Defined Benefits Fund guide
Queensland local government employees other than Brisbane City Council,
Queensland Urban Utilities and associated employees
Closed to new members from 1 July 1998 Date prepared: 29 June 2015
Contact LGsuper on
1800 444 396 or visit our
website at www.lgsuper.org
if you would like any further
information.
About LGsuper and your membership
1
How the Defined Benefits Fund works
2
Contributing to your super
6
How we invest your money
8
Fees and costs
9
How super is taxed
9
Insurance in your super
10
Accessing your super
19
What happens if you die?
20
Additional information
20
LGsuper privacy statement
21
OnePath privacy statement
23
Insurance application form
Life events application form
Occupational risk rating change form
Application to reduce insurance cover
Insurance cancellation form
About LGsuper and your membership
For 50 years we’ve looked after the financial futureof Queensland local government employees and their spouses. During this time we’ve quietly become a known and trusted Queensland superannuation fund with a unique understanding of local government and the needs of our members while they work and in the years beyond.
Today LGsuper looks after over $9.5 billion in retirement savings for around 90,000 members. And we do this while offering genuine value-for-money products and services without sacrificing quality or standards.
From solid investment returns to strong governance and cost-effectiveness, there are many reasons why LGsuper members choose us to look after their financial future.
As a member of LGsuper’s
Defined Benefits Fund, you have:
A defined benefit
Calculated as a multiple of final average salary (FAS) or as contributions plus earnings.
An accumulation account
Made up of extra contributions and money transferred into LGsuper from other funds. This amount grows with investment earnings, which may be positive or negative.
Higher employer contribution
You are required to contribute 6% standard member contributions, and your employer is required to contribute 12% of your salary.
The employer contribution may be changed by the LGsuper Board of Directors to ensure the Defined Benefits Fund remains in a satisfactory financial position.
Fees
Fees are taken into account before setting the multiple and investment earnings rate for your defined benefit calculations.
Insurance
You have automatic death and disability insurance that covers you 24 hours a day, 7 days a week. Death and Total and Permanent Disablement cover continues after you leave local government employment (Total and Temporary Disablement cover ceases). Cover is subject to eligibility requirements.
Personal service
LGsuper is committed to giving you personal service you can count on. When you phone or visit us you speak to someone who cares about you and knows super.
Information
Come along to our free seminars, get our regular newsletter, or check out our wide range of publications and website. Register for LGsuper online and you can view your account balance and update your details whenever you want.
Financial advice
Our knowledgeable staff can show you how to make your super work harder and give you information to help you actively make informed decisions on a range of topics while you’re working and when you stop. You can also meet with an authorised representative for more comprehensive personal advice.
Voluntary contributions
We can accept voluntary contributions if you want to add to your accumulation benefit by lump sum, salary sacrifice or transfers from other funds.
Flexible pension products
LGsuper offers a Transition to Retirement Pension account (some restrictions apply) and if you’re retired you can access our Pension account. See our Pension
accounts Product Disclosure Statement (PDS)
How the Defined Benefits Fund works
Your retirement benefit is calculated as the higher of your:
• multiple of salary calculation
a multiple of your final average salary (FAS), based on your years of fund membership, or
• contributions plus earnings calculation
your contributions plus/minus investment returns, less tax, fees and insurance costs.
A third calculation takes place to ensure your benefit is at least the minimum requisite benefit. This minimum benefit consists of employer superannuation guarantee contributions, your contributions and investment earnings, less tax and insurance costs.
You are unable to select how your defined benefit is invested, as contributions are pooled to provide benefits for all members based on these calculations.
Multiple of salary calculation
Using the multiple of salary calculation, your benefit is based on a formula of your final average salary times a pre-determined multiple. The multiple increases with your days of service. It grows at a rate of 0.18 times your FAS per year while you are working full-time. Before 1 January 1986, it increased by 0.135 for each year of full-time employment while a member of the fund.
For example, if you started employment on 1 January 1998 and retired on 1 January 2008, your multiple would have been 1.8 times your FAS (0.18 x 10 years). Your annual benefit statement will show your multiple at 30 June each year, along with projected multiples for retirement based on you continuing to work the same number of hours.
The final average salary used in this calculation is based on your salary as reported by your employer from time to time.
What is my final average salary (FAS)?
The FAS in LGsuper is generally the average of your superannuation salary over the final 12 months of employment. This FAS cannot be greater than 120% of your superannuation salary 3 years prior, unless your average salary over the last 3 years of employment is greater than 120% of your superannuation salary 3 years ago. In this situation, the higher 3-year averaged salary applies.
For example, if a member finished work on 31 December 2009 when their superannuation salary had been $29,000 at 1 January 2009 and $31,000 at 1 July 2009, the FAS would be $30,000 (6 months at $29,000 and 6 months at $31,000), provided this was not greater than 120% of their superannuation salary at 1 July 2006. The 3-year average salary calculation is assumed to not apply in this example.
What if I change to part-time employment?
LGsuper always uses the full-time equivalent salary in FAS calculations. This ensures that members reducing their working hours do not experience a drop in the benefit they accrued while working full-time. Instead, the multiple will grow more slowly during periods of part-time work. For example, if you are working 3 days a week (60% of full-time hours) your multiple would accrue at a rate of 0.108 per year (60% x 0.18) while you are working part-time, instead of the 0.18 you would receive each year working full-time.
Contributions plus earnings calculation
Using the contributions plus earnings calculation, your benefit is calculated based on the contributions you and your employer have made to the fund plus or minus investment returns, less tax, fees and insurance costs.
As a member of the Defined Benefits Fund, your employer’s 12% of
superannuation salary contribution, your 6% standard member contribution and
investment earnings are pooled to provide benefits for all members of the fund.
How the Defined Benefits Fund works
Bob
Bob joined the Defined Benefits Fund on 1 January 1987 and retired at age 65 on 31 December 2008. He worked full-time and did not make any voluntary contributions or transfer other super to LGsuper.
Bob’s multiple
22 years 0.18 3.96
Bob’s final average salary
1 July 2008 $47,500 1 January 2008 $42,500 31 December 2005 $40,000 (based on 1 July 2005)
184/365 days $47,500 $23,945
181/365 days $42,500 $21,075
Final average salary $45,020
This does not exceed 120% of the $40,000 from 3 years prior to retirement ($48,000).
Bob’s multiple of salary calculation
3.96 $45,020 $178,279
Bob would have received a benefit of $178,279 on retirement, unless his contributions plus earnings calculation was higher at that time.
Isobel
Isobel has been working full-time for the past 17 years. She is considering working 2 days per week (15 hours) from 1 July 2015 for the next 2 years leading up to her retirement. She currently works full-time, and wants to know how this will affect her defined benefit.
Isobel’s multiple
Multiple at 30 June 2015
17 years 0.18 3.06
Multiple growth during part-time work (40%)
40% 0.18 0.072 per year
Multiple at 30 June 2015
3.06
2 years 0.072
3.204
William
William joined the Defined Benefits Fund on 31 March 1998 and retired at age 60 on 31 March 2010. He worked full-time and did not make any voluntary contributions or transfer other super to LGsuper.
William’s multiple
12 years 0.18 2.16
William’s salary history
1 January 2010 $160,000 1 July 2009 $145,000 1 January 2009 $140,000 1 July 2008 $130,000 1 January 2008 $127,000 1 July 2007 $120,000 1 January 2007 $100,000
William’s final average salary
90/365 days $160,000 $39,452
184/365 days $145,000 $73,095
91/365 days $140,000 $34,904
Final average salary $147,451
However, William’s salary 3 years prior to retirement was $100,000. The capping at 120% of this amount is $120,000.
In this situation, the third calculation of an average salary over the previous 3 years would take place. William’s average salary over 3 years is $131,968 — higher than the $120,000 cap.
William’s 3 year average annual salary of $131,968 applies.
William’s multiple of salary calculation
2.16 $131,968 $285,050
William would have received a benefit of $285,050 on retirement, unless his contribution plus earnings calculation was higher at that time.
What benefit is payable on resignation
before age 55?
If you resign from local government employment before age 55 you will receive the higher of your multiple of salary calculation and your contributions plus earnings calculation. In practice, calculations for the pre and post 1986 periods are compared separately and you will get the higher amount for each period. A third calculation also takes place to ensure your benefit is at least the minimum requisite benefit.
Multiple of salary calculation
The multiple of salary calculation is discounted by 2% for each year prior to 55. For example, if a member resigned at age 45 (10 years short of the retirement age of 55), the discount would be 20% (10 x 2%). The calculation for a member with an FAS of $30,000 who resigned at age 45 after 15 years of membership, would be:
$30,000 0.18 15 80% $64,800
Contributions plus earnings calculation
The contributions plus earnings calculation for resignation is based on your standard member contributions (generally 6%) and the minimum level of employer contributions required to satisfy the superannuation guarantee (SG) legislation. SG contribution rates started at 4% in 1992 and have increased to the current rate of 9.5% from 1 July 2014. Your contributions plus earnings balance receives a smoothed earning rate from the Defined Benefit Fund. Contribution tax, fees and insurance premiums are deducted. Your contribution plus earnings balance is compared to your multiple times salary calculation and your benefit is the higher of the two calculations.
Minimum requisite benefit calculation
Your minimum requisite benefit is the minimum benefit amount you will receive when you leave the Defined Benefit fund. It is compared to the multiple of salary and contributions plus earnings calculations and you receive the higher amount. A minimum requisite benefit consists of pre-1992 vested benefits (if applicable), employer superannuation guarantee contributions, member contributions (generally 6%) plus investment earnings at the minimum requisite benefit earning rate less contributions tax and insurance premiums.
How the Defined Benefits Fund works (cont.)
What benefit is payable on failure
of health?
Failure of health is defined as an injury or illness which, in the opinion of the LGsuper Board of Directors, permanently incapacitates you from carrying out your ordinary work with your employer, and any reasonably available and suitable alternative work with your employer, but does not constitute total and permanent disablement. You must be aged under 55 to be eligible for this benefit.
Your failure of health benefit is the amount of your retirement benefit that has built up in the fund as at the date of your failure of health retirement. It may be higher than your resignation benefit as no discounting applies. Unlike the TPD benefit, it does not include an insured amount based on future service through to your insured age.
The benefit is paid into an Accumulation account.
What benefit is payable at normal
retirement age (between ages 55–70)?
If you retire from local government employment after age 55 you will receive the higher of your multiple of salary calculation and your contributions plus earnings calculation. In practice, calculations for the pre and post 1986 periods are compared separately and you will get the higher amount for each period. A third calculation also takes place to ensure your benefit is at least the minimum requisite benefit.
Multiple of salary calculation
At retirement, the multiple of salary calculation is simply the multiple times FAS, without discounting. For example, if a member’s FAS is $30,000 after a membership period of 15 years, the retirement benefit is:
$30,000 0.18 15 $81,000
What benefit is payable on retirement
after age 70?
The multiple of salary calculation stops at age 70 when it is compared with the contributions plus earnings equivalent (as per retirement 55–70) and minimum requisite benefit. The defined benefit at age 70 is then transferred to an LGsuper
Accumulation account. All subsequent contributions go to this Accumulation account.
The benefit at final retirement is simply the balance of your Accumulation account.
You can access your super when
you reach your preservation age
and in some other situations.
See the
Accessing your super
Your defined benefit grows with the higher of a multiple times your salary, or with contributions and investment earnings.
Defined benefit contributions are generally from:
• your employer
• yourself
Any other contributions add to your accumulation account and grow with investment earnings. These could be from:
• your employer
• yourself
• your spouse
• the Australian Government, if you are eligible to receive the super co-contribution
Employer contributions
Your employer generally contributes 12% of your salary to the Defined Benefits Fund. There may be some occasions when your employer is required to contribute more than 12% to ensure the Defined Benefits Fund remains in a satisfactory financial position.
Standard member contributions
You are required to contribute 6% of your salary in standard member contributions toward your defined benefit. Standard member contributions can be made from after-tax pay, or if your employer agrees, by salary sacrifice. See Salary sacrifice in this section for more information.
Voluntary contributions
Voluntary contributions are extra amounts that add to your accumulation account and grow with investment returns. They do not form part of your defined benefit.
You can make these contributions regularly from your pay or as a one-off lump sum. Once you are aged between 65 and 74, you can only make contributions to your account if you have been gainfully employed for at least 40 hours over 30 consecutive days during the current financial year. When you reach age 75 you are unable to contribute to your super at all.
You can make voluntary contributions by:
• payroll deduction. Ask your employer to pay an amount from your salary to LGsuper each pay period.
• BPAY from your bank account. Use the member BPAY generator on the LGsuper website to find out the biller code and reference number.
• cheque. Send it to us with a completed Voluntary
contribution deposit form, available from the
LGsuper website or by calling us.
Salary sacrifice
Salary sacrificing contributions is where your employer agrees to pay a certain amount of money into your super from your before-tax pay instead of paying that amount to you as salary. You can salary sacrifice your standard member contributions and/or extra contributions if your employer allows it.
Because your super contributions are taken from your before-tax salary you will not have to pay income tax on them. And if you’re paying less income tax then you should receive an increase in your take-home pay. That said, salary sacrifice contributions are still taxed, but they are treated like employer contributions and have a 15% contributions tax (subject to contributions caps, see page 7 and higher income earners tax page 9) deducted on their way into superannuation. If you choose to salary sacrifice your standard member contribution, it increases from 6% to just over 7% so that a full 6% is left to fund your defined benefit after the deduction of the 15% contributions tax.
Salary sacrificed amounts are not eligible to receive the super co-contribution from the Australian Government. So, if you are eligible, you might like to do a combination of salary sacrifice and after-tax voluntary contributions. See the Super co-contribution
section following for more information.
Super co-contribution
The super co-contribution is an incentive offered by the Australian Government to encourage you to save for retirement.
Here’s how it works…
The government will put in up to 50 cents for each $1 you contribute to super, if you are employed and your total income is less than the limit set each year. The maximum co-contribution is $500 each year. The 6% standard member contribution may be eligible for the co-contribution if paid from your after-tax salary. Salary sacrificed contributions do not attract the co-contribution.
For more information on this government incentive, including current limits, get a copy of our Super
contributions guide from our website or give us a
call. You can also find out more from the Australian Taxation Office website at www.ato.gov.au.
Spouse contributions
Opening an LGsuper account for your spouse with as little as $100 means you can both enjoy the benefits of being an LGsuper member.
You can contribute to your spouse’s super as long as they are under the age of 65. Between the ages of 65 and 69, your spouse must be gainfully employed for at least 40 hours over 30 consecutive days in the current financial year to have spouse contributions paid to their account. Once your spouse reaches age 70 spouse contributions can no longer be received. Spouse contributions are not eligible to receive the super co-contribution, but you could receive a tax offset of up to $540 if your spouse earns less than $10,800 annually. The offset reduces for incomes over $10,800 and cuts out completely at $13,800 per annum.
LGsuper can accept contributions from your spouse’s employer too, so your spouse can move all their super to LGsuper.
For more information, get a copy of our Spouse
account Product Disclosure Statement (PDS).
Contributions splitting
Any additional salary sacrifice contributions made to your accumulation account can be split with your spouse. You can do this once a year for contributions made in the previous financial year.
You are unable to split the 12% employer contribution or the standard member contribution as these go toward your defined benefit.
For more information get a copy of our Contributions splitting info sheet.
Transfers from other super funds
Keeping all your super in the one super fund is so much easier than having the hassle of juggling multiple accounts with multiple funds. By transferring your other super to LGsuper you could save money on fees and time on paperwork. And it’s so easy to do. Simply complete the Transfer to LGsuper form
available from our website or by calling us, and return it to LGsuper. We’ll do the rest for you.
Contributing to your super (cont.)
How do I read my Annual benefit statement?
Your benefit is calculated for separate periods of membership, for example Pre-1986 benefit, Post-1986 benefit, Post-1992 benefit. These periods are based on the dates when changes occurred in the Defined Benefits Fund (e.g. contribution rates).
Your total defined benefit is the sum of the highest values (multiple of salary or contributions plus earnings) for each period of membership.
Final average salary $43,215.00 Salary-based benefit based comparisonContribution- Highest value
Pre-1986 benefit 1.598 x FAS $69,057.57 $87,956.13 $87,956.13
Post-1986 benefit 4.229 x FAS $182,756.24 $182,097.46 $182,756.24
Contribution caps
There are limits on amounts that you and your employer can contribute to super each year.
Concessional (before-tax) contributions
The cap on concessional contributions (including employer contributions and any salary sacrifice contributions) is $30,000 for the 2015/16 financial year, with a higher $35,000 cap for people aged 49 and over at 30 June 2015. Contributions up to this cap are taxed at 15%, while amounts above it are taxed at your marginal tax rate (including the Medicare levy). Note: From 1 July 2014 the Medicare levy increased to 2%.
Special rules apply for members of the Defined Benefits Fund.A notional taxed contribution based on a formula prescribed in the Income Assessment Act 1997 counts toward your concessional cap. This formula is generally:
NTCC = 1.2 x (NER x S x D/365 - M)
Where:
NER is the New Entrant Rate, which is 13% if you make 5% compulsory member contributions or 14% if you make 6% compulsory member contributions
S is your superannuation salary on the first day of the financial year in which you had a defined benefit in LGsuper;
D is the number of days in the financial year that your defined benefit accrued;
M is the amount of post-tax (non-concessional) compulsory contributions you made to fund your defined benefit during the financial year. If you make your compulsory contribution via salary sacrifice for the entire financial year, M will be equal to nil.
The above calculation is modified if you work part-time, go on extended leave without pay or where there is a change in your defined benefit. To find out how we calculate your notional taxed contributions, please call us.
Also, if you salary sacrifice additional amounts, these will be added to your notional taxed contributions and you may exceed your concessional cap and be taxed at the higher rate. You should contact LGsuper for further information.
Additional contributions tax may apply to concessional contributions for high income earners.
Refund of excess concessional contributions
If you exceed your cap for you can withdraw your excess contributions from super. If you are likely to exceed the cap you should seek advice from a financial planner or talk to us on 1800 444 396.
Non-concessional (after-tax) contributions
The amount of non-concessional contributions (including 6% standard member contributions and voluntary contributions not salary sacrificed) you can pay into super is capped at $180,000 for the 2015/16 financial year. This amount is set at six times the concessional contributions cap. If you are under age 65 you can make larger payments of up to $540,000 by using your limit for up to 3 years. You can elect to withdraw any excess non-concessional contributions from your account. Contributions above the cap left in the fund will be taxed at 49% including the Medicare levy and Temporary Budget Repair levy.
Contributing to your super (cont.)
How we invest your money
Members of the Defined Benefits Fund
do not have a choice about how their
defined benefit is invested.
The investment strategy for the Defined Benefits Fund is set by the LGsuper Board of Directors. Their goal is to ensure that there are always sufficient funds available to meet the payment of benefits for all members.
The long-term objective of the Defined Benefits Fund investment strategy is to achieve a positive margin of 1.5% over salary growth.
Members with an Accumulation account have a choice of investment options for this portion of their benefit. Refer to our Investment choice guide for more information.
Closing your defined benefit
When we are notified by your employer that you have ceased working with them, we will close your Defined Benefit account (effective the date your employment stopped) and convert it to a Retained Benefit account.
We will send you a letter that clearly explains what will happen to your money and the timeframes involved after we are notified by your employer that you no longer work for them. We briefly discuss this process below.
Your defined benefit
When your defined benefit account is closed, the defined benefit component is calculated as at the date you ceased employment. The resulting balance is then transferred to a Retained Benefit account with your accumulation money (see below) and the entire balance will grow with investment returns (note returns can be positive or negative) and any other contributions we may receive for you in future. We will initially invest your former defined benefit money in the Cash investment option until we have given you the opportunity to make an investment choice. If we don’t hear from you within the
nominated period advised to you by us, we will switch your investment in the Cash option to the LGsuper MySuper Lifecycle option at the next available switch date after the expiry of the nominated period.
Your accumulation money
When your defined benefit account closes any accumulation money you have will be transferred to a Retained Benefit account with your defined benefit money and invested as below:
• If you have previously made an investment choice for your accumulation money, it will stay invested as it was immediately prior to the transfer to a Retained Benefit account.
• If you have not previously made an investment choice for your accumulation money, it will be invested in the LGsuper MySuper Lifecycle option from the day we open your Retained Benefit account.
If you make an investment switch any time after closing your defined benefit it will apply to all money in your accumulation account including the former defined benefit money that is invested in the Cash option.
For further information about the risks and benefits of the Retained Benefit account, please see our
Accumulation account, Retained Benefit account,
Spouse account Product Disclosure Statement
How super is taxed
Super is taxed at much lower tax rates than other types of investments. To avoid paying more tax than you need to though, you should make sure:• you and your employer do not exceed the
concessional (before-tax) cap or non-concessional (after-tax) cap on contributions. Amounts above the cap are taxed at much higher rates. Read our
Super contributions guide for more information.
What may be taxed Tax rate How paid
On entry to super
Contributions (Concessional only) Generally 15% Deducted by the fund. Income earners $300,000+
(concessional contributions) Additional 15% ATO to assess and provide options.
While invested
Investment earnings Up to 15% Deducted before
investment earnings are applied to your account.
When paid to you
Taxable component
of your benefit Age 60 plus Tax free Not applicable.
Age 55–59 First $195,000 tax free (2015/16), then 17%
including the Medicare levy Deducted by the fund. Under age 55 Taxed at 22% including the Medicare levy Deducted by the fund.
• you or your employer provide your tax file number (TFN) to LGsuper. Without your TFN, LGsuper is required to tax employer contributions at the top marginal tax rate of 49% including the Medicare levy and Temporary Budget Repair levy. You could claim this extra tax back by providing your TFN to LGsuper within 4 years, but it’s best to make sure we have your TFN in the first place. What’s more, without your TFN we are unable to accept non-concessional (after-tax) contributions.
Fees and costs
This section of the document shows fees and other costs you may be charged.
These fees and costs are deducted from the investment returns on your money.
Your employer pays all the administration costs of thedefined benefit section and insurance premiums for your Death and Total and Permanent Disablement cover. Investment management costs are deducted from the investment returns on your accumulation accounts. Fees and costs are deducted from investment
earnings to determine the earning rate applied to your accumulation accounts and will vary each year. If you have exercised investment choice on your accumulation accounts, the investment fees applicable to your investment option will apply. See the Investment choice guide available from www.lgsuper.org or by calling us.
Fees are taken into account before setting the multiple and investment earnings rate for your defined benefit calculations.
Administration and Investment fees
If you have an Accumulation account, it will be charged the fees and other costs applicable to the investment option in which it is invested. Refer to the Investment choice guide available from our website for more information.
Insurance fee
An insurance fee is included in the premiums you pay. Please see the Insurance section of this Guide for more details.
Financial advice fees
LGsuper does not charge a fee for the provision of general advice, or for limited single issue personal advice (e.g. salary sacrifice, super co-contribution) where a limited Statement of Advice is provided following face-to-face or phone consultation with an LGsuper representative.
An LGsuper member who receives more comprehensive personal advice and/or meets with an LGsuper advice representative will be charged on the following basis.
Type of advice
Appt. fee Advice fee Total fee
Single issue advice on contributions or investment choice
$220 No
charge
$220
Superannuation health check, transition to retirement and redundancy (pre- retirement)
$220 $220 $440
Retirement planning, income sources, Centrelink entitlements and estate planning issues
$220 $440 $660
A minimum fee of $220 will apply and maximum fee of $660 may be charged, depending on the level of advice required. Charges include GST.
The fee charged for advice directly related to your LGsuper account may be deducted from your LGsuper account on request. The fees will be explained to you in detail if you ask for this advice.
What am I covered for?
You are automatically covered for the following up to age 60 (or for some members, age 55):
Type of cover What is it? How is it paid?
Death cover Pays a one-off, lump sum payment to
your LGsuper account when you die. • Paid as a lump sum as part of your Death benefit
• Generally paid to your dependants
• It will be paid to your nominated beneficiaries if you have a valid binding death benefit nomination
Terminal Illness cover An early payment of the Death benefit, which pays to your LGsuper account a one-off lump-sum when you are diagnosed with a terminal illness.
• Paid to you as a lump sum as part of your Death benefit
Total and Permanent
Disablement (TPD) cover Pays a one-off lump-sum to your LGsuper account when you are totally and permanently disabled due to sickness and injury.
• Paid to you as a lump sum as part of your TPD benefit
Total and Temporary
Disablement cover A benefit up to 12.5% p.a. of your TPD benefit paid to you for up to 2 years to replace part of your income if you become totally or partially disabled due to sickness or injury.
Benefits are payable monthly after a 90 day waiting period.
• Paid into your nominated bank account each month
See LGsuper’s Insurance guide for the definition of Total and Permanent Disablement.
Insurance in your super
LGsuper’s insurance benefits can
protect you, your family and your
lifestyle against the unexpected,
24 hours a day, 7 days a week.
Your insurance cover could help you meet the cost of living if you are temporarily unable to work due to injury or illness, provide you with a lump sum if you are permanently incapacitated or give your family financial security in the event you die.
Death, Total and Permanent Disablement
(TPD) cover
If you suffer total and permanent disability or die you or your beneficiaries will get a lump-sum insurance benefit on top of the amount of money you have in your LGsuper account at the time a claim is made and accepted. This is not a savings plan — it’s simply a way to protect you and your loved ones financially should the unexpected happen. A Death or TPD benefit is only paid once and the amount payable on TPD cannot be more than your Death benefit.
How much cover do I get?
The benefit payable in the event of your death or TPD is calculated in two parts by reference to: 1. your ‘past service’ up to the date of your death or
disablement. This part of the benefit is calculated in a similar way as your normal retirement benefit, except the most recent salary provided by your employer is used instead of FAS (see page 2). 2. your ‘future service’ from the date of your death or
disablement up to age 60 (or for some members, age 55).
The total benefit payable equals the sum of the two parts.
For example, if a member was totally and permanently disabled at age 50 when their most recent salary was $30,000, the ‘future service’ benefit (payable in addition to the normal retirement benefit) would be $54,000 if they were covered to age 60 ($30,000 x 0.18 x 10).
How much does it cost?
No insurance premiums are charged as the cost of the Death and TPD cover you receive as part of your defined benefit is built into your multiple. Premiums will be charged for any additional Death and TPD or Death only cover you may have — see below for details.
Additional Death and TPD cover
If the cover you automatically receive as part of your defined benefit is not enough, you can apply for additional Death and TPD cover through life events (see Life events on page 13) or a regular application to the Insurer (see the back of this guide for forms). The Insurer will assess your application for cover and may impose a medical exclusion on any additional risk associated with providing you cover. You will be advised if this happens.
Additional cover is purchased in units, which decrease in value as your age increases.
Whatever you choose, cover generally ends once you reach age 60 (or for some members, age 55). If you have Total and Temporary Disablement (TTD) cover and are working 14.5 hours or more per week, your TTD cover will automatically increase when you purchase additional units of Death and TPD cover
(up to a maximum of 75% of your salary plus the same rate of superannuation contributions paid immediately before your disablement, with the maximum monthly benefit being $20,000).
Additional Death only or Death and TPD insurance units
Age Cover per
unit Age Cover per unit
Up to 30 $65,000 46 $22,013
31 $62,400 47 $20,280
32 $58,933 48 $18,720
33 $55,467 49 $17,160
34 $52,000 50 $15,600
35 $48,533 51 $14,040
36 $45,067 52 $12,480
37 $42,467 53 $10,920
38 $39,867 54 $9,360
39 $37,267 55 $7,800
40 $34,667 56 $6,240
41 $32,500 57 $5,027
42 $30,333 58 $3,987
43 $28,167 59 $3,120
44 $26,000 60 $2,427
45 $23,920
Note: unless you die or are disabled on your birthday, your insured amount will be between the amount shown for your age and one year older. This is because your insured amount reduces each day, based on the proportion of days since your last birthday divided by 365 days. The amount shown for age 60 is only used to calculate your benefit if you claim after turning 59 but before you reach age 60.
Premiums will be charged for any additional Death and TPD or Death only cover you have, and will be deducted from your Accumulation account. You should make additional voluntary contributions if you do not have enough money in this account to cover premiums. If you do not have enough money in your account, we would continue to deduct premiums and this would result in a negative account balance that would grow with earning rates and be deducted from your benefit on leaving the Defined Benefits Fund. The premium you pay for your additional Death and TPD insurance is directly related to the risk of your occupation.
All LGsuper members automatically default into the standard occupational risk premium rate. If you tell us you work in a low risk or professional occupation you could receive a discount on your premium on your additional cover as long as you complete the Occupational risk rating change form
at the back of this guide.
Insurance in your super
Low-risk occupation
If you work in a low-risk job you might be in an administrative or clerical type role and spend at least 80% of your total working time in an office or similar environment carrying out office-based duties.
Professional occupation
(a) You are a professional white-collar worker with a university degree qualification relevant to your field (e.g. lawyer, doctor, solicitor, accountant, any member of a professional institute or a member registered by a government body) and you spend at least 80% of your total working time in an office or similar environment carrying out those office based duties
OR
(b) You are an executive or senior managerial white-collar worker employed by an independent employer earning an annual salary package in excess of $100,000 (including any superannuation contributions made by, or on behalf of, your employer) and you spend at least 80% of your total working time in an office or similar environment carrying out those office based duties.
Whether or not your occupation qualifies you for an occupational premium discount is at the discretion of the Insurer. The discount will apply from the date the Insurer determines you qualify for a premium discount.
Insurance in your super (cont.)
Premiums per week per unit of cover
Occupational
risk rating Weekly Death and TPD cover premium per unit of cover
Weekly Death only cover premium per unit of cover
Standard $1.32 $0.67
Low risk $1.02 $0.51
Professional $0.87 $0.43
The above premium rates include an Insurance fee and any applicable Stamp Duty and GST.
What is the maximum amount of cover I can have?
The maximum levels of cover you can have with underwriting are:
Type of cover Maximum level of cover
Death $5 million
Terminal Illness $2.5 million or your Death cover, whichever is less Death and TPD $5 million: Death
$3 million: TPD These limits exclude life event increases and any special offers.
How life event increases work…
All life events are subject to the following conditions:
• you must already have some cover
• you can only apply for a maximum of 2 additional units of cover
• you can only increase TPD cover if you already have TPD cover
• you can only apply once in any 12 month period, subject to a maximum of three life events during your membership
• you must not have lodged a claim at the time you apply for a life event increase
• all the conditions of the life event must be met and the Insurer accepts your application
• you must apply to increase your cover within 60 days of experiencing your life event
• any exclusions you have will continue to apply to your cover
• you cannot apply if you have had an underwriting application denied by the Insurer
• you must be under age 55
• your increased cover will start from the date all requirements are received and your application has been accepted by the Insurer, and not at the time you experienced the event
Insurance in your super (cont.)
Life events
As long as you are under age 55, permanently employed and have not chosen to fix your additional Death and TPD cover you can apply for an extra 2 units of cover without underwriting as you experience the milestones listed in the Types of life events table. Underwriting will apply if you wish to increase your cover outside a life event or in excess of the life event maximum (2 units of cover per event).
To apply for an increase in your units of cover when you experience a life event, you must complete a
Life events application form available at the back of
this guide. You will also need to show proof you have experienced the life event as detailed below.
What is an interdependent relationship?
The Australian Government defines an interdependent relationship as being one of the following:
• a close personal relationship, living together with one or each person providing the other with financial support and one or each person providing the other with domestic support and personal care
• using the disability test, if there is a close personal relationship, and they do not satisfy one or more of the other elements of the definition because either or both person/s suffer from a physical, intellectual or psychiatric disability
Types of life events
Life events available to you are… As long as you can show this proof...
You or your spouse giving birth to or adopting a child A copy of your child’s birth certificate or adoption documentation
Getting married or divorced A copy of your full marriage or divorce certificate Taking out a new mortgage or increasing your
existing mortgage by $100,000 or more on your principal place of residence with an accredited mortgage provider*
If you take out a new mortgage: written confirmation from your accredited mortgage provider(s)* detailing the amount and effective date of the mortgage If you increase your mortgage with your existing or different mortgage provider: written confirmation from your accredited mortgage provider(s)* detailing the amount of your mortgage immediately before you increased it, the effective date of the increase and the amount of the mortgage after the increase
Two years or more in an interdependent relationship (see the definition on this page)
Bank statements, phone, electricity bills or any other evidence to show you have been in this relationship for at least 2 years
Your spouse’s death A copy of your spouse’s death certificate
* Accredited mortgage provider means an authorised deposit-taking institution (as defined by the Banking Act 1959) or other reputable financial services business, program or trustee which provides mortgage loans as part of its ordinary business activities and is accredited with the Mortgage Industry Association of Australia.
When does my Death and TPD insurance cover end?
You are unable to cancel the Death and TPD cover provided as part of your defined benefit. Your cover will end on your 60th (or for a small number of members, 55th) birthday.
Your cover will also end if you:
• have your account balance fall below $50 and no contributions are being received
• leave LGsuper
• are paid a TPD benefit which is equal to your Death benefit
• are paid a Terminal Illness benefit, equal to your Death benefit
• have an LGsuper Retained Benefit account and cancel your insurance in writing to the Board
• are a non-Australian resident who holds a visa and temporarily leave Australia for more than 3 months
• are a non-Australian resident who holds a visa and permanently leave Australia (your cover will end 30 days from the time you permanently leave Australia)
• if you are a non-Australian resident and your visa is no longer valid
• have a Retained Benefit account and your
superannuation account balance falls below $1,000
• commence Active Service with the armed forces of any country (except if you are a member of the Defence Force Reserve, in which case, cover will cease only when you become the subject of a call-out order under the Defence Act (Cth) 1903)
• no longer satisfy the eligibility requirements
• die.
Total and Temporary Disablement (TTD)
If you are temporarily unable to work due to sickness or injury, you may be eligible for a Total and Temporary Disablement (TTD) benefit if you are working 14.5 or more hours per week on a permanent basis. This benefit is based on 12.5% p.a. of your TPD benefit and is paid as a monthly sum for up to 2 years. A 90 day waiting period applies.
If you are receiving worker’s compensation, the TTD benefit is limited so that the benefit plus worker’s compensation cannot exceed 75% of your total salary. TTD cover ends at age 60, or for some members age 55 and when paid a TPD or Terminal Illness benefit, or when you cease employment with your employer under the Trust Deed. TTD benefits do not reduce your resignation or retirement benefits.
If your TTD benefit is not enough to meet your needs, or if you would like a shorter waiting period or cover up to age 65, you can apply for Income Protection cover.
Income Protection cover
You can apply for Income Protection that will give you a monthly benefit based on 75% of your pre-disability salary for a benefit period up to 2 years if you suffer total disability or partial disability. You must be under age 65, working permanently and for at least 14.5 hours per week to have this cover. You can find the
Insurance application form you need to complete at
the back of this guide.
We will recalculate your Income Protection cover each year based on your salary at 1 July if it’s provided by your employer, while you are working for Queensland local government (includes entities, water businesses and associated employers).
How do I work out my level of cover?
Income Protection cover is for:
• 75% of your monthly salary, paid directly to you Your cover is calculated as follows:
75% of your annual salary (pro-rated and paid each month in arrears)
Example
Annual salary $40,000
75% of annual salary $30,000
Monthly benefit (75% of salary)
$2,500 ($30,000 12 months)
Maximum amounts
The maximum Income Protection cover you can receive on showing the Insurer you are in good health by providing medical evidence is $30,000 per month if your income requires it.
How much will my cover cost?
The premium you pay for your Income Protection insurance is directly related to the risk of your occupation, your gender and your waiting period. All LGsuper members automatically default into the standard occupational risk premium rate (see the table on page 17). However, if you tell us you work in a low risk or professional occupation you could receive a discount on your premium.
Whether or not your occupation qualifies you for an occupational premium discount is at the discretion of the Insurer. Your discount will apply from the date the Insurer determines you qualify for a premium discount.
Low-risk occupation
If you work in a low-risk job you might be in an administrative or clerical type role and spend at least 80% of your total working time in an office or similar environment carrying out office-based duties.
Professional occupation
(a) You are a professional white-collar worker with a university degree qualification relevant to your field (e.g. lawyer, doctor, solicitor, accountant, any member of a professional institute or a member registered by a
government body) and you spend at least 80% of your total working time in an office or similar environment carrying out those office based duties
OR
(b) You are an executive or senior managerial white-collar worker employed by an
independent employer earning an annual salary package in excess of $100,000 (including any superannuation contributions made by, or on behalf of, your employer) and you spend at least 80% of your total working time in an office or similar environment carrying out those office based duties.
Income Protection premiums are deducted monthly from your accumulation account in arrears.
You should make additional voluntary contributions if you do not have enough money in this account to cover premiums. If you do not have enough money in your account, we will continue to deduct premiums and this would result in a negative account balance that would grow with earning rates and be deducted from your benefit on leaving the Defined Benefits Fund.
Insurance in your super (cont.)
Your premium will depend on your insured benefit, your age, your gender, your occupation and the waiting period you choose.
Your annual Income Protection premium is calculated as follows:
Your monthly insured benefit 100 x the premium rate (as per your age, gender and occupation) x your waiting period multiple
If your annual Income Protection premium is based on a 90 day waiting period it is calculated as follows:
Your monthly insured benefit (see How do I work out my level of cover? on page 14) 100 x the premium rate (as per your age, gender and occupation) x 1.00
Waiting period multiples
Waiting period Premium multiple
30 days 3.20
60 days 1.85
90 days 1.00
120 days 0.90
180 days 0.80
395 days 0.70
How long will I receive an Income Protection benefit for?
If you claim an Income Protection benefit it is payable for a maximum of 2 years and will stop if you reach age 65, are no longer totally or partially disabled, or if your cover ends. See When does my Income Protection cover end?
Do waiting periods apply?
Yes, you can apply for a different waiting period (options include 30, 60, 90, 120, 180 or 395 days). Premiums vary accordingly.
When could my benefit be reduced?
If you receive other income payments from disability or insurance policies (i.e. other personal insurance policies, workers compensation or insured benefits provided by your employer) while you are on claim your benefit payment may be reduced or not paid so that the amount we pay plus the other payment(s) is not more than your monthly benefit and 75% of your pre-disability salary, whichever is greater. The application of any reduction of your Income Protection benefit as a result of the receipt of other income is as specified in the Insurer’s policy.
current age Male Standard Female Male Low riskFemale MaleProfessionalFemale
15 $1.75 $1.93 $1.32 $1.44 $1.06 $1.14
16 $1.75 $1.93 $1.32 $1.44 $1.06 $1.14
17 $1.75 $1.93 $1.32 $1.44 $1.06 $1.14
18 $1.75 $1.93 $1.32 $1.44 $1.06 $1.14
19 $1.75 $1.93 $1.32 $1.44 $1.06 $1.14
20 $1.97 $1.93 $1.47 $1.44 $1.19 $1.14
21 $1.84 $1.93 $1.38 $1.44 $1.10 $1.14
22 $1.73 $1.95 $1.29 $1.47 $1.04 $1.17
23 $1.63 $1.97 $1.21 $1.47 $0.97 $1.19
24 $1.54 $1.99 $1.14 $1.49 $0.93 $1.19
25 $1.47 $1.99 $1.10 $1.49 $0.89 $1.19
26 $1.42 $2.12 $1.08 $1.60 $0.87 $1.27
27 $1.38 $2.20 $1.04 $1.67 $0.82 $1.32
28 $1.38 $2.29 $1.04 $1.73 $0.82 $1.38
29 $1.38 $2.35 $1.04 $1.78 $0.82 $1.40
30 $1.40 $2.42 $1.06 $1.82 $0.84 $1.44
31 $1.44 $2.51 $1.08 $1.88 $0.87 $1.52
32 $1.49 $2.58 $1.12 $1.93 $0.89 $1.54
33 $1.56 $2.68 $1.17 $2.01 $0.93 $1.60
34 $1.63 $2.81 $1.21 $2.12 $0.97 $1.69
35 $1.71 $2.96 $1.27 $2.23 $1.02 $1.78
36 $1.82 $3.16 $1.36 $2.38 $1.08 $1.90
37 $1.95 $3.37 $1.47 $2.53 $1.17 $2.03
38 $2.10 $3.64 $1.58 $2.73 $1.25 $2.18
39 $2.27 $3.96 $1.71 $2.96 $1.36 $2.38
40 $2.46 $4.30 $1.86 $3.22 $1.47 $2.58
41 $2.71 $4.72 $2.03 $3.55 $1.63 $2.83
42 $2.96 $5.19 $2.23 $3.89 $1.78 $3.11
43 $3.24 $5.71 $2.44 $4.28 $1.95 $3.41
44 $3.59 $6.31 $2.71 $4.74 $2.16 $3.79
45 $3.98 $6.96 $2.98 $5.23 $2.38 $4.17
46 $4.43 $7.68 $3.33 $5.76 $2.66 $4.61
47 $4.95 $8.45 $3.72 $6.33 $2.96 $5.08
48 $5.52 $9.32 $4.13 $6.99 $3.31 $5.61
49 $6.18 $10.23 $4.65 $7.68 $3.72 $6.14
50 $6.92 $11.20 $5.19 $8.41 $4.15 $6.73
51 $7.74 $12.26 $5.82 $9.19 $4.65 $7.35
52 $8.70 $13.38 $6.54 $10.03 $5.21 $8.02
53 $9.73 $14.56 $7.31 $10.92 $5.84 $8.74
54 $10.92 $15.79 $8.19 $11.85 $6.56 $9.47
55 $12.24 $17.08 $9.19 $12.83 $7.35 $10.25
56 $13.71 $18.42 $10.29 $13.82 $8.22 $11.05
57 $15.33 $19.81 $11.51 $14.86 $9.19 $11.90
58 $17.15 $21.26 $12.87 $15.94 $10.29 $12.76
59 $19.16 $22.73 $14.38 $17.04 $11.51 $13.65
60 $21.36 $24.22 $16.02 $18.16 $12.83 $14.54
61 $23.81 $25.76 $17.86 $19.31 $14.29 $15.46
62 $26.32 $27.10 $19.75 $20.33 $15.79 $16.26
63 $21.26 $21.08 $15.94 $15.81 $12.76 $12.65
64 $6.92 $6.71 $5.19 $5.04 $4.15 $4.02
Income Protection premium rates
Annual premiums ($) per $100 per month in cover
Insurance in your super (cont.)
Waiting period Benefit period
Insurance in your super (cont.)
Are there exclusions on my insurance?
For Income Protection you are excluded for any injury or illness caused by:
• your intentional act or omission (whether sane or insane)
• pregnancy, giving birth, miscarrying, pregnancy complications or a termination, unless you are totally disabled for longer than 3 months from when your pregnancy ends
• declared or undeclared war or any act of war
• active service in the armed forces of any country or international organisation
What if I take approved leave, parental leave or travel or work overseas?
We all need a break from time-to-time without being penalised for it. So it’s great to know that if you take annual or long-service leave, maternity or paternity leave, leave without pay, a mid-career break, or travel overseas your Income Protection insurance cover will continue for up to 24 months from the date your leave starts. Any cover beyond 24 months must be requested by you before your 24 months leave expires and is subject to approval by the Insurer. Your leave must be approved by your employer and you must continue to pay premiums during that time.
When does my Income Protection cover end?
If you have Income Protection cover it will end on your 65th birthday.
Your cover will also end if:
• your account balance falls below $50 and no contributions are being received
• you are a member with a Retained Benefit account and your balance falls below $1,000
• you leave LGsuper
• you permanently retire
• your TPD or Terminal Illness claim is approved
• you cancel your insurance in writing to LGsuper by completing an Insurance cancellation form
• you are a non-Australian resident who holds a visa and temporarily leave Australia for more than 3 months
• you are a non-Australian resident who holds a visa and permanently leave Australia (your cover will end 30 days from the time you permanently leave Australia)
• you are a non-Australian resident and your visa is no longer valid
• you are no longer employed for at least 14.5 hours each week as a permanent employee or contractor, except where you start working at least 14.5 hours per week with a new employer as a permanent
employee or as a contractor within 60 days you commence Active Service with the armed forces of any country (except if you are a member of the Defence Force Reserve, in which case, cover will cease only when you become the subject of a call out order under the Defence Act (Cth) 1903)
• you are on employer approved paid or unpaid leave for longer than 24 consecutive months
• you die.
Are commissions paid on my insurance
premiums?
No. There are no commissions paid on any of your insurance premiums through LGsuper. However an Insurance fee of 1% (including GST) of all Death, Total and Permanent Disablement and Income Protection premiums is retained by LGsuper to partially offset the administration cost of managing the insurance arrangements. The Insurance fee is included in the insurance premiums deducted from your account monthly in arrears and does not affect your sum insured.
What happens to my insurance cover
when I leave the Defined Benefits Fund?
Any Death and TPD cover you have as part of your defined benefit will continue in your Accumulation or Retained Benefit account up to age 65. We do this by converting the dollar amount of cover to the next whole unit of Death and TPD cover (rounded up) as set out in the Insurance guide. Premiums will be deducted accordingly.
Any Income Protection cover you have will
automatically continue at the same level unless you apply to change it. If you do not have any Income Protection you can apply for cover to replace part of your salary if you were temporarily unable to work due to sickness or injury. For more information get a copy of our Insurance guide at the time you leave the Defined Benefits Fund or see the Income protection cover section of this guide now to find out how to apply.
Your TTD cover will end upon leaving the Defined Benefits Fund.
What if my hours reduce to less than
14.5 hours a week?
If this occurs your Income Protection will need to be cancelled. While we will endeavour to get this information from your local government employer, you can also cancel your income protection yourself by completing an Insurance cancellation form. You don’t want to be paying tor insurance you can’t claim against.
Insurance in your super (cont.)
Other important information
The conditions under the policy LGsuper has with OnePath
This guide aims to give you a comprehensive summary of the terms and conditions of your insurance cover. However all insurance benefits provided by LGsuper are subject to the terms and conditions detailed in the Group Life and Group Salary Continuance policies LGsuper has with OnePath.
Please contact us if you would like a copy of the policies.
Making a claim
We hope you never have to make a claim, but if the unthinkable does happen you can count on LGsuper to process your application as quickly as possible. When making a claim, there are six important things to remember. See below.
If you make a claim for Income Protection or TTD, but subsequently return to work and suffer a reoccurrence of the same disability within 6 months of the claim ending, your new claim will be considered a continuation of the earlier one.
This means you will not have to serve another waiting period, but the further period of disability will be seen as a continuation of the previous and count towards your 2 year benefit period.
For more information, or to advise LGsuper of a claim, phone us on 1800 444 396.
As superannuation is designed specifically to fund your retirement, there are restrictions on when you can access your money.
Important things to remember when making a claim
1
Be aware of the waiting periods that apply before your Income Protection or
TPD claim can be assessed and paid.
2
Tell LGsuper about your illness or injury as soon as possible as the end of your
waiting period approaches and if you are likely to make a claim because of it.
Your Income Protection waiting period will start from the date you are medically
certified as being unfit for at least one of your normal work duties. A benefit
cannot be paid if you return to work before the end of your waiting period.
3
If you cease with your employer due to disability on or after 1 July 2011 you
have 6 years from that date to lodge a claim for Total Permanent Disablement,
otherwise your claim cannot be considered by the Board.
4
Complete the claim form in full and return it to us as soon as possible (we will
send it to you as soon as you tell us about your injury or illness).
5
Supply all additional information to support your claim at the time you make your
claim. This will help us assess your claim fairly and quickly. You will need to
include medical reports, health certificates, employer reports and other relevant
evidence. The Insurer will generally meet the costs associated with any other
medical requests that are required.
6
If you die, a relative or legal personal representative should notify LGsuper as
soon as possible so the claim process can begin.
7
Keep in mind that once a Death or TPD claim is approved the benefit is invested
in the Cash option. Contact us for more information.
Accessing your super
Retirement
You can access your super as a lump sum, pension or combination of these methods when you permanently retire after reaching your preservation age. Your preservation age is set by the Australian Government and is based on your date of birth.
Date of birth Preservation age
Before July 1960 55
1 July 1960 — 30 June 1961 56
1 July 1961 — 30 June 1962 57
1 July 1962 — 30 June 1963 58
1 July 1963 — 30 June 1964 59
From July 1964 on 60
You can also access your super when:
• you reach age 60 and then stop work or change jobs, or
• you turn 65 (whether you are working or not).
Family law and superannuation
Superannuation held by many couples who have separated or divorced can be divided by agreement or court order. If you were to split your superannuation in this way, a separate account would be created for your former spouse, and they could then remain a member of LGsuper or transfer this money to another fund. Contact us for more information.
Transition to retirement
Did you know you can access your superannuation as a regular income stream (but not as a lump sum) when you reach your preservation age, even if you are still working? LGsuper offers a Transition to Retirement Pension account for members wanting to take
advantage of the transition to retirement provisions.
Special conditions apply for members of the Defined Benefits Fund. Contact us for more information or get a copy of our Pension accounts Product Disclosure
Statement (PDS).
Other limited circumstances
There are only a few situations where you can access your preserved superannuation as a lump sum before retirement. These are:
• death
• terminal illness
• total and permanent disability
• temporary residents permanently leaving Australia (excluding NZ residents)
• severe financial hardship, as defined by the Australian Government
• compassionate grounds, approved by the Department of Human Services
If you think any of these situations apply to you, contact LGsuper for further information on accessing your super.
Non-preserved benefits
Some super contributions and investment earnings made before 1 July 1999 may be accessible before your preservation age. These amounts will be shown on your annual benefit statement as unrestricted non-preserved amounts that can be accessed now, or as restricted non-preserved amounts that can be accessed when you leave your employer (conditions apply).
If you choose to leave unrestricted non-preserved money with LGsuper, or transfer some unrestricted money to LGsuper from another super fund, it will always be accessible. However, if you choose to withdraw non-preserved money from your defined benefit (conditions apply), you will be required to close your defined benefit and transfer your remaining balance to an accumulation account.
When you die, your superannuation and any insurance payable can help support your dependants. There are rules set out in the LGsuper trust deed and in Australian Government legislation that allow us to pay death benefits to:
• your spouse — married, defacto or same-sex partner
• your children — including step-children, adopted children, mature-age children or a child of a de facto spouse
• someone in an interdependent relationship with you, as defined by the Australian Government
• your legal personal representative (i.e. the executor of your Will or the administrator of your estate)
• some other person.
For more information on how death benefits are paid, visit our website or call us for a copy of our Death benefits info sheet.
What happens if you die?
Administration and Investment fees
If you have an Accumulation account, it will be charged the fees and other costs applicable to the investment option in which it is invested. Refer to the Investment choice guide available from our website for more information.
Nominating your beneficiary
You can nominate who you would prefer to receive your super and any insurance benefit payable in the event of your death by making a preferred or binding death benefit nomination. See our Nominating your beneficiary guide for more information and forms.
Payment of the death benefit
In the event of your death a lump sum benefit would be paid generally to your dependants or your estate. The LGsuper Board of Trustees will generally decide who to pay the benefit to unless a binding death benefit
