Management

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Section 9 – Management of the TIC Plan

Communicating With Members

The following table sets out the documents and reports that we will provide to you:

* Members may elect to have a hard or electronic copy of the Annual Report sent to them free of charge.

Trustee

The Trustee is required, among other things, to:

comply with the relevant law, its AFS Licence and RSE Licence conditions, and risk management requirements;
perform its duties as Trustee prudently and properly;
satisfy ongoing fitness and propriety standards;
provide regular reports to APRA; and
comply with certain financial and other requirements.

CCSL is an independent trustee company specialising in the trusteeship of superannuation funds and has no commercial interest in any other activities such as administration or investments. Clients include large corporate funds, insurance only superannuation funds and master funds such as ISARF.

Custodian

The custodian of ISARF is currently RBC Dexia Investor Services Trust (RBC Dexia) ABN 75 116 809 824. RBC Dexia’s role is limited to holding assets of ISARF. The Custodian has no supervisory role in relation to the operation of ISARF or the TIC Plan and has no liability or responsibility to you for any act done or omission made.

Administrator

ISARF’s Administrator is SMA Consultants Pty Ltd (SMA) ABN 74 006 877 872, a firm of professional superannuation administrators, whose responsibility is to attend to the day to day functions of the TIC Plan such as processing member applications, processing insurance and investment requests, allocating contributions, paying benefits and responding to member queries. SMA was established in 1987 and is one of the largest privately owned superannuation service providers in Australia.

SMA has consented, and has not withdrawn its consent as at the date of this PDS, to be named in this PDS as the administrator of ISARF.

Distributor

TIC Super Pty Limited (TIC) is entitled to receive fees for promotional and other services provided in conjunction with the TIC Plan products.

Insurer

TIC Employer Sponsored Super and TIC Personal Super offers members the option of applying for life insurance cover through a Group Life Policy issued by Hannover Life Re of Australasia Ltd (ABN 37 062 395 484).

This policy is held by CCSL as the Trustee. Hannover has consented, and has not withdrawn their consent as at the date of this PDS, to be named in this PDS as the Insurer.

For information about Hannover and the insurance cover offered under this policy see Section 5.

Trustee’s Privacy Policy

Looking after your Personal Information

Your personal information is required to manage and administer the TIC Plan, however unless required or authorised by law, your personal information is protected in a secure environment and only accessible by authorised CCSL staff and service providers. It may be necessary for us to disclose your personal information to certain third parties, including:

administration and custody services providers for data entry and data processing, accounts maintenance and settlement;
market research agencies for product development, planning, risk assessment and modelling;
brokers and financial service providers for financial planning, investment and commission administration;
professional advisers for assistance with administering your investment in the TIC Plan;
the Superannuation Complaints Tribunal or other government agencies;
any organisation wishing to acquire an interest in any part of the Trustee’s business for assessment of any proposed acquisition;
if you have insurance cover in the TIC Plan:

- your doctor or any other doctor, hospital or clinic for whom you have provided a medical authority, for the purpose of obtaining details about your medical history;

- the Insurer, contractors of the Insurer and third party service providers, re-insurers, other insurance companies and service providers, for the purpose of assessing your application; and

the Sponsor, Distributor and other service providers in relation to the TIC Plan, for the purposes of providing the services and benefits described in this PDS.

We may also be required to provide certain information to:

your spouse; or
a person who intends to enter into an agreement with you about splitting your superannuation in the event of separation of marriage or divorce.

Any request in these circumstances must be in a form prescribed by law. Legislation prevents us from telling you about such a request.

We will not share your personal information with any other parties without your consent.

CCSL and its authorised service providers are subject to the National Privacy Principles as amended by the Privacy Act. We will not share your personal information with any other parties without your consent.

We may use your personal information for marketing purposes to provide you with information about other products and services we offer. You can request that we remove your name from our marketing mailing list.

If you apply for insurance cover, you will need to provide certain health information to us. We require your consent to collect, use or disclose your health and other personal information. We collect this information from you and provide it to the Insurer to assess your eligibility for insurance and to administer your application.

If you make a claim for an insurance benefit, we may disclose your health and other personal information to the Insurer, medical practitioners, claims investigators, re-insurers, the insurance reference bureau and such other experts as may be nominated by us or the Insurer. If there is any dispute about your entitlement to a disability benefit or any insurance claim, we may disclose your health and other personal information to legal and other advisers.

You can request access to the information we hold about you and also obtain a copy of our Privacy Policy. Also, so that we can keep your details up-to-date, please advise us of any inaccurate information or information that has changed. It is particularly important to keep your contact details up-to-date.

To update your details or request a copy of our Privacy Policy, you can call our Client Service Line or write to us (details on the inside front cover).

Your Tax File Number

We are authorised to collect your Tax File Number (TFN). It will remain confidential and will be used only for lawful purposes, including:

finding or identifying your superannuation funds;
providing information to the Australian Taxation Office; and
providing your TFN to a superannuation fund or Retirement Savings Account (RSA) if you are rolling your benefits into that fund or RSA. We will not pass on your TFN in this circumstance if you write to us and instruct us not to.

These purposes may change in the future as the result of legislative change. The TFN may be disclosed to another superannuation provider when your benefits are being transferred, unless you request in writing that your TFN is not to be disclosed to any other trustee.

It is not compulsory to quote your TFN for superannuation purposes. However, if you do not quote your TFN, you will not be able to make personal non-concessional contributions. Also employer contributions paid on your behalf and contributions made under salary sacrifice arrangements will be subject to an additional tax of 30% plus the 1.5% Medicare Levy or a total of 46.5% instead of 15% applicable as at the date of this PDS, although this may be reclaimed through the assessment process. Additional tax will also be deducted from your superannuation benefits (including death benefits) if you do not quote your TFN, as summarised in Section 8. Choosing to quote your TFN will also make it easier to keep track of different superannuation accounts in your name in the future.

We will not otherwise disclose your TFN.

Contact the Australian Taxation Office on 13 10 20 or visit superwww.ato.gov.au/ to find out how you can recover any additional tax paid before you supplied your TFN to the Trustee.

Cooling-off Period

Personal superannuation members and pension members have cooling-off rights in respect of an application to participate in the TIC Plan. The rights must be exercised by notifying the Trustee within 14 days from the earlier of:

the date of confirmation of the transaction; and
five days after the date on which we issue units to apply your investment.

The cooling-off period may end earlier if you exercise any membership rights, such as making an investment switch.

The cooling-off period does not apply to the employees of employer-sponsors who join the TIC Plan.

This right does not apply in the case of a successor fund transfer where the Trustee of another superannuation fund decides to transfer the fund’s members and their benefits to the TIC Plan without the members’ consent. However, equivalent rights in respect of members’ benefits are provided.

The cooling-off period does not apply to the employees of employer-sponsors who join the TIC Plan.

The amount we return to you may be less than the amount you invested due to any market fluctuations, tax that we are required to deduct and transaction costs reflected in unit price buy/sell spreads. However, any other fees and costs that have been deducted from your account will be refunded.

Employers also have cooling-off rights in respect of the first issue of an interest from the TIC Plan to an employee nominated by the employer. For more information, employers should contact the Trustee.

What Happens to Your Benefits if You Die

The Trustee will pay your Death Benefit as a lump sum to one or more of your dependants, or to your legal personal representative in accordance with your binding nomination. If you made a non-binding nomination, or your binding nomination is not valid at the time of your death, the Trustee will use its discretion when deciding how your Death Benefit should be paid, having regard to your Nomination and the circumstances of your dependants, including any changes since the Nomination.

If you have nominated a reversionary pension beneficiary, your pension will continue to be paid to your nominated reversionary pensioner. See Nominating a Reversionary Pension Beneficiary in Section 7 for details.

Dependants include:

your spouse (including any other person who, although not legally married to you, lives with you on a genuine domestic basis in a ‘relationship as a couple’ (whether they are the same sex);
your children (including an adopted child, ex-nuptial or step-child) regardless of their age;
a person who is financially dependent on you at the time of your death; or
a person who was in an interdependent relationship with you at the time of your death.

An interdependent relationship means:

you have a close personal relationship with the person;
you live together;
one or both of you provide the other with financial support; and
one or both of you provide the other with domestic support and personal care.

Nominating a Beneficiary

You can make either a Binding or Non-Binding Death Benefit Nomination to nominate your dependant/s and/or your estate to receive all or part of your benefit on your death.

A Non-Binding Death Benefit Nomination is not binding on the Trustee. The Trustee will use its discretion when deciding how your Death Benefit should be paid, having regard to your Nomination and the circumstances of your dependants, including any changes since the Nomination.

A Binding Death Benefit Nomination is binding on the Trustee. This means that, provided your Nomination is valid at the time of your death, the Trustee must pay your Death Benefit as you have specified. However, the Trustee, together with your beneficiaries, can decide whether it should be paid as a lump sum or as an income stream.

For a Binding Death Benefit Nomination to be valid:

you must have made, confirmed or amended your Nomination within three years of your death; and
each beneficiary must be a dependant under superannuation law and/or your legal personal representative at the time of your death; and
if you have nominated more than one beneficiary, the allocation between beneficiaries you have nominated must be clear; and
it must have been witnessed and signed by two adults who are not beneficiaries. (Witnesses must be 18 years of age or over).

Before making your Nomination, you should read the information in the beneficiary nomination section of the relevant Application Form.

For information on reversionary pensions, pension members should also refer to Nominating a Reversionary Pension Beneficiary in Section 7.

You can revoke or change your Beneficiary Nomination at any time by writing to us or by completing and sending a new Beneficiary Nomination Form to us at any time. You can obtain a form from our website or by calling our Client Service Line (details on the inside front cover). We recommend you review your Nomination whenever there is a change in your circumstances, such as marriage, divorce, and birth of children, or if a nominated beneficiary ceases to be a dependant.

As there are some differences in the definition of ‘death benefits dependant’ under tax law and ‘dependant’ under superannuation law, we recommend that you seek qualified tax and financial advice when making any nomination of beneficiary.

Accounts with Low Balances

The Trustee reserves the right to transfer certain accounts to an Eligible Rollover Fund (ERF). Benefits in an ERF are subject to member protection (see Section 2).

An ERF is a low-risk, low-return superannuation fund designed to accept rollovers and transfers from other superannuation funds. It has different fees and investments to the TIC Plan and does not provide insurance cover.

You can claim your benefits from an ERF at any time, subject to preservation restrictions.

We may transfer your benefits to an ERF if:

your account balance is less than $1,000 at the end of a reporting period and we have received no contributions from you, or on your behalf, for two consecutive years; or
you are considered to be a ‘Lost Member’.

Eligible Rollover Fund

The ERF currently used by the TIC Plan is the Super Money Eligible Rollover Fund (SMERF). Contact details are:

SMERF
Locked Bag 8840
WOLLONGONG NSW 2500
Tel: 1800 114 380
Email: administration@smerf.com.au
Website: www.smerf.com.au

If your benefits are transferred to SMERF:

you will cease to be a member of the TIC Plan, and will become a member of SMERF, subject to its governing rules;
you will not be able to make additional contributions, but you can roll over other superannuation benefits into SMERF; and
any insurance cover with the TIC Plan will cease. (SMERF does not offer insurance cover).

Lost Member and Unclaimed Monies

If you are under age 65 and become a ‘Lost Member’, the Trustee is required to provide your details to a Register held by the ATO. You are considered a Lost Member if the Trustee has lost contact with you (e.g. received returned mail) and in the last 2 years your address cannot be confirmed or if you are an inactive member (e.g. the TIC Plan has not received a contribution or rollover for you within the last 2 years and your address cannot be confirmed in the last 2 years). You can search the Register at any time free of charge in order to locate details of your benefits.

The ATO is responsible for maintaining the Register and facilitating the reunion of Lost Members with their benefits, for example by direct repayment of any lost benefits (where permissible) or their consolidation into an existing active superannuation account.

If you have reached your eligibility age for the Government pension (currently 65) and the Trustee has lost contact with you for five years, your details and benefits (called Unclaimed Money) must be paid and lodged with the ATO in certain circumstances. If this happens, you can search for your details on the Register maintained by the ATO.

To avoid becoming a Lost Member or having Unclaimed Money, it is important that you advise the Trustee of any change in your contact details.

Enquiries and Complaints

For enquires regarding the TIC Plan, please refer to the ‘Fund Contact Details’ on the inside cover of this PDS.

We aim to resolve all complaints quickly and fairly. If you have a complaint or would like a copy of our Enquiries and Complaints procedure, please contact our Client Services Line on 1300 339 040 or contact:

Enquiries and Complaints Officer
TIC Retirement Plan
PO Box 1282
Albury NSW 2640
Email: service@ticretirement.com.au
Fax: (02) 6041 9355

If you are not satisfied with the response from us or have not received a response within 90 days, you may refer your complaint to the Superannuation Complaints Tribunal (SCT) which is an independent government body set up to help with resolving superannuation complaints. Strict time limits apply for lodging complaints with the SCT; otherwise the SCT may not be able to deal with your complaint.

Superannuation Complaints Tribunal
Locked Bag 3060
GPO MELBOURNE VIC 3001
Tel: 1300 884 114

Additional Information

Family Law

Government legislation allows for superannuation benefits to be split between you and your spouse on your legal separation or divorce. A superannuation agreement or the Family Court may require the Trustee to:

provide certain information about your superannuation interest upon request without notifying you of the request; and/or
‘flag’ and/or split your superannuation interest.

Although we are permitted by law to charge fees for this, it is not currently our intention to do so.

As these legislative requirements are complex and may have significant financial and tax consequences, if relevant to you we recommend that you seek professional legal, tax and financial advice on how these provisions may affect you.

Changing Your Personal or Contact Details

You can notify us in writing at any time by mail or fax (details on the inside front cover) of a change in your personal or contact details.

Trust Deed

The ISARF Trust Deed, this PDS and the law govern the Trustee’s relationship with you. In the event of any inconsistency between the Trust Deed and this PDS, the Trust Deed will prevail.

A copy of the Trust Deed is available free of charge upon request by contacting our Client Service Line (details on the inside front cover). We may change the Trust Deed at any time. We will give you 30 days notice of any change that may be detrimental to members.

We will otherwise include any changes in our Annual Report. Our latest Annual Report is available on our website at www.ticretirement.com.au or by calling our Client Service Line.

Rights On Wind-Up

In certain circumstances the Trustee may elect to wind up the TIC Plan. In this case, the Trustee:

must notify each member participating in the TIC Plan; and
arrange to pay or transfer members’ benefits to another fund after deducting the costs of administration and the wind-up.

Lodging Your Application

Send your completed Application Form with your cheque (payable to TIC Retirement Plan [name of applicant]) and relevant attachments to:

TIC Retirement Plan
PO Box 1282
Albury NSW 2640

You may also lodge your Application through your adviser or directly at the Administrator’s office:

Level 16, 114 William Street
Melbourne VIC 3001

If your Application is incomplete, we will retain your application money in the TIC Balanced Fund until either:

we receive the outstanding information and you become a member of the TIC Plan; or
we refund the application money to you.

We will contact you to advise you of any outstanding requirements. We may retain any interest earned on such amounts invested in the TIC Balanced Fund.

Anti-Money Laundering And Counter-Terrorism Financing

As part of the Trustee’s responsibility under anti-money laundering and counter-terrorism financing laws, we, our associates or service providers to the TIC Plan may require a detailed verification of your identity. Examples of what we may ask you to produce include a copy of your passport, together with evidence of address, and date of birth. You will be required to provide certified proof of identify prior to being able to access your benefits in cash (lump sum or pension payments) or purchase a superannuation pension (called “customer identification and verification” requirements).

We reserve the right to request whatever information we believe is necessary to verify your identity before a contribution is accepted or benefits are paid. We may refuse your application to join the TIC Plan, or refuse to process a benefit payment until your identity has been verified.

As a result of these reforms the Trustee has become the subject of another regulatory body (called AUSTRAC) which has responsibility for the AML/ CTF legislation. The Trustee is required to provide yearly compliance reports to AUSTRAC and notify AUSTRAC (from 12 December 2008) of suspicious transactions. This may involve the provision of personal information about you to AUSTRAC.