IOOF Employer Super · client base from your existing business clients not only creates an immediate prospecting base, it also saves both time and money sourcing clients from elsewhere

IOOF Employer Super

A world of opportunities

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Table of contents

Executive summary 3

History of super in Australia 4

Workplace super – a world of opportunities 6

Opportunities for advisers 6

Opportunities for accountants 9

Benefits for employers 9

Benefits for members 11

How to build your workplace super book 12

IOOF Employer Super and you 16

IOOF Employer Super – features and benefits 16

Relationship Management Services (RMS) program 18

IOOF support for advisers 19

Conclusion 22

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IOOF Employer Super | A world of opportunites

Executive summaryWith more than 2 million actively trading businesses in Australia, workplace super advice is an effective way to build your business, increase your recurring revenue and multiply opportunities to cross-sell your services.

The purpose of this guide is to outline a pathway to success for your practice as a workplace super adviser. We do this with proven strategies you can quickly and cost-effectively implement to grow your workplace super book of business.

However, to truly take advantage of the opportunities workplace super offers, it’s important to have the right partner. At IOOF, we’ve been supporting businesses with all aspects of workplace super for over 20 years, from finding the right prospects through to managing the transitioning process.

With our track record of supporting advisers and helping practices grow, we are confident we can help your business too.

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History of super in AustraliaFrom the introduction of the first superannuation (super) fund in the 1860’s to the beginning of the national age pension in 1908, the provision of retirement income has long been an important consideration for every Australian and the Government.

However, it wasn’t until the expanding current account deficits of the 1980s that the Government began to seriously question whether the nation’s retirement savings were enough to meet the increasing burden an ageing population would place on the age pension.

Then, in 1986, the Labor Government struck a deal with the trade unions and employers to forgo a three per cent pay rise in return for payments to be made by employers into the workers’ retirement fund. Ostensibly to head off a rise in inflation this, in effect, established Australia’s first compulsory superannuation system.

It wasn’t until 1992 that super moved to become a universal retirement savings fund with the introduction of the mandatory ‘Super Guarantee’ (SG). The retirement income system has now extended from the age pension and the SG to include individual, voluntary, retirement contributions – making up what is known as today as the ‘three pillar’ system.

Since 1992, there have been many changes to Australia’s super system. The most significant recent change has been the ‘Stronger Super’ legislation in 2011. This introduced to Australians, SuperStream, SuperMatch and most importantly MySuper – terms coined to represent new rules and regulations aimed at streamlining and improving the super system in Australia.

In 2015, Australia’s global super pool ticked over a total value of over $2 trillion, and is set to balloon to $8.6 trillion by 2040. With such an important role to play in establishing a retirement lifestyle and easing the pressure on the age pension and healthcare, there promises to be many more changes to super as Governments respond to an ageing population and shifting political influences.

Australia’s big investment pool

1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

$ Billions

2002 SG increased to 9 per cent

2005 Choice of fund introduced; transition to retirement begins; super surcharge abolished

2006 Simpler Super introduced, including tax-free benefits after 60 2014

SG increases to 9.5%, to rise to 12% by 1 July 2025

2200

2000

1800

1600

1400

1200

1000

800

600

400

200

0

1992 Super Guarantee (SG) commenced at 3%

1997 Maximum age for SG increased to 70

1999 SMSFs introduced for the first time

2009 Limit on concessional contributions reduced from $50k to $25k

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1 APRA: Annual Superannuation Bulletin June 2013 (12 months to June 2013)

Types of workplace super fundsToday there are four main types of workplace super funds:

1. Corporate funds

A workplace super fund can be set up and run by a company ‘in-house’ solely for employees (and sometimes their spouses). These are often referred to as corporate super funds, and are usually the preserve of Australia’s largest companies, such as Telstra and BHP.

2. Retail funds

Retail funds are a type of fund set up and run on the employers’ behalf by a financial services organisation, which has the resources, skills and experience to operate the fund, such as a bank. While they are public offer, meaning any member of the public can join, as a workplace super option they are usually only available to medium to large employers.

3. Industry funds

Industry funds are often set up by a particular industry or unions to provide super for people in those industries, however they are usually open to employees of any industry.

4. Government super funds

Also known as public sector funds, these are super funds set up by governments – Federal, State or local – and are similar to corporate ‘in-house’ super funds.

Percentage of all contributions by fund type1

33%

32%

31%

4%

Industry funds

Public sector funds

Retail funds

Corporate funds

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Workplace super – a world of opportunitiesIn Australia there are over 2.1 million actively trading businesses2. Nearly 28,000 of these are classified as mid-market – that is, with turnover of between $10 million and $250 million. While every company must have an established workplace super fund for the benefit of their employees, it is this mid-market category that provides the greatest opportunities for advisers.

Opportunities for advisersAs a financial adviser you can be immensely valuable to the financial wellbeing of both employers and employees, and it's critical to be able to convey the value you create for your business clients and their staff.

That’s the importance of an effective value proposition statement – a powerful statement of what you can do to help them, and why they should trust you. As your practice evolves to include workplace super among your areas of advice, there are different skills and experience which add to your value proposition.

Educator

As a skilled financial adviser you provide the employer and employees with the knowledge they need to understand their super plan, and the broader financial knowledge required to meet the members’ financial goals.

Needs analysis

Uncover all the needs for an employer – and by extension, their employees. From tailored insurance plans to bulk fee discounts, adviser led, customised workplace super solutions are a value add for employers.

Investment professional

Whether the employees choose the MySuper default option or are a Choice member, advisers need to be able to present the benefits and costs across a wide range of investment choices. As products evolve and markets change, presenting investment details and options to plan members represents a value they may not have otherwise.

Financial mentor

Sign up new employees to a suitable member plan as they start, train payroll staff and provide the resources to keep employers and members updated on all trends in super, inside the fund and industry wide.

2 Australian Bureau of Statistics

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1. Retention

Providing a benefit to employees on behalf of your business clients offers a powerful value proposition for your advice practice. Supported by the right workplace super provider, you can introduce a plan with customised insurance and bespoke fee structures, right through to member education programs and support for super compliance and administration requirements. Services which alone, an employer may not be able to provide.

Adding these to the list of services you offer to your existing business clients will ultimately strengthen your relationship – and make it harder for the client to move away.

What’s more, when approaching new clients, offering workplace super advice will strengthen your value proposition.

2. Use scale to rapidly grow your client and referral base

Do you provide specialist insurance advice? Mortgage broking? Investment advice? With 80 per cent of Australians not having a financial adviser, workplace super offers a great opportunity to cross-sell other areas of your business.

Being the adviser attached to a workplace super plan, you become the natural point of contact for all employees seeking advice on more than their super needs. And whatever your area of expertise, workplace super lets you use scale to access a diverse set of clients with a wide range of financial advice needs.

Putting your name in front of employees isn’t a one-shot deal either. Collateral sent out to employees – from annual statements to marketing communications – can have your practice name listed as the primary point of contact for advice.

For some advisers, growing a client base involves purchasing the ‘C and D’ clients from other advisers. Accessing a new client base from your existing business clients not only creates an immediate prospecting base, it also saves both time and money sourcing clients from elsewhere – and as your name is already familiar to the prospects, conversion into paying clients is likely to improve.

3. Create a new, long-term revenue stream

There are three ways workplace super advice can directly create new revenue opportunities – now and in the future.

a Under most remuneration plans in a post FoFA environment, advisers receive a flat fee for services to members. As you bring on new workplace super clients, their employees can add to your revenue base. Further, as your clients grow and new members join the plan, your revenue will also be boosted.

b While your smaller clients’ revenue may only bring in a modest amount in year one, if you are selling your business at a multiple of revenue, that can become a compelling business valuation boost. With the average financial adviser in Australia currently aged 55, this becomes a useful succession planning proposition.

c While you work with employees on their super, referrals will grow and advice areas outside of super will also grow, bringing in extra revenue.

While FoFA regulations have changed the remuneration model for advisers, there are great opportunities for advisers looking to grow and retain their client base. With the right value proposition and support, workplace super can be an effective way to build your business, increase your recurring revenue and multiply your opportunities to cross-sell your services.

8 3 For more information on the IOOF Relationship Management Services Program turn to page 18.

Case StudyABC Financial Planning has been slowly building a client base of personal clients and businesses since its foundation in 1986.

Over the years the practice has diversified its expertise across business accounting, lending, risk insurance and SMSF administration.

Recently, with the support of a workplace super provider, ABC Financial Planning presented to their top ten business clients:

• a customised staff benefit/workplace super presentation.

• a financial literacy program across personal finance and superannuation.

Across their top ten business clients there are 3,000 employees, of whom 2,000 are members of IOOF Employer Super.

Under the ‘core’ offering of their workplace super provider, they agree to provide support to members for a minimum of $1 per week per member (under the IOOF Relationship Management Services program core offering3), bringing in extra income of $2,000 per week or $104,000 annually.

With their business name and contact details on all annual statements and member communications, ABC Financial Planning has also been able to promote their lending and risk management expertise to a referral base of 2,000 potential clients – bringing in even more business.

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Opportunities for accountantsIf your business, or an affiliate, offers accounting services, the removal of trailing commission and group life commissions (replaced by a flat fee structure), creates a familiar revenue model which appeals to many accountants because it is transparent and equitable across all members.

For accountants, advice is often associated with SMSFs and in turn those clients who are more likely to have super balances which can justify their own SMSFs. According to Roy Morgan Research (see page 11), 83 per cent of people with SMSFs will seek advice and overwhelmingly they will seek the advice of an accountant or financial adviser.

By bringing workplace super to a business client, your mainstream accounting practice will be enhanced by uncovering employees for whom an SMSF might be more appropriate. However, for employees staying in the workplace fund, there are transactional accounting opportunities, such as annual tax returns.

Benefits for employersSuper administration and compliance is constantly changing, placing a time and cost burden on employers who should be focused on running their business. Having the right adviser with the right workplace super plan makes this necessary aspect of super administration easier.

What’s more, the right adviser can turn the obligation into an asset. An adviser who can help with things around payroll and legislative changes also means employers are less likely to need additional resources to help in those areas.

Providing services to employees is just one aspect of a comprehensive workplace super plan. The right plan should also provide:

• improved ease of administration, including an online, secure payment solution and clearing house available 24 hours a day, to help reduce paperwork, improve accuracy and meet SuperStream compliance

• a representative on the ground, in every state

• policy committee support

• the ability to build a tailored benefits package (including customised insurance arrangements) for employees, and

• no health checks and automatic acceptance limits. Super may be the only way an employee with health issues can obtain insurance cover.

And there is the increased engagement with employees when a super fund is negotiated, set up and named to meet the unique needs of their employees.

Every company must pay employee contributions within 28 days of the end of the quarter – regardless of whether or not the employee has nominated a fund for their contributions. This means every employer needs to have a default employer fund in place to accept contributions.

The consequences for an employer not having a fund in place can include a fine from the Australian Taxation Office, or liability for insurance which may be in place through an employee’s super fund.

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Employers caring for their staff

It’s increasingly important for employers to demonstrate they are employers of choice with services and support to employees.

This extends to a super fund which can demonstrate more than just the basic set and forget investments. Employers can demonstrate care by facilitating advice through different aspects of an employee's career. For example, do your business clients know what’s involved in advice for:

• establishing a tax-effective transition to retirement strategy?

• refinancing a home?

• having children and saving for education?

• ensuring adequate insurance?

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Benefits for membersThere are many great benefits to members of a comprehensive workplace super plan, including:

• advice and tailored member education

• access to death cover, total and permanent disablement and income protection for staff at lower group rates and cover with easier, or no, underwriting requirements

• lower fees than a personal super plan

• online access and transaction functionality

• a wide range of investment choice – and the ability to have a customised investment strategy across shares, managed funds, term deposits and more. In fact, there are almost always more flexible investment options inside super than most members realise.

Supported by the right workplace super provider, other value-add services include employee education such as on-site seminars, one-on-one super clinics and member education materials. Members also receive periodical communication on super related topics.

“ Having access to a financial adviser from my workplace has enabled me to achieve my financial goals and get ahead. I am thankful to my workplace for enabling me to reach financial independence a lot quicker than I would have otherwise.”

Sally Sylvester, Flight Centre

New research shows that employees are asking more and more for professional advice According to a July 2015 report, 72 per cent of people who switched super funds in 2014 sought advice before doing so4. While this has only been a modest increase since 2010, there has been a big shift in where people get this advice. Nearly 30 per cent of people approached a financial adviser or accountant (up from 20 per cent five years ago), while nearly 19 per cent of people sought advice from their employer.

Perhaps not surprisingly, the higher a person’s super balance the more likely they are to seek advice.

• The median super balance of those seeking advice is $102,000.

• The median super balance of those who don’t receive advice is $44,000.

The research also found that over 75 per cent of people sought advice when moving to retail funds, while only 62 per cent sought advice when moving to an industry fund. In the case of advice on retail funds, they were more likely to seek advice from their employer – and by extension, the financial adviser for that workplace super plan.

4 Roy Morgan Research (‘Discover your edge’)

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How to build your workplace super bookThe move towards becoming a workplace super adviser can appear daunting at the outset, particularly for practices where this area of advice is unfamiliar. However with a clear and methodical approach, this needn’t be the case. To help, we have listed an 8 step path you can take to become an established workplace super adviser.

1. Identify the right opportunityOne of the main benefits of growing your workplace super book is that you probably already know your next client. Leveraging off your existing book of clients will build your client base more quickly than simple cold canvassing.

Of course, in a big client book there are things you can do to identify the ideal client:

• Turnover above $5 million and more than 10 employees.

• Usually white collar industries with higher salaries.

• Low staff turnover and low proportion of casual employees.

• Growing businesses/industries and active HR departments.

• Businesses that want to establish an employee benefits program.

Depending on your business, it may be more suitable and productive to target by profession. The following occupations may represent a good opportunity for an introductory meeting on workplace super:

• Payroll managers.

• HR managers.

• Financial controllers.

• Directors and business owners.

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2. Ask the right questionsOnce you’ve identified prospects within your client base, there are some simple questions you could ask to pre-qualify potential employer super clients:

• Do you have a default super fund?

• Are you happy with your existing super arrangements?

• What do you like about it? What don’t you like?

• When were your super arrangements last reviewed?

• Would you like me to organise a review of your employer super arrangements?

• What financial advice and service does your company super fund provide?

• Are you happy with the level of value they provide?

Asking the right questions creates the opportunity to discuss your value proposition.

Challenges to expectIntroducing the topic of workplace super to clients can sometimes be met with resistance or reluctance to change. One common challenge is:

‘Why would I change? I’m in a low fee industry fund.’

While fees are an important consideration in any investment, not just super, it is important to recognise there is more to consider for super than just the fees.

In a 2015 report, independent super body SuperRatings found low fees have little correlation with higher overall returns. Studying 162 funds over a ten year period, SuperRatings found the fund with the lowest fees ranked 96th in earnings for a ‘net benefit ranking’ (the overall returns to members inclusive of fees and investment earnings) of 41st.

CEO of SuperRatings, Adam Gee said that fees are, at best, only loosely correlated with value and any assessment of a superannuation fund should be made using a broad range of criteria with net benefit (investment returns less all implicit fees and taxes) being the only meaningful basis for the comparison of fees and investment performance.

“In the majority of cases, the funds with the lowest fees do not necessarily provide a better retirement outcome or return for its members,” Mr Gee said.5

Another common perception is that industry funds have cheaper fees than retail funds. In fact, since the introduction of low-fee MySuper funds, the fee gap between industry funds and retail funds has narrowed significantly.

5 SuperRatings Media Release: Low super fees far from best – April 2015

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3. Contact strategyOnce your clients have been identified and pre-qualified, it is worth asking them if they would be prepared to act as a referral source. After all, referrals are often the most successful source of business development leads.

The next step is to approach the prospective client with a tailored proposal. The areas to target may include:

• a review of their current workplace super offering

• a review of their current employee benefits program, including super arrangements.

IOOF can provide you with letter templates to help position your approach as an attractive opportunity for your client and their business. Even if you don’t use these templates, they should provide some useful ideas on approaching potential clients.

4. Fact findIf the employer is interested in having their current arrangements reviewed, a ‘fact find’ mission will help understand:

• the features and benefits of the existing fund (including fees)

• the needs of the employer

• the demographics of the existing members and how the fund is currently administered.

At this stage you may have the opportunity to conduct a member fact find via a survey to understand how employees perceive their current fund and what features and benefits they would be interested in, in a new fund.

This also provides the opportunity to identify whether the employer or employees require additional services, such as home loans, estate planning, accounting, salary packaging or other non-super advice.

IOOF can provide a proven, detailed ‘fact find’ questionnaire and member survey.

5. Super reviewNow is the time to conduct a review. The goal of reviewing the employee benefits and workplace super program should be to:

• compare the features, benefits and fee structure of the existing fund with other similar workplace funds

• identify why the employer should consider changing their super arrangements.

IOOF can help you compare the existing arrangements (including benefits and fees) with IOOF Employer Super and identify clear and convincing reasons why they should consider changing their super arrangements.

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6. Present your findingsThis is where you present your findings and make the case why the employer should engage you as their workplace super adviser. It is important to remember that, at this stage, presenting to employers must be impartial to ensure there is no conflicted remuneration.

That’s why IOOF is ready to come with you to meetings with the employer. Let us present the benefits both you and the plan bring for the employer and members.

Collateral for the proposal should include:

• a sales presentation customised for the employer's needs

• a transition schedule – including the steps which need to be taken, and what they need to do at each stage

• a Product Disclosure Statement (PDS).

IOOF can help prepare all the collateral mentioned above – including a tailored report for every client.

7. Employee presentationIn the modern awards and MySuper environment, winning the employer's approval to look after the super arrangements is only the first step in the process. You must also get the approval of individual employees to ensure the majority of assets are transferred to the new workplace super fund.

Getting to the employee presentation stage represents a significant step regardless of the final outcome. Meeting the employees of the company for the first time provides the opportunity to present your practice and is the first step to employees becoming clients beyond their super requirements.

At this stage you need to consider:

• promotional material with both yours and the employer’s branding as well as all the features and benefits of the new super fund

• information promoting your credentials as a workplace super adviser

• invitations prepared for the employee presentation

• whether there is a need to present at multiple locations around Australia and the best way to achieve this.

IOOF can help prepare all the collateral for your presentation. What’s more, if you need a representative and resources to present to employees in every state, IOOF can support you with that too.

8. Member on-boardingCongratulations! A new client should open up great new opportunities for you and be the start of a long and enduring relationship. To make sure the relationship gets off to the best possible start, a smooth transition is important.

IOOF provides transition management support to make this process as seamless as possible, and frees up your time to concentrate on building your practice.

With a dedicated relationship manager, IOOF will take responsibility for:

• co-ordinating all activities related to the transfer of assets and data

• liaising with all internal and external stakeholders: the adviser, employer, previous administrator, insurer, actuary and legal

• providing you and the employer with regular updates on how the transfer is progressing against the timeline, and

• delivery of communication material to members.

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IOOF Employer Super and youChoosing the right super partner is as critical for you as it is for your business clients.

You need a true partner – one who understands your role and minimises your workload with valued services to employers and members; one who sincerely believes in the provision of quality advice and will work with you to identify and refer advice opportunities. They need a partner that will help their employees’ super grow and also minimise the administrative workload.

IOOF Employer Super – features and benefitsWith a wide range of features, benefits and support, IOOF Employer Super is the right partner to help you become a workplace super specialist.

Investment choice

One impressive feature of IOOF Employer Super is the amount of choice offered. Not only can you choose from more than 200 managed funds, but you can also invest in direct shares and even a selection of term deposits.

Ready-made portfolios

Our ready-made portfolios are simply that – ready made. We do the hard work for members as our experienced IOOF Investments team actively manage a range of diversified portfolios with high quality managers and varied risk profiles.

Managed funds

Choose from over 230 managed investments that are managed by some of the biggest names in the industry across all asset classes including property, international shares, fixed interest and cash. Combine any number of these options into a portfolio that suits your needs.

Shares Members can choose to invest their super in any of the listed investments on the S&P/ASX300. This includes exchange traded funds as well as shares in many of Australia’s largest and best known brands.

Term deposits For those seeking a more conservative investment, choose from a range of term deposit options.

MySuper – default fund

Our MySuper default investment strategy, IOOF Balanced Investor Trust, is for those who don’t want to choose their investments. Managed by the IOOF Investments team, the Trust seeks to provide capital growth over the medium to long term by investing in a diversified portfolio of growth and defensive assets.

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Simple, transparent and competitive fees

We’ve put a lot of time and effort into fine-tuning our operations to enable us to deliver simple, fair and competitive fees. Our fee structure is superbly simple and completely transparent – all clearly visible and there’s no bundling. All fees are paid from your cash account, so it’s easy for you to see exactly what is being charged at any time. IOOF Employer Super also has the potential for large employer groups to negotiate a discount on different costs associated with running the fund.

Flexible insurance options at highly competitive rates

A strong super solution also needs to have a strong insurance offering. Our flexible approach is designed to deliver a fit for all members. We offer quality, tax-effective, flexible cover at competitive group rates ensuring peace of mind for members and their families. We also have tailored income protection options where members can shorten or extend waiting periods and be compensated accordingly. For those who are after the basic level of cover, there are no health checks, making insurance easy.

Super online

With a wide range of charts and simple graphs, it’s easy for you and your clients to view and manage their super account and investment portfolio online, 24 hours a day, 7 days a week.

You have access to a range of information and functionality including a full record of account transactions, annual statements and reports, switching between different investment options, updating personal details, including tax file numbers and buying and selling managed funds and shares.

On the ground, in every state

With IOOF’s support, no matter how small your practice, it’s possible to target clients with a presence across Australia. IOOF is on the ground in every state and is able to accommodate meetings or attend them with your business clients on your behalf.

A true lifetime super solution

IOOF Employer Super is a true end-to-end super solution that members can take from job to job and through to retirement without incurring capital gains tax, other transfer costs or inconveniences. IOOF is one of only a handful of providers to offer this benefit – and yet it is especially important to members, particularly when the time comes to transition to retirement. The vast majority of employer funds, including industry funds, don’t offer these benefits, despite the fact that it can have an immense impact on members.

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Relationship Management Services (RMS) program With the removal of trail commissions, group life commissions and collective fees, the remuneration structure for workplace super services has changed significantly since FoFA regulations came into place. While this is true across most financial services, IOOF has sought to maintain the value of employer super advice with the introduction of a new RMS Program.

Under the program, advisers have access to a number of service packages to customise an offering that can best meet the objectives and needs of the employer and the plan’s members.

In addition to a Core services offering, IOOF also offers Tailored and Comprehensive services packages which build on the Core package. This allows you to offer extra levels of service which match your expertise and what you think best match the needs and interests of the employer and plan members.

For both you and the employer, having a defined list of services and deliverables also provides transparency and clear value you are bringing to the employer, ultimately strengthening the relationship and formalising the scope of advice.

To be eligible to receive a payment from this program, the minimum services would include:

Employer services Member services

• Attend annual policy committee meeting or provide an annual plan update

• Answering member queries

• Providing technical support (eg update on legislative or regulatory super changes)

• Assist members with insurance claims

• Assistance with general administration • Offer annual member education sessions

• Implementation and ongoing review of insurance design • Offer for annual one-on-one meetings

• Provide the employer with plan information to provide to new employees

• Regular contact with the employer (quarterly)

IOOF will pay an agreed fee per member in recognition of the services you provide to the employer's workplace.

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IOOF support for advisers

Business support services

A key element of IOOF’s ongoing support to advisers is our highly regarded relationship management team, who provide technical and business support for your relationship with the employer and plan members. Having a dedicated resource ensures that you’re always able to talk to someone who knows your business.

Relationship management

The relationship manager assists advisers to proactively meet the employers’ needs by:

• assisting with member education and providing general advice to members

• providing specialist product and technical support

• providing training to employers

• completing insurance quotes

• resolving plan issues or complexities on their behalf, and

• facilitating policy committee meetings when required, including providing an Employer Report and draft agenda.

Member education

IOOF has dedicated resources ready to help provide your clients with a tailored member education program. From flyers to face-to-face contact, there’s no substitute for the personal touch.

Working with both you and the client, we can establish a timetable of group education seminars and one-on-one super clinics conducted by experienced IOOF Relationship Managers. These sessions give employees an excellent opportunity to learn more about their super at no cost and with no obligation. Of course, every chance you have to spend with new members, there is every chance your practice will grow from referrals.

We also offer flexibility. You can present your own member education material, present in partnership with IOOF, or IOOF can present to your clients and members on your behalf.

At IOOF, we also believe that helping members learn about super gives them the confidence to make the most of their investments. That’s why we also offer a comprehensive education toolbox full of information flyers, videos and calculators.

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Written communication and reportsTo support you in engaging with the employers and the plan members there are a range of publications for advisers, employers and members.

Advisers

• A range of educational flyers covering super topics from salary sacrificing, transition to retirement strategies and more.

• Priority access to the renowned IOOF TechConnect support team.

• Business development letter templates. Depending on your contact at the company and approach you may prefer to offer an employer super review or employee benefits review. These introductory letters complement IOOF provided fact find checklists, PowerPoint presentations and more to help you bring in new clients.

Employers

• ‘talkingsuper’ quarterly e-newsletter for employers covering the latest legislative changes, fund performance tables,

industry news and much more.

talkingsupertalkingsuper is a newsletter designed to provide you, our valued employers, with a quarterly summary of general superannuation issues and investment markets.

November 2015

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talkingsuper for membersIt’s with great excitement that we introduce our new talkingsuper for members newsletter.

We are committed to helping your employees make their dreams a reality. In addition to our vast array of education materials, we have launched this new member newsletter filled with insightful articles to encourage your staff to take interest in their super and give them the confidence to take control of their retirement savings.

We want you to be able to share this newsletter with your employees as simply and effectively as possible. That’s why we’ll soon be sending out details on different ways to do this – and how IOOF can help.

For you, the employer, we will continue to provide the employer version

of talkingsuper, focusing on employer related issues and keep you updated with legislative and product changes.

We invite you and your employees to read the newsletter at ioof.com.au/talkingsuper

We would love to hear your feedback on the newsletter and receive suggestions for future stories. Please contact your Relationship Manager with ideas.

In this issue:

• talkingsuper for members

• SuperStream update

• Legislative changes

• Market summary

• Performance figures


May 2015

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Salary sacrificing – not such a sacrificeRecently the media spotlight has been on exactly how much money is needed for a ‘comfortable’ lifestyle in retirement. According to the Association of Superannuation Funds of Australia, this figure is $58,364 per couple per year1 – meaning a couple retiring today and living 20 years in retirement may need over $1 million in super.

With a predicted shortfall between super balances and the amounted needed in retirement – known as the retirement gap – there has been a rise in interest in strategies to boost super balances beyond the employer’s super guarantee (SG).

One popular way to top up a super balance is to use salary sacrificing to take advantage of the concessional tax rate of 15 per cent on pre-tax contributions (which is usually lower than your employees’ marginal tax rate). Salary sacrificing, particularly for those who have spare cash flow, can be particularly effective as shown in the table below:

Taken as salary Salary sacrificed into super

Gross contribution $1,000 $1,000

Tax rate* (%) 34.5 15

Tax payable $345 $150

Net benefit $655 $850

* Includes Medicare levy

For employees with a marginal tax rate of 34.5 per cent (including Medicare levy), they are $195 better off for every $1,000 they choose to salary sacrifice. Depending on their salary this benefit can be even greater, however it’s important to remember that salary sacrificing doesn’t make sense in every situation, as the table on page two shows.

In this issue:

• Salary sacrificing – not such a sacrifice

• Legislativeupdate

• Changetotimingof taxbeingdeducted

• Endofyeardeadlines

• Marketsummary

• Performancefigures

1 https://www.superannuation.asn.au/resources/retirement-standard

For employees with a marginal tax rate of 34.5 per cent (including Medicare levy), they are $195 better off for every $1,000 they choose to salary sacrifice.


August 2015

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Know your limits

Superannuation guarantee

9.5%

Concessional contributions cap

$35,000 for employees aged 49 years

or older as at 30 June 2015

$30,000 for all other employees

Non-concessional contributions cap

$180,000

$540,000 'bring forward' two years

worth of contributions

In this issue:

• Super contribution caps

• NAB term deposits

• Legislative update

• Operational Risk Financial Reserve levy

• Website update

• SuperSteam contributions

• When to expect your annual statement

• Market summary

• Performance figures

Keeping within the limits Superannuation guarantee – employees are required to receive contributions of at least 9.5 per cent of their salary to their super fund (this is known as the superannuation guarantee or SG). Employees above age 18 and earning more than $450 per month are eligible for SG contributions.

Concessional contributions cap (pre-tax) – these are contributions made into super funds, normally claimed as a tax deduction, usually by the employer. Typically, these will include:

• employer SG contributions

• any additional employer contributions, such as reimbursement of fees or premiums

• salary sacrifice contributions

• personal contributions made for which employees are entitled to (and have claimed) a tax deduction.

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Members

• Welcome guide to IOOF Employer Super.

• New member welcome pack.

• ‘talkingsuper’ website for members with informative and educational stories for members to stay engaged with their super.

• Annual member statement and ‘Investor News’ newsletter.

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Conclusion

The product you’re offering is a reflection of you and your business. That’s why it’s important to have a plan which you can be proud to put in front of employers.

With IOOF Employer Super you have the product and support you need to help your business become a successful workplace super adviser – and make a real difference to the way your business grows.

For more information on IOOF Employer Super, please visit ioof.com.au/employer_super or call 1800 333 909.

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13. iPhone case

FOR ADVISER USE ONLY

Issued by IOOF Investment Management Limited (IIML) ABN 53 006 695 021 AFS Licence No 230524. IIML is Trustee of the IOOF Portfolio Service Superannuation Fund (Fund) ABN 70 815 369 818. IOOF Employer Super is a division in the Fund. This document is for financial adviser use only – it is not to be distributed to clients.

Issued by IOOF Investment Management Limited (IIML) ABN 53 006 695 021 AFS Licence No.230524 as Trustee of the IOOF Portfolio Service Superannuation Fund (Fund) ABN 70 815 369 818. IOOF Employer Super is a division in the Fund.

IOOF Employer Super

Choosing the right super partner is as critical for you as it is for your clients. They need a partner that will help their

employees’ super grow and also minimise the administrative workload. You need a true partner – one who understands

your role and minimises your workload with top quality services to employers and members; one who sincerely believes

in the provision of quality advice and will work with you to identify and refer advice opportunities. So how do you choose

the right provider? You do your homework. And when it’s done, you’ll see that IOOF Employer Super is the right partner.

Because it simply stacks up.

Get the proof at ioof.com.au/simplystacksup or call 1800 333 909

It simply stacks up

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Documents

IOOF Employer Super · client base from your existing business clients not only creates an immediate prospecting base, it also saves both time and money sourcing clients from elsewhere