.
Changes in fees and costs
We may alter any of the fees and costs
payable to us without your consent. If we
increase the fees and costs payable to us,
you will receive at least 30 days' advance
notice.
12
You should read the important
information about ‘Fees and
costs’ before making a decision.
Go to the Additional Information
Booklet available at
bt.com.au/superforlife. The material
relating to ‘Fees and costs’ may
change between the time when you
read this PDS and the day when you
acquire the product.
7. How super is
taxed
Tax on contributions
Some, but not all contributions are taxed,
generally at a rate of 15% (provided you
have supplied your TFN). Contributions tax
is generally deducted quarterly in arrears,
or when we receive a personal tax
deduction notice.
If you’re classified as a high income earner,
you may need to pay an additional 15%
tax (known as a Division 293 tax) on some
or all of your contributions. If this applies
to you the Australian Taxation Office (ATO)
will notify you after the end of financial year.
For more information on this Division 293
tax, please refer to the ATO website at
ato.gov.au.
Important note: You should provide us
with your TFN when you join BT Super
for Life. If you do not supply us with your
TFN, we are required under law to only
accept employer contributions and
additional tax will apply.
There are limits (caps) on the amount of
contributions that can be taxed at the
standard super contribution tax rates.
You may incur additional tax if you
exceed certain contribution caps. The
two main caps available to you are the
concessional and the non-concessional
contributions caps. It’s your
responsibility to make sure you don’t
exceed them.
Tax on earnings
In a BT Super for Life Super and Transition
to Retirement account, investment earnings
and capital gains are taxed at a maximum
rate of 15%. Some capital gains may be
taxed at the concessional rate of 10%. Tax
on earnings and capital gains is reflected
in the applicable investment option’s unit
price (or interest rate for Super Cash) and
is not deducted directly from your account.
In a Retirement account, investment
earnings are tax-free.
Tax on withdrawals
If you’re aged 60 or over, withdrawals from
your account are generally tax-free. If
you’re under 60, you will generally be taxed
as follows:
Pension
payments
Lump sum
withdrawals
NilNilTax-free
component
Taxable
component
(taxed element):
Tax is paid
at your
marginal
tax rate.
Tax is paid
at 20% (plus
Medicare
Levy)
If under your
preservation
age (between
55 – 60
depending on
your date of
birth):
Tax is paid
at your
marginal
Tax-free up
to the low
rate cap,
If aged from
your
preservation
age to 59: tax rate
less a 15%
tax offset.
then taxed
at 15% (plus
Medicare
Levy)
Different tax rates and rules for withdrawing
your super may apply if you are, or were,
a holder of a temporary visa under the
Migration Act 1958.
You should read the important
information about ‘How super is
taxed’ before making a decision.
Go to the Additional Information
Booklet available at
bt.com.au/superforlife. The material
relating to ‘How super is taxed’ may
change between the time when you
read this PDS and the day when you
acquire the product.
13
8. Insurance in your super
BT Super for Life offers life insurance to
ensure you and your loved ones have
financial protection against the unexpected.
Cover is available anywhere in the world
24 hours, 7 days a week.
What types of insurance are available?
Death Benefit pays a lump sum if you
die or suffer a Terminal Illness.
Total and Permanent Disability (TPD)
Benefit pays a lump sum to you if you
become Totally and Permanently
Disabled.
Salary Continuance Insurance (SCI)
(also known as Income Protection)
provides a monthly benefit if you become
Totally Disabled or Partially Disabled.
You should read the important
information about ‘Insurance in
your super’ before making a
decision and for key insurance
definitions. Go to the Additional
Information Booklet available at
bt.com.au/superforlife. The material
relating to ‘Insurance in your super’
may change between the time when you
read this PDS and the day when you
acquire the product.
If you become eligible to receive a benefit,
the Insurer will normally pay it to the
trustee. We’ll pay the benefit to you
provided you meet the conditions for
release under the Trust Deed and
Australian super law (as applicable).
Premiums are deducted from your
super balance
Insurance premiums are deducted directly
from your balance each month so you don’t
have to budget for this cover from your
take-home pay. You’ll need to ensure that
your balance meets the cost of insurance
premiums, or your insurance will be
cancelled.
Automatic Standard cover
When you open a BT Super for Life Super
account you’ll automatically receive,
pre-approved cover for Death and TPD
(some eligibility criteria and age restrictions
apply).
Your cover starts when we receive your
first contribution.
Important note: When you open a
Transition to Retirement or a Retirement
account you won’t receive automatic
Death and TPD cover.
The level of cover you receive adjusts
throughout your life – providing you with
more cover when you’re likely to need it
most and less cover when you don’t.
Standard cover is pre-approved so there
are no medical checks or forms to
complete.
Important note: Unless you cancel the
Standard cover, your first premium will
be deducted on the first business day
of the month following the date your
insurance starts. You may also choose
to reduce your Standard cover to Death
cover only.
Important things to be aware of if you
have Standard cover
A Death (including Terminal Illness) or TPD
Benefit won’t be paid to you, where your
claim is directly, or indirectly, related to a
pre-existing condition that existed at the
time your Standard cover commenced, or
in the two years prior to that cover
commencing.
The pre-existing condition exclusion will
not apply if the Death, Terminal Illness, or
Injury or Sickness giving rise to the claim
(as applicable):
occurred on or after 1 July 2017; and
your Standard cover has been in force
for five years (or five years from when it
was last reinstated, if applicable); and
14
you have worked for 30 consecutive
days1 after the above five year period.
30 consecutive calendar days period
during which you have worked your
standard number of days.
1
What is a pre-existing condition?
A pre-existing condition means any
Injury or Sickness that you were aware
of, or a reasonable person in your
position should have been aware of.
Other exclusions may also apply. Please
refer to the Additional Information
Booklet for more information about ‘What
exclusions apply to Standard Cover'.
Your premium and sum insured
Insurance cover is one of the most
important benefits you receive as part of
your BT Super for Life Super account. It
aims to protect your most valuable assets–
you and your family.
The monthly premiums you’ll pay for your
Standard Death and TPD cover depend on
the amount of cover, your age and whether
you’re male or female. No additional
loadings are applied based on your
occupation or lifestyle.
The following table shows the sum insured
that applies for a single unit of Standard
cover for Death and TPD.
Standard cover – Death & TPD
Sum insured for 1
unit of cover ($)
Age (years)
37,50015–19
50,00020–24
75,00025–29
100,00030–34
125,00035–39
125,00040–44
100,00045–49
75,00050–54
45,00055–59
30,00060–64
Standard cover – Death & TPD
Sum insured for 1
unit of cover ($)
Age (years)
15,00065–691
Death only cover applies from the last
Review Date prior to your 65th birthday.
1
The premiums for a single unit of Standard
Death and TPD cover range from $2.21
per month to $47.73 per month for females
and $4.71 per month to $57.44 per month
for males.
Go to the Additional Information Booklet
at bt.com.au/superforlife for the premium
rates that will apply to you.
The Insurer reviews your insurance on 1
July each year, and if applicable, will
change your sum insured and premium
based on your age. If the insurance
premiums in this PDS are changed, you
will receive at least 30 days notice.
Do you want more cover?
If you have a BT Super for Life – Super
account you can request double or triple
the sum insured amount shown in the table
above through pre-approved Standard
cover. Requests to increase your cover
should be made online within 90 days of
your insurance starting. If you wish to select
your own amount of cover, see
‘Customised cover’ below.
Changing or cancelling cover
To change or cancel your insurance, call
us on 1300 653 553 or log in to your online
banking.
Customised cover
Customised cover gives you the option to
choose the type of cover and the sum
insured that best suits your needs. In
addition to Customised Death and TPD
cover, you can select Salary Continuance
Insurance (also known as Income
Protection).
You can apply for cover by logging in to
online banking and submitting the relevant
application form. Your acceptance is
subject to the Insurer’s assessment of your
application.
15
Important note: Further information
about insurance available through BT
Super for Life is included in the
Additional Information Booklet. You’ll
find information about your eligibility for
cover, changing and cancelling cover,
conditions and exclusions applicable to
the cover, the level and type of cover
available and the costs of insurance.
This information may affect your
entitlement to insurance and should be
read before deciding whether insurance
is appropriate for you.
9. How to open an
account
Opening a BT Super for Life account is
super easy by applying online. Just go to
bt.com.au or log in to online mobile
banking. You should have your email
address and TFN handy. You can also
apply in one of the following ways:
Visit your nearest Westpac, St George,
Bank of Melbourne or Bank Of SA
branch.
Call us on 1300 653 553 and apply over
the phone.
Cooling-off period
To ensure you’re happy with your decision
to open a BT Super for Life account, you
have a 14 day cooling-off period to check
that your account meets your expectations.
Your cooling-off period starts at either of:
the date you receive confirmation from
us of an initial contribution to your
account, or
five business days after the initial
contribution to your account is accepted.
Please note: Your cooling-off period will
end earlier if you exercise any of your rights,
for example if an additional contribution is
made, you change your investment choice
or ask to cancel or increase your insurance.
If you wish to close your account within the
cooling-off period please call BT Customer
Relations. You may ask for your money to
be rolled over to another super fund, or
paid back to you if you satisfy a condition
of release. Please note you may get back
less than you invested due to changes in
the applicable investment option’s unit
price and any tax deducted. Your insurance
will also be cancelled if you decide not to
continue with your account.
Complaint resolution
If you have a concern or complaint about
the operation or management of BT Super
for Life, please contact BT Customer
Relations. If your concern can’t be resolved
over the phone, you can outline your
complaint in writing by emailing
customer.relations@btfinancialgroup.com.
We’ll endeavour to resolve your complaint
within 30 days of receiving your email, and
are required by law to deal with your
complaint within 90 days.
If you’re not satisfied with the response, or
don’t receive a response within 90 days,
you may contact the Superannuation
Complaints Tribunal (‘the Tribunal’) by
calling 1300 884 114 or writing to Locked
Bag 3060, Melbourne VIC 3001. The
Tribunal is an independent body
established by the Government to help
members of super funds resolve
complaints.
For more information
customer.relations@btsuperforlife.com.au 1300 653 553bt.com.au
BT30203-0917ox

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