Significant Event Notice – April 2020 Reducing superannuation minimum drawdown requirements

As part of the government’s economic response to COVID-19, legislation has passed to allow the temporary reduction of drawdown requirements for account-based pensions.

This information is relevant for Club Plus Super members who have either a Pension account or a Transition to Retirement Pension (TTR) account.

The annual drawdown requirements will reduce the required minimum payment by 50% for 2019-20 and 2020-21.

What does this mean for me?

For the remainder of the 2019-20 financial year, existing members can opt to reduce their payments, or stop their payments if they have already received the reduced minimum amount for the financial year.

Members who open a pension account (including those members who re-start their pension) from Thursday 2 April 2020 and elect to receive the minimum payment, will have the reduction automatically applied.

From 1 July 2020, the reduction will be automatically applied for all members who have elected to receive the minimum payment for the 2020-21 financial year.

As every member’s situation is unique, we suggest that you review the changes closely and if you have any questions, please contact us or speak to a financial adviser.

More information

Included in this letter are some Frequently Asked Questions to assist you understand the changes. Also enclosed are instructions on how to change your pension details should you wish to switch to the new minimum now. Note, this will cease payments for the remainder of this financial year if you have already received amounts above your minimum. If you need help with any of these changes, please call us on 1800 680 627.

Regards

Club Plus Superannuation

This is general information only and does not take into account your personal objectives, financial situation or needs. Prior to acting on any information in this document you should read the appropriate Product Disclosure Statement for any product you are considering, (available at clubplussuper.com.au or by calling 1800 680 627) and seek independent financial advice around this if you are unsure. Investments can go up and down. Past performance is not necessarily indicative of future performance.

Issued by Club Plus Superannuation Pty Limited, ABN 26 003 217 990 AFSL 245362 RSE Licence No: L0000529, the Trustee for Club Plus Superannuation Scheme ABN 95 275 115 088 RSE Registration No: R1000757. Club Plus Super is not licenced to provide general financial product advice except as it relates to our products.

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Call us on 1800 680 627

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Frequently Asked Questions

1) What has changed?

The Government is helping retirees to manage the impact of volatility in financial markets on their retirementsavings by temporarily reducing annual superannuation minimum drawdown requirements. The change tominimum rates is as follows:

Age Legislated minimum drawdown percentage

Legislated temporary minimum drawdown for 2019-20 and 2020-21 financial years

Under 65 4% 2%

65-74 5% 2.5%

75-79 6% 3%

80-84 7% 3.5%

85-89 9% 4.5%

90-94 11% 5.5%

95 or older 14% 7%

Minimum drawdown amounts are calculated based on account balance at commencement of pension and at the start of each subsequent financial year using the applicable age based minimum percentage.

2) What is the benefit of reducing the minimum pension payment?

This provides retirees with more flexibility in managing their retirement incomes during this time of volatility.It allows members who have incurred losses to leave more invested in their pension account, so lossesaren’t locked in by withdrawing amounts when markets have fallen.

3) How long will the temporary reduction be available?

The reduction will apply for the 2019-20 financial year and the 2020-21 financial year.

4) Does the reduction to minimum pension requirements apply to Transition to RetirementPensions (TTRs)

Yes, the changes also apply to Transition to Retirement Income pensions (TTRs). The above reducedminimums will apply, but the maximum 10% drawdown limit will remain unchanged and will not be reduced.

5) What do I need to do?

Club Plus Super will continue to pay your current pension amount at the current frequency until 30 June2020. This means you do not need to do anything immediately, unless you want to make a change.

If you want to make a change to your payments for the remainder of the financial year, see questions7 and 8 overleaf.

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6) What happens if I do nothing?

Until 30 June 2020, you will continue to be paid your current pension amount at the current frequency. If youraccount balance is insufficient to make these payments, the remainder in your account will be paid and yourpension account will be closed.

For the 2020-21 year, this varies depending on your currently selected pension type as follows:

Requested pension type Payments from 1 July 2020 to 30 June 2021

Minimum Your payments will be paid at your reduced minimum level based on your age and balance at 1 July 2020.

Nominated amount Your nominated payment amount will continue to be paid unless this amount is now above your maximum payable or below your minimum. If this occurs, your nominated amount will be adjusted to meet the minimum or maximum limit.

Maximum Your payments will be paid at your maximum level based on your balance at 1 July 2020.

7) What are my options?

2019-20 financial year

For the remainder of 2019-20, you may be able to do one or a combination of the following:

• suspend payments: if you have already received more than the minimum required*, you can request foryour remaining payments to be suspended. This leaves these amounts invested in your pension account;

• reduce payments: you can reduce the amount of your remaining payments to any amount that meetsyour new minimum annual payment. This will keep more invested in your pension account;

• change the frequency of payments: you can change your payments to be paid more or less frequently.You could change your current fortnightly or monthly payments to be quarterly, half-yearly or annuallywhich will delay payments. If you currently receiving annual or half-yearly payments, you can changethese to be more frequent such as monthly or fortnightly; or

• change nothing: continue to receive the amount you have been receiving with the same frequency ofpayments.

* Most members will already have received more than the minimum that is now required to be paid for this year(as shown at question 1 above), as they have been receiving payments based on the previous higher minimums.If you have been receiving fortnightly, monthly, quarterly or half yearly payments since 1 July 2019 this will be thecase for you. It is also likely to be the case if you commenced your pension prior to 1 January 2020.

In all cases, an additional payment will be made if you haven’t received at least the reduced minimum by 30 June 2020.

2020-21 financial year

A new minimum annual payment amount for the 2020-21 year will be calculated using your account balance at 1 July 2020 and the rate that applies for your current age. For members with a TTR account, a new maximum amount of 10% of your account balance at 1 July 2020 will also be calculated.

For your payment in 2020-21 you may be able to do one or a combination of the following:

• change your payment amount: you can increase or reduce your payment amount to any amount at orabove your minimum annual payment. If a maximum applies to you, the amount cannot be above yourmaximum amount. Note, if you are currently on minimum payments, your payments will automatically bepaid at your new minimum level* unless you request a change.

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• change the frequency of payments: you can change your payments to be paid more or less frequentlyduring the year. The earliest you need to have a payment during the year is June 2021.

• change nothing: continue to receive the amount you have been receiving (subject to minimum andmaximum limits) with the same frequency of payments.

* Refer to Question 1 for details of the minimum drawdown levels. It is likely most members will have a lowerbalance at 1 July 2020 than at 1 July 2019 or at the time they commenced their pension, which means yourminimum pension payable could be less than half of minimum that originally applied for the 2019-20 year.If you have a TTR account, your new maximum is also likely to be lower than during 2019-20.

8) How can I change the amount of payment I receive or the frequency of payments?

You can request to change the amount of your pension payment or the frequency of payments at any time:

• through Member Access; or

• by calling us on 1800 680 627 and requesting a change over the phone; or

• by completing a Pension member change of detail form, from our website, and returning it to us by emailingit to member@clubplussuper.com.au with the email subject heading: Change of Pension Payments.We also accept this form via post.

9) How do I make the change I want through MemberAccess?

Log on at clubplussuper.com.au/memberaccess and go to the ‘Your Account’ menu and select ‘PensionDetails’. Click on ‘Edit details’ to change your payment nomination type, amount (if choosing a nominatedamount) and payment frequency. Changes will be applied as follows:

Change made 2019-20 payments Payments from 1 July 2020

Minimum payment is selected

Payments until 30 June 2020 will:

• cease if you have already receivedpayments above your new minimum;

or• be reduced so you will be paid your

minimum by 30 June 2020 if you havenot yet been paid your minimum.

Payments will be made at your new minimum level.

Nominated amount is selected

The nominated amount will be paid subject to your minimum limit and if applicable, maximum limit.

The nominated amount will be paid subject to your minimum limit and if applicable, maximum limit.

Maximum payment is selected

Payments will recalculate so you will be paid your maximum by 30 June 2020.

Payments will be made at your new maximum level.

When you have finished making your changes, be sure to click the ‘Save’ and then the ‘Confirm’ buttons to submit your election. Refer to the step-by-step instructions included from page 6.

10) Can I keep receiving payments in 2020-21 based on the previous minimum levels?

You can do this by doubling the amount that is calculated as your new minimum and entering this as anominated amount.

If you do this and wish to go back to minimum payments from 1 July 2021 when minimum rates revert totheir usual levels, you’ll need to make the change back to minimum payments after your final payment in the2020-21 financial year.

11) What happens if I open a new Pension or TTR account or re-start my pension account?

If you restart or open a new Pension or TTR account at any time before 30 June 2021, the minimum will becalculated based on the reduced annual minimum level (as shown in question 1). If you choose minimumpayments, the new lower minimum will apply.

12) What if I have already received pension payments above the reduced minimum for thisfinancial year?

You will not be required to take any additional payments, however we will continue to pay you your currentpension amount for the remainder of the 2019-20 financial year unless you request we cease payments orchange the amount.

If you are happy to continue receiving your current amount, you do not need to do anything, and you willcontinue to receive pension payments as normal.

13) Can I return any payments I’ve received above the new minimum back into mypension account?

The Government has confirmed that you won’t be able to pay any pension amounts you have receivedover the reduced minimum back into your pension account. However, if you are eligible to contribute tosuperannuation*, you can make a contribution into your super account.

* Note there are no age restrictions on making voluntary contributions if you are under age 65. If you are overage 65 but under age 75, you must meet the work test or be exempt from the work test. For more informationabout contributing to super, see the Member Booklet or contact us.

14) I have chosen to receive the minimum pension amount. Will my pension amount automaticallyreduce to the new minimum in the 2020-21 financial year?

Yes, if you have elected to receive the minimum pension amount, your payments for 2020-21 will default tothe reduced minimum amount. If you don’t want the reduced minimum, you must specify a nominated amountin MemberAccess after 1 July 2020.

15) How do I find out more?

You can download the Providing support for retirees factsheet from treasury.gov.au.

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How to change your pension minimum payment limit

STEP 1

Login to MemberAccess.

Open an internet web browser and type in: clubplussuper.com.au/memberaccess

If you are already registered:

Enter your details into Member Number / Username and Password. Click LOGIN.

If you are not already registered:

Click REGISTER NOW and follow the instructions to sign up.

STEP 2

Once you are signed in to your MemberAccess account click Your Account.

STEP 3

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STEP 4

Click Pension Details.

STEP 5

Scroll to the bottom of the page and click Edit Details.

STEP 6

Go the Nomination Type and click the drop-down box.

Select Minimum Payment Limit.

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STEP 10

Your payment update is completed.

Log out of MemberAccess.

STEP 8

Scroll to the bottom of the page and click Save.

STEP 7

If you would like to change your Payment Frequency, click the drop-down and make a selection.

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STEP 9

Click on Confirm if all of the changes are correct.