Your IPE Super Guide Product Disclosure Statement · Generally, your employer contributes at least 9.5% of your Ordinary Time Earnings (OTE) to your super account – this is known

ABOUT THIS PRODUCT DISCLOSURE STATEMENTThis Product Disclosure Statement (PDS) is a summary of significant information and contains a number of references to important information (each of which forms part of the PDS). You should consider that information before making a decision about the product.

The information provided in the PDS is general information only and does not take into account your personal financial situation or needs. You should obtain financial advice tailored to your personal circumstances.

Information contained in this document that is not materially adverse is subject to change from time to time and may be updated if it changes. Updated information can be found at www.ipesuper.com.au. In addition, we will provide a hardcopy free of charge on request if you contact the IPE Super Helpline on 1800 257 135.

www.ipesuper.com.au 1800 257 135

Issued by Towers Watson Superannuation Pty Ltd (ABN 56 098 527 256, AFSL 236049), as Trustee of the Incitec Pivot Employees Superannuation Fund (ABN 68 569 795 856. MySuper Authorisation number 68569795856660).

About IPE Super

How super works

Benefits of investing with IPE Super

Risks of super

How we invest your money

Fees and costs

How super is taxed

Insurance in your super

How to open an account

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Your IPE Super GuideProduct Disclosure Statement

1 April 2020

2 www.ipesuper.com.au

The Incitec Pivot Employees Superannuation Fund (known as IPE Super) is a superannuation fund specifically designed for current employees of Incitec Pivot Limited (IPL) and associated companies, along with former employees and spouses of employees.

IPE Super provides you with flexibility to save for your retirement. It includes a MySuper option. There is also the option to take out a pension when you are nearing or have reached retirement.

IPE Super has two main sections – the Accumulation section and the Defined Benefit section. The Defined Benefit section is closed to new members.

This PDS provides a summary of the benefits provided to Accumulation section members, including Retained Benefits members. At the bottom of the homepage at www.ipesuper.com.au under ‘Trustee information’, you will find information about the Trustee and executive remuneration and any other documents that must be disclosed under the superannuation legislation. You can also find the IPE Super MySuper Product Dashboard, on the homepage under ‘Member information’.

Superannuation is a way to save for retirement that is, in part, compulsory. For many people, it is likely to be their main source of income in retirement.

Generally, your employer contributes at least 9.5% of your Ordinary Time Earnings (OTE) to your super account – this is known as the Superannuation Guarantee (SG). You can also contribute money to help your super grow.

The money in your super account is invested and earns investment returns over the years until you retire. The Government provides tax savings, so the money contributed to your super account is generally taxed less than the tax you pay on your salary. This helps your super to grow.

The Government has rules in place which mean you generally cannot access the money in your super account until you retire after what is known as your preservation age – generally between age 55 and 60 – or you satisfy another condition of release.

CONTRIBUTIONSThere are different types of contributions available to you.

Company contributions – your employer contributes money to your super fund on your behalf.

Voluntary contributions – to help your super grow, you have the option to contribute additional amounts to your super. You can generally make these contributions from your before-tax salary or from your earnings after you have paid tax.

Government co-contributions – if you make a contribution to your super from your after-tax earnings and your salary is under the limit set by the Government, you may be eligible for an additional contribution from the Government. Conditions apply.

Spouse contributions – you can assist your spouse grow their super savings by contributing to their super or splitting some of your contributions with them.

There are a number of benefits of being a member of IPE Super.

IPL will contribute a total of 9.5% of your OTE into IPE Super or such other rate as agreed with you. Contributions are made to IPE Super monthly.

You can make voluntary contributions to your super from your before-tax salary (via salary sacrifice) or after-tax earnings. Please note that before-tax contributions are subject to Company approval.

You can keep your entire super in the one fund by rolling your previous super into your IPE Super account.

You can make contributions to a super account in IPE Super for your spouse and split your eligible super contributions with them. See the PDS, , for more information, which is available by contacting the IPE Super Helpline on 1800 257 135 or downloading it from the website.

You have a choice of four pre-packaged investment options or you can design your own investment portfolio from the pre-packaged options and a range of asset class options.

IPE Super provides eligible members with insurance cover which may provide an additional payment if you die, are totally and permanently disabled or are terminally ill. The fee for this insurance is deducted from your account. You may also have the option to take out additional voluntary insurance for extra protection. IPE Super also offers optional income protection insurance. See page 6 for eligibility conditions.

You can continue to be a member of IPE Super even if you stop working at IPL by transferring to the Retained Benefits section. As a Retained Benefits member, your life insurance and total

About IPE Super

How super works Benefits of investing with IPE Super

You should read the important information about how super works before making a decision. Go to the guide, Additional information about IPE Super at www.ipesuper.com.au. The material relating to how super works may change between the time when you read this Statement and the day when you acquire the product.

The Government places limits on how much can be contributed to super before extra tax applies – see page 6 for more information.

You can also transfer money you have in other super funds into your account in IPE Super.

CHOOSING YOUR SUPER FUNDChoice of Fund legislation allows most working Australians to choose which superannuation fund they wish to belong to. As an employee of IPL, you have an opportunity to participate in Choice of Fund if you wish to.

If you do not make a choice, IPL will pay your Company contributions to IPE Super, which is its default fund. Unless you tell the Trustee otherwise, these contributions will be invested in IPE Super’s MySuper option.

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To provide you with greater security around who receives your super in the event of your death, you have the choice of making either a binding or non-binding nomination. To nominate your preferred beneficiaries, please complete a Death Benefit Nomination Form available from www.ipesuper.com.au.

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and permanent disablement cover (if any) will continue. However, conditions apply if your account does not receive a contribution or rollover amount for a period of 16 months – see page 7.

Your optional income protection cover will cease, but may be continued by taking out a separate policy from the Fund’s insurer, without the need to provide evidence of good health (conditions apply). IPE Super cannot accept your new employer’s contributions but will accept after-tax personal contributions (for which you may be able to claim a tax deduction).

You can stay an IPE Super member in retirement by taking your super as a pension. See the PDS,

which is available by contacting the IPE Super Helpline on 1800 257 135 or downloading it from the website, for more information.

You receive regular communication and updates from IPE Super. You can also keep track of your super via www.ipesuper.com.au and make changes to your super online.

Risks of superAs with all investments, there are risks with investing with IPE Super.

Your level of risk will vary depending on your age, investment time frame, other investments and risk tolerance.

INVESTMENT RISKIPE Super offers you a choice of four pre-packaged investment options or you can design your own investment portfolio from the pre-packaged options and a range of asset class options. Each option has a different strategy and different level of risk and expected return. The level of risk depends on the option’s assets.

Generally, the higher an investment’s potential long-term return, the greater the risk associated with that investment. Historically, investment in shares has provided the highest average returns over the long term but has also demonstrated the greatest volatility in the short term. Over the longer term, lower-risk investments such as cash or fixed interest generally provide lower returns, but are less volatile than shares.

The value of your IPE Super account will vary and may rise or fall in line with the performance of the investment markets in which your money is invested. You should remember that past performance is not necessarily a reliable indicator of future performance.

Returns from IPE Super may be positive or negative and are not guaranteed. When you leave IPE Super, you may get less than the amount of contributions paid in by you and your employer because of taxes, fees and low or negative investment returns.

OTHER RISKSBeing a member of IPE Super does not automatically mean that you will have enough money to live on in your retirement. Your future superannuation savings and investment earnings may not be sufficient to adequately provide for your retirement.

Your employer may decide to cease or vary its contributions to the Fund, IPE Super’s Trust Deed may be amended, or IPE Super may close in the future. This may affect the value of your super account balance or payout.

The Fund may also be exposed to other risks such as changes in the economic and political climate, fraud or other criminal activities (including identity theft). Not all of these risks can be controlled by the Trustee.

A change in the laws that govern superannuation may impact on your ability to access your money in the future or affect the tax effectiveness of your super savings.

You will be kept informed about any material changes that may affect your super.

You should read the important information about the risks of super before making a decision. Further details of investment risks are contained in IPE Super’s Investment Guide. Details of insurance risks are contained in IPE Super’s Insurance Guide. Go to www.ipesuper.com.au for both guides. The material relating to the risks of super may change between the time when you read this Statement and the day when you acquire the product.

You should read the important information about the benefits of investing with IPE Super before making a decision. Go to the guide, Additional information about IPE Super at www.ipesuper.com.au. The material relating to the benefits of investing with IPE Super may change between the time when you read this Statement and the day when you acquire the product.

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Australian shares 13% to 43%

International shares 13% to 43%

Property 0% to 20%

Growth alternatives 0% to 15%

Defensive alternatives 0% to 15%

Diversified fixed interest 5% to 40%

Cash 0% to 25%

28%

28%10%

6%

7%

16%

5%

DETAILS OF THE ACTIVE BALANCED OPTION (MYSUPER OPTION)Overview

The Active Balanced option invests mainly in Australian and international shares and property, and has around 30% in income producing assets such as defensive alternatives, fixed interest and cash investments.

This option aims to provide growth over the medium to long term, while acknowledging that returns are likely to be somewhat volatile over the short term. It may suit a member who expects to have their super invested for a period longer than five years. It is suitable for members seeking a diversified investment over a broad range of assets with an emphasis on achieving higher capital growth in the medium term with a high level of risk.

Objectives

• Achieve an expected rate of return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 3% per year over each five-year period.

• To limit the probability of achieving a negative return to around 1 year in every 4 years.

Benchmark asset allocation

Minimum suggested investment period

5 years

Likelihood of a negative return in any 20 year period*

4 to 6 years out of every 20 years

Volatility level* High

IPE Super has four pre-packaged investment options – Conservative, Active Balanced, Assertive and Assertive Plus – or you can design your own investment portfolio from the pre-packaged options and the available asset class options.

If you do not make an investment choice when you join IPE Super, your super is invested in the Active Balanced option, the default option. The Active Balanced option is also the investment option for MySuper members.

CHANGING YOUR INVESTMENT OPTIONYou can change how your super is invested at any time by making a switch. Some fees may apply (except for your first switch each financial year). Simply make your choice through the Member Center at www.ipesuper.com.au or complete an , available from the website or by contacting the IPE Super Helpline on 1800 257 135.

VERY LOW VERY HIGH

Note: the information about the suitability of a particular option is general in nature and is included as required by law. It is not intended to be a recommendation or statement of opinion in relation to any particular option. Members are encouraged to seek their own advice if they are uncertain as to which option might be most appropriate for them.

* The volatility level shown is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. It is based on the Standard Risk Measure developed by the industry and is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the range of risks and potential losses and gains associated with their chosen investment options.

Further details about investments including information about IPE Super’s other pre-packaged investment options and asset class options, investment risks and how to change options are contained in . You should read the important information about investments before making a decision. Go to www.ipesuper.com.au. The material relating to investments may change between the time when you read this Statement and the day when you acquire the product.

Each investment option has a different level of investment risk and likely return. When making your investment choice, it is important to consider the risk and likely return of an investment option and whether it suits your investment time frame (the length of time until you will need your super).

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How we invest your money5

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These are the main fees to manage your account, based on IPE Super’s Active Balanced investment option, which is the investment option for MySuper members. Fees and costs can be paid directly from your account or deducted from investment returns. Entry fees and exit fees cannot be charged. Information in this section can be used to compare costs of IPE Super with other similar superannuation funds.

ASIC’s superannuation calculator at www.moneysmart.gov.au can be used to check the effect of fees and costs on your account balance.

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 fund 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.

TO FIND OUT MOREIf 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.

Incitec Pivot Employees Superannuation Fund – Active Balanced^

Type of fee or cost Amount How and when paid

1 0.67% p.a. to 0.71% p.a. ($6.70 to $7.10 per $1,000)

This fee is deducted from investment returns before the returns are applied to your account in the Fund

1 $87.00 p.a. plus 0.247% p.a. of your account balance ($2.47 per $1,000)

The dollar fee is deducted from your account monthly. The percentage fee is deducted from investment returns before the returns are applied to your account in the Fund

Nil Not applicable

First switch in any financial year is free For each additional switch per financial year: $57.90

This fee is deducted from your account at the time of switching

relating to all members investing in a particular MySuper product or investment option

Nil Not applicable.

Other fees and costs2 Other fees may also apply

1 Nil Not applicable.

^ This is also the option for MySuper members.1 If your account balance for a product offered by the superannuation entity is less

than $6,000 at the end of the entity’s income year, the total combined amount of administration fees, investment fees and indirect costs charged to you is capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.

2 Insurance fees and fees for certain activities you request may apply (see the Fees and other costs section of the guide, Additional Information about IPE Super).

EXAMPLE OF ANNUAL FEES AND COSTSThis table gives an example of how the fees and costs in the Active Balanced option^ for this superannuation product can affect your superannuation investment over a 1 year period. You should use this table to compare this superannuation product with other superannuation products.

Example – Active Balanced option^

Balance of $50,000

Investment fees

0.71% p.a. For every $50,000 you have in the superannuation product you will be charged $355 each year*

PLUS Administration fees

$87.00 p.a. plus 0.247% p.a.

And, for every $50,000 you have in the superannuation product you will be charged $87.00 each year plus $123.50 in administration fees regardless of your balance

PLUS Indirect costs for the superannuation product

Nil And, indirect costs of $0 each year will be deducted from your investment

EQUALS cost of product

If your balance was $50,000, then for that year you will be charged fees of $565.50 for the superannuation product.

^ This is also the investment option for MySuper members.

* The investment fee shown is the maximum fee applicable, on a gross of tax basis.

Note: Additional fees may apply. And if you leave the superannuation fund, you may also be charged a buy-sell spread which applies whenever you switch investment options. The buy-sell spread for exiting is nil (this will equal to $0 for every $50,000 you withdraw).

FEE CHANGESAll fees and charges are effective 1 April 2020 (unless otherwise stated) and may be revised by the Trustee from time to time without your consent. Some fees may be indexed each year and the Trustee may also introduce new fees. You will generally be given 30 days’ notice of increases to fees.

The fees charged may depend on your employment status or category of membership. If you change categories, you will be advised of any changes to the fees that apply to you.

For definitions of various fees, refer to the website at www.ipesuper.com.au.

Fees and costs

Further details about fees, including those applying to IPE Super’s other investment options and definitions of various fees, are contained in the Fees and other costs section in the guide, Additional Information about IPE Super. You should read the important information about fees before making a decision. Go to www.ipesuper.com.au. The material relating to fees may change between the time when you read this Statement and the day when you acquire the product.

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To help protect you and your family from the unexpected, IPE Super provides eligible members with:

Death, terminal illness and total and permanent disablement cover,

The option to take out additional voluntary insurance to top up your death and disablement benefits, and

Optional income protection insurance.

The fee is deducted from your IPE Super account.

ELIGIBILITY FOR STANDARD INSURANCEIf you are a member of IPE Super and a permanent IPL employee*, standard insurance cover at the 15% level will generally commence automatically when you reach age 25 and your account balance exceeds $6,000 providing the Fund receives a Superannuation Guarantee contribution for you within 120 days of you commencing employment with IPL.

You can however opt in to standard cover within 120 days of commencing employment with IPL, even if you are not yet age 25 or your account balance has not yet reached $6,000, by indicating on the Application & Change Form for Accumulation Members. Your cover will commence on the date that your form is received by the Fund Administrator provided that these two additional conditions are met:

Your first contribution is received by IPE Super within 120 days of you commencing employment; and

You are in “Active Employment”** on the day cover commences. If not, “Limited Cover” will apply, which generally means that you will not be covered for any pre-existing conditions. Limited Cover will cease once you have been in Active Employment for 30 consecutive days.

If the Fund does not receive a Superannuation Guarantee contribution for you within 120 days of you commencing employment with IPL, Limited Cover will apply for at least 12 months from when standard cover at the 15% level commences. See IPE Super’s Insurance Guide for more information.

* Note: Cover for death and total and permanent disablement (TPD) is available only to permanent employees who work at least 15 hours each week. TPD cover is not available to permanent part time employees working less than 15 hours per week.

** “Active Employment” generally means you are capable of performing the normal duties of your job without restriction by illness or injury for at least 35 hours per week (regardless of whether you are actually working those hours).

All taxes deducted are paid to the Australian Taxation Office (ATO) when required. The taxes below apply to super.

TAX ON CONTRIBUTIONSGenerally, 15% contributions tax is deducted from concessional contributions (such as the Company’s contributions and your salary sacrifice contributions, and any contributions for which you claim a tax deduction). This tax does not apply to any after-tax contributions.

There are limits on how much you can contribute to your super before extra tax applies. There will be tax consequences for you if your contributions exceed the limits.

Concessional contributions

Non-concessional contributions#

What is the annual limit?

$25,000. $100,000, however, if your total super balance on 30 June 2019 was more than $1.6 million any non- concessional contributions you make in the 2019/20 year will be excessive.

What tax applies if my contributions are within the cap?

Generally 15% contributions tax.

Nil.

How much tax applies to the excess if I exceed the limit?

Your marginal tax rate less 15% (reflecting tax already paid by the Fund), plus an interest charge.

If you withdraw the excess from super: Nil tax on contributions. Associated earnings taxed at your marginal tax rate.If you leave the excess in super: Up to 47%.

# If you are under age 65 and you want to make larger non-concessional contributions to your superannuation fund, you may be able to bring forward up to two years of caps, to make total contributions of up to $300,000 over three years. The maximum you can contribute over three years is $300,000 and further restrictions may apply if your total superannuation balance on 30 June 2019 was greater than $1.4 million.

TAX ON INVESTMENT EARNINGSA tax of up to 15% is deducted from IPE Super’s investment earnings before the earnings are applied to your account.

TAX ON WITHDRAWALSLump sum and pension payments made from IPE Super after age 60 are generally tax free. Tax may apply before age 60 and will be deducted before your benefit is paid to you.

How super is taxed

Insurance in your super

Further details about tax are contained in the How super is taxed section in the guide, Additional information about IPE Super. You should read the important information about tax before making a decision. Go to www.ipesuper.com.au. The material relating to tax may change between the time when you read this Statement and the day when you acquire the product.

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You should provide your Tax File Number (TFN) to IPE Super. This may save you tax. Normally IPL will provide your TFN to the Fund when you start work. If you don’t provide your TFN, higher tax can apply to certain payments and some types of contributions cannot be accepted. !

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Cover for permanent employees

Eligible members can choose from four levels of cover – 5%, 10%, 15% or 20% when completing the Application & Change Form for Accumulation Members at the time of joining the Fund. You can opt out of all cover, or out of total and permanent disablement cover only, on written request to the Trustee. You cannot opt out of life cover but retain your total and permanent disablement cover.

The amount of your cover is calculated as:

Your chosen percentage x your future service to age 65 x your super salary

Your cover is based on your super salary at the time of your death or total and permanent disablement. Your future service to age 65 is calculated in years and complete months from the date of death or total and permanent disablement.

If you do not choose a level of cover and you do not opt out, you will receive the Fund's default level of 15%.

Unless you choose not to opt in or you cancel your cover, the fees will be deducted from your IPE Super account. Because they depend on your age and amount of cover, they will change each year. Annual fees range from $0.29 to $14.28 for each $1,000 of insurance cover depending on your age and the type of cover.

You can change your cover level at any time by downloading the from the Fund’s website or contacting the IPE Super Helpline on 1800 257 135. If you choose the 20% level within 120 days of commencing employment and your cover is below the limit set by the insurer, no evidence of good health will be required for the increase. Any other increases in cover are subject to approval by the Fund’s insurer and, if required, to you providing evidence of good health.

Each level of cover can be expressed as a multiple of your super salary which varies according to your age and your chosen percentage.

Here’s an example:

Jack is age 30 and has a super salary of $80,000. Using the table below, Jack’s choices would be as follows:

Choice Insurance cover 1 1.75 (35 years to age 65 x 5%) x $80,000 = $140,000

2 3.50 (35 years to age 65 x 10%) x $80,000 = $280,000

3 5.25 (35 years to age 65 x 15%) x $80,000 = $420,000

4 7.00 (35 years to age 65 x 20%) x $80,000 = $560,000

Jack selects a level of cover of 10%. One year later, if Jack’s super salary remains the same at $80,000, his insurance cover would be:

3.40 (34 years to age 65 x 10%) x $80,000 = $272,000.

Cover for casual employeesCasual employees are eligible for life insurance cover (there is no total and permanent disablement cover). The insurance cover for casual employees is based on your age at the date of death and ranges from $11,000 to $137,200 (reducing at older ages). You may need to opt in to cover in the same way as permanent employees (see page 6).

The cost of the insurance cover is $1.16 per week and will be deducted from your IPE Super account. You can cancel this cover at any time on written request to the Trustee.

Cover for Retained Benefits membersThe amount of your life insurance and total and permanent disablement (TPD) cover (if applicable) at the date you ceased employment with IPE continues in the Retained Benefits section. The fees for the insurance cover are deducted from your IPE Super account. You can opt out of your life insurance and total and permanent disablement cover, or just out of your TPD cover. You cannot opt out of your life insurance and retain your TPD cover. Contact the IPE Super Helpline on 1800 257 135 for further information.

If you do not cancel your cover, the fees for any cover will be deducted from your IPE Super account.

In the event that there are no contributions or rollovers into your account for 16 months, we must cancel your insurance cover unless you tell us you want to keep your cover or you arrange to make a contribution. We will warn you in advance if your account is classified as inactive and your insurance could stop. If you would like to recommence your cover at a later date, you will be subject to underwriting i.e. required to provide evidence of good health and any other information requested by the insurer.

If your insurance cover is stopped, we will notify you and outline your options for recommencing cover.

ADDITIONAL VOLUNTARY INSURANCEPermanent employees with standard cover have the option of applying for additional voluntary insurance cover above the 20% level. This additional cover is purchased in multiples of $10,000.

To apply for additional voluntary insurance cover, complete an Application for Additional Voluntary Insurance which includes the insurer’s form, available from the website or by contacting the IPE Super Helpline on 1800 257 135.

Your eligibility to purchase this additional cover is subject to approval by the Fund's insurer, and if required, to you providing evidence of good health. The costs of any additional cover that you purchase are also deducted from your IPE Super account. The annual fees for additional voluntary cover range from $0.35 to $17.14 for each $1,000 of insurance cover depending on your age and the type of cover. They may be higher if the insurer applies a loading to your fee based on the medical evidence that you provide.

Further details about insurance including the amount of cover, important conditions, exclusions, risks and fees are contained in IPE Super’s Insurance Guide. This information may affect your entitlement to insurance cover. You should read the important information about insurance before making a decision including whether the insurance is appropriate for you. Go to www.ipesuper.com.au. The material relating to insurance may change between the time when you read this Statement and the day when you acquire the product.

Joining IPE Super is easy! Just follow these simple steps.

1. Read this PDS carefully to learn about the options and features available to you.

2. Consider your super choices for:

Voluntary contributions,

Rollovers,

Your investment choice, and

Your insurance cover.

Once you have made your choices, complete and return the (at the back of this PDS).

ENQUIRIES OR COMPLAINTSIf you have any questions, would like to make a complaint or would like more information about IPE Super, please contact:

The Fund Administrator IPE Super PO Box 1442 Parramatta NSW 2124 Helpline: 1800 257 135Email: [email protected] Website: www.ipesuper.com.au

PROTECTING YOUR PERSONAL INFORMATIONThe Trustee believes your privacy is important and so has developed a privacy policy to protect your personal information. The policy outlines how IPE Super collects and manages your personal information. A copy of the policy is available by calling the IPE Super Helpline on 1800 257 135.

If you would like to access or update your personal information, please contact IPE Super at:

IPE Super PO Box 1442 Parramatta NSW 2124 Helpline: 1800 257 135


Further details about your account are contained in the guide, Additional information about IPE Super in the section How to open an account. You should read the important information about your account in IPE Super before making a decision. Go to www.ipesuper.com.au. The material relating to your account may change between the time when you read this Statement and the day when you acquire the product.

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OPTIONAL INCOME PROTECTION INSURANCE If you are a permanent employee working at least 15 hours per week, you have the option of purchasing optional income protection insurance through the Fund's insurer to provide you and your family with extra protection.

This means that, if you were to be injured or become ill and (in the opinion of the insurer) you were unable to work for a minimum of 90 days and satisfy the definition of disability, you would be entitled to receive a regular income from the Fund (commencing after 90 days) that is up to 75% of your super salary for a period of up to two years while you remain disabled.

If you purchase income protection insurance, the fee for this cover will be deducted from your IPE Super account.

The standard annual fees you will pay for income protection depend on your age and gender (the fees applying to you may be higher if the insurer applies a loading to your fees based on the medical evidence that you provide).

Males: from $1.45 to $28.96 per $1,000 of insured annual income

Females: from $2.04 to $27.33 per $1,000 of insured annual income

To apply for income protection cover, complete an Application for Income Protection Insurance which includes the insurer’s form, available from the website or by contacting the IPE Super Helpline on 1800 257 135. Your eligibility for this cover is subject to approval by the Fund’s insurer and, if required, to you providing evidence of good health.

please turn over to complete

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(Existing members only)

Application & Change Formfor Accumulation members

Please complete this form if you:

• Want to JOIN the Incitec Pivot Employees Superannuation Fund (“IPE Super”), or

• Are an existing Accumulation member and want to CHANGE one or more of your super choices, or

• Are an existing Defined Benefit member and you have agreed to TRANSFER YOUR DEFINED BENEFIT to IPE Super’s Accumulation section. (Note: If so, you should also complete a Defined Benefit to Accumulation Transfer Form, which can be obtained by calling the IPE Super Helpline on 1800 257 135.)

Tell us what you want to do by ticking the appropriate box below:

How to complete this form:

• If you are applying to join IPE Super, complete all parts of this form.

• If you are an existing Accumulation member and want to change your super choices, you must complete Parts A and E together with:

Part B to change your investment choice,

Part C to change your insurance choice, including opting in to insurance if you are under age 25 or your balance is under $6,000, and/or

Part D to change your choices for your voluntary contributions.

• If you are an existing Defined Benefit member and want to transfer your defined benefit to the Accumulation section, complete all parts of this form.

(Note: If you wish to make a nomination for your death benefit or change your existing nomination, you should complete a , which is available from www.ipesuper.com.au.)

When you have completed and signed your form, return it to the Fund Administrator (see back page for contact details).

I want to apply for membership of IPE Super.

I’m an existing Accumulation member and want to change one or more of my super choices.

I’m an existing Defined Benefit member and want to transfer my defined benefit to IPE Super’s Accumulation section.

PART A Personal details (please print)

Title (please tick): Dr Mr Ms Mrs Miss Membership no.:

Given name: Surname:

Home address:

Telephone: Date of birth:

(Business hours)

Email address:

Providing your email address

The Trustee may decide to provide information about IPE Super or your benefits electronically in the future. This might include Product Disclosure Statements, Benefit

Statements, Exit Statements, Annual Reports, newsletters or information on material changes to your super or significant events. If you’d like to receive information

electronically where available, please provide your email address.

1

Choice 1 – Choose from the “pre-packaged” options Choice 2 – Design your own investment option

Conservative

Active Balanced*

Assertive

Assertive Plus

Conservative %

Active Balanced* %

Assertive %

Assertive Plus %

Cash %

Diversified Fixed Interest %

International Shares %

Australian Shares %

Total 100%

PART C Your insurance choices

Death and total and permanent disablement cover

Standard insurance cover at the default rate of 15% is provided to permanent employee members who are aged 25 and over and have an account balance of $6,000 or more#. If you wish to change the existing level of your insurance cover, complete section 1, below.

If you are not yet 25 or your account balance is less than $6,000, you can opt in to standard insurance cover by completing section 2, below.

# Note: Cover for death and total and permanent disablement (TPD) is available only to permanent employees who work at least 15 hours each week.

TPD cover is not available to casual employees or permanent part time employees working less than 15 hours per week.

1. Changing your existing insurance cover

Complete this section if you are eligible for standard insurance cover and wish to change your level of cover.

For eligible members, if you were to die or become totally and permanently disabled or terminally ill, your benefit would be calculated as the sum of your IPE Super account, plus an insured amount that is equal to:

a percentage (as chosen by you – see below) x your future service to age 65 x your annual super salary

What level of death and total and permanent disablement cover do you want?

I wish to apply for the following insurance cover for my death and disablement benefits:

Please tick ONE box below.

5% 10% 15% (default option) 20%*

* Your request for the 20% rate must be made within 120 days of your commencement of employment with IPL to be granted under the insurer’s Automatic Acceptance terms.

If you are a current member of IPE Super and you are applying to increase your cover, you will need to complete the insurer’s Application for Insurance and may need to provide evidence of good health. Your increased cover will only take effect from the date it is accepted by the insurer.

If you need more cover, and selected the 20% rate, you may apply to purchase additional insurance cover. This additional cover is purchased in multiples of $10,000. You will need to complete the Application for Additional Voluntary Insurance which includes the insurer’s form. Your eligibility to purchase this additional cover is subject to approval by the insurer and further proof of good health may be required.

PART B Your investment choice

How do you want your super to be invested?

OR

* The Active Balanced option is also the option for MySuper members.

For information about each investment option, read IPE Super’s Investment Guide.

2

3

Do you wish to purchase income protection insurance*?

Yes No

If you selected “yes”, you will need to complete an Application for Income Protection Insurance which includes the insurer’s form. Your application will then be assessed by the insurer, and your insurance cover will only start once it has been accepted by the insurer.

* Note: Optional income protection insurance is available only to permanent employees who work at least 15 hours each week.

Forms are available at www.ipesuper.com.au or by calling the IPE Super Helpline on 1800 257 135.

PART C Your insurance choices continued...

2. Opting in to standard insurance cover

Complete this section if you are not eligible for standard insurance cover but wish to opt in to receive it.

If you are not yet age 25 or your account balance is less than $6,000, you can opt in to standard insurance cover without providing health evidence, provided:

• your first Superannuation Guarantee contribution is received by IPE Super within 120 days of you commencing employment with IPL; and

• this instruction to opt in is received by the Fund Administrator within 120 days of you commencing employment with IPL.

If you are not in Active Employment on the day that your cover is due to commence, Limited Cover (i.e. which generally excludes pre-existing conditions) will apply until you have been in Active Employment for 30 consecutive days. See IPE Super’s Insurance Guide for details.

Active Employment generally means you are capable of performing your normal duties without restriction by illness or injury for at least 35 hours per week (regardless of whether you are actually working those hours).

If you don’t opt in within 120 days of commencing employment with IPL – you can still apply for cover but will need to provide full evidence of health and your cover will only take effect from the date your application is accepted by the insurer. See IPE Super’s Insurance Guide for details.

To opt in to standard insurance cover, please tick the boxes below.

I would like to opt in to standard insurance cover. I understand the cost of insurance will be deducted from my account each month.

Please tick ONE box below

I am applying within 120 days of commencing employment.

I commenced work on (insert date): ___________________

I am applying more than 120 days after commencing employment.

I commenced work on (insert date): ___________________

Please tick ONE box below

I was in “Active Employment” on the date I signed this form (see box above).

I was not in “Active Employment” on the date I signed this form.

I wish to apply for the following level of insurance cover for my death and disablement benefits:


5% 10% 15% (default option) 20%*

* Your request for the 20% rate must be made within 120 days of your commencement of employment with IPL to be granted under the insurer’s Automatic Acceptance terms.

Issued by Towers Watson Superannuation Pty Ltd (ABN 56 098 527 256, AFSL No. 236049), as Trustee of the Incitec Pivot Employees Superannuation Fund (ABN 68 569 795 856. MySuper Authorisation number 68569795856660).

ISSUED APRIL 2020

Return your completed form to:

The Fund AdministratorIPE Super

PO Box 1442Parramatta NSW 2124

4

Signature Date / /

PART E Declaration

• I agree to be bound by the terms and conditions contained in the Trust Deed and Rules governing the Incitec Pivot Employees Superannuation Fund (“IPE Super”).

• I have received and understood the Product Disclosure Statement (PDS) for IPE Super for my category of membership.

• I understand that all of my super will be invested in the investment option(s) of my choice. If I am applying to join IPE Super and do not make an investment selection, my super will be invested in the Active Balanced option, which is the option for MySuper members.

• If I do not make an insurance choice and I am a permanent employee eligible for insurance cover, my death and total and permanent disablement cover will be at the 15% level.

• I understand that any application for additional voluntary insurance cover, income protection cover or standard cover outside the 120 day window described above, including increases in insurance cover, will be subject to acceptance and any terms and conditions imposed by IPE Super's insurer. I understand that I will be required to provide medical and other evidence as requested by the insurer to support my application, and that all insurance is subject to the conditions in the Fund’s insurance policies.

• If I have provided my email address on page 1, I agree that the Trustee may use that email address to send me information as set out on page 1 electronically.

• I acknowledge that I have received and understood the summary of the Privacy Policy for IPE Super as set out in the PDS. I agree to the use and disclosure of my personal information as set out therein.

• I declare that the information that I have provided on this form is true to the best of my knowledge and belief.

PART D Your voluntary contribution choices

Tick ONE of the boxes below to tell us if you would like to MAKE voluntary contributions to your super, CHANGE the amount of your existing voluntary contributions or CEASE making voluntary contributions altogether.

Remember, you can vary the amount of your contributions at any time. If you wish to make spouse contributions, please complete an IPE Super Spouse Form, available at www.ipesuper.com.au.


I wish to MAKE voluntary contributions to IPE Super.

I wish to CHANGE the amount of voluntary contributions I currently make to IPE Super.

I wish to CEASE making voluntary contributions to IPE Super.

If you ticked either of the first two boxes, please tell us how much you wish to contribute and whether you wish for your contributions to be deducted from your before-tax* or after-tax salary.

I wish to contribute of my salary OR each pay period.

I wish to make my contributions from my (please tick ONE box only):

Before-tax salary* OR After-tax salary

* Before-tax contributions are subject to Company approval.

% $

Contents

Important information

How super works


Risks of super

Fees and other costs

How super is taxed




2

3

7

11

12

17

19

Additional information about IPE Super

1 April 2020


The information in this document forms part of the Incitec Pivot Employees Superannuation Fund Product Disclosure Statements (PDS) for the:

Accumulation section including Retained Benefits section, (dated 1 April 2020), and

Spouse section, (dated 1 April 2020).

This information should be read in conjunction with the other documents which form part of each Product Disclosure Statement. You should consider this information before making a decision about the product.

The information provided is general information only and does not take into account your particular objectives, financial circumstances or needs. It is not personal or tax advice. Any examples included are for illustration only and are not intended to be recommendations or preferred courses of action. You should consider obtaining professional advice about your particular circumstances before making any financial or investment decisions based on the information contained in this document.

Neither the Trustee nor Incitec Pivot Limited (IPL) will provide you with financial advice. The Trustee will only provide factual information or general superannuation advice.

Information on tax and superannuation legislation is current as at 1 April 2020. The Trustee reserves the right to correct any errors or omissions.

Information contained in this document that is not materially adverse is subject to change from time to time and may be updated if it changes. Updated information can be found at www.ipesuper.com.au. In addition, we will provide a hardcopy free of charge on request, by contacting the IPE Super Helpline on 1800 257 135.

FOR FURTHER INFORMATION

The Fund Administrator

Incitec Pivot Employees Superannuation Fund PO Box 1442 Parramatta NSW 2124

Helpline: 1800 257 135 Email: [email protected] Website: www.ipesuper.com.au


3 1800 257 135

CONTRIBUTING TO YOUR SUPERANNUATION

Contributions to your super account can come from a number of sources.

Your Company contributions

Your employer will make contributions as agreed with you, subject to the requirements of superannuation law. Spouse members cannot direct their employer’s contributions to this Fund. Retained Benefits members cannot direct their new employer’s contributions to this Fund.

If you wish to direct your future contributions to another fund of your choice, you may elect to do so via the available at www.ipesuper.com.au. Your existing benefit will be transferred to IPE Super’s Retained Benefits section (in your existing investment option) until you elect to transfer it to another fund.

Your voluntary contributions

You are not required to contribute to your super. However, if you want your savings to grow faster so you have more money for your retirement, you may choose to make voluntary contributions from your before-tax salary (i.e. via salary sacrifice), subject to Company approval, or from your after-tax salary.

Spouse and Retained Benefits members cannot make salary sacrifice contributions to this Fund but can make after-tax contributions via a cheque payable to the Incitec Pivot Employees Superannuation Fund and forwarded to the Fund Administrator, or via internet banking to Towers Watson Superannuation Pty Ltd ATF Incitec Pivot Employees Superannuation Fund (Westpac BSB: 032275 Account number: 308377).

For Spouse and Retained Benefits members to claim a tax deduction for after-tax contributions, they must give the Trustee a

form, which

must reach the Trustee by 31 July following the financial year (i.e. ending 30 June) in which the member intends to claim the deduction. A copy of the form is on the Fund’s website.

For more information contact the IPE Super Helpline on 1800 257 135.

How super works

Your IPE Super account =Contributions + Rollovers

+/–

Investment earnings–

Fees, taxes, insurance fees + benefits paid

Your rollovers

You can choose to roll over any amounts that you have in other super funds (e.g. with previous employers) into IPE Super. Rollovers are one-off transactions to transfer an amount of super from one fund into another fund. There are no fees charged for rolling your super into IPE Super. However, you should check to see whether you will lose other valuable benefits such as insurance from your other funds.

For Spouse members, IPE Super must have received a contribution on your behalf before you can rollover other benefits into the Fund.

Keeping your entire super in one fund means:

It's easier for you to keep track of,

Your rollover amount will accumulate with the net investment earnings of your chosen investment option, and

You pay only one set of administration and investment fees.

Spouse contributions

IPE Super also allows you to make superannuation contributions for your spouse and to take out life insurance on his or her behalf. This means you and your partner can have your superannuation accounts in the one fund for a shared future.

Spouse contributions can only be accepted if both you and your spouse have provided IPE Super with your Tax File Numbers.

Any spouse contributions you make from your after-tax salary will count towards your spouse’s non-concessional contributions cap, rather than your own. Refer to page 18 for more information.

Spouse members may transfer out of IPE Super at any time. Any insurance cover that a spouse member has will cease on the date that their account balance is paid to another fund and their account is closed.

If you wish to open an account in IPE Super in your spouse’s name, you should read the Product Disclosure Statement, IPE Super for Spouse members, and complete an

available from the IPE Super website at www. ipesuper.com.au or the IPE Super Helpline on 1800 257 135.

There are limits on how much you can contribute to super before extra tax applies – see the section on page 17. If your circumstances change, you can change your voluntary contribution rate by contacting your payroll department.

Government co-contributions

If you make super contributions from your after-tax salary and earn less than $53,564 a year*, the Government will pay an extra contribution (called a “co-contribution”) of up to $0.50 for every $1.00 contribution that you make to your super fund.

The maximum co-contribution payment is $500 for members whose total income is less than $38,564 per year* who make contributions of $1,000 or more. The maximum co- contribution payment of $500 reduces for every dollar of your income above $38,564* and phases out completely for those with a total annual income of $53,564* or more. You cannot receive the co- contribution for contributions for which you claim a tax deduction.

The Australian Taxation Office (ATO) automatically determines your eligibility for the co-contribution after the end of each financial year. If you are eligible, the ATO makes the relevant co-contribution payment to IPE Super on your behalf.

* These are income amounts for 2019/20. For 2020/21 the lower threshold is $39,837 and the upper threshold is $54,837.

“Spouse” definedYour spouse is defined to include a person of either sex who, although not legally married to you, lives with you on a genuine domestic basis in a relationship as a couple.

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Contribution splitting

As a member of IPE Super, you have the option of splitting up to 85% of your before- tax contributions with your spouse – that is, contributions the Company makes, including any salary sacrifice contributions and any contributions for which you claim a tax deduction. However, any before-tax contributions you split will count towards your concessional contributions cap, not your spouse’s – see page 18 for more information.

You cannot split after-tax contributions, rollovers or transfers (e.g. from overseas funds) you have made into IPE Super. You must also ensure that you leave a minimum balance of $5,000 in your IPE Super account after any split, unless you wish to close it completely.

At the end of each financial year (i.e. 30 June), you can apply to the Trustee to split the contributions you have made to your super during that financial year. If you are leaving IPE Super, you may apply at the time of exiting. You can split your contributions once in any financial year.

Split contributions can either be paid into an account in IPE Super in your spouse’s name, or into an account with another complying super fund as nominated by your spouse.

When you split your super contributions with your spouse, these contributions become the entitlement of your spouse. And just like your super, these contributions must be preserved in the superannuation system until your spouse reaches their preservation age (see page 5 for more information about preservation) or satisfies certain conditions (for example, financial hardship or compassionate grounds).

Splitting your contributions will not affect your insured benefits in IPE Super, even if you split the maximum amount of contributions allowable each year with your spouse, provided there is enough money in your account to pay the fees.

To split your super contributions, you need to complete a

which can be downloaded from the IPE Super website at www.ipesuper.com.au or obtained by calling the IPE Super Helpline on 1800 257 135.

A contribution splitting fee applies each time a splitting application is processed on your behalf by the Fund Administrator. See page 15 for details of the current fee that applies.

If you are thinking of splitting your super contributions with your spouse, the Trustee recommends that you talk over your options with a licensed financial adviser as there may be disadvantages to splitting in certain circumstances.

Transfers out of IPE Super

You can transfer out amounts that you have in the Fund to another complying fund. You can do this once a year and must leave a minimum balance of $5,000 in the Fund unless you transfer out all of your benefit.

Your insurance benefits will cease if you transfer out all of your account. You cannot access any cash component until you meet one of the preservation conditions (see page 5).

FAMILY LAW AND YOUR SUPERUnder superannuation law, divorcing or separating couples can generally split the superannuation entitlements of one or both of the partners as part of their property settlement. This can be done either by Court Order or by agreement between the separating couple after legal advice has been sought. If this applies to you, your super benefits will be reduced accordingly.

More information on superannuation and divorce can be obtained by contacting the IPE Super Helpline on 1800 257 135. Refer to page 15 for details of the fees that apply.

SUPER CONTRIBUTIONS AND BANKRUPTCYIf you are declared bankrupt, contributions to super (excluding Superannuation Guarantee contributions) made by you, or on your behalf, may be recoverable by creditors. This applies to contributions (excluding Superannuation Guarantee contributions) made on or after 27 July 2006 if these contributions are demonstrated to have been made with the specific intention of defeating creditors. You will be advised if this affects you.

CHOICE OF FUND AND PORTABILITY Choice of Fund legislation allows most working Australians to choose which superannuation fund they wish to belong to. As an employee of IPL, you have an opportunity to participate in Choice of Fund. Spouse and Retained Benefits members cannot direct their employer’s contributions to IPE Super.

Choice of Fund means that you have the opportunity to choose a complying super fund other than IPE Super for the Superannuation Guarantee (SG) contributions the Company makes to super on your behalf. Currently, this is 9.5% of your Ordinary Time Earnings (OTE). It’s important to keep in mind that Choice of Fund is optional.

If you are considering choosing another super fund, you should first consider the implications it may have on your super, particularly your insurance cover, which is an important part of your IPE Super membership.

Some of these implications are explained below.

Membership: On selecting an alternative super fund, the Company will cease paying your SG contribtuions to IPE Super. At the end of the month in which your last SG contributions are received by IPE Super, your account will be transferred to the Retained Benefits section of IPE Super.

Claiming a tax offsetIf your spouse (IPL employee) makes contributions on your behalf, it could mean that they are entitled to claim an offset on their income tax return. If your relevant income is up to $37,000, they can claim a tax offset of 18% on the first $3,000 of contributions they make to your spouse account – that’s a saving of up to $540 a year on their tax!

The tax offset they are entitled to claim will reduce by $18 for every $100 that your income exceeds $37,000, and cuts out altogether once your assessable income exceeds $40,000. For example, if your assessable income is $38,000 per year, the maximum tax offset applicable will be $360. Other conditions may also apply.

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5 1800 257 135

Insurance: In the Retained Benefits section, your life insurance cover and your cover for total and permanent disablement (if any) will continue until you cancel the cover, until you leave the Fund and close your account, until there is insufficient money in your account to pay the fee, or until cover is cancelled because your account has been inactive for 16 months (see the Insurance Guide), whichever occurs first.

Fees: You should check the fees of any fund you are considering.

Your existing balance: If you wish to choose a fund other than IPE Super, you can retain your benefits in the Fund or you can transfer all of your benefits out of IPE Super.

To transfer part or all of your existing balance you will need to complete a which is available from the IPE Super Helpline or can be downloaded from www. ipesuper.com.au.

Transferring part of your account balance to another super fund (as opposed to redirecting your SG contributions to another fund), does not affect your membership or insurance entitlements under IPE Super provided there is enough money in your account to pay the insurance fees.

All insurance cover you have in the Fund will cease immediately if you transfer the whole of your account balance which will close your account.

Returning to IPE Super: You can redirect your contributions back to IPE Super at any time. You should keep in mind that if your insurance cover in IPE Super ceased, you will not automatically be provided with insurance cover and will have to provide evidence of good health and be assessed and accepted by the insurer before any cover commences.

For more information about Choice of Fund and portability, call the IPE Super Helpline on 1800 257 135.

TRANSFER OF LOW BALANCE INACTIVE ACCOUNTS TO THE ATOThe Government requires that inactive accounts that are less than $6,000 are required to be paid to the ATO. The ATO will consolidate the account with your active super account.

You will be considered inactive if, in the last 16 months, you have not:

received a contribution or rollover;

changed your investment choice,

changed your insurance,

made or changed a binding nomination of beneficiary, or

notified the ATO you do not wish to be treated as a low balance inactive account.

Note the definition for inactivity to cancel your insurance as outlined in the Insurance Guide is narrower than that used by the ATO for consolidation.

PRESERVATION RULESYour super generally must be preserved in the superannuation system until you retire (or satisfy another special condition of release). This means you can’t take your super money out to spend or invest in a non-super investment. Generally, you can only take your benefit in cash when you:

Reach age 65;

Retire on or after your preservation age (see below);

Leave your employment at age 60 or over;

Die or become totally and permanently disabled or have a terminal medical condition;

Satisfy a condition of release on “compassionate grounds” (by applying to the ATO) or due to “financial hardship”; or

Leave your employment and your benefit entitlement is less than $200.

Your preservation age depends on when you were born, as shown in the following table.

Preservation age

Date of birth Preservation age

Before 1 July 1960 55

Between 1 July 1960 and 30 June 1961

56


57


58


59

After 30 June 1964 60

For the purposes of the preservation laws “retired” means that you must have ceased gainful employment, and one of the following must apply to you:

If you have reached your preservation age but are less than age 60, the Trustee must be satisfied that you intend never again to be gainfully employed more than 10 hours per week.

If you are over age 60, either:

You must have ceased gainful employment after reaching age 60, or

The Trustee must be satisfied that you intend never again to be gainfully employed more than 10 hours per week.

You can receive your benefit in cash after you have reached age 65 regardless of whether you are working or have ever worked.

You may be able to take part of your super in cash before your preservation age; for example, if it relates to employment before 1 July 1999. Your annual will show you if this applies to you.

You may also access your super on reaching your preservation age but before being “retired” by rolling over part or all of your benefit into a “transition to retirement” pension – see page 9 for more information.

Temporary residents

If you are not an Australian or New Zealand citizen or resident and you accrued super while in Australia on a temporary resident visa, you may be able to claim your super when you return home. Applicable taxes will be deducted (these may be different to the taxes paid by other Fund members on their super). If you do not claim your super within six months of permanently departing Australia, the Trustee may be required to pay your super to the ATO without your consent. You may then claim your super from the ATO, but it may not earn any interest while with the ATO.


SPECIAL RULES – SUPER AND HOUSING

First Home Super Saver Scheme

This scheme allows first home buyers to make voluntary concessional or non-concessional contributions to superannuation and later access some of the funds towards the purchase of your first home. Voluntary contributions made after 1 July 2017 qualify and withdrawals can be made from 1 July 2018.There are a number of eligibility and other conditions that apply to this scheme.

More information is available on the ATO website or you can contact the IPE Super Helpline on 1800 257 135.

Contributing money from home sale to super

Homeowners aged 65 and over are allowed to contribute some of the proceeds of the sale of their principal home into super. This is designed to encourage older people to downsize their homes.

If you have lived in the home for at least 10 years you can make a “downsizer” contribution of up to $300,000 into your superannuation fund. Couples are able to transfer up to $600,000 into super. The contract of sale must have been exchanged on or after 1 July 2018.

Eligible downsizer contributions will not count towards your annual non-concessional contribution cap and can be made even if you do not meet the work test*. However, they will count towards the $1.6 million cap on the amount that can be held in pensions where earnings are exempt from tax.

If the ATO determines that you were ineligible to make downsizer contributions or you exceed the $300,000 cap, your contributions will count as personal contributions, which may result in you exceeding your non-concessional contribution cap. The contributions also count towards your total superannuation balance, which may affect whether you can make non-concessional contributions in future years. Other conditions also apply.

To make downsizer contributions you need to complete a Downsizer contribution into superannuation form available on the Fund’s website.

For more information on the super housing measures, contact the IPE Super Helpline on 1800 257 135 or refer to www.ato.gov.au/super.* See page 18 under ‘Tax limits’ for more information.

7 1800 257 135

Super is an important financial asset. For many people, it will be their main income source during retirement. Whether you are retiring soon or retirement is a long way off, the choices you make about your super today can shape your future.

It is important that you understand how your super works to make informed decisions for your super. This will help you to build your super savings in the years before you retire in the way that is best for you.

Your super comes from employer contributions and any voluntary contributions and rollovers (from other funds) that you decide to make to your super. These contributions are held in an IPE Super account opened in your name.

You then decide how you would like your super contributions invested, choosing from various investment options offered by IPE Super. The contributions then earn investment returns, which can be positive or negative. How your money is invested determines how your super progresses over time, so it’s important that you make an informed investment choice.

Over time, any taxes or fees that apply to your super will be deducted from your IPE Super account.

When you retire or leave your employer, the benefit you receive is the balance of your IPE Super account after these additions and deductions have been made.

As a member of IPE Super, you can choose from a range of contribution, insurance and investment options.

IPE Super recognises that providing super that’s “one-size-fits-all” won’t work for everyone because each member has different retirement needs and goals. That’s why IPE Super offers you a range of choices so you can design your super to suit your own particular needs and your goals.


YOUR SUPER BENEFITSAs a member of the Fund, you will be entitled to receive a benefit if you:

Leave your employer,

Die, or

Become totally and permanently disabled or terminally ill.

Your leaving service benefit

When you leave your employer, you will be entitled to the total amount in your IPE Super account. This amount is known as your “leaving service benefit” and includes all of the contributions made to your IPE Super account, together with investment earnings, less taxes and fees (including insurance fees).

Retained Benefits and Spouse members receive their account balance on leaving the Fund for any reason other than death or disablement.

Under the Government’s preservation laws, you generally cannot take your super benefit as cash until you permanently retire from the workforce and reach your preservation age. Your preservation age depends on when you were born (see “Preservation rules” on page 5).

You may, however, be able to take part of your super in cash before your preservation age if it relates to employment before 1 July 1999. Your annual Benefit Statement will show you if this applies to you.

You can also access your super on reaching your preservation age, but before permanently retiring from the workforce, by rolling over your benefit into a “transition to retirement” pension, or at any time by satisfying certain other conditions (for example, financial hardship or compassionate grounds). See page 5 for more information.

Your death and disablement benefits

If you die while you are a member of IPE Super, a lump sum benefit is payable to either your dependants and/or your estate. This benefit is equal to the total of your:

IPE Super account,

Your insured benefit (if any).

For details of your insured benefit, see , which is available from www.ipesuper.com.au.

If you become totally and permanently disabled or terminally ill before age 65 while you are a member of the Fund, and the Trustee and insurer accept your claim, you will receive a lump sum equal to the total of your:

IPE Super account,

Your insured benefit (if any).

The insured amount for total and permanent disablement (TPD) or terminal illness is calculated in the same way as for your Death Benefit. See for more details, available from www.ipesuper.com.au.

(Note: Spouse members, permanent part-time employees working less than 15 hours per week and casual employees are only eligible for life insurance cover and are not eligible for total and permanent disablement cover. The benefit on total and permanent disablement for these members is equal to their IPE Super account.)

TPD and terminal illness are defined in the insurance policy and the definitions may therefore vary over time. The current definitions can be found in which is available from www.ipesuper.com.au.


NOMINATING YOUR DEPENDANTSIf you die while you are a member of IPE Super, a benefit will be paid to your dependants and/or estate. It’s up to you to tell the Trustee who you would like to receive this benefit.

IPE Super offers you a choice of binding or non-binding nominations for your Death Benefit.

Binding nominations

If you complete a binding nomination, the Trustee is obliged to pay your Death Benefit according to your wishes, providing that your nomination is valid at the time of your death.

To make a binding nomination, you must ensure that you allocate the total share of your Death Benefit. If the percentages do not add up to 100%, your nomination will be invalid. Your nomination must also be witnessed by two people who are aged 18 years or over who are not nominated as your beneficiaries. Your witnesses must see you signing the

and must sign and date the form at the same time as you.

Your binding nomination is valid for up to three years, although you can change it as often as you like. It is your responsibility to keep your nomination up to date. If you die and your nomination is valid, the Trustee will be bound by your decision, regardless of whether your circumstances have changed.

Non-binding nominations

If you complete a non-binding nomination, the Trustee will be guided by your nomination but not bound by it.

The Trustee is obliged by law to investigate your circumstances on your death and act in the best interests of your dependants when paying your Death Benefit. The Trustee must conduct its own investigations into your personal circumstances before deciding who should receive your benefit payment.

Your binding nomination will not be valid if:

You nominate someone other than a dependant or your estate,

You don’t update your nomination within three years,

The Death Benefit Nomination Form you submit is incorrect or incomplete, or

Someone you have nominated later becomes ineligible to receive your benefit, e.g. a nominated person dies.

If your nomination is not binding or if it is not valid, the Trustee will determine who receives your Death Benefit.

To find out when your binding nomination expires, check your latest Benefit Statement or call the IPE Super Helpline on 1800 257 135.

The differences

Binding Non-binding

If you have a valid nomination, the Trustee must pay your Death Benefit according to your wishes.

The Trustee will use your nomination as a guide, but is not bound by it.

Valid for up to three years. No time limit applies.

Two witnesses required. No witnesses required.

Who you can nominate

Your Death Benefit can only be paid to your dependants or your estate. Your dependants are:

Your spouse (including de facto partner of either sex),

Your children (including step children, adopted children, unborn children and children of your spouse),

Any person who is financially dependent on you, or

Any person with whom you have an interdependency relationship.

An interdependency relationship is where:

Two people have a close personal relationship, and

They live together, and

One or each of them provides the other with financial support, and

One or each of them provides the other with domestic support and personal care.

However, if two people have a close personal relationship but they do not satisfy the other conditions because one or both of them suffer from a physical, intellectual or psychiatric disability, then their relationship still meets the definition of interdependency.

The law includes details of various matters that the Trustee must consider in deciding whether two people have an interdependency relationship. If you are unsure how this affects you, please contact the IPE Super Helpline on 1800 257 135.

How to make your nomination

To make a binding nomination, complete Parts A and C of the

and sign it in the presence of two witnesses who are aged 18 or over and not your beneficiaries. Your witnesses must sign Part D of the form at the same time as you.

To make a non-binding nomination, complete sections A and B of the

. You do not need to get your form signed by witnesses.

If you need more information about the options available to you, contact the IPE Super Helpline on 1800 257 135. For advice about your particular circumstances, you should consider speaking to a licensed financial adviser.

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WHEN YOU LEAVE IPE SUPERWhen you leave your current employer or if you choose another fund, you will be contacted by the Fund Administrator and asked how you want to receive your benefit.

Depending on your circumstances, you may then have four options for your super which are:

Option 1: Retain your benefits in IPE Super

When you leave your employer or, in the case of Spouse members, when your spouse leaves their employer, your super will be transferred into an account in your name in IPE Super’s Retained Benefits section. Here, your super will earn investment returns at the rate earned by your chosen investment option (or the Active Balanced option, which is the option for MySuper members, if you have never made an investment choice), which can be positive or negative.

Your super will remain in the Retained Benefits section until you provide the Fund Administrator with payment instructions for your benefit.

To confirm your decision to leave your benefit in the Retained Benefits section, to initiate the full or partial payment of your benefit from IPE Super, or to change your investment choice in the Retained Benefits section, fill out a

which is available from IPE Super’s website at www.ipesuper.com.au or the IPE Super Helpline on 1800 257 135 and return it as directed.

Option 2: Take a cash payment

If you have any unrestricted non-preserved super (see your Leaving Service Notification letter ), you can take some or all of this amount in cash, less any taxes which may apply. If you are under age 60, tax may apply to the taxable component of this amount (if any).

For partial payments, the tax components of the payment will be in proportion to your total benefit. You cannot choose, for example, to withdraw only your tax-free component.

Amounts paid by IPE Super to members aged 60 or over are generally tax free.

For more information on the tax payable on benefits, refer to the section

on page 17.

All requests for payment from IPE Super can be made by completing the

from IPE Super’s website at www.ipesuper.com.au or the IPE Super Helpline on 1800 257 135 and return it as directed.

Option 3: Rollover to another superannuation fund

You can transfer all or part of your super into another superannuation fund of your choice, provided it is a complying superannuation fund under the law. To do so, you must complete the

from IPE Super’s website at www. ipesuper.com.au or the IPE Super Helpline on 1800 257 135 and return it as directed.

If you choose this option and the fund you have nominated won’t accept your benefit, the Trustee will roll your benefit over to its Eligible Rollover Fund (ERF).

Once your benefit is transferred from the Fund, you will no longer be a member of IPE Super or have access to the features that you currently enjoy.

Option 4: Take an Account-Based Pension

If you are retiring after your preservation age, you can choose to roll over part or all of your super into an IPE Super Account-Based Pension or similar product offered by another fund.

Accessing your super before you retire

If it suits your personal situation, you can access your super before you permanently retire from the workforce under the law.

You can access your super when you reach your preservation age (see page 5 for more information on preservation) provided you roll over your superannuation benefit into a “transition to retirement” pension. This is a special type of pension that pays you a regular income but does not generally allow your balance to be converted into a lump sum prior to your retirement. IPE Super’s Account- Based Pension qualifies as a “transition to retirement” pension under the law.

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About the ERF

The fees, and investment and crediting rate policy of the ERF may be different to those that apply under IPE Super In addition, the ERF does not offer insurance cover. You should seek advice from a licensed financial adviser as to whether the ERF is a suitable investment vehicle for your purposes.

You can obtain a copy of the ERF’s PDS by contacting the Fund’s current ERF. This is:

AUSfundLocked bag 5132 Parramatta NSW 2124Tel: 1300 361 798Contact: The Administratorhttps://ausfund.com.au Email:[email protected]

For more information about IPE Super’s Account-Based Pension, refer to the

which is available from the IPE Super website at www.ipesuper.com.au or by calling the IPE Super Helpline on 1800 257 135.


HOW THE FUND IS MANAGED

The Fund Trustee

Towers Watson Superannuation Pty Ltd is Trustee of the Incitec Pivot Employees Superannuation Fund. This Company has been licensed to act as a trustee of superannuation funds by the prudential regulator of super funds in Australia, the Australian Prudential Regulation Authority.

The Trustee Company is responsible for:

Protecting your rights and interests as a member,

Operating IPE Super in line with the Trust Deed and superannuation law,

Investing IPE Super’s assets prudently according to the Fund’s investment objectives, and

Paying benefits when they are due.

To perform its tasks, the Trustee appoints specialist advisers to provide advice on a range of matters, including investment strategies and communication.

The latest lists IPE Super’s current service providers.

Policy Committee

A Policy Committee is responsible for ensuring that the interests of members and the Company are represented in the management of IPE Super. The Committee consists of an equal number of members who are appointed by IPL and members who are elected periodically by members of IPE Super.

See the latest for details of the structure of the Policy Committee and the names of the Policy Committee members.

Trust Deed

The Trustee is responsible for managing IPE Super in accordance with the Trust Deed – the legal document that sets out the rules and operating requirements of the Fund – and with the laws and regulations governing superannuation in Australia. If there are any differences to this PDS, then the Trust Deed is the final authority.

A copy of the Trust Deed is available on the website.

Providing proof of identity

The Trustee is required to comply with the Government’s Anti-Money Laundering and Counter-Terrorism Financing legislation.

Under the legislation, the Trustee is required to verify a member’s identity, and that of any other benefit recipients, before any benefit is withdrawn from IPE Super. This verification process helps ensure that IPE Super is not being used for money laundering, or funding terrorist or criminal activities.

Withdrawals cannot be processed until the required proof of identity is supplied to the Fund’s Administrator.

The Trustee may need to obtain additional identification information and verify your identity from time to time. It may have to disclose information about you to the regulator, the Australian Transaction Reports and Analysis Centre (AUSTRAC). If this happens, the Trustee is not permitted to inform you due to the sensitive nature of this information.

Staying in touch

As a member of IPE Super, you have access to a range of regular communications to keep you up to date with the latest news about super and your Fund. For example:

The website at www. ipesuper.com.au provides around-the-clock access to information about IPE Super’s features and benefits and investment performance. You can also log into the Member Centre to view your account and other personal information held by the Fund.

The IPE Super Helpline on 1800 257 135 is available during normal business hours to provide you with assistance and answer your queries.

IPE is your member newsletter that keeps you up to date with what’s new in super and your Fund.

The tells you about IPE Super’s investment performance during the year under review, who manages your super and how, recent and proposed changes to superannuation law and the taxes that impact on your super. IPE Super’s

is distributed to members after 30 June each year.

Your which accompanies the provides specific information about your super benefit, including the balance of your account at the end of the year under review, your benefit entitlements, the transactions in and out of your account during the year and your dependant nomination(s). Your annual

is distributed after 30 June each year.

Need financial advice?

Superannuation can be complex. So, when you need to make important decisions about your super, speaking to a licensed financial adviser can help you determine which super choices are the most appropriate for your personal situation and needs. It is important to seek the opinion of a licensed financial adviser before taking any action. This way, you will receive specific advice from qualified professionals who understand your personal circumstances and can consider the whole of your financial affairs when providing advice.

Towers Watson Australia Pty Ltd has arrangements in place to help you with your financial planning: contact Susan Rio on (03) 8681 9800. The Financial Planning Association of Australia (FPA) can also help you find a financial planner by referring you to one in your area. Call them on 1300 337 301 or visit the FPA website at www.fpa.com.au.

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There are certain risks associated with joining IPE Super. These risks generally fall into two categories – investment risk and non-investment risk.

Refer to on investment related risks which is available at www.ipesuper.com.au.

For information on insurance risks, refer to which is available at www.ipesuper.com.au.

Risks of super


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 fund 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.

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.

Fees and other costs

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Incitec Pivot Employees Superannuation Fund

Type of fee Amount How and when paidInvestment fee1 Investment options:

Assertive Plus – 0.72% p.a. to 0.76% p.a. ($7.20 to $7.60 per $1,000)

Assertive – 0.69% p.a. to 0.73% p.a. ($6.90 to $7.30 per $1,000)

Active Balanced^ – 0.67% p.a. to 0.71% p.a. ($6.70 to $7.10 per $1,000)

Conservative – 0.53% p.a. to 0.57% p.a. ($5.30 to $5.70 per $1,000)

Asset class options:

Australian Shares – 0.67% p.a. to 0.71% p.a. ($6.70 to $7.10 per $1,000)

International Shares – 0.47% p.a. to 0.51% p.a. ($4.70 to $5.10 per $1,000)

Diversified Fixed Interest – 0.49% p.a. to 0.53% p.a. ($4.90 to $5.30 per $1,000)

Cash – 0.18% p.a. to 0.22% p.a. ($1.80 to $2.20 per $1,000)

This fee is deducted from investment returns before the returns are applied to your account in the Fund

Administration fee1 $87.00 p.a. plus 0.247% p.a. ($2.47 per $1,000) of your account balance

The dollar fee is deducted from your account monthly. The percentage fee is deducted from investment returns before the returns are applied to your account in the Fund

Buy-sell spread Nil Not applicableSwitching fee First switch in any financial year is free

For each additional switch per financial year: $57.90

This fee is deducted from your account at the time of switching

Advice feesrelating to all members investing in a particular MySuper product or investment option

Nil Not applicable

Other fees and costs2 Other fees may also applyIndirect cost ratio1 Nil Not applicable

^ This is also the option for MySuper members.1 If your account balance for a product offered by the superannuation entity is less than $6,000 at the end of the entity’s income year, the total combined

amount of administration fees, investment fees and indirect costs charged to you is capped at 3% of the account balance. Any amount charged in excess of that cap must be refunded.

2 Insurance fees and fees for certain activities you request may apply (see pages 14 to 16).

This section 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 the superannuation fund as a whole.

Other fees, such as activity fees and insurance fees may also be charged, but these will depend on the nature of the activity or insurance chosen by you. Entry fees and exit fees cannot be charged.

Taxes, insurance fees and other costs relating to insurance are set out in another part of this PDS.

Please note that the Trustee has already negotiated (and will continue to monitor) the fees and costs of the Fund on your behalf. There is no scope to negotiate lower fees and costs on an individual basis.

You should read all the information about fees and other costs because it is important to understand their impact on your investment.


EXAMPLE OF ANNUAL FEES AND COSTS This table gives an example of how the fees and costs in the Active Balanced option^ for this superannuation product can affect your superannuation investment over a 1 year period. You should use this table to compare this superannuation product with other superannuation products.

Example – Active Balanced option^ Balance of $50,000

Investment fees 0.71% p.a. For every $50,000 you have in the superannuation product you will be charged $355 each year*

PLUS Administration fees

$87.00 p.a. plus 0.247% p.a. And, for every $50,000 you have in the superannuation product you will be charged $87.00 each year plus $123.50 in administration fees regardless of your balance

PLUS Indirect costs for the superannuation product

Nil And, indirect costs of $0 each year will be deducted from your investment

EQUALS cost of product

If your balance was $50,000, then for that year you will be charged fees of $565.50 for the superannuation product.

^ This is also the investment option for MySuper members.

* The investment fee shown is the maximum fee applicable, on a gross of tax basis.

Note: Additional fees may apply. And if you leave the superannuation fund, you may also be charged a buy-sell spread which also applies whenever you switch investment options. The buy-sell spread for exiting is nil (this will equal to $0 for every $50,000 you withdraw).

ADDITIONAL EXPLANATION OF FEES AND COSTS

1. Buy-sell spread

A buy-sell spread may be charged by a fund to reflect costs incurred by the fund or charged by the investment managers when you change investment options. IPE Super does not currently charge a separate buy-sell spread; instead, these costs are included in transactional and operational costs. See below for more information.

Any buy-sell spread is in addition to the switching fee which also applies when you change investment options.

2. Administration fees

These fees include administration, consulting, audit, legal and other fees incurred by the Fund.

The dollar fee is deducted from your account monthly. The percentage-based fee is deducted from investment returns earned by your chosen option before the returns are applied to your accounts.

3. Investment fees

The investment fee ranges that apply to the Fund’s investment options are shown in the table on page 13.

4. Taxes and insurance fees

The following taxes and insurance fees are deducted from your accounts in the Fund:

The fee for your insurance cover, generally based on an age-based scale and the level of cover you have chosen. For details, refer to the

Contributions tax generally at the rate of 15% from Company contributions, any salary sacrifice contributions and any personal contributions for which you claim a tax deduction. Any deductions available to the Fund, such as for expenses and insurance fees, reduce the amount of tax deducted.

Excess contributions tax in certain circumstances if your contributions exceed caps set by the Government (see page 18).

No-TFN tax on your concessional (employer and before-tax) contributions if you have not provided the Fund with your TFN.

Stamp duty is payable on the fees for your income protection insurance. This cost is met from the Fund’s assets and is not passed on to you either directly or indirectly.

More information on tax can be found on page 17.

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5. Transactional and operational costs

These costs are incurred by the Fund and its investment managers, and may include brokerage, settlement and custody costs, clearing costs, costs associated with currency hedging and stamp duty on investment transactions. Transactional and operational costs are included in the table on page 13 (except as noted to the right) and are based on the amount of these costs incurred by the Fund or its investment managers during the financial year prior to the date of this PDS. They therefore represent a cost to you.

Generally these costs are deducted from the investment earnings of each investment option before those earnings are applied to your accounts. More information is provided to the right.

6. Borrowing costs, implicit transaction costs and direct property operational costs

In accordance with ASIC relief, these costs have been excluded from the investment fees and indirect costs disclosed in this PDS.

Borrowing costs may be incurred by the Fund’s investment managers and relate to the use of credit facilities that are not derivatives by the managers. Direct property operational costs include rates and utilities, maintenance costs and other property operations costs to the extent that the costs are not recovered from tenants. Implicit transaction costs include the bid/ask spreads charged by the underlying investment managers and the investment adviser.

These costs are calculated based on the amount of those costs incurred in the previous financial year, and represent an additional cost to you. See the table to the right for the amounts of these costs for each option. These amounts are estimates. These costs are deducted from the investment earnings of each investment option prior to determining the crediting rate for that option.

Summary of fees and costs

The following is a summary of the fees and costs associated with each investment option.

ESTIMATED FEES AND COSTS DEDUCTED FROM INVESTMENT RETURNS

Investment option Expected investment

fee

Total transactional

and operational

costs#

Implicit transactional

costs

Borrowing costs

Direct property

operational costs

Assertive Plus 0.74% 0.48% 0.10% 0.12% 0.13%

Assertive 0.71% 0.59% 0.13% 0.19% 0.13%

Active Balanced 0.69% 0.67% 0.15% 0.21% 0.15%

Conservative 0.55% 0.57% 0.20% 0.16% 0.08%

Australian Shares 0.69% 0.37% 0.25% 0.00% 0.00%

International Shares 0.49% 0.12% 0.08% 0.00% 0.00%

Diversified Fixed Interest

0.51% 0.60% 0.47% 0.00% 0.00%

Cash 0.20% 0.03% 0.01% 0.00% 0.00%

Note: These fees and costs are indicative only, as the costs are based on the experience in the year to 30 June 2019. They are indicative as the actual amount charged in the year ahead will depend on the actual fees and costs incurred in respect of each investment option and any changes to underlying asset allocations.

# Transactional and operational costs are included in the Expected investment fee.

7. Operational risk financial requirement reserve

Super funds are required to set aside financial resources to address their operational risks. The Trustee has built up an operational risk financial requirement reserve (ORFR reserve) in the Fund equal to 0.25% of the aggregate of members’ vested benefits. The reserve is invested in the Active Balanced option.

The Trustee periodically monitors the reserve to ensure that it remains close to its target level. Should the reserve fall below a predetermined shortfall limit, the Trustee will enact a plan for its replenishment. This may include deducting amounts from investment earnings. Members will also be advised if such deductions are required.

8. Activity fees

A contribution splitting fee of $63.80 is charged each time a splitting application is processed by the Fund Administrator on your behalf.

If you or your spouse require information on your benefit in relation to a Family Law matter, a fee of $277 will be charged for each date at which information is required. You, or your spouse, are required to pay this fee at the time of any request for information – it is not deducted from your accounts.

In addition, if your super is split under a Family Law agreement or court order, fees will apply for the splitting of your super and the allocation of an amount to your former spouse. These fees are normally shared evenly between you and your former spouse, unless your agreement or court order provides otherwise. The fees may be paid by you and/ or your spouse by cheque, or otherwise will be deducted from the applicable benefit. The fee for establishing an entitlement to your spouse is $207.

All fees include GST where applicable.


9. Fee changes

Some of the fees are dependent on the fees charged by the Fund’s service providers. Some of these fees may be indexed annually (e.g. in line with increases in Average Weekly Ordinary Time Earnings); others depend on the services provided to the Fund each year. The Trustee reserves the right to increase the fees without your consent if necessary in order to manage the Fund. The Trustee may also introduce new fees. You will generally be given at least 30 days’ notice of any fee increases.

The fees shown are current at 1 April 2020, unless otherwise stated.

Further details of the fees, costs and taxes paid by the Fund can be found in the Fund’s Financial Statements. A summary is included in IPE Super’s Annual Report.

FEE DEFINITIONS

A fee is an activity fee if:

(a) the fee relates to costs incurred by the trustee of a superannuation fund that are directly related to an activity of the trustee:

(i) that is engaged in at the request, or with the consent, of a member; or

(ii) that relates to a member and is required by law; and

(b) those costs are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an advice fee or an insurance fee.

An administration fee is a fee that relates to the administration or operation of the superannuation fund and includes costs that relate to that administration or operation, other than:

(a) borrowing costs; and

(b) indirect costs that are not paid out of the superannuation fund that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the fund or in an interposed vehicle or derivative financial product; and

(c) costs that are otherwise charged as an investment fee, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.

A fee is an advice fee if:

(a) the fee relates directly to costs incurred by the trustee of a superannuation fund because of the provision of financial product advice to a member by:

(i) a trustee of the fund; or

(ii) another person acting as an employee of, or under an arrangement with, a trustee of the fund; and

(b) those costs are not otherwise charged as an administration fee, an investment fee, a switching fee, an activity fee or an insurance fee.

A buy-sell spread is a fee to recover transaction costs incurred by the trustee of a superannuation fund in relation to the sale and purchase of assets of the fund.

An exit fee is a fee, other than a buy-sell spread, that relates to the disposal of part or all of a member’s interests in the superannuation fund.

The indirect cost ratio (ICR), for a MySuper product or an investment option offered by a superannuation fund, is the ratio of the total of the indirect costs for the MySuper product or investment option, to the total average net assets of the superannuation fund attributed to the MySuper product or investment option.

A fee is an insurance fee if:

(a) the fee relates directly to either or both of the following:

(i) insurance premiums paid by the trustee of a superannuation fund in relation to a member or members of the fund;

(ii) costs incurred by the trustee of a superannuation fund in relation to the provision of insurance for a member or members of the fund; and

(b) the fee does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and

(c) the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an activity fee or an advice fee.

An investment fee is a fee that relates to the investment of the assets of a superannuation fund and includes:

(a) fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and

(b) costs that relate to the investment of assets of the fund, other than:

(i) borrowing costs; and

(ii) indirect costs that are not paid out of the superannuation fund that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee of the fund or in an interposed vehicle or derivative financial product; and

(iii) costs that are otherwise charged as an administration fee, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee;

but does not include property operating costs.

A switching fee for a MySuper product is a fee to recover the costs of switching all or part of a member’s interest in a superannuation fund from one class of beneficial interest in the fund to another.

A switching fee for superannuation products other than a MySuper product, is a fee to recover the costs of switching all or part of a member’s interest in the superannuation fund from one investment option or product in the fund to another.

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Your super is taxed in a number of ways and these are summarised below. Of course, the way your super is taxed may change from time to time in line with changes to the legislation that governs super. The information that follows is current at the date of publication of this document unless otherwise noted.

CONTRIBUTIONS TAXContributions tax generally at the rate of 15% is deducted from all concessional contributions – that is, employer contributions, any contributions you make from your before- tax salary (by salary sacrifice) and any contributions for which you claim a tax deduction.

If you have not provided your Tax File Number (TFN) to your super fund, the rate of tax that applies to concessional contributions increases substantially to 47%.

If your relevant income is over $250,000, you may receive an additional tax assesment from the ATO.

TAX ON INVESTMENT EARNINGSThe investment return achieved by each investment option is subject to tax up to 15% less any applicable deductions that may be available to the investment managers of the Fund. This tax is deducted from the Fund’s investment earnings before they are applied to your account(s).

EXCESS CONTRIBUTIONS TAXThis tax may apply if your contributions exceed certain caps set by the Government (refer to “Tax limits” on page 18 for more information on contribution caps).

How super is taxed

TAX ON BENEFITS THAT ARE PAID IN CASHThe amount of tax payable depends on a number of factors including:

What type of benefit is paid (retirement, disability or death). For example, if you suffer from a terminal illness, your benefit may be tax free,

Who receives the benefit,

How you receive the benefit (e.g. lump sum amount or pension),

Whether you are an Australian citizen or permanent resident when the benefit is paid. For example, if you are a temporary resident who has permanently left Australia, you may pay higher tax on your benefit.

Your age when you receive the benefit. For example, if you are aged 60 or over, all lump sum payments and pensions paid to you from a taxed super fund (such as IPE Super) will be tax free. If you are less than age 60, any lump sum amounts paid to you will consist of two tax components – a tax-free component and a taxable component.

The rules governing superannuation are complex and they affect each member’s super benefits differently. That’s why discussing your needs with your accountant or a licensed financial adviser can help you ensure that the decisions you make for your super are the most tax-effective for you.

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TAX LIMITSThe Government sets limits or “caps” that affect how superannuation contributions are taxed.

What are the caps on contributions?

These are the limits or caps on how much can be contributed to superannuation each year before extra tax applies.

Concessional contributions Non-concessional contributions#

What is the annual limit? $25,000## $100,000, however, if your total super balance on 30 June 2019 was more than $1.6 million any non-concessional contributions you make in the 2019/20 year will be excessive.

What tax applies if my contributions are within the cap?

Generally 15% contributions tax.*^ Nil.

# If you are under age 65 and you want to make larger non-concessional contributions to your super fund, you may be able to bring forward up to two years of caps, to make total contributions of up to $300,000 over three years. The maximum you can contribute over three years is $300,000 and further restrictions may apply if your total super balance on 30 June 2019 was greater than $1.4 million. If you are over age 65 there is usually a work test applied before you are able to make personal contributions to super. You need to be gainfully employed at least 40 hours in any period of 30 consecutive days in the financial year to which the contribution relates. From 1 July 2019, you may be able to make voluntary contributions to your super during the financial year following the year in which you ceased to meet the work test. Your total superannuation balance must be less than $300,000 at the end of the financial year in which you ceased to meet the work test.

## From 1 July 2019, you may be able to make extra concessional contributions above the cap, if you did not use all of your concessional cap in the 2018/19 year. This option is only available if your total superannuation balance on 30 June 2019 was less than $500,000. Unused cap amounts can be carried forward for a maximum of five years.

* If your relevant income is over $250,000 per year, you may receive an additional tax assessment from the ATO.

^ If your relevant income is less than $37,000 per year you may receive a refund of the 15% contributions tax deducted from your compulsory Company contributions through the low income super tax offset. The refund ranges from $10 to $500 a year. Each year the ATO will determine whether you are eligible, and if so, will pay the refund to your superannuation fund.

What happens if I exceed the caps?

This table shows the extra tax applicable if you exceed the caps:

Concessional contributions Non-concessional contributions

How much tax applies to the excess if I exceed the limit?

Your marginal tax rate less 15% (reflecting tax already paid by the Fund), plus an interest charge.

If you withdraw the excess from superannuation: Nil tax on contributions. Associated earnings taxed at your marginal tax rate.

If you leave the excess in superannuation: Up to 47%.

If you exceed the concessional contributions cap, you can elect to release up to 85% of the excess contributions from the superannuation system. The amount will be paid by your superannuation fund to the ATO and used to meet any of your outstanding tax liabilities (including the tax on the excess contributions) with the remainder then paid back to you. Amounts that you withdraw will not count towards your non concessional contributions cap.

If you exceed the non-concessional cap, you can elect to release the excess contributions from superannuation, together with an amount of “associated earnings”. The amount of associated earnings is determined by the ATO and may not reflect what your superannuation contributions actually earnt.

The ATO will send you a form to enable you to make your elections.

PROVIDING YOUR TAX FILE NUMBERIf you provide your Tax File Number to the Company on commencing employment, the Company is obliged to pass on your TFN to your super fund within 14 days.

Significant consequences apply if your TFN has not been provided to the Fund such as:

Taxing your concessional (Company, deductible and before-tax) contributions at 47%, and

Prohibiting the super fund from accepting any non-concessional contributions from you.

?What are concessional contributions?

Concessional contributions include Company contributions and any contributions you make to superannuation from your before-tax salary (i.e. by salary sacrifice), or a personal contribution for which you claim a tax deduction.

What are non-concessional contributions?

Non-concessional contributions include:

• After-tax contributions for which you have not claimed a tax deduction,

• Excess concessional contributions not withdrawn from superannuation, and

• Certain other contributions from non-salary sources (e.g. contributions made for you by your spouse and certain overseas transfers).

They do not include rollovers or co-contributions.

19 1800 257 135

Protecting your personal information

To ensure that you receive the correct superannuation benefit and insurance, IPE Super keeps precise records about you. This means that the Fund holds a great deal of information about you, such as your contact details, date of birth, Tax File Number, and so on.

Under the privacy legislation, you have the right to access personal information IPE Super holds about you, subject to applicable exceptions.

If you believe that the information is inaccurate or incomplete, you are entitled to request that IPE Super amend your personal information.

The Trustee believes your privacy is important and so has developed a privacy policy to protect your personal information. The policy outlines how IPE Super collects and manages your personal information. A copy of the policy is available at www.ipesuper.com.au or by calling the IPE Super Helpline on 1800 257 135.

If you would like to access or update your personal information, please contact the Fund Administrator (see page 2 for contact details).

Enquiries and complaints

Initial enquiries and complaints, including privacy-related enquiries, should be directed to the IPE Super Helpline on 1800 257 135. In most cases, your enquiry will be dealt with promptly and efficiently over the phone.

If you are not satisfied with the response you receive, there is a formal process through which the Trustee reviews enquiries and complaints. To make a formal enquiry or complaint, you can do so in writing to:

The Fund SecretaryC/– Fund AdministratorIPE SuperPO Box 1442Parramatta NSW 2124Email: [email protected]

The Fund Secretary will usually respond within 30 days. If you are not happy with the Fund Secretary’s response, you can submit a written enquiry or complaint for consideration at a meeting of the Trustee. The Trustee will respond within 90 days. You can request the Trustee’s reasons for its decision if reasons have not already been provided. A copy of the Enquiries and Complaints Policy and Form are available at www.ipesuper.com.au.

If you are not satisfied with the Trustee’s response, you may contact the Australian Financial Complaints Authority (AFCA), except in relation to privacy-related matters. AFCA provides fair and independent financial services complaint resolution that is free to consumers.

There are some complaints that AFCA cannot consider, such as complaints relating to the management of the Fund as a whole. In addition, time limits may apply. Please contact the IPE Super Helpline on 1800 127 953 or refer to AFCA’s website at www.afca.org.au as soon as possible for further information.

You can contact AFCA at:

Australian Financial Complaints AuthorityGPO Box 3Melbourne VIC 3001

Email: [email protected]: 1800 931 678

For privacy-related matters, the Office of the Australian Information Commissioner (OAIC) may review your complaint. You can contact OAIC on 1300 363 992.



Contents


Insurance cover for death and disability

Additional voluntary insurance

Optional income protection insurance

Continuing your insurance when you leave the Company

Insurance for Spouse members

Insurance restrictions and conditions

Risks of insurance



2

3

8

10

12

13

14

15

IPE Super’sInsurance Guide

1 April 2020




Accumulation section including Retained Benefits section, (dated 1 April 2020); and

Spouse section, (dated 1 April 2020). This information should be read in conjunction with the other documents which form part of each Product Disclosure Statement. You should consider this information before making a decision about the product.



Information on tax and superannuation legislation is current as at 1 April 2020. The Trustee reserves the right to correct any errors or omissions.




IPE Super PO Box 1442 Parramatta NSW 2124 Helpline: 1800 257 135 Email: [email protected] Website: www.ipesuper.com.au

Insurance cover in IPE Super is currently provided by MetLife Insurance Limited (ABN 75 004 274 882). The Trustee will review this appointment from time to time.

?

3 1800 257 135

As a member of IPE Super and a permanent employee, you may receive insured benefits in addition to the balance of your IPE Super account if you die, become terminally ill or become totally and permanently disabled (TPD).

Permanent part-time employees are not eligible for TPD insurance if they work less than 15 hours per week.

In this PDS, references to death cover include cover for terminal illness.

Casual employees are only eligible for death cover – see page 7 for details.

Insurance arrangements for Spouse members are on page 13 of this guide.

Insurance cover for death and disability

Permanent employees can choose from four standard levels of cover – 5%, 10%, 15% or 20%. Once your cover has commenced you can opt out of all cover, or out of TPD cover only, on written request to the Trustee. However, you cannot opt out of life cover but retain your TPD cover.

The amount of cover is calculated as:

Your chosen percentage x your future service to age 65 x your super salary

Your insured benefit is based on your super salary at the time of your death, or TPD. Your future service to age 65 is calculated in years and complete months from the date of death or total and permanent disablement.

If you do not choose a level of cover, you will receive the default level of 15%.

The fees for death and TPD cover are deducted from your IPE Super account and, because they depend on your age and amount of cover, they will change each year. To see how the insurance fees are calculated, see page 6.

WHAT DEFINES A DISABILITY?Total and permanent disablement is defined in the insurance policy and the definition may therefore vary over time.

“Total and Permanent Disablement” generally means that, in the opinion of the insurer and the Trustee, you have become incapacitated to such an extent that you are unlikely ever to work for reward in any occupation for which you are reasonably qualified by education, training or experience, and one of the following apply:

You have been absent from employment due to illness or injury for at least six consecutive months;

You have suffered the permanent loss of use of two limbs, or the sight of both eyes, or the loss or use of one limb and the sight of one eye (where a “limb” is the whole hand or foot);

As a result of your illness or injury you are permanently unable to perform at least two basic activities of daily living such as feeding, bathing or dressing;

As a result of your illness or injury you are suffering from the permanent deterioration of intellectual capacity such that you have been required to be under the continuous care of another adult for at least six months, and such care is likely to be permanent, daily and ongoing.

This is just a summary, and you should refer to the Fund’s Trust Deed and insurance policy for the full definition.

A different definition may apply if you held TPD cover in the Fund on 30 June 2014 or if you have been on employer-approved leave for more than 24 months. In all cases, you must have ceased to be employed by your employer as a result of your injury or illness and the insured benefit will only be paid if the insurer and Trustee approve your claim.

“Terminal illness” is when an insured member suffers from a sickness which:

A medical practitioner, specialising in the insured member’s sickness, certifies in writing will, despite reasonable medical treatment, lead to the insured member’s death within 12 months of the date of certification; and

The insurer is satisfied, on medical or other evidence, despite reasonable medical treatment, will lead to the insured member’s death within 12 months of the date of certification.

Both the illness and certification (as mentioned in the definition above) must take place while the member is covered under IPE Super’s insurance policy.

There may be other circumstances not outlined above that would give rise to the payment of a TPD or terminal illness benefit under IPE Super’s insurance policy.

In all circumstances, the insured benefit will be paid to you only if the Trustee and insurer approve your claim.

Once you have ceased employment with the Company, your insurance cover, if any, (other than any income protection cover) will be provided through IPE Super’s Retained Benefits section. While a Retained Benefits member, a different definition of total and permanent disablement may apply. Contact the IPE Super Helpline on 1800 257 135 for more information.

For eligibility conditions for standard insurance cover, refer to page 4.

You should also refer to page 14 for important information about the terms and conditions of insurance cover, including circumstances where cover may be subject to restrictions or other conditions.

You can change your cover up to the 20% level at any time by contacting the IPE Super Helpline. If you choose the 20% level within 120 days of joining IPE Super and your cover is below the limit set by the insurer, no evidence of good health will be required for the increase. Any other increases in cover are subject to approval by the insurer and, if required, to you providing evidence of good health.

Each level of cover can be expressed as a multiple of your super salary, as shown in the table on page 5.


AM I ELIGIBLE FOR STANDARD INSURANCE COVER?* If you are a member of IPE Super and a permanent IPL employee*, standard insurance cover at the default 15% level will generally commence automatically when you reach age 25 and your account balance exceeds $6,000.

If you are under age 25 or your account balance has not yet reached $6,000, you can still opt in to receive standard insurance cover by completing the Application and Change Form for Accumulation Members, indicating your chosen level of cover. You will not be required to provide health evidence if your instruction to opt in is received by the Fund Administrator within 120 days of commencing employment with IPL.

In both cases, standard cover will commence provided that two additional conditions are met:

• Condition 1: your first Superannuation Guarantee (SG) contribution is received by IPE Super within 120 days of you commencing employment with IPL; and

• Condition 2: you are in “Active Employment” (see box below) on the day cover is due to commence (for members opting in, this is the date your form is received by the Fund Administrator).

If either of these conditions is not met, then cover will still commence but with “Limited Cover” applying as detailed in the box below.

• If you do not meet Condition 1 (i.e. the SG contribution requirement), your insurance cover will be “Limited Cover” for at least the first 12 months from when both the age 25 and $6,000 balance conditions are met. “Limited Cover” will cease to apply provided that you are in “Active Employment” for the final 30 days of this 12-month period. If not, Limited Cover will continue until you have been in Active Employment for 30 consecutive days.

• If you do not meet Condition 2 (i.e. the “Active Employment” requirement), your insurance cover will initially be “Limited Cover” until you have been in Active Employment for 30 consecutive days.

What if I don’t opt in within 120 days of commencing employment?If your instruction to opt in is not received by the Fund Administrator within 120 days of commencing employment, you can still opt in to cover but will need to provide full evidence of health. Alternatively, you can wait until you meet the criteria for automatic standard insurance cover.

* Note: Cover for death and total and permanent disablement (TPD) is available only to permanent employees who work at least 15 hours each week. TPD cover is not available to permanent part time employees working less than 15 hours per week.

Active Employment generally means you are capable of performing your identifiable duties without restriction by illness of injury for at least 35 hours per week (regardless of whether you are actually working those hours).

Limited Cover generally means that you will not be covered for any pre-existing conditions. You will only be covered for an illness which became apparent to you, or any injury which occurred, on or after the date that cover commences or recommences, as applicable.

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LEVEL OF COVERJack is age 30 and has a super salary of $80,000. Using the table below, Jack’s choices would be as follows:

Choice Insurance cover

1 1.75 (35 years to age 65 x 5%) x $80,000 = $140,000

2 3.50 (35 years to age 65 x 10%) x $80,000 = $280,000

3 5.25 (35 years to age 65 x 15%) x $80,000 = $420,000

4 7.00 (35 years to age 65 x 20%) x $80,000 = $560,000

Jack selects a level of cover of 10% giving him $280,000 of cover. One year later, if Jack’s super salary remains the same at $80,000, his insurance cover would be: 3.40 (34 years to age 65 x 10%) x $80,000 = $272,000.

Age at death or disablement

Level of cover Age at death or disablement

Level of cover

5% 10% 15% 20% 5% 10% 15% 20%

16 2.45 4.90 7.35 9.80 41 1.20 2.40 3.60 4.80

17 2.40 4.80 7.20 9.60 42 1.15 2.30 3.45 4.60

18 2.35 4.70 7.05 9.40 43 1.10 2.20 3.30 4.40

19 2.30 4.60 6.90 9.20 44 1.05 2.10 3.15 4.20

20 2.25 4.50 6.75 9.00 45 1.00 2.00 3.00 4.00

21 2.20 4.40 6.60 8.80 46 0.95 1.90 2.85 3.80

22 2.15 4.30 6.45 8.60 47 0.90 1.80 2.70 3.60

23 2.10 4.20 6.30 8.40 48 0.85 1.70 2.55 3.40

24 2.05 4.10 6.15 8.20 49 0.80 1.60 2.40 3.20

25 2.00 4.00 6.00 8.00 50 0.75 1.50 2.25 3.00

26 1.95 3.90 5.85 7.80 51 0.70 1.40 2.10 2.80

27 1.90 3.80 5.70 7.60 52 0.65 1.30 1.95 2.60

28 1.85 3.70 5.55 7.40 53 0.60 1.20 1.80 2.40

29 1.80 3.60 5.40 7.20 54 0.55 1.10 1.65 2.20

30 1.75 3.50 5.25 7.00 55 0.50 1.00 1.50 2.00

31 1.70 3.40 5.10 6.80 56 0.45 0.90 1.35 1.80

32 1.65 3.30 4.95 6.60 57 0.40 0.80 1.20 1.60

33 1.60 3.20 4.80 6.40 58 0.35 0.70 1.05 1.40

34 1.55 3.10 4.65 6.20 59 0.30 0.60 0.90 1.20

35 1.50 3.00 4.50 6.00 60 0.25 0.50 0.75 1.00

36 1.45 2.90 4.35 5.80 61 0.20 0.40 0.60 0.80

37 1.40 2.80 4.20 5.60 62 0.15 0.30 0.45 0.60

38 1.35 2.70 4.05 5.40 63 0.10 0.20 0.30 0.40

39 1.30 2.60 3.90 5.20 64 0.05 0.10 0.15 0.20

40 1.25 2.50 3.75 5.00


CALCULATING YOUR INSURANCE FEEIPE Super offers you insurance fees that may be lower than the fees that apply to personal insurance policies. This is because IPE Super buys its insurance at wholesale rates and there are no sales commissions.

Like most life insurance policies, the fees charged depend on your age and how much cover you wish to purchase. To calculate your fee, follow these steps:

1. Determine how much cover you need (see previous page).

2. Go to the rates table below and find the rate for your age.

3. Calculate your annual fee: insurance rate x amount of insurance cover selected ÷ $1,000.

4. If the insurer has applied a loading to your insurance cover, then you need to apply that loading to the fee in step 3.

These fees are subject to change from time to time.

Annual fee for every $1,000 of insurance cover

Age Rate per $1,000 of insurance cover


Death and TPD cover

Death only cover

Death and TPD cover

Death only cover

15 $0.29 $0.29 40 $0.96 $0.5816 $0.34 $0.34 41 $1.08 $0.6317 $0.43 $0.43 42 $1.22 $0.7018 $0.50 $0.50 43 $1.37 $0.7719 $0.52 $0.50 44 $1.54 $0.8420 $0.51 $0.50 45 $1.73 $0.9321 $0.50 $0.46 46 $1.94 $1.0022 $0.50 $0.44 47 $2.18 $1.1023 $0.48 $0.43 48 $2.45 $1.2024 $0.48 $0.41 49 $2.76 $1.3225 $0.46 $0.39 50 $3.11 $1.4526 $0.44 $0.36 51 $3.51 $1.5927 $0.43 $0.35 52 $3.95 $1.7428 $0.45 $0.35 53 $4.40 $1.8929 $0.46 $0.35 54 $4.93 $2.0730 $0.46 $0.35 55 $5.45 $2.2431 $0.48 $0.35 56 $6.01 $2.4532 $0.51 $0.37 57 $6.69 $2.6833 $0.53 $0.38 58 $7.45 $2.9534 $0.57 $0.41 59 $8.34 $3.2435 $0.60 $0.42 60 $9.32 $3.5636 $0.65 $0.43 61 $10.41 $3.9237 $0.71 $0.45 62 $11.58 $4.3038 $0.78 $0.50 63 $12.89 $4.6939 $0.86 $0.53 64 $14.28 $5.10

Example

Using our previous example, Jack who is 30 years old and earns $80,000, selected the 10% cover level for his death and TPD insurance cover (i.e. 10% x 35 x $80,000 = $280,000). This is how Jack would calculate the annual fee:

$0.46 (rate for age 30) x ($280,000 ÷ $1,000)

= $0.46 x $280

= $128.80 per year (or around $2.48 per week).

In one year’s time, Jack’s insurance fee will increase to:

$0.48 x $272 = $130.56 per year

Note: The above insurance fees are current as at 1 April 2020 but are subject to change.

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INSURANCE COVER FOR CASUALSCasual employees who are age 25 or over and have reached a balance of $6,000 may be provided with death cover, which includes cover for terminal illness. If you wish to opt in to cover but are under age 25 or your account balance has not yet reached $6,000, please contact the IPE Super Helpline on 1800 257 135.

The level of cover provided is based on your age, as shown in the table below. The cost of cover is $1.16 per week and is deducted from your IPE Super account. You can cancel this cover at any time on written request to the Trustee. Cover ceases at age 65.

Age Level of cover

Age Level of cover

15 $137,200 40 $78,20016 $137,200 41 $73,10017 $137,200 42 $67,90018 $137,200 43 $61,50019 $137,200 44 $56,40020 $137,200 45 $52,60021 $137,200 46 $48,70022 $137,200 47 $44,90023 $137,200 48 $41,00024 $137,200 49 $37,20025 $137,200 50 $34,60026 $137,200 51 $32,10027 $137,200 52 $29,50028 $137,200 53 $26,90029 $137,200 54 $25,60030 $130,800 55 $24,10031 $124,400 56 $22,20032 $119,200 57 $20,30033 $114,100 58 $18,20034 $109,000 59 $16,30035 $103,800 60 $14,40036 $98,700 61 $13,10037 $93,600 62 $12,30038 $88,500 63 $11,70039 $83,300 64 $11,000

Note: The above levels of cover are current as at 1 April 2020 but are subject to change.


IPE Super allows members who are permanent employees to choose from four levels of standard insurance cover (5%, 10%, 15% and 20%). The standard insurance benefit is calculated as:

Your chosen percentage x your future service to age 65 x your super salary.

If you choose the 20% level of cover, you can also purchase additional voluntary insurance cover. Casual employees cannot purchase additional voluntary insurance cover. Spouse members should refer to page 13 for details of Spouse insurance cover.

HOW MUCH ADDITIONAL COVER CAN I BUY?

You can select the amount of additional cover you want in multiples of $10,000. There is an overall maximum (including your standard cover) of $5 million for death cover and $3 million for TPD cover.

HOW DO I PAY FOR THE COVER?You do not need to physically make any payments for this cover. The cost of additional cover will simply be deducted from your IPE Super account, provided there are sufficient funds in your account to cover the insurance fees.

ARE THE FEES COMPETITIVE?In most cases, the fees should be lower than those available through personal insurance policies. This is because IPE Super buys its insurance at wholesale rates and there are no sales commissions.

ARE THERE ANY OTHER COSTS?There are no other costs such as commissions or administration fees associated with the Fund’s insurance arrangements.

Additional voluntary insurance

Annual fees for additional voluntary insurance



Death and TPD

cover

Death only cover

Death and TPD

cover

Death only cover

15 $0.35 $0.35 40 $1.15 $0.7116 $0.41 $0.41 41 $1.29 $0.7517 $0.51 $0.51 42 $1.45 $0.8218 $0.60 $0.59 43 $1.64 $0.9219 $0.64 $0.59 44 $1.85 $1.0020 $0.62 $0.59 45 $2.08 $1.1021 $0.60 $0.56 46 $2.32 $1.2022 $0.60 $0.52 47 $2.62 $1.3223 $0.57 $0.51 48 $2.94 $1.4424 $0.57 $0.49 49 $3.32 $1.5825 $0.55 $0.48 50 $3.74 $1.7426 $0.53 $0.44 51 $4.20 $1.9027 $0.52 $0.42 52 $4.74 $2.0928 $0.53 $0.42 53 $5.28 $2.2629 $0.56 $0.42 54 $5.92 $2.4830 $0.56 $0.43 55 $6.52 $2.6931 $0.57 $0.43 56 $7.22 $2.9532 $0.60 $0.44 57 $8.03 $3.2233 $0.64 $0.46 58 $8.95 $3.5334 $0.67 $0.48 59 $10.01 $3.8935 $0.73 $0.50 60 $11.18 $4.2736 $0.78 $0.52 61 $12.49 $4.7037 $0.85 $0.53 62 $13.89 $5.1538 $0.93 $0.59 63 $15.45 $5.6239 $1.03 $0.65 64 $17.14 $6.12


WHAT ARE THE FEES?Like most life insurance, the fees depend on your age and the amount of cover you wish to purchase.

The standard annual insurance fee is calculated using the table below. These rates are subject to change from time to time. You should also note that the insurer may impose a fee loading in certain circumstances based on the medical evidence that you provide. The cost of cover generally changes each year as you get older.

For example:

Jo is aged 35. She has just had a child and wants to increase her death and TPD cover. If she wants $50,000 of additional cover she will pay $36.50 in standard fees in the first year (calculated as 50 x $0.73). The cost will increase to $39.00 in the next year (calculated as 50 x $0.78).

Ian is aged 28 and has just bought his first home. He wants to purchase additional cover of $80,000 to make sure that his mortgage is covered in the event of his death or disablement. The standard cost of $80,000 cover for Ian is $42.40 in the first year (calculated as 80 x $0.53). In the next year, the cost will increase to $44.80 (80 x $0.56).

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HOW DO I KNOW HOW MUCH STANDARD INSURANCE COVER I’VE ALREADY GOT WITH IPE SUPER? Your annual Benefit Statement shows your standard death and TPD benefit at 30 June. You can also log into your account through the Member Centre on IPE Super’s website or contact the IPE Super Helpline (see page 2 for details).

HOW DO I KNOW HOW MUCH ADDITIONAL COVER I NEED? Everyone’s situation is different. In order to work out how much insurance cover you need, you should consider the following:

Whether you have dependants who rely on you for financial support;

The size of your financial commitments, such as your mortgage and other loans;

The value of your current assets including superannuation you have already accumulated, and your standard insurance cover in IPE Super; and

The impact that the cost of insurance fees will have on the growth of your benefit.

HOW MUCH ADDITIONAL COVER DO I HAVE?Your annual Benefit Statement will show you the amount of your additional insurance cover.

DO I NEED TO PROVIDE EVIDENCE OF GOOD HEALTH BEFORE MY ADDITIONAL COVER STARTS?Like most other insurance, the insurer will need to assess your application before your additional cover starts. As a first step, you will need to complete the insurer’s form included in the Application for Additional Voluntary Insurance. You should read the “duty of disclosure” section carefully.

Depending on the amount of cover you require and the content of your Statement, you may also be required to provide certain financial information or undergo further medical examinations or tests (known as “underwriting”). The insurer will pay for these. The insurer will assess the results and may apply a loading to your fee, or impose restrictions or exclusions on the cover granted to you. The insurer may even refuse your application for cover. Any cover subject to underwriting will only be granted if you provide all required evidence and the insurer grants the cover in writing. It will commence on the date advised by the insurer.

However, while your application is being assessed, you will be covered against accidental death or TPD for a period not exceeding 90 days from the date your application is received by the insurer. Total accidental cover will be limited to the cover you applied for, or $1,500,000 less your standard insured benefit, whichever is lower.

If you exercise the option to direct your future Superannuation Guarantee (SG) contributions to a fund other than IPE Super and then subsequently elect to re-direct your SG contributions back to IPE Super, the Fund’s insurer may wish to underwrite you before you are accepted for insurance cover if that cover is greater than the cover you had in the Fund’s Retained Benefits section.

HOW DO I APPLY FOR ADDITIONAL INSURANCE COVER?1. Complete an

which is available at www.ipesuper.com.au or by calling the IPE Super Helpline on 1800 257 135.

2. Ensure that you complete the insurer’s form that accompanies it.

3. You should send your completed forms to the Fund Administrator at:

IPE Super PO Box 1442 Parramatta NSW 2124

If you return the insurer’s form in a separate sealed envelope, it will be sent unopened to the insurer.

The Fund Administrator will contact you shortly thereafter to confirm your cover, or advise you of any additional requirements, such as medical tests.

Your additional cover commences only if your application is approved by the insurer and is subject to any conditions set by the insurer.

CAN I CHANGE MY COVER? You can stop or decrease the amount of your additional voluntary cover at any time by simply writing to the Fund Administrator.

You can also increase your cover at any time, but you will need to complete a new form for the insurer, and may require further medical tests.

WHEN WILL A BENEFIT BE PAYABLE?A benefit is payable on your death, or on meeting the insurer’s definition of either “terminal illness” or “total and permanent disablement”. The current definitions are shown on page 3.

The benefit payable will be met from an insurance policy taken out by the Trustee of the Fund and is subject to the terms and conditions of that policy. For information on these terms and conditions, refer to page 14.

In all circumstances, the additional benefit will be paid to you only if the Trustee and insurer approve your claim.

WHO RECEIVES THE ADDITIONAL INSURED BENEFIT ON MY DEATH?Your additional insured benefit will be paid in the same way as your standard death benefit from IPE Super.


Income protection insurance provides you with a regular monthly income of up to 75% of your super salary* if you are unable to work for more than three months due to illness or injury, and you satisfy the insurer’s definition of “totally disabled”**.

Provided your claim is accepted by the insurer, payments generally commence effective three months after your last day at work and, provided that you continue to meet the Fund’s insurer’s definition of “totally disabled”**, are payable for up to two years (or to age 65, whichever is earlier).

If you are receiving other sickness or accident benefits while you are off work, such as WorkCover, TAC benefits, or other income protection benefits, or you receive payments from your employer for working, your monthly income protection insurance payments will be reduced by these amounts.

Further, the regular income benefit will not be paid if your temporary disablement is due to war (including invasion or civil unrest and whether declared or not), intentional self-inflicted injury or any attempt to commit suicide, or normal pregnancy#.

If you choose to direct your future SG contributions to a fund other than IPE Super, your cover will cease with effect from the last day of the month in which SG contributions are received by the Fund on your behalf. Further, if you transfer the whole of your benefit from the Fund, all cover under the Fund will cease on the day that your money is paid to your new fund.

* Subject to a maximum benefit of $20,000 per month.

** Under the Fund’s insurance policy, “totally disabled” refers to circumstances where, due to sickness or injury, you are not working and are unable to perform at least one income producing duty of your occupation. You must also be under the regular care, and following the advice, of a medical practitioner.

# “Normal pregnancy” includes normal and uncomplicated pregnancy, caesarean birth, threatened miscarriage, participation in in-vitro fertilisation or other medically assisted fertilisation techniques and normal discomforts of pregnancy such as morning sickness, back ache, varicose veins, ankle swelling and bladder problems.

Optional income protection insurance

HOW CAN I OBTAIN INCOME PROTECTION INSURANCE? IPE Super gives you the option of purchasing income protection insurance through the Fund.

You can apply for income protection insurance at any time. You need to fill out an

and return it as directed. To apply, you must be a permanent employee working at least 15 hours per week. Casual employees and Spouse members are not eligible to apply for income protection insurance.

You should also complete the insurer’s form which is included with the Application for Income Protection Insurance Form, or call the IPE Super Helpline on 1800 257 135 for a copy.

Cover is subject to approval by the Fund’s insurer and you may be required to provide further evidence of good health, and/or undergo medical tests or examinations as requested by the insurer. The insurer will pay for these.

The insurer will assess the results and may apply a loading to your fee, or impose restrictions or exclusions on the cover granted. It may even refuse your application for cover.

Your cover will commence only if your application is approved by the insurer and, if so, will be effective from the date advised by the insurer.

If you have elected to re-direct your future SG contributions to another fund, you do not have the option of purchasing income protection insurance through IPE Super. If you subsequently elect to re-direct your SG contributions back to IPE Super, you will be eligible to apply for income protection insurance at that time.

The benefit payable will be met from an insurance policy taken out by the Trustee of the Fund and is subject to the terms and conditions of that policy. For information on these terms and conditions, refer to page 14.

HOW MUCH DOES IT COST? The standard annual fee you will pay for IPE Super income protection insurance depends on your age and gender. You will pay your fee in monthly instalments, which will be deducted from your IPE Super account (provided there are sufficient funds in the account).

To calculate your annual fee, follow these simple steps:

1. Calculate the level of annual benefit payable under the policy. This is worked out as:

75% X your annual super salary***

2. Find the fee in the table on page 11 that applies to you based on your age and your gender.

3. Calculate the annual fee:

Fee X the amount of annual benefit ÷ 1,000

4. Divide your annual fee by 12 to calculate the monthly fee that will be deducted from your IPE Super account.

*** The maximum benefit payable is $20,000 per month or $240,000 p.a.

Stamp duty is payable on the fees for your income protection insurance. This cost is met from the Fund’s assets and is not passed on to you either directly or indirectly.

11 1800 257 135

INCOME PROTECTION INSURANCE FEES

Annual fees per $1,000 of annual benefit#

Age Male Female Age Male Female

15 $1.84 $2.04 40 $2.74 $4.1416 $1.86 $2.07 41 $3.03 $4.5617 $1.94 $2.15 42 $3.34 $5.0218 $1.97 $2.20 43 $3.68 $5.5119 $1.97 $2.20 44 $4.12 $6.1320 $2.02 $2.33 45 $4.50 $6.6821 $1.86 $2.25 46 $5.00 $7.3222 $1.76 $2.20 47 $5.56 $8.0823 $1.68 $2.17 48 $6.21 $8.8824 $1.60 $2.17 49 $6.88 $9.7125 $1.50 $2.15 50 $7.69 $10.6126 $1.45 $2.20 51 $8.57 $11.5727 $1.45 $2.30 52 $9.58 $12.5828 $1.45 $2.36 53 $10.66 $13.6429 $1.45 $2.38 54 $11.93 $14.8130 $1.50 $2.46 55 $13.33 $16.0231 $1.53 $2.51 56 $14.86 $17.2932 $1.60 $2.61 57 $16.54 $18.5833 $1.68 $2.69 58 $18.40 $19.9634 $1.73 $2.74 59 $20.47 $21.4135 $1.86 $2.92 60 $23.01 $23.1936 $1.97 $3.05 61 $25.81 $25.0537 $2.15 $3.29 62 $28.96 $27.3338 $2.30 $3.52 63 $25.18 $23.0639 $2.51 $3.80 64 $9.11 $8.33

# The fees shown in the table above are the standard fees and are current as at 1 April 2020. Insurance cover is subject to the provision of satisfactory health evidence and the Fund’s insurer retains the right to decline cover or increase the fees shown above in individual cases. You will be notified if this applies to you.

Example

Susan is aged 30 and has an annual super salary of $50,000. She wishes to take out income protection insurance through IPE Super. The annual fee that will be deducted from Susan’s IPE Super account is calculated as follows:

1. Annual benefit = 75% x $50,000 = $37,500

2. As shown in the fee table, the rate for a female aged 30 is $2.46

3. Annual fee = $2.46 x $37,500 ÷ 1,000 = $92.25 per year ($7.69 per month)


What if my account is inactive?

Under the law, we may need to cancel your insurance cover if your account is “inactive” for 16 months. For insurance purposes, inactive accounts are those where neither a contribution nor rollover has been made within the previous 16 months. In these circumstances, we must cancel your insurance cover unless you tell us you want to continue your insurance cover at your own cost or you arrange to make a contribution or rollover. We will warn you in advance if your account is classified as inactive and your insurance could stop. You can provide an instruction for your insurance cover to continue even if your account becomes inactive in future. Provided that this instruction is received by the Fund Administrator prior to the date that cover is due to cease, your insurance cover will continue, unchanged.

Should we have to cancel your insurance due to inactivity, we will confirm that this has happened and outline steps you can take to apply for your insurance to be reinstated. If your instruction to continue your cover is received by the Fund Administrator within 60 days of the cover ceasing, your cover will be reinstated from the date it ceased. It will be the same type and amount of cover, with the same restrictions (if any) that applied immediately before your cover ceased.

If you are not in “Active Employment” at the time that cover is reinstated, “Limited Cover” will apply (see page 4 for an explanation of these terms) until you have been in Active Employment for 30 consecutive days.

Where your cover has been cancelled and you wish for it to be reinstated more than 60 days later, you will be required to provide the Fund’s insurer with evidence of good health. The terms of cover will be as advised to you by the insurer and the insurer may apply a loading to your fee or an exclusion to the cover granted. While your application is being assessed, you will be covered against accidental death or accidental TPD for a period not exceeding 90 days from the date your application to have your cover reinstated is received by the insurer.

When you leave employment, your benefit is transferred to the Retained Benefits section.

You can keep your life and disability cover in the Fund as described below. However if your account is inactive we may be required to cancel your cover.

Any income protection cover generally ceases 60 days after you leave employment but you have an option to continue this cover as a personal policy as described below.

LIFE AND DISABILITY COVERYour life and terminal illness insurance and TPD cover continues automatically in the Retained Benefits section. On your cessation of employment with IPL, the amount of your insurance will be calculated. On your automatic transfer to IPE Super’s Retained Benefits section, this will be the amount of your insurance cover.

This amount will be fixed, although you can reduce or cancel your cover in the Retained Benefits section at any time by completing a Retained Benefits Member Change Form. The fees will be the same as for permanent employees (see page 6 and page 8 if you have additional voluntary insurance).

While a Retained Benefits member, in certain circumstances, a non-occupation based definition of total and permanent disablement may apply.

If you later re-join the Company and IPE Super, your new standard cover will be the greater of the level of standard cover you choose on re-joining the Fund and the level of standard cover you have in the Retained Benefits section (i.e. you cannot double up on your standard insurance cover) plus the amount of any additional voluntary death insurance you had in the Retained Benefits section.

If you subsequently apply for additional voluntary insurance and your application is accepted by the insurer, this additional cover will be added to your total cover amount.

INCOME PROTECTION COVERWhen you leave your employer, your income protection cover (if any) for temporary disablement generally ceases 60 days after you terminate employment (or earlier if you take up the option described to the right). This is called “extended cover”.

Continuing your insurance when you leave the Company

You may have the opportunity of continuing the income protection cover you had as an employed member of IPE Super by purchasing a separate insurance policy through the Fund’s insurer at your own expense without the need to provide evidence of good health. The fees for this separate policy will be based on the insurer’s current retail fees, which will be different to the fee you paid while you were a member of IPE Super.

To be eligible to take advantage of this option to continue your income protection cover, you:

• Must apply and pay your insurance fee within 60 days of leaving the Company;

• Must be less than 60 years of age in the case of income protection cover at the time your cover ends under your policy with IPE Super;

• Must not have an insurance benefit payable to you as a member of IPE Super and there must not be any circumstances which, if the subject of a claim, would result in an insured benefit being paid to you as a member of IPE Super;

• Must not join the armed forces other than the Australian Armed Forces Reserve and must not be on active duty outside Australia;

• Prior to leaving your employer, must have been a permanent employee working at least 15 hours per week;

• Must have met all of the insurer’s underwriting requirements for occupations and pastimes; and

• Must be leaving employment with your employer. This option is not available if you exercise “Choice of Fund” but remain an employee of IPL.

If you take out a separate policy with the Fund’s insurer, no evidence of good health will normally be required. However, any restrictions, loadings or other special terms that applied to your cover while you were a member of IPE Super will continue to apply to your separate policy.

For more information on continuing your income protection cover when you leave the Company, contact the IPE Super Helpline on 1800 257 135.

13 1800 257 135

Spouse members are entitled to apply for life insurance through IPE Super. You can choose the amount of insurance cover you wish to purchase. The fees will be deducted from your Spouse account and the amount paid will appear on your annual Benefit Statement after 30 June each year.

The fees relating to the various levels of cover are set out to the right. Insurance cover for spouses relates to life insurance only and does not include cover for TPD.

To apply for life insurance cover, you must complete the “Life insurance cover section” of the available from the IPE Super website at www. ipesuper. com. au and return it as directed.

Your application for cover will be assessed by the Fund’s insurer, who will forward an additional health questionnaire to you for completion.

Based on the questionnaire and any other evidence requested, the insurer may apply a loading to your fee, or exclusion to the cover granted. Alternatively, it may refuse your application. Such a refusal may affect your ability to obtain insurance cover in the future.

You will be notified in writing of the insurer’s decision and of any conditions that may have been imposed by the insurer. If the application is accepted, cover will commence from the day advised by the insurer.

Spouse members can cancel or change their insurance cover at any time by contacting the IPE Super Helpline on 1800 257 135.

The benefit payable on death will be met from an insurance policy taken out by the Trustee of the Fund and is subject to the terms and conditions of that policy. For information on these terms and conditions, refer to page 14.

Cover will cease if:

You decide to leave IPE Super and close your Spouse account;

There is not enough money in your Spouse account to cover the insurance fees;

A claim is paid;

You reach age 65; or

Your account is inactive and you have not elected for your cover to continue (refer to page 12).

Spouse members can elect to transfer out their account to another fund at any time (contact the Fund Administrator for further details). Any insurance cover you may have will cease on the date your benefit is paid to another fund and your account is closed.

Insurance for Spouse members

Annual fees for life insurance for Spouse members

Age Rate per $1,000 of cover

Age Rate per $1,000 of cover

Male Female Male Female

15 $0.44 $0.20 40 $0.87 $0.60

16 $0.51 $0.22 41 $0.94 $0.67

17 $0.65 $0.27 42 $1.02 $0.71

18 $0.75 $0.29 43 $1.14 $0.75

19 $0.75 $0.29 44 $1.25 $0.78

20 $0.75 $0.27 45 $1.38 $0.82

21 $0.71 $0.27 46 $1.50 $0.85

22 $0.67 $0.27 47 $1.65 $0.92

23 $0.65 $0.24 48 $1.81 $0.99

24 $0.63 $0.22 49 $1.99 $1.07

25 $0.60 $0.22 50 $2.18 $1.16

26 $0.56 $0.20 51 $2.38 $1.31

27 $0.53 $0.20 52 $2.61 $1.47

28 $0.53 $0.20 53 $2.83 $1.63

29 $0.53 $0.22 54 $3.10 $1.79

30 $0.53 $0.24 55 $3.37 $1.94

31 $0.53 $0.24 56 $3.68 $2.14

32 $0.56 $0.27 57 $4.02 $2.35

33 $0.58 $0.29 58 $4.41 $2.54

34 $0.60 $0.34 59 $4.86 $2.76

35 $0.63 $0.36 60 $5.35 $3.01

36 $0.65 $0.41 61 $5.89 $3.27

37 $0.67 $0.44 62 $6.44 $3.61

38 $0.73 $0.49 63 $7.02 $4.06

39 $0.80 $0.53 64 $7.63 $4.55


Example

Erin is 30 years old and would like to purchase life insurance cover of $200,000. This is how Erin would calculate her annual insurance fee:

$0.24 (rate for her age) X ($200,000 ÷ $1,000)

= $0.24 X $200

= $48 per year (or around 92 cents per week)


The insurance amounts payable on death or disablement are met from insurance policies taken out by the Fund, and are subject to the terms and conditions of those policies. The following is a summary only. In the event of any differences between this summary and the insurance policies or the Fund’s Trust Deed, the policies or Trust Deed, as applicable, prevails.

There may be delays in processing your claim or gathering the data necessary to assess your claim.

There are eligibility conditions you must meet before cover for standard or additional voluntary insurance can start. If you are joining the Fund as a Spouse member, insurance cover does not commence until your application for cover has been successfully approved by the Fund’s insurer.

From time to time, you may be asked to submit evidence of good health to IPE Super’s insurer, for example, if you increase your cover, apply for additional voluntary insurance cover or income protection insurance, or if your standard cover exceeds the limit set by the insurer. If this applies to you, you should read the “duty of disclosure” section of the insurer’s forms carefully. Any cover subject to health evidence will only be granted if you provide all required evidence and the insurer grants the cover in writing. The insurer will assess the evidence and may apply a loading to your fee, or impose restrictions or exclusions on the cover granted. The insurer may even refuse your application for cover. Such a refusal may affect your ability to obtain insurance cover in the future.

Your insurance cover will change on exercising “Choice of Fund” (as explained to the right). If you subsequently redirect SG contributions to the Fund after exercising “Choice of Fund”, the Fund’s insurer may wish to underwrite you before you are accepted for insurance cover if the new amount of cover is greater than the cover you have in the Fund’s Retained Benefits section.

If, for some reason, the insurer does not pay out all or part of the insurance, then the benefit payable will be reduced by that amount. You will be advised if this affects you.

Insurance restrictions and conditions

WHAT IF I TAKE LEAVE WITHOUT PAY?If you are intending to take leave without pay (e.g. parental leave) for more than 30 days, you should contact the IPE Super Helpline on 1800 257 135 before you leave work to arrange for your insurance cover to continue.

If you are taking leave without pay, your insurance cover may stop due to inactivity (see page 12 for details).

WHAT HAPPENS IF I TRAVEL OVERSEAS?If you are travelling overseas, cover will generally continue for up to three years for Australian residents. Non-Australian residents will be covered for a maximum of 90 days while overseas.

However, in some cases your insurance cover may stop due to account inactivity (see page 12 for details).

If you become disabled while overseas and make a claim, the insurer may require you to return to Australia at your own expense to enable your disability to be assessed before your claim is accepted.

WHEN DOES MY COVER STOP?Your insurance cover stops when you reach age 65. It will stop earlier if an insurance claim is paid to you, you cease to be a member of the Fund, there is not enough in your account to pay the fees or if your account is inactive and you have not elected for your cover to continue (see page 12).

For employee members, your income protection cover (if any) will stop 60 days after you cease to be an employee, or earlier if you exercise the option to continue your cover as described on page 12. For casual employees, cover will also cease 60 days after you stop being actively at work performing all the duties of your occupation.

For more information on your insurance cover and the restrictions and conditions that apply, contact the IPE Super Helpline on 1800 257 135.

“Choice of Fund” – what happens to my insurance cover for death and total and permanent disablement after I choose another fund for my future contributions?

Your insurance cover for death, terminal illness and TPD will continue as a fixed dollar amount in the Fund’s Retained Benefits section. The amount of this cover will be fixed at the end of the month in which your last SG contribution is received by the Fund. Any income protection insurance that you had will cease on this date (as there is no income protection insurance in the Retained Benefits section).

Refer to the guide, Additional information about IPE Super for more information.

Under superannuation law, you may transfer part or all of your benefit in IPE Super to another superannuation fund.

For a partial transfer, you must leave a minimum balance in the Fund of $5,000 after transfer. If you transfer the whole of your benefit from the Fund, your membership of the Fund will cease and all insurance cover that you had will cease on the date that your money is paid to your new fund.

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The Trustee uses one or more insurance policies to meet part of the benefit payable in the event of your death or TPD and to meet your income protection benefit, if applicable. If the insurance company imposes restrictions, special conditions or refuses to pay a claim, the Trustee has the power under the Trust Deed to adjust your benefit accordingly.

As a result there are a number of risks associated with restrictions and special conditions that may be imposed by the insurance company.

These include the risk that:

You may suffer an injury or illness such that you cannot work but do not satisfy the insurer’s and/or the Fund’s definition of disablement, in which case no insurance benefit will be paid to you.

• You die, become terminally ill, or permanently disabled before you both reach age 25 and have an account balance of $6,000, when insurance cover generally commences, and you have not opted in to standard insurance cover, in which case no insurance benefit will be paid to you.

If you did not join IPE Super when first eligible or were not actively at work performing your normal duties at that time, your insurance cover may be limited or you may need to provide evidence of good health before cover commences.

Risks of insurance

Even if your claim is accepted, it may take some time for payment to be made. It can also take some time to obtain all the required information to assess a claim.

The insurer may refuse to provide cover in certain circumstances, for example, if you make a claim caused by war. In this case, an insurance benefit may not be paid.

You may not be covered if you work less hours per week than the minimum required under the policy. For example, casuals, part time employees or employees on leave without pay may not be covered.

The maximum amount of cover allowable under the policy may be lower than the benefit calculated in accordance with the formula or may be insufficient to meet your needs.

The insurance company may decline (or defer) your cover, which may also affect your ability to obtain insurance cover in the future.

• If Limited Cover applies to you, the risk that you have an injury or illness that is a defined by the Insurer as a pre-existing condition and therefore not covered.

The insurance company may not provide cover if you are required to work overseas.


Contents

2 Important information

3 Member Investment Choice

4 Things to consider

7 Investment risks

8 Your investment options

13 Managing your investments



IPE Super’sInvestment Guide

1 April 2020




Accumulation section including Retained Benefits section, (dated 1 April 2020);

Spouse section (dated 1 April 2020).

This information should be read in conjunction with the other documents which form part of each Product Disclosure Statement. You should consider this information before making a decision about the product.



Investment returns can be positive or negative and are not guaranteed by the Trustee or the Company. Information on tax and superannuation legislation is current as at 1 April 2020. The Trustee reserves the right to correct any errors or omissions.

The investment managers and their products may be changed from time to time without prior notice to, or consent from, members. Members will be advised if this occurs.




Incitec Pivot Employees Superannuation Fund PO Box 1442 Parramatta NSW 2124 Helpline: 1800 257 135 Email: [email protected] Website: www.ipesuper.com.au

3 1800 257 135

Choosing how to invest your super is probably one of the most significant investment decisions you’ll make during your working life. That’s why it’s important that you understand the choices available to you and what they mean. After all, the investment decisions you make today will affect the amount of super you have in retirement.

Each person has a different retirement goal and the same investment option won’t always work for everyone. This is why IPE Super allows you to tailor your investment choices to suit your stage in life, financial needs and goals.

With Member Investment Choice, IPE Super provides you with a range of investment options that allow you to decide how you would like your super invested.

You can choose from:

IPE Super’s four pre-packaged investment options – Conservative, Active Balanced, Assertive and Assertive Plus;

OR

You can choose your own mix from the pre-packaged options and the available asset class options and design your own investment option.

If you don’t make a choice, your super will be invested in the default option – the Active Balanced option. This is also the investment option for MySuper members.

This guide explains your investment options and compares the features of each option. It also raises some issues that you may wish to consider when choosing your preferred investment option. Please read the guide carefully and if you need help in making your decision, the Trustee recommends that you speak to a licensed financial adviser.

Member Investment Choice

CHOOSING YOUR INVESTMENT OPTIONIPE Super offers you a choice of four different pre-packaged investment options or you can design your own investment option from the pre-packaged options and the available asset class options.

The option that is best for you will depend on your personal financial needs and goals, as well as other factors like your investment style, attitude to risk, how close you are to retirement and so on.

Each option invests a different proportion of its funds in various asset classes – cash, fixed interest investments, alternatives, property and shares. Each asset class carries a different level of investment risk and provides potential returns that can vary significantly over both the short and long term. The key is to achieve the balance between risks and return that is most appropriate for you. This is explained further on pages 4 to 6.

You may prefer not to choose an investment option. If you do not make a choice, your super will be automatically invested in the Active Balanced option, the default option. This is also the investment option for MySuper members. See pages 9 to 12 for details on each investment option.

WHAT RATE OF RETURN DO I RECEIVE?Your accounts receive the actual investment return for your chosen option (or the default option, if you did not make a choice) after allowing for tax, investment fees, indirect costs, a percentage-based administration fee, and if required, an allowance to maintain the Fund’s Operational Risk Financial Requirement reserve. Investment returns can be positive or negative.

Interim rate

Investment earnings are calculated on a daily basis. The returns for your chosen investment option (or the default option if you did not make an investment choice) are applied to your benefit until your benefit is paid from IPE Super or your investment switch is processed.

DERIVATIVESThe Trustee does not invest directly in derivatives. However, some of IPE Super’s assets are invested in Absolute Return Funds. The underlying managers for the Fund’s Absolute Return investments may make use of derivatives to assist in achieving IPE Super’s objectives. IPE Super’s other investment managers may use derivatives for risk-control purposes or to more efficiently shift asset allocations.

Investment managers are required to have risk management processes in place in relation to the use of derivatives and the purposes for which they are used. Each year, the Trustee obtains confirmation from the managers that they have complied with their processes.

SOCIALLY RESPONSIBLE INVESTMENTSThe Trustee does not take into account social, ethical or environmental considerations or labour standards when selecting, retaining or realising IPE Super’s investments. When IPE Super’s investment managers were selected, the Trustee did not consider whether the managers took these factors into account.

OPERATIONAL RISK RESERVEFrom 1 July 2013, super funds have been required to set aside financial resources to address operational risks. The Trustee has established an operational risk reserve in IPE Super for this purpose.

A reserve equal to 0.25% of the aggregate of members’ vested benefits has been built up, partly funded by setting aside a small portion of IPE Super’s investment earnings. The reserve is invested in the Active Balanced option. The Trustee periodically monitors the reserve to ensure that it remains close to the desired level. Should the reserve fall below a predetermined shortfall limit, the Trustee will enact a plan for its replenishment. The Trustee updates members annually on the status of the reserve.


IPE Super’s investment options have been designed to suit the different needs and savings goals of different people. What suits your co-workers might not suit you.

Before making your investment choice, discover what your investment style is, learn the basics of investing and understand what your investment options are. This will help you decide which option would best suit you. Remember to seek the advice of a licensed financial adviser if necessary.

DISCOVER YOUR INVESTMENT STYLE

Everyone is different. So, before making your investment choice you should consider your investment style. Read on to help you find your investment style.

What are my financial needs in retirement?

It’s important to carefully plan for your financial security in retirement, so that you can aim to have enough money to meet your day-to-day living expenses, pay off any debts you have and achieve your goals when you retire.

To understand your financial needs in retirement, you should consider what kind of lifestyle you expect to have when you retire. You should start by looking at:

What you would like to do when you retire (e.g. travel, buy a property);

How much money you will need for the type of lifestyle you wish to lead; and

How long your super is likely to need to last.

Then consider:

Any fixed financial commitments you may have (e.g. a mortgage);

Any other sources of income you have (e.g. rent from property, dividends from shares);

Personal taxes and investment fees; and

How inflation may affect the real value of your super and other investments.

Things to consider

How much time do I have before I will need my super?

The length of time you have before you will need to access your super will also impact on your decision as this may influence how much risk you are prepared to take.

Choosing an investment option is a very personal decision, so it is important to think these issues through carefully. You should consult a licensed financial adviser should you need help making an investment decision.

How much super will I need to retire?

Generally, most people can look forward to spending 20 to 25 years or longer in retirement.

With this in mind, think about how much money you may need to live on and importantly, maintain your chosen lifestyle in retirement. This not only includes your day to day living expenses, but also enough money to enable you to pursue other interests and activities, such as travelling, taking up a new sport or hobby, or starting a new business. After all, that’s what retirement is all about.

Also, it is important to remember that things will cost more in the future than they do today, so be sure to take inflation into account.

How do I feel about risk?

Some people are prepared to take a higher risk than others when it comes to investing their super.

In general, risk refers to the degree to which the returns of a particular option can fluctuate and the potential for a negative return over time.

Each option has a different level of risk. Some options are more likely to experience a greater fluctuation in returns than others. Such options are regarded as being a higher-risk investment. However, historical performance has shown that these higher-risk options tend to produce higher returns over the long term. See page 7 for information on investment risks.

When considering your attitude to risk, remember:

Risk and return go together. Generally, the higher the risk associated with an investment option, the greater its potential for a higher return. The key is achieving a balance that you are comfortable with.

The long and short term. Generally, the higher the return that is expected from an investment in the longer term, the more likely that its returns will fluctuate – that is, go up and down in value – in the short term, and vice versa.

LEARN THE BASICS OF INVESTINGThere are some general principles about investing that you should understand so you can make an informed decision about which investment option is best for you.

Income and Growth assets

Your super can be invested in different types of assets which are grouped as income assets or growth assets.

The different types of assets range from high potential risk and potential return investments to low potential risk and potential return investments. In general, as the potential for a high return increases, the risk of fluctuations in value (or even negative returns) will also increase.

Income assets are investments like cash and fixed interest. Generally, these types of investments provide income from interest earned and the money you invest is repaid at a fixed rate. Income assets generally provide a lower expected return than growth assets over the long term. They are also less likely to fluctuate, or go up or down in value, in the short term.

Growth assets are investments like property and shares. They provide income from rent, dividends or capital growth. Growth assets generally provide a higher expected return than income assets over the long term. They are also more likely to fluctuate in value in any one year.

The diagram on the next page shows the different assets and compares their respective risk and return levels. By knowing the typical risk and return levels for the asset classes, you will have a better understanding of each of the Fund’s investment options.

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Alternative investments

The Fund also invests in alternative assets, which include allocations to investments outside the traditional asset classes such as shares, fixed interest and cash. When included in a diversified portfolio, alternative assets may act to reduce volatility and provide additional sources of return that don’t necessarily follow the pattern of the traditional asset classes.

Alternative assets can be grouped into growth alternatives and defensive alternatives:

Growth alternatives include assets that target higher returns such as infrastructure and private equity. Typically, these investments have a volatility profile more like shares than bonds, they have a relatively high correlation to shares and they have lower levels of liquidity thus requiring a commitment to investing over the longer term.

Defensive alternatives include assets that aim to achieve positive absolute returns and relate to investments in Absolute Return Funds. These funds are intended to offer a more favourable overall risk/return profile while still diversifying the investment across a range of assets. Over time, these funds aim to produce “cash plus” returns and therefore have a risk profile that is more consistent with “income” assets.

More specifically, Absolute Return Funds invest in a variety of non-traditional investment strategies that are designed to react relatively independently to mainstream asset classes such as shares and fixed interest. These funds, when appropriately diversified, have a relatively low risk of capital loss.

So, it is expected that inclusion of a well diversified portfolio of Absolute Return investments will be a valuable inclusion in diversified investment portfolios, particularly as a substitute for fixed interest. History suggests that such an allocation should increase the expected return of these portfolios with a small reduction in expected risk.

Defensive alternatives typically have a volatility profile more like fixed interest than shares. They have a relatively low correlation to shares and they have lower levels of liquidity thus requiring a commitment to investing over the longer term.

LOW

HIGH

POTE

NTI

AL

RISK

& R

ETU

RN

GROWTH ASSETS

Shares

When you buy company shares, you buy a part of a company. Shares provide income through dividends, and have a potential for capital gains if the shares rise in value. Shares offer the highest potential return over time, but also involve a higher risk of fluctuating values in the short term. You are likely to see the value of shares go up and down over time, often in a cyclical fashion. Shares in Australian companies are bought and sold on the Australian Stock Exchange.

International shares are investments in international companies. The value of international shares change as a result of changes in the value of the Australian dollar against major currencies, in addition to the change in the value of those shares in their local markets. It is possible to remove the effect of exchange movements by “currency hedging”. Part of the international share investments in the Assertive Plus, Assertive, Active Balanced and Conservative options are hedged. No part of the International Shares asset class option is hedged.

Property

Property investments include commercial, industrial and residential real estate. They provide income through rent payments and also have a potential for capital gains. Property is considered a moderate to higher-risk investment, and property values are subject to cyclical changes. However, in the past and over the long term, property has tended to provide higher long-term returns than cash or fixed interest investments.

INCOME ASSETS

Fixed interest

Fixed interest securities are where an investor lends money to a government or corporation, and interest is paid to the investor at an agreed rate that is fixed for the life of the loan (usually two to 10 years). Fixed interest is considered a relatively low-risk investment that tends to provide a long-term return that is moderately higher than inflation. The value of fixed interest investments fluctuates as interest rates change.

Cash

Cash investments are money invested in the bank and short-term money markets and may include credit and asset backed securites. Earnings are made through interest paid on the investment, so cash investments generally don’t produce negative earnings over any one-year period. Cash is usually a secure investment, but the long-term return is usually relatively low and may not always keep pace with inflation.


UNDERSTANDING RISK AND RETURNRisk is the potential for your super to go up and down in value.

Return is the amount of money earned by your super investment.

Generally, the higher the long-term return you’re aiming for, the greater the risk of your money going up and down in value over the short term. That’s because to achieve a high long-term return, you need to invest in a greater proportion of growth investments which tend to be more volatile.

Some people, by nature, do not like taking a lot of risk with their money and are more likely to opt for lower-risk investment types, such as fixed interest or cash. When thinking about how much risk you would like to take, there are two less obvious risks that you shouldn’t forget:

The risk of not having enough to live on in retirement

If you choose an investment option with less risk, it may mean you earn a lower return on your money. Over the long term, even a small difference in your investment earnings can make a big difference to your final benefit.

Alternatively, if you need your money in the short term, a risky investment option may not be appropriate as you may not have time to make up any share market losses.

The risk that your money does not keep pace with inflation

We all know that the cost of a chocolate bar today is a lot higher than it was 20 years ago. This is the case with most goods and services. If your retirement is some way off and you’re relying on your super to provide you with an income, by taking too little investment risk, you may run the chance of your money not keeping up with inflation. This is a risk in itself!

What do we mean by long, medium and short-term risk?

The following terms are broadly defined as:

Short term – an investment period of 12 months to three years.

Medium term – an investment period of three to six years.

Long term – an investment period of six years or more.

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As with all investments, there are risks associated with a decision to invest in superannuation and also in choosing a particular investment option. Asset classes perform differently at different times. Since each investment option has a different asset mix, the risks of investing in each option are different.

The main investment risks that exist are described below.

INFLATION RISKThe rate of inflation may exceed the rate of return achieved on your investment and hence your investment would not retain its purchasing power.

This risk can be considered significant for the Diversified Fixed Interest option and Cash option.

INDIVIDUAL INVESTMENT RISKIndividual investments can (and do) fall in value. This risk mainly affects investments in shares and property, although it can also affect investments in fixed interest. As a result, there are varying degrees of risk associated with all of the pre-packaged investment options, as well as the Australian Shares, International Shares and Diversified Fixed Interest options.

Investment risks

MARKET RISKChanges in the investment markets resulting from changes in economic, political and legal conditions or market sentiment can affect the value of the investments.

This risk affects investments in shares, property and fixed interest. So, it can be considered a significant risk (to varying degrees) for all of the pre-packaged investment options, as well as the Australian Shares, International Shares and Diversified Fixed Interest options.

INTEREST RATE RISKChanges in interest rates can have a positive or a negative impact directly or indirectly on investment value or returns.

This risk affects all investments and can therefore be considered a significant risk for all investment options.

CURRENCY RISKSome investments are made in other countries. If their currencies change in value relative to the Australian dollar, the value of the investment can change.

This risk affects only overseas investments so it can only be considered a significant risk for options where a proportion of the assets are invested overseas. Therefore, currency risk can potentially affect all of IPE Super’s pre-packaged options, as well as the International Shares asset class option.

Currency hedging: what it is and how it works in IPE Super

To reduce the impact of daily currency movements on the value of international shares, the Trustee invests a portion of the Fund’s pre-packaged investment options’ International shares exposure on a “hedged basis”. By hedging international shares, the Fund is, in effect, “locking in” the exchange rate at a particular time and eliminating the influence that currency “ups and downs” have on the future returns from international shares.

The Trustee employs currency hedging principally as a tool for managing investment risk. During periods when the Australian dollar rises against other currencies, currency hedging can be beneficial to returns. Of course, the reverse is true when the Australian dollar is depreciating (or falling) against other currencies.

Members should note that there is no currency hedging on the Fund’s International Shares option.

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LIQUIDITY RISKLiquid assets are assets that can be readily converted to cash. Liquidity risk is the risk that some assets may not be able to be converted to cash when needed to pay benefits or process investment switches. This risk may be considered a moderate risk for the Assertive Plus, Assertive, Active Balanced and Conservative investment options.

DERIVATIVES RISKThere are a number of risks associated with investing in derivatives contracts which include:

The value of the derivative failing to move in line with the underlying asset,

The risk that the derivative may not readily be converted to cash,

The risk that the Fund may not be able to meet payment obligations as they arise, and

Counterparty risk, where the other party to the derivative contract cannot meet its obligations under the contract.

This risk may affect all of the Fund’s investment options to varying degrees with the exception of the Cash option.


IPE Super offers you the choice of four pre-packaged investment options. Alternatively, you can design your own investment option from the pre-packaged options and the available asset class options.

It is not compulsory to make a choice. If you decide not to make a choice, the Trustee will invest your money in the Active Balanced option. This is also the option for MySuper members.

With the pre-packaged arrangement, you invest your entire super in one investment option only. Each option invests in a combination of asset classes (e.g. shares, property, fixed interest and cash). There are four pre-packaged investment options to choose from.

See the following pages for each of the investment options.

You may feel that you want a different investment option to the pre-packaged investment options offered by the Fund. If so, IPE Super lets you choose your own mix of asset class options to design your own investment option by investing your super in any combination of the four pre-packaged investment options, plus any of the range of specific asset class options.

The Fund’s investment options all have different investment objectives, volatility and return expectations. The options that are expected to produce higher returns in the long term will generally have increased volatility in the short term.

Your investment options

When selecting an investment option, you need to understand the volatility and return characteristics of the investment option and align them with your personal investment objectives. Your own objectives will be formed by considering such questions as:

How tolerant are you of investment volatility?

What is your time horizon for investing?

What would a large negative return do to your retirement plans?

If you are close to retirement, will you need to start spending your super straight away?

Establishing your own personal investment objectives should make the task of selecting an investment option much easier.

You should be aware that small differences in returns can have a major impact on your savings. For example, a 1% improvement to your investment return each year can increase the value of your super by around 25% over a 30-year period.

This section provides a significant amount of information to enable you to compare and contrast the Fund’s investment options.

As always, you are encouraged to get your own independent financial advice when they are making important decisions about your super.

IPE Super’s investments are managed by professional investment managers with the assistance of their investment adviser, JANA (JANA is responsible for manager selection). These managers and their products are reviewed regularly by the Trustee and may be changed from time to time without prior notice to or consent from members. The Trustee may also alter or close investment options or introduce new options. You will be advised in advance if a significant change to an option is made.

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Assertive Plus

Overview

The Assertive Plus option invests mainly in Australian and international shares and property.

This option aims to provide growth over the long term, while acknowledging that returns are likely to be very volatile over the short term. It may suit a member who expects to have their super invested for a period longer than five years. Members should feel comfortable accepting short-term volatile returns in order to achieve higher capital growth in the long term.

Objectives

• Achieve an expected rate of return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 4% per year over each seven-year period.


Benchmark asset allocation:

Minimum suggested investment period At least 5 years




Assertive

Overview

The Assertive option invests mainly in Australian and international shares and property, with around 15% in defensive alternatives and fixed interest investments.

This option aims to provide growth over the long term, while acknowledging that returns are likely to be volatile over the short term. It may suit a member who expects to have their super invested for a period longer than five years. Members should feel comfortable accepting short-term volatile returns in order to achieve higher capital growth in the long term, but do not wish to have the whole of their super invested in shares and property.

Objectives

• Achieve an expected rate of return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 3.5% per year over each seven-year period.



Minimum suggested investment period At least 5 years




cash

diversi�ed FI

defensive alternatives

growth alternatives

property

inter shares

aus shares

cash

diversi�ed FI


growth alternatives

property

inter shares

aus shares

cash

diversi�ed FI


growth alternatives

property

inter shares

aus shares

cash

diversi�ed FI


growth alternatives

property

inter shares

aus shares

VERY LOW VERY HIGH VERY LOW VERY HIGH

Australian shares 27% – 57%

International shares 27% – 57%

Property 0% – 20%

Growth alternatives 0% – 10%

Defensive alternatives 0% – 5%

Diversified fixed interest 0% – 5%

Cash 0% – 5%



Property 0% - 20%




Cash 0% – 15%



42%33%7%

7%6%

42%33%

12%

12%

2% 2%2%


Active Balanced* (default) Conservative

Overview

The Active Balanced option invests mainly in Australian and international shares and property, and has around 27% in income producing assets such as defensive alternatives, fixed interest and cash investments.

This option aims to provide growth over the medium to long term, while acknowledging that returns are likely to be somewhat volatile over the short term. It may suit a member who expects to have their super invested for a period longer than five years. It is suitable for members seeking a diversified investment over a broad range of assets with an emphasis on achieving higher capital growth in the medium term with a high level of risk.

Overview

The Conservative option invests mainly in fixed interest, cash and defensive alternative investments, with about 33% in shares and property.

This option aims to provide stable returns over time. It may suit a member who expects to have their super invested for a period longer than three years. It is suitable for members seeking some capital growth whilst placing a high importance on the protection of capital.

Objectives

• Achieve an expected rate of return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 3% per year over each five-year period.


Objectives

• Achieve an expected rate of return (net of investment fees and tax) that exceeds the rate of inflation (CPI) by at least 1.5% per year over each three-year period.


Benchmark asset allocation: Benchmark asset allocation:

Minimum suggested investment period 5 years Minimum suggested investment period 3 years

Likelihood of a negative return in any 20 year period**


Likelihood of a negative return in any 20 year period**


Volatility level** High Volatility level** Low to Medium


cash

diversi�ed

defensive

growth alternaties

property

international shares

aus shares

cash

diversi�ed

defensive

growth alternaties

property


aus shares

cash

diversi�ed

defensive

growth alternaties

property


aus shares

cash

diversi�ed

defensive

growth alternaties

property


aus shares



Property 0% – 20%




Cash 0% – 25%



Property 0% – 20%




Cash 0% – 40%


* This is the option for MySuper members.

** The volatility level shown is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20-year period. It is based on the Standard Risk Measure developed by the industry and is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return. Members should still ensure they are comfortable with the range of risks and potential losses and gains associated with their chosen investment options.

28%

8%

28%

8%

10%

10%

7% 7%

7%

6%

45%

16%15%

5%

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IPE SUPER’S FOUR ASSET CLASS INVESTMENT OPTIONSDetails of the specific asset class options, including the investment objectives, that apply to each asset class, are outlined below and on page 12:

Australian Shares International Shares

Overview

This asset class invests purely in Australian shares.

This option may suit a member who expects to have their super invested for a period longer than six years. Members should feel comfortable accepting short-term volatile returns in order to achieve high capital growth in the long term.

Overview

This asset class invests purely in international shares. There is no currency hedging applied to this option.

This option may suit a member who expects to have their super invested for a period longer than six years. Members should feel comfortable accepting short-term volatile returns in order to achieve high capital growth in the long term.

Objectives

• Achieve a long-term (net of tax and fees) rate of return that exceeds the S&P/ASX 300 Index measured over rolling four-year periods.


Objectives

• Achieve a long-term (net of tax and fees) rate of return that exceeds the net of tax return of the MSCI World (excluding Australia) Index, over rolling four-year periods.



100% Australian shares


100% International shares

Minimum suggested investment period At least 6 years Minimum suggested investment period At least 6 years


6 years or greater out of every 20 years



Volatility level* Very High Volatility level* High


100% 100%

100%100%

100% 100%

100%100%




VERY LOW VERY HIGH

Diversified Fixed Interest Cash

Overview

This asset class invests purely in fixed interest investments in both domestic and international markets. All international fixed interest is fully hedged to the Australian dollar.

This option may be suitable for a member who expects to have their super invested for a period longer than four years and who wishes to invest in a broad range of fixed interest securities, accepting that there will be periods of depreciation in order to achieve a return higher than cash over the medium to long term.

Overview

This asset class invests in cash and cash equivalents and may include credit and asset backed securities.

This option may be suitable for a member who is seeking a high level of security and who is prepared to accept lower returns over the long term.

Objectives

• Achieve a long-term (net of tax and fees) rate of return that exceeds the net of tax return of the composite benchmark (comprising 50% UBS Composite Bond Index/50% Barclays Global Aggregate Index [Hedged]), over rolling two-year periods.


Objectives

• To outperform the return (before fees and expenses) of the Bloomberg AusBond Bank Bill Index each year.

• To avoid negative returns over any 1 year period.


100% Diversified fixed interest


100% Cash


At least 4 years


There is no minimum investment period.


1 or 2 years out of every 20 years


A 0% chance of a negative return in any particular year. Note that your account balance is not guaranteed.

Volatility level* Low to Medium Volatility level* Very Low

100% 100%

100%100%

100% 100%

100%100%



VERY LOW VERY HIGH

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MAKING YOUR CHOICEBefore deciding how to invest your super in IPE Super, ensure that you understand the investment options and how they differ. The decision you make should depend on your personal situation and your investment style.

When you are making your investment choice, remember that investment earnings for your super may be either positive or negative in any year. When earnings are positive the value of your super will increase, but when earnings are negative the value of your super will decrease. These highs and lows are a normal part of the investment cycle. How much investment earnings fluctuate will vary from option to option. Your account will receive the returns (net of investment and percentage-based administration fees, indirect costs and, if required, an allowance to maintain the Fund’s Operational Risk Financial Requirement reserve) of your chosen option(s).

To make your choice, simply log into the online Member Centre or complete the “Your investment choice” section on the and return it as directed.

To help you choose an investment option, consider seeking advice from a licensed financial adviser.

CHANGING YOUR CHOICEYou can change your investment options as many times as you like during the year. You receive one free switch per year, however you will be charged a fee for each additional switch you make. See the guide, which is available from www.ipesuper.com.au for information on the fees that are charged.

To change your investment options, simply log into the online Member Centre or complete and return an as directed. Copies of the forms are available at www.ipesuper.com.au.

While you can change your investment options whenever you like, you should avoid any impulse decisions to make changes. For most members, it’s generally important to stick to a suitable long-term strategy rather than be overly concerned with short-term market changes.

Chasing returns can work against you. Some time may pass between when returns are achieved and reported, and when you act to change your investment option. By then, the markets may have moved on and actual performance could be quite different.

KEEPING TRACK OF INVESTMENT PERFORMANCEYou can find out how your investments are performing via the Fund’s newsletter –

, IPE Super’s latest or online at www.ipesuper.com.au.

Managing your investments


Documents

Your IPE Super Guide Product Disclosure Statement · Generally, your employer contributes at least 9.5% of your Ordinary Time Earnings (OTE) to your super account – this is known