Investment Updates
*** IMPORTANT ***
Freeze placed on investments in the Challenger Howard Wholesale Mortgage Trust
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Annual Benefit Statements - FAQ
This page is set out in the same order as your Annual Benefit Statement and is designed to help you understand the information provided. If you do have any questions that are not addressed here, please do not hesitate to contact us.
Personal Details
My personal details are incorrect or have changed
Please contact the Fund Administrator to update your details. If it is a change to your name or Date of Birth, you will be asked to supply some form of supporting evidence, such as a drivers licence, Birth Certificate, or Marriage Certificate.
I no longer work for the Employer who opened this account for me – what can I do with it?
You can either keep your account with us, or you can transfer your account to any other complying superannuation fund. Either way, you should contact the Fund Administrator to let them know.
Why do you need my Tax File Number?
As part of the raft of changes under the Better Super Reforms (effective mainly from 1 July 2007) members may be subject to some new consequences (including higher taxation on certain contributions) where a superannuation fund does not hold the member’s Tax File Number (TFN).
How can I let you know my Tax File Number?
Download the TFN Collection form from the Forms page and post or fax it to the administrator, or call the administrator to tell them.
Benefit Summary
What difference does the Preservation classification make:
Preserved benefits can generally only be cashed in the following circumstances:
• upon permanent retirement from the workforce after reaching the Preservation Age as per the following table:
Date of Birth Preservation Age
Before 1 July 1960 55
1 July 1960 to 30 June 1961 56
1 July 1961 to 30 June 1962 57
1 July 1962 to 30 June 1963 58
1 July 1963 to 30 June 1964 59
After 1 July 1964 60
• reaching age 65
• reaching age 60 and leaving the employer who contributed to the Fund
• permanent incapacity, as defined in superannuation law at the relevant time. Currently, the definition is, in relation to a member who is gainfully employed, ill-health where the Trustee is reasonably satisfied that the member is unlikely, because of the ill-health, ever again to engage in gainful employment for which the member is reasonably qualified by way of education, training or experience
• temporary incapacity, as defined in superannuation law at the relevant time. Currently, the definition is, in relation to a member who has ceased to be gainfully employed, ill-health that caused the member to cease to be gainfully employed but does not constitute permanent incapacity
• in other circumstances approved by government regulations
• if your Account balance is under $200 and you ceased employment with the relevant employer after 30 June 1997
Restricted Non-Preserved Benefits can not be cashed until you leave service with your current employer. These become unrestricted non-preserved benefits when you leave the service of your current employer.
Unrestricted Non-Preserved Benefits can be paid out at any time.
Investment Details
What is the Estimated rate of net earnings
This is an indication of the investment performance of your account, after allowing for taxes and other management costs. It is not the same as the annual rate of return achieved for each of the investment options that you invest in because it takes into account when contributions were paid, and when expenses were deducted, during the year.
The annual rate of return for each investment option, as shown in the Annual Report from the Trustee, is based solely on the difference in the unit price from 30 June 2006 to 30 June 2007.
Why do I have an amount held in Cash when I have never selected a Cash option.
Any contributions or rollovers credited to your account are held in Cash until the regular investment cycle is run, at which stage your net contributions will be invested according to your Investment Profile.
Expenses, such as administration fees and insurance premiums are deducted from your Cash holdings, then units are redeemed as part of the regular investment cycle in order to cover these expenses and bring your cash balance back to zero, or the nominated minimum Cash holding.
The investment cycle involves setting the unit price for each investment option, and then investing any net cash, or redeeming money to pay benefits, taxes, etc. The investment cycle is generally run once per week, but the Trustee reserves the right to vary the frequency of the investment cycle.
What is my Investment Profile
This is how we allocate any contributions or rollovers that we receive, and how we apportion any expenses. If you have not told us what investment profile you want, then the Investment Profile shown will be the default option for the Fund.
See the next two points for more information.
What other investment options are available
Details of all of the investment options available under the fund can be found in the Trustee’s Annual Report to Members provided with your Annual Benefits Statement, and in the Product Disclosure Statement, available from this web site or from the Fund Administrator.
Decisions regarding your investment options are important and should not be made without first obtaining advice from a suitably qualified financial adviser. There is a superannuation adviser for your account, and their contact at the end of the Statement.
How do I change my investment options
Complete an Investment Nomination form, available from the web site or from the Fund Administrator, and send it to the Fund Administrator.
Decisions regarding your investment options are important and should not be made without first obtaining advice from a suitably qualified financial adviser. There is a superannuation adviser for your account, and their contact details are on the past page of the Statement.
Fees and Charges
What are Other Management Costs
Some expenses are deducted directly from your account – these include any withdrawal fees and insurance premiums, and your member fee.
Other costs are based on the fund’s assets, and are charged to the Fund’s gross assets, and their impact is factored into the unit price for each option. These costs can include the trustee’s fees, administration costs, your adviser’s remuneration, and the fees of the investment companies used for each investment option.
Please note that the investment returns are NET of Other Management Costs.
Please refer to the current Product Disclosure Statement for more details.
Insurance Benefits
I never asked for any insurance cover, so why does my Statement say that I have insurance
Some members have insurance cover provided to them automatically when they join the fund. One of the reasons for this is that there is a requirement for insurance benefits to be provided by an employer’s Default superannuation fund under the Federal Government’s Choice of Fund legislation.
How can I change my insurance cover
If you want to cancel or reduce your insurance cover, write to us and tell us what you want to change. You should consider carefully any decision to reduce or cancel your insurance cover as it may not be available to you again in the future on the same terms should your circumstances change.
If you want to increase your insurance cover, please contact the Fund Administrator and they will explain the process to you. Any increase does not take effect until the insurer has confirmed the cover.
Decisions regarding your insurance benefits are very important. We recommend that you discuss this with a suitably qualified financial adviser before making any decision.
There is a superannuation adviser for your account, and their contact details can be found on the last page of the Statement.
Beneficiaries
No beneficiary is listed on my Statement, so who would you pay my superannuation to if I died.
If you have not nominated any beneficiaries for your superannuation, the Trustee would either pay your superannuation benefit to your dependants, or to your Estate.
A dependant is usually your spouse or any child (regardless of age), or any other person who is substantially financially dependent on you at the time of your death. The superannuation and tax law definitions of dependant have been amended to include any person with whom the member has an "interdependency relationship". Two people have an interdependency relationship if:
• they have a close personal relationship;
• they live together;
• 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.
In addition, if a close personal relationship exists but the other requirements above are not satisfied because of a physical, intellectual or psychiatric disability (eg. one person lives in a psychiatric institution suffering from a psychiatric disability), then an interdependency relationship may still exist.
How do I change my beneficiaries.
You need to complete a new form and send it to the Fund Administrator.
Forms are available on the Forms page, or by contacting the Fund Administrator.
Nominating beneficiaries can give rise to estate planning issues and we suggest that you consider speaking to a professional advisor.
What is the difference between a Binding and a Non-binding Nomination of Beneficiary
If you have not nominated any beneficiaries for your superannuation, the Trustee would either pay your superannuation benefit to your dependants, or to your Estate.
If you use the Nomination of Preferred Beneficiary option, you can indicate who you would like your benefit to be paid to, however your nomination is not binding on the Trustee and your death benefit will be paid to persons determined by the Trustee That is, in making its decision, the Trustee may take into account your nomination but will not be bound by it. You can change your nomination at any time by informing the Trustee in writing.
If you use the Binding Nomination of Beneficiary option you override the Trustee’s discretion and the Trustee must pay the benefits to the beneficiaries specified by you, in the proportions that you specify, provided your nomination is valid when the benefit is paid. To be valid a Binding Nomination must not be more than 3 years old.
Nominating beneficiaries can give rise to estate planning issues and we suggest that you consider speaking to a professional advisor.
Transaction Details
My Pay Slip show a different amount of contributions to what is shown on the Statement
Your superannuation Statement is based on when the money is actually received, not on the period the payment relates to. For example, if an employer did not pay their June 2007 contributions until July 2007, or later, then they will not appear on this Statement.
When an amount is shown on a pay slip it does not necessarily mean that it has been paid to the superannuation fund at the same time. The amount shown on your pay slip is generally just confirming your superannuation entitlement for that pay period. Under the current legislation, employers are only required to pay their contributions on a quarterly basis. They can pay more frequently if they chose, but they are not required to pay more often than quarterly.
I paid a personal contribution during the 2006/07 year, but no Co-Contribution is showing
Eligibility for Co-Contributions is determined after the end of each financial year once both of the following events have happened:
You fund had reported all contributions received to the ATO (due
date is 31 October each year)
You have lodged your personal Income Tax Return
The ATO then puts the two pieces of information together and determines your eligibility and the amount payable - it can take several months before the payment is made.
Why does tax get taken out of some contributions
The Government taxes all contributions paid by employers, and all other contributions where the person paying the contribution is able to claim that contribution as a tax deduction.
Personal contributions where the payer can not claim a tax deduction are generally not taxed.
Rollovers received by the Fund are also generally not taxed when received by the Fund.
What are the Management Fees
These are the costs that have been deducted from your account, and include member fees and insurance costs. These do not include Other Management Costs as they are charged against the Fund’s assets and are reflected in the unit prices.
More Information
For more information, please contact your advier or the Fund Administrator.
IMPORTANT NOTE:
The information provided should not form the sole basis for any action that you take. It is important to first discuss your specific circumstances with your financial Adviser.
News
Freeze on Challenger Howard Wholesale Mortgage Fund
Challenger Investments, the Responsible Entity for the Howard Wholesale Mortgage Trust, have announced an amendment to the rules on withdrawals from the Trust. The effect of these rules is that members are temporarily unable to switch out of, or redeem units held in, the Howard Wholesale Mortgage Fund
Investment Market Volatility
Investment Market volatility is still a factor in investment returns and is having an impact on portfolio performance. Learn more
2007/08 Annual Statements
We have added an FAQ page to assist with any questions about your Annual Statements. A copy of the Annual Report can also be downloaded from your Forms pag
See the Tax Thresholds for 2007/08
The ATO has released the numbers for the 2007/08 financial year
Update your investment choices online
We now offer a facility for you to update your investment profile and options online
Learn about the Co-Contribution
This is a federal government initiative to help low income earners build a bigger retirement nest egg
Choice of Fund - what it means for Employers and Employees
Many working Australians now have a say in where their employers contribute to
Locate Your Lost Super Accounts
The Australian Taxation Office has made available a search facility to help members find lost accounts.
Learn more
Today's All Ords
