Supplementary Product Disclosure Statement

Further conditions of release – page 64

We’ve outlined the government’s proposed changes to accessing benefits in case of terminal illness.

Accessing your super iF you hAve A terminAl illness

The government has proposed to amend the provision which allows people suffering a terminal illness to access their super early. Currently, people with a terminal illness can only access their super early if they can get certification from two medical specialists that they have less than 12 months to live.

The government is expected to change this period to 24 months, meaning more terminally ill people could access their super early. This change is proposed to take effect from 1 July 2015.

IMPORTANT: There could be significant consequences to accessing your super early under the Government’s proposal.

The certification period for UniSuper’s inbuilt terminal medical condition benefits (DBD members only) and externally insured terminal illness benefits has not changed—both benefits currently require certification from two medical specialists that you have less than 12 months to live.

Accessing your super under the Government’s proposed changes could mean you forfeit eligibility for inbuilt terminal medical condition benefits and externally insured terminal illness benefits.

We strongly recommend you read the Terminal medical condition benefit fact sheet at unisuper.com.au/forms- and-documents/forms-and-brochures and call us on 1800 331 685 to discuss your options.

risks of super – page 23

We’ve identified an additional risk that we’re adding to the general risks of super outlined on page 23. Please be aware of the following:

cyBer risK

This is the risk of financial or data loss, business disruption, or damage to the reputation of UniSuper as a result of a threat or failure to protect the information or personal data stored within its information technology systems and networks.

making standard member

contributions – pages 29, 41 and 46

We’ve clarified the way we describe contribution flexibility for DBD members. You should note the important update below, illustrated in the first paragraph on page 29, but also appearing on pages 41 and 46.

In addition to employer contributions, you’re required to make standard member contributions of 7% of your salary unless you elect to reduce them through UniSuper’s contribution flexibility arrangements.

All DBD members are required to make standard member contributions of 7% unless they elect to reduce their member contributions through contribution flexibility.

Supplementary Product Disclosure Statement

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

Date issueD: 1 July 2015

This Supplementary Product Disclosure Statement (SPDS) adds to and updates the information in the Defined Benefit Division and Accumulation 2 Product Disclosure Statement (PDS) dated

3 January 2015. This SPDS should be read in conjunction with the PDS and How we invest your money, Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2?

important information booklets, which are incorporated by reference in the PDS.

unisuper.com.au

government co-contributions – page 50

We’ve updated the government co-contribution details for the new financial year, as follows:

If your total income is $34,488 per annum or less for 2014/15, the government will put in $0.50 for every dollar of after-tax personal contributions you make into your super, up to a maximum of $500. This is called a co- contribution. If you earn more than $34,488 per annum for 2014/15, you may still benefit from government co-contributions but the amount of co-contribution gradually reduces as your total income increases, before phasing out completely if you earn $49,488 per annum or more. Government co-contributions are tax free.

To be eligible for the 2015/16 financial year, your income would need to be less than $35,454. You may still benefit from a co-contribution if you earn more than this, but the amount would phase out completely if you earn more than $50,454.

We have also clarified the information under ‘Eligibility requirements’. At the fifth bullet point in this section, delete the word “comment”.

government caps on contributions – page 51

We’ve updated the table and footnotes on page 51 for the new financial year. Please replace the table and notes on page 51 with the following information:

* There is 15% tax payable by your fund on concessional (before-tax) contributions paid into a super fund. Your super fund usually reduces your super account by your share of this tax.

caps on non-concessional (after-tax) contributions – page 53

On page 53 we refer to proposed changes to allow

individuals to withdraw super contributions in excess of the non-concessional contributions cap made from 1 July 2013 and any associated earnings (with the earnings taxed at the individual’s marginal tax rate). This legislation was passed in March 2015.

This change means that if you exceed the non-concessional (after-tax) contributions cap, you may elect to withdraw from an accumulation account the excess contributions. If you do so, you will also be required to withdraw 85% of any associated earnings. The amount of associated earnings will be calculated by the ATO and included in their release authority. Note: you cannot use the ATO release authority to withdraw the contributions from UniSuper’s Defined Benefit Division but you can release monies from any associated accumulation account.

Any non-concessional contributions you withdraw will no longer be taxed at up to 49%. However, the total amount of the associated earnings will be taxed at your marginal tax rate for the year in which you made the excess contributions. A tax offset of 15% of the associated earnings will apply. (Note that these amounts can’t be withdrawn from a Defined Benefit component.) These changes relate to excess non-concessional contributions made on or after 1 July 2013.

If you have made excess non-concessional contributions and don’t elect to have them withdrawn and taxed at your marginal rate, they will be taxed at up to 49%.

It’s important that you are aware that monitoring your contributions is your responsibility. MemberOnline has up-to-date details of how you’re tracking against the caps, available at unisuper.com.au.

Fees and costs – pages 68 and 73

We’ve updated the fee table on page 68 , and the

‘Administration Fees’ section on page 73, for the new financial year. The administration fee for DBD membership will change from $218 per year to $221 per year on 1 July 2015.

Also, the first footnote under the ‘Fees and costs’ table on page 68 refers to further information about ‘Risks associated with defined benefits’ being on page 23 of the PDS. This information is actually found on page 28 of the PDS.

your contriBution cAps

Concessional (general

cap)* Non-

concessional cap 2015-16 $30,000^#

$35,000 for members aged 49 and over on the last day of the previous financial year

$180,000

2014-15 $30,000^#

$35,000 for members aged 49 and over on the last day of the previous financial year

$180,000

Tax on amounts over the cap

Included in your income tax return and taxed at your marginal rates

up to 49%

(including the Medicare Levy)

unisuper.com.au

tax on withdrawals – page 76

The low rate threshold described on page 76 for tax on withdrawals made by members under age 60 is shown as

$185,000 for the 2014/15 financial year. For the 2015/16 financial year, the low rate threshold is $195,000.

glossary and important definitions – page 84

We’ve updated the ‘Glossary and important definitions’

section which starts on page 84 with an additional term to help you understand this product.

AccumulAtion 1 Account

An Accumulation 1 account refers to another ‘accumulation- style’ account within UniSuper. Accumulation 1 accounts are typically made up of your employer super guarantee contributions, any voluntary member contributions you make, investment returns (which can be positive or negative), money you roll over from other super funds, and any other contributions such as spouse contributions.

Fees, costs, insurance premiums (if you have cover) and taxes are deducted from these accounts.

contact details – back cover

Our Helpline number for overseas members and fax number have changed. Our updated contact details, including Helpline operating times, are:

helpline

1800 331 685

+61 3 8831 7901 (Overseas members)

A

8.30am to 7.00pm Monday to Thursday

A

8.30am to 6.30pm Friday (Melbourne time).

FAX

1300 224 037

+61 3 8831 6141 (Overseas members)

unisuper ADvice

1300 331 685

+61 3 8831 7916 (Overseas members)

Important information: This SPDS was prepared and issued by UniSuper Limited (ABN 54 006 027 121) as Trustee of UniSuper (ABN 91 385 943 850). The information contained in this SPDS is of a general nature only and does not take into account your individual objectives, financial situation or needs. You should consider the appropriateness of the information for your personal circumstances and consider consulting a qualified financial adviser before making an investment decision. To the extent that this SPDS contains information which is inconsistent with the UniSuper Trust Deed and Regulations (together the Trust Deed), the Trust Deed will prevail.

UNIS000107S 0715

unisuper.com.au

This page has been intentionally left blank.

A

DBD member, Associate Professor Elizabeth Koch OAM, Elder Conservatorium of Music, the University of Adelaide

Defined Benefit Division and

Accumulation 2

Product Disclosure Statement

Issued 3 January 2015 by UniSuper Limited ABN 54 006 027 121

disclosure statement

This PDS has been prepared and issued by UniSuper Limited as Trustee of UniSuper.

This PDS is for UniSuper Defined Benefit Division (DBD) and Accumulation 2 members. It contains the membership application form and describes the important features of membership, including the benefits and risks and how fees, costs and taxes may apply. The information in this PDS will help you make important choices about your super.

In conjunction with this PDS, it is important that you read the How we invest your money, Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? booklets (which are incorporated by reference in this PDS) prior to making any decisions for your super. If you would like to request a paper copy (free of charge) of this PDS or any of the incorporated important information booklets that are referred to, please call us on 1800 331 685 or you can access at unisuper.com.au/pds.

The information provided in this PDS is of a general nature only and does not take into account your personal financial situation or needs. You should therefore consider whether it is appropriate for your personal circumstances before relying on it and you should consider obtaining financial advice tailored to your personal circumstances before making a decision about this product.

To the extent that this PDS contains any information which is inconsistent with the UniSuper Trust Deed and Regulations, (together, the Trust Deed), the Trust Deed will prevail.

Information in this PDS is current as at the date of issue. Information contained in this PDS which is not materially adverse may change from time to time. Updated information can be found on our website or by calling us.

You will be given notice of material changes or significant events within timeframes required by law.

UniSuper Management Pty Ltd, SuperRatings Pty Limited, Chant West Pty Limited and Selecting Super (Pty Ltd) have consented to their logo and/or statements being included in this booklet, in the form and context in which they have been included, and consent has not been withdrawn as at the date of this booklet.

in tHis pds

UniSuper is referred to as ‘UniSuper’ or ‘the Fund’, ABN 91 385 943 850.

UniSuper Limited is referred to as ‘USL’ or ‘the Trustee’, ABN 54 006 027 121. UniSuper Management Pty Ltd is referred to as ‘USM’, ABN 91 006 961 799, Australian Financial Services Licence (AFSL) No. 235907, MySuper Authorisation No. 91385943850448. The Trustee has delegated administration of the Fund to USM, which is wholly owned by USL in its capacity as Trustee of the Fund.

USM’s AFSL authorises it to deal in financial products and to provide financial product advice to members, which it does through UniSuper Advice. External insurance cover is provided to UniSuper through group insurance policies the Trustee has taken out with TAL Life Limited, ABN 70 050 109 450, AFSL No. 237848 (referred to as ‘the Insurer’

throughout this document).

© UniSuper Limited 2015

overview

About UniSuper 4

How super works 8

Getting started 10

Choose your

style of super 14

What are the DBD

and Accumulation 2? 16 Insurance and

inbuilt benefits 18 Joining UniSuper or

transferring to the DBD 19 Still not sure which

type of super will

suit you best? 20

Risks of super 23

24 months to make a decision about your

membership 24

01

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

1

contents

defined benefit division

What is the defined

benefit division? 26 Risks associated with defined benefits 28 Making contributions 29 Inbuilt benefits 30 Insurance cover through your accumulation

component 31

Your super 32

accumulation 2

What is Accumulation 2? 40 Insurance 40 Making contributions 41 Accumulation 2

membership

– types of benefits 43

General information

Making contributions 46 Investment options 56 Inbuilt benefits

and insurance 58

Risks of super 59

Accessing your benefit 63

Fees and costs 67

How super is taxed 75 Other information 78 Glossary and

important definitions 84

02 03 04

2

The terms of your employment mean that you are now a Defined Benefit Division (DBD) member. This is a product that we’re proud to offer, with a long history and unique design.

Because we know that the DBD may not suit everyone, we offer our members the option to permanently transfer to the Accumulation 2 Division of the Fund (Accumulation 2) within the first 24 months of membership. Accumulation 2 is the type of account you’re probably more familiar with, being similar in style to a personal account in which your superannuation contributions are accumulated, as well as any investment returns (which could be positive or negative) less any fees, costs, charges, premiums and taxes.

This Product Disclosure Statement (PDS) explains these two types of super, highlights some decisions you may want to make through the life of your membership, and provides you with information to assist you with those decisions.

How to read this PDS

this pds is broken up into four sections:

01 overvieW

Part 1 introduces UniSuper and explains the basic characteristics of the DBD and Accumulation 2. It also highlights some key decisions to consider and provides some general information relevant to those decisions.

02 deFined beneFit division

Part 2 provides more detailed information particular to the DBD.

03 accumulation 2

Part 3 provides more detailed information specific to Accumulation 2.

04 otHer inFormation

Part 4 covers the general, but important, information relevant to both the DBD and Accumulation 2. This includes making

contributions, how your super is taxed, and the fees and costs that apply.

Find out more

You can visit our website

unisuper.com.au for more information or call us on 1800 331 685.

We know that super can be complex, so we’ve tried to make it as easy as possible for you to

understand the features of your membership, the decisions you can make and what you can

do now to make the most of your super.

Overview

01

4

_Overview

benefits of unisuper membership

WitH you all tHe Way

No matter where you work or what you do, you can keep your super with us for life. That way we can continue to help you build and manage your super and achieve your retirement goals.

Whether you’re:

A

Starting out in the workforce

A

Progressing in your career

A

Changing jobs

A

Winding down your work hours

A

Taking a well-earned break, or

A

Transitioning-to-retirement.

We offer a range of products and investment options to help you achieve your goals.

Since 1983, we’ve been Australia’s only super fund dedicated to people who work in the higher education and research sector. With more than $44 billion in funds under management and over 400,000 members, we are one of Australia’s largest super funds.

Since inception we’ve helped over 1.1 million Australians in saving and preparing for retirement. We are committed to providing competitive and high-quality retirement saving products and services to our members, as well as a range of investment options.

About UniSuper

stay WitH us even iF you leave your employer

You have the option to keep your super with us if you leave the higher education and research sector. If you’re eligible for Choice of Fund, you can ask your new employer to pay your Superannuation Guarantee contributions into your existing UniSuper account.

access our competitive pension products

You can take out a UniSuper pension when you retire – or in the lead-up to retirement as part of a transition to retirement strategy. We have a range of Pension options to help our members continue to benefit from our competitive fees and returns. For more information, refer to the relevant Pension PDS and/or Your guide to a better retirement booklet available from unisuper.com.au/pds or by calling us on 1800 331 685.

competitive Fees

Our fees are consistently amongst the most competitive in the industry and we strive to offer great value, excellent service and relevant choice to our members. As a member, you won’t be charged for:

A

Any entry or exit fees, or

A

The first investment option switch you make each financial year

We don’t pay commissions to financial advisers and don’t pay external shareholder dividends.

doWnload or order over tHe pHone

You can download any of our documents including this PDS and related important information booklets at unisuper.com.au/pds. If you’d prefer a paper copy, you can order one free of charge by calling us on 1800 331 685.

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

5

Overview

control and cHoice over your investments

We know everyone has different needs when it comes to investments. So we offer you the flexibility and freedom to choose your own investment strategy. We offer a wide range of carefully built investment options, including sustainable options, which you can combine to create your own portfolio or leave it to our team of experts via one of our pre-mixed diversified investment options.

a record oF stronG lonG-term investment perFormance

We’re proud to have achieved returns that have exceeded industry benchmarks and averages for many of our investment options.* For example, our Balanced option has achieved returns that place it in the first quartile (top 25%) over one, three, five, seven and 10 years.¹ And for the 2013-14 financial year our Balanced option returned 13.9%¹, ranking it the third best of the 50 largest (according to funds under management) surveyed Australian super funds.

Most of our pre-mixed options also exceeded their respective peer group medians over these periods and in most cases also ranked in the top quartile.

We’re a mysuper-autHorised Fund

UniSuper is authorised to offer ‘MySuper’.

MySuper is the Government-driven initiative for members’ default superannuation contributions.

It is designed to protect members through ensuring certain rules are met in relation to investment strategy, fees and insurance cover.

Generally, only funds authorised to offer MySuper can accept compulsory default super contributions (Superannuation Guarantee) from employers. UniSuper has selected its Balanced option to be its MySuper investment strategy.

Accumulation 2 members with any part of their account invested in our Balanced option will automatically become part of MySuper.

DBD members are not able to become part of UniSuper’s MySuper offering while they remain in the DBD.

* Past performance is not a reliable indicator of future performance.

1 Source: SuperRatings Pty Ltd’s Fund Crediting Rate Survey June 2014 published on 21 July 2014, www.superratings.com.au. A survey median was not available for all categories of investment options. It does not take into account any subsequent revisions or corrections made by SuperRatings. At the time of preparation, UniSuper was not aware of any revisions or corrections which would be materially adverse to members.

Go to www.superratings.com.au for details of its rating criteria. SuperRatings does not issue, sell, guarantee or underwrite this product.

award-winning fund

With a string of awards and high ratings from Australia’s top ratings and research agencies SuperRatings and Chant West we’re one of Australia’s most award-winning super funds.

SuperRatings, an independently owned superannuation research company, has awarded UniSuper a Platinum rating for its Accumulation 2 product.^# SuperRatings Infinity Recognised is awarded to super funds that clearly demonstrate excellent sustainable business practices and responsible investment principles. Go to www.superratings.com.au for details of its rating criteria. SuperRatings does not issue, sell, guarantee or underwrite this product.

Chant West has awarded UniSuper a 5 Apples rating for its Accumulation 2 product.^

For further information about the ratings methodology used by Chant West, see www.

chantwest.com.au. Chant West does not issue, sell, guarantee or underwrite this product.

# SuperRatings Fundamentals Report: UniSuper Accumulation Super (2), 30 September 2014. Issued

by SuperRatings Pty Ltd ABN: 95 100 192 283, AFSL 311800 (SuperRatings).

^ See Chant West Super Fund Ratings at www.chantwest.com.au Chant West Pty Limited ABN 75 077 595 316.

6

_Overview

Generous employer contributions

Your employer makes contributions that are well above those required by government Superannuation Guarantee legislation, which, when combined with your member contributions, can help you build your retirement savings.

spouse accounts

You’ve built your life together, so it makes sense to secure a financial future together. UniSuper Spouse Accounts may help you and your partner achieve the retirement you deserve.

You don’t have to be married to open a Spouse Account

If you’re a UniSuper member, we recognise a spouse as being a person who:

A

You are legally married to;

A

Is in a relationship with you (whether of the same or opposite sex), and the relationship is registered under an Australian state or territory law, or

A

Is in a relationship with you (whether of the same or opposite sex), and you live together on a genuine domestic basis as a couple.

To open an account for your spouse, you need to have a current UniSuper account yourself.

You can read more information on this and the Spouse Account membership entitlements in the Spouse Account PDS available at unisuper.com.au/pds or by calling us on 1800 331 685.

more about us

At unisuper.com.au/governance you will find any information about the Trustee which we’re required to disclose to members (such as executive remuneration). You can find our MySuper dashboard at unisuper.com.au/mysuper/mysuper- dashboard.

pre-tax employer

3%

contributions into accumulation component

(if applicable)

17%

pre-tax employer contributions (or 14% if applicable)

14%

pre-tax employer contributions into defined benefit component

9.5%

pre-tax employer contributions

7%

²

post-tax employee contributions

into defined benefit component

7%

²

post-tax employee contributions

How unisuper’s standard dbd and accumulation 2 contribution rates compare to the standard Government contribution rate

standard government contributions

required unisuper

dbd super contributions

unisuper accumulation

2 super contributions

2 Contribution flexibility allows most members to reduce how much they pay down to zero.

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

7

Overview

Financial advice for members through unisuper advice

UniSuper offers the opportunity to access financial advice as part of our services to members.

UniSuper Advice is operated by UniSuper Management Pty Ltd, which is licensed to provide financial product advice to members. This means you can get financial advice from someone who understands the Fund and the higher education and research sector.

The advice service operates exclusively for UniSuper members and their spouses.

It offers personal advice over the phone on specific issues, including your super contributions, investment options and insurance as they relate to your UniSuper account, as well as comprehensive financial advice, on areas that include retirement planning, non-superannuation investments, accumulating wealth and insurance.

UniSuper requires its advisers to achieve a high standard of relevant education.

Most of our advisers have tertiary

qualifications, many in financial planning or related disciplines, and almost all of our comprehensive advisers have the internationally recognised certification of CERTIFIED FINANCIAL PLANNER (CFP®) professionals, which demands advisers satisfy requirements in respect of four ‘Es’: ethics, education, experience and examination.

UniSuper Advice operates on a fee-for- service basis. If you request personal advice services, UniSuper Advice will provide you with a quote of the fees to be charged for those services before you incur any personal advice service fees. UniSuper advisers are salaried employees and do not receive any commissions.

No matter your stage of life, it’s never too late to plan your financial future. Contact UniSuper Advice on 1300 331 685.

We can help you make informed decisions

attend one oF our Free seminars or Webinars

As a UniSuper member, you can come along to one of our many face-to-face seminars held on and off-campus in locations around Australia.

This is a great opportunity for you to learn more and ask questions about all sorts of super and pension-related topics.

We also offer live webinars which you can attend from the comfort of your own computer. See unisuper.com.au/learning-centre/seminars to find out more.

online learninG tools

Our online Learning Centre lets you learn at your own pace, with videos, tutorials and calculators to help simplify some of the more complex aspects of super.

manaGe your account online

You can also keep track of your super with MemberOnline. This secure, personalised portal lets you update your details, make investment switches, keep an eye on your account balance, contributions and insurance, and do a range of other things to help you stay in control.

® CFP®, CERTIFIED FINANCIAL PLANNER® are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd (FPSB). Financial Planning Association of Australia Limited is the marks licensing authority for the CFP Marks in Australia, through agreement with FPSB.

8

_Overview

contributions

You can make a range of different types of contributions to your account, for example, employer contributions, ‘standard member contributions’, voluntary contributions, rollovers (i.e. transfers from other funds) and, if you meet the eligibility criteria, government co-contributions.

There are limits, called contributions caps, on how much you can contribute to your super each financial year and still receive concessional tax treatment. It’s your responsibility to monitor the total contributions made each year into your UniSuper account— and to any other super accounts you have—to ensure you don’t exceed the caps (unless it’s part of your contribution strategy to do so). You can monitor your account by logging onto MemberOnline at our website.

For more information on contributions and contribution caps see page 46.

accessinG your super

Super’s designed to provide you with an income in retirement, so there are restrictions on withdrawing your money from super funds to protect your balance and keep it invested until you need it. You usually can’t access your super until you are aged between 55 and 60 and retired, but there are some special circumstances when you can withdraw it earlier.

There may be additional restrictions imposed on the DBD. For more information on accessing your super see page 63.

What does it mean?

standard member contributions

Members of the DBD or Accumulation 2 are required to make 7% standard (after- tax) member contributions. Members can elect to reduce this level under contribution flexibility arrangements, however this can have important implications for their final benefit (see page 47 for more information).

voluntary member contributions

Voluntary member contributions are those contributions made over and above your standard member contribution level.

For DBD members, it’s important to note that voluntary member contributions are allocated to the accumulation component of your benefit.

Superannuation (super) is a way to save for your retirement which is, in part, compulsory.

It is a long-term investment and designed to provide you with a nest-egg to help you fund your retirement.

How super works

tax savinGs tHrouGH super

Super can be a tax-effective way to save and invest because of the tax concessions (favourable tax treatment) it attracts. You can read more about how super is taxed on page 75.

Your super is one of the most important – and probably one of the biggest - investments you will have. Take the time to read through this PDS to work out the best options for you.

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

9

Overview

You’ve just become a DBD member.

Congratulations and welcome!

What is the dbd?

page 26 How does

accumulation 2 work?

page 40

How do i invest my accumulation component? page 56

How do i invest my super? page 56 What are inbuilt

benefits and insurance options? pages 30-31

What are my insurance choices? page 43

Who receives my benefit if i die? page 78

Who receives my benefit if i die? page 78

What if i become ill?

page 43 What if i become ill?

page 34

i’ve just retired.

What do i do? page 4 i’ve just retired.

What do i do? page 4

What happens if i leave my employer?

page 65 What happens if i

leave my employer?

page 65

How much can i contribute? page 41 How much can i

contribute? page 29

already a unisuper member but your super’s changed?

page 19.

getting started.

page 10

24 months to decide.

page 24

Which style of super should

i choose?

page 20

defined benefit accumulation 2

10

_Overview

Getting started:

a guide to your decisions

To help guide you through the decision-making process, we have provided a range of topics you may want to consider. Remember, before making any decision you may also wish to obtain professional financial advice.

What style of super will you choose?

You are now a DBD member. Read the information on page 16 for a summary of the key features of the DBD and Accumulation 2 and the detailed information in Sections B and C. Remember, you have 24 months³ to decide whether to permanently transfer to Accumulation 2.

What level of contributions do you want to make?

Decide what level of member contributions you’d like to make (known as contribution flexibility).

Limits apply to the amount of contributions you can make each financial year (see page 46).

How do you want to invest your super?

accumulation 2 members

With our wide range of investment options, you can tailor your account to suit your individual needs.

You can choose the way contributions are made to your account and any transfers into your account are invested. Over time you can change these strategies without changing the way your account balance is invested. You can also change the investment options for your existing account balance.

dbd members

You can only choose how your accumulation component (see definition on page 84) of your account is invested. You should read How we invest your money together with this PDS prior to making any decisions about your super available at unisuper.com.au/pds. If you choose Accumulation 2, your inbuilt benefits will also be transitioned to Death, TPD and Income Protection insurance cover (if you’re eligible). This is in addition to your default cover. Choosing or changing your investment options in your accumulation component/account can be completed quickly and easily through MemberOnline.

3 You have 24 months from when your Defined Benefit Division/Accumulation 2 application form is accepted by UniSuper, or the first employer contribution paid on your behalf is accepted by UniSuper (or as determined by us) to decide whether to stay in the DBD or transfer your benefit to Accumulation 2. Once you have made your decision, you can’t change your mind. Your decision will continue to apply throughout the life of your UniSuper membership. If you don’t elect to transfer to Accumulation 2 within this period, you will remain a DBD member.

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

11

Overview

do you want inbuilt benefits?

dbd members

DBD members can claim an inbuilt benefit in the event of death, disablement, temporary incapacity and terminal medical condition. Inbuilt benefits are self-insured by UniSuper and the value of the benefit is determined by a formula in the Trust Deed. Inbuilt benefits are compulsory and DBD members can’t opt out of them.

accumulation 2 members

If Accumulation 2 members choose to transfer from the DBD, their inbuilt benefits cease and are transitioned to external Death, TPD and Income Protection cover through TAL Life Limited (our Insurer) if they’re eligible for this cover. A pre-existing condition exclusion will apply to some or all of this external cover for between 12 months and three years, depending on when you transfer from the DBD.

To find out how the DBD inbuilt benefits are converted to unitised external cover, and the terms, conditions and restrictions that apply to this cover, read the What happens to your inbuilt benefits if you choose Accumulation 2? important information booklet which is incorporated by reference in this PDS and available at unisuper.com.au/pds.

Accumulation 2 members can opt out of the external insurance cover. The type and level of cover provided is determined by the group insurance policies UniSuper has with the Insurer. For more information on the terms and conditions that apply to the external insurance cover read the Insurance in your super important information booklet (incorporated by reference in this PDS), available at unisuper.com.au/pds.

do you want additional insurance cover?

You’re automatically provided with inbuilt benefits as part of your DBD membership. These benefits are designed to protect you financially if you become temporary or permanently unable to work due to illness or injury, and provide benefits for your loved ones on your death. Eligible members also receive default external Death and Total and Permanent Disablement (TPD) cover through our Insurer when first joining UniSuper. This default cover is in addition to inbuilt benefits provided to DBD members. You can opt out of this cover or apply for changes to your default external cover if you’re eligible and decide it’s right for your personal situation.

Who do you want to receive your benefit in the event of your death?

You have the option of making a preferred beneficiary nomination or a binding death benefit nomination (see page 78).

do you need to see a professional financial adviser to help you make the decisions that are best for you?

Consider seeking advice from a licensed financial adviser to ensure the decisions you make are the right decisions for you.

co m pa re F ea tu re s a t a Gl an ce dbd m emb er sH ip ac cu m ul at io n 2 m em be rs Hi p con tr ib ut ion s

Up to 17% employer contributions Go to page 26Go to page 41 7% standard member contributions (after-tax) Go to page 26Go to page 41 Ability to reduce level of standard member contributions (contribution flexibility)Go to page 47Go to page 47 Ability to make standard member contributions on a before-tax (salary sacrifice) or after-tax contributionsGo to page 46Go to page 46 Regular and lump sum voluntary member contributions accepted on before-tax (salary sacrifice) or after-tax basisInto your accumulation component only. Go to page 29Go to page 41 Ability to split super contributions with your spouseFrom your accumulation component only. Go to page 6Go to page 6

rol lo ve rs

Rollovers from other funds acceptedInto your accumulation component only. Go to page 8Go to page 8

in ve stm ent s

Choice of how your super is investedFor your accumulation component only. Go to page 56Go to page 56 The value of your benefit is directly determined by the performance of your investment optionsFor your accumulation component only. Go to page 32Go to page 40

in bu il t b en eF it s

In the event of temporary incapacity, disablement, terminal medical condition and death you may receive inbuilt benefits if you are eligible. Inbuilt benefits are compulsory and determined by a formula in the trust deed. They contain a component which is self-insured by UniSuper.

Go to page 34Inbuilt benefits cease if you choose to transfer to Accumulation 2. See the importan information booklet What happens to your inbuilt benefits if you choose Accumulation 2? to learn more.

in su ra nc e

You receive one unit of death and TPD insurance cover automatically when you first join UniSuper provided you meet the eligibility criteria. You can apply for more cover if you need it or you can opt out altogether. If you choose Accumulation 2, your inbuilt benefits will also be transitioned to Death, TPD and Income Protection insurance cover (if you’re eligible). This is in addition to your default cover.

Go to page 31, and read the important information booklet Insurance in your super which is incorporated by reference in this PDS.

Go to page 40, and read the important information booklets Insurance in your super and What happens to your Inbuilt Benefits if you choose Accumulation 2? which are incorporated by reference in this PDS.

be ne Fi ci ar ie s

Options when nominating beneficiaries for your death benefitGo to page 78Go to page 78

ri sk s o F s up er

InvestmentAccumulation component only Go to page 60Go to page 60 DBD Go to page 23 That Clause 34 may be enacted, requiring a change or reduction to the formula used to calculate your defined benefitsGo to page 28 General Go to page 59Go to page 59

Fee s

You may be charged a range of fees and other costs which may be deducted directly from your account, from the returns on your investment, or from UniSuper’s assets. You should read all the information about fees and costs to understand their impact on your account.

Go to page 67Go to page 67

co m pa re F ea tu re s a t a Gl an ce dbd m emb er sH ip ac cu m ul at io n 2 m em be rs Hi p con tr ib ut ion s

Up to 17% employer contributions Go to page 26Go to page 41 7% standard member contributions (after-tax) Go to page 26Go to page 41 Ability to reduce level of standard member contributions (contribution flexibility)Go to page 47Go to page 47 Ability to make standard member contributions on a before-tax (salary sacrifice) or after-tax contributionsGo to page 46Go to page 46 Regular and lump sum voluntary member contributions accepted on before-tax (salary sacrifice) or after-tax basisInto your accumulation component only. Go to page 29Go to page 41 Ability to split super contributions with your spouseFrom your accumulation component only. Go to page 6Go to page 6

rol lo ve rs

Rollovers from other funds acceptedInto your accumulation component only. Go to page 8Go to page 8

in ve stm ent s

Choice of how your super is investedFor your accumulation component only. Go to page 56Go to page 56 The value of your benefit is directly determined by the performance of your investment optionsFor your accumulation component only. Go to page 32Go to page 40

in bu il t b en eF it s

In the event of temporary incapacity, disablement, terminal medical condition and death you may receive inbuilt benefits if you are eligible. Inbuilt benefits are compulsory and determined by a formula in the trust deed. They contain a component which is self-insured by UniSuper.

Go to page 34Inbuilt benefits cease if you choose to transfer to Accumulation 2. See the important information booklet What happens to your inbuilt benefits if you choose Accumulation 2? to learn more.

in su ra nc e

You receive one unit of death and TPD insurance cover automatically when you first join UniSuper provided you meet the eligibility criteria. You can apply for more cover if you need it or you can opt out altogether. If you choose Accumulation 2, your inbuilt benefits will also be transitioned to Death, TPD and Income Protection insurance cover (if you’re eligible). This is in addition to your default cover.

Go to page 31, and read the important information booklet Insurance in your super which is incorporated by reference in this PDS.

Go to page 40, and read the important information booklets Insurance in your super and What happens to your Inbuilt Benefits if you choose Accumulation 2? which are incorporated by reference in this PDS.

be ne Fi ci ar ie s

Options when nominating beneficiaries for your death benefitGo to page 78Go to page 78

ri sk s o F s up er

InvestmentAccumulation component only Go to page 60Go to page 60 DBD Go to page 23 That Clause 34 may be enacted, requiring a change or reduction to the formula used to calculate your defined benefitsGo to page 28 General Go to page 59Go to page 59

Fee s

You may be charged a range of fees and other costs which may be deducted directly from your account, from the returns on your investment, or from UniSuper’s assets. You should read all the information about fees and costs to understand their impact on your account.

Go to page 67Go to page 67

14

_Overview

Choose your style of super

Everyone has different needs when it comes to managing their super. That’s why, as a UniSuper member, you’re given the opportunity to choose a style of super that suits you.

UniSuper members can choose either defined benefits, where your final benefit is determined by a formula, or accumulation super that lets you decide how your super is invested. Both options also offer different benefits if you become unable to work, are disabled or die. Here we illustrate how the respective components are comprised for typical DBD and Accumulation 2 members.

Accumulation 2 benefit

Up to 17% employer contributions + any standard member contributions, voluntary contributions, rollovers, investment returns (positive or negative) -- any fees, costs, charges, insurance premiums and taxes

Accumulation 2 benefit

Up to 17% employer contributions + any standard member contributions, voluntary contributions, rollovers, investment returns (positive or negative) -- any fees, costs, charges, insurance premiums and taxes

Accumulation component 3% employer contributions (if applicable)

+ any voluntary member contributions, rollovers, and investment returns (positive or negative)

-- any fees, costs, charges, insurance premiums and taxes Defined benefit component

14% employer contributions + standard member

contributions (if any)

Accumulation component 3% employer contributions (if applicable)

+ any voluntary member contributions, rollovers, and investment returns (positive or negative)

-- any fees, costs, charges, insurance premiums and taxes Defined benefit component

14% employer contributions + standard member

contributions (if any)

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

15

Overview

some of the key differences between the dbd and accumulation 2

dbd

A

Generally greater protection from market downturns – with the pooling of assets across the membership, the DBD provides benefits that are not directly subject to volatile market movements

A

Salary linked benefits – these generally provide members with an increased ability to more effectively estimate their benefit at retirement

A

Inbuilt death and disablement benefits, plus one unit of default Death and TPD insurance cover through our Insurer and the ability to apply for additional cover

A

Generally steady, stable, reliable growth

accumulation 2

A

Ability to select your own mix of investment options – shape it to meet your needs, and choose the strategy that works for you

A

If you choose to transfer to Accumulation 2 your inbuilt benefits will cease and instead you will get external Death, TPD and Income Protection insurance cover through our Insurer (if you’re eligible). A pre-existing condition (PEC) exclusion will apply to some or all of the external cover you receive when you transfer from the DBD. Depending on when you transfer into Accumulation 2, the PEC exclusion will apply for a period of between 12 months to three years. For more information on how PEC applies to transitioned external cover, the restrictions, exclusions or limitations that may apply, and see if you’re eligible, please read the Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation2? important information booklets (incorporated by reference in this PDS), available at unisuper.com.au/

pds. After your transfer to Accumulation 2 you will be able to opt out, scale up or down, or mix and match the level and type of cover you have to suit your personal circumstances

A

Easy to track account changes over time, because your account grows with contributions and investment returns (which can be positive or negative) – similar to a bank account

A

Highly portable super account. Take us with you if you change jobs or leave the sector

WHat is best For you?

When deciding what is best for you, there are many factors to consider. We’ve outlined a few of those factors, but we have not considered your personal objectives, financial situation or needs. For that reason, you should consider the appropriateness of the above information for you having regard to your own circumstances and read the other relevant sections of this PDS, including the risks. You may want to consider seeking professional financial advice before making your decision, as well as accessing a range of helpful resources at unisuper.com.

au/learning-centre/tutorial-videos/

choosing-your-style-of-super.

16

_Overview

With both styles of super you’re saving money for your retirement, but each uses a different method to arrive at the end amount.

What are

the DBD and

Accumulation 2?

A

DBD member, Manuela Di Piramo, the University of Sydney

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

17

Overview

the defined benefit Formula

defined benefit division

As a DBD member, your super benefits at retirement are mainly calculated using the formula above. For information about the formula applicable to other forms of exit, refer to page 32.

Although DBD money is still invested, market fluctuations are less likely to directly affect your final benefit and it is the fund that bears most of the investment risk. One risk of the DBD is that if the pool is insufficient to cover the DBD obligations, your defined benefit may be reduced.

Your DBD benefit is made up of two parts or components – an accumulation component and a defined benefit component. If you receive employer contributions at the rate of 17%, 3% of that is directed to your accumulation component.

(Note that these rates can be different if you choose contribution flexibility, which you can read more about on page 47.) You can choose how your accumulation component is invested, with this component influenced by the amount of contributions you make toward it and the performance of investment markets.

You are provided with inbuilt death and

disablement benefits as part of your membership.

These include temporary incapacity, terminal medical condition, disablement and death benefits.

You’re also provided with one unit of default Death and TPD external insurance cover on competitive terms through our Insurer. For more detail about how the DBD works please read page 26.

accumulation 2

With accumulation-style super, you can choose how your whole account is invested and your super balance is influenced by the amount of contributions you make and the performance of investment markets. Your benefit is simply your account balance when you retire or leave UniSuper, regardless of your age at the time.

It can be helpful to think about accumulation super as similar to a bank account, but with lots of choice regarding your investments and insurance – allowing you to shape it to meet your needs.

If you transfer to Accumulation 2, your inbuilt benefits will cease and you will instead receive Death, Total & Permanent Disablement (TPD) and Income Protection insurance cover (if you’re eligible). This insurance cover is provided through group insurance policies the Trustee has taken out with its Insurer and some or all of the cover you receive will have a pre-existing condition exclusion (PEC) applied for a period of between 12 months to three years. For more information on how PEC will apply to the transitioned external cover, please read the Insurance in your super important information booklet (incorporated by reference in this PDS), available at unisuper.com.au/pds.

To find out more about what happens to your death, disablement and temporary incapacity benefits if you transfer to Accumulation 2, including how we determine the level of your external insurance cover you receive on transition and the kinds of restrictions, exclusions or limitations that may apply, read the Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? booklets, incorporated by reference in this PDS.

While you won’t have inbuilt benefits as an Accumulation 2 member, you will have insurance cover which you can tailor to meet your personal needs. To find out about the terms, restrictions, exclusions or limitations that may apply to the insurance cover provided to Accumulation 2 members, read the Insurance in your super booklet, incorporated by reference in this PDS. For more detail about how Accumulation 2 works please read page 40.

5-year beneFit

salary

beneFit

service lump sum Factor

averaGe service Fraction

averaGe contribution

Factor

18

_Overview

Insurance and Inbuilt Benefits

If you choose to transfer to Accumulation 2, the inbuilt benefits you have as a DBD member will cease and will be transitioned to unitised external insurance cover. A pre-existing condition (PEC) exclusion will apply to some or all of the transitioned cover. To find out if you’re eligible, how we determine the level of cover you receive upon transferring to Accumulation 2, and the kind of restrictions, exclusions or limitations that may apply you should read the Insurance in your super and What happens to your inbuilt benefits if you choose Accumulation 2? booklets together with this PDS available at unisuper.com.au/pds.

You’re generally also provided with one unit of default Death and TPD external insurance

cover when you first join UniSuper. This is known as default cover.

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

19

Overview

Joining UniSuper or transferring

to the DBD

If you’re 65 or younger and the terms of your employment mean that you are eligible to join the DBD, simply follow these simple steps to get started.

If you want to transfer any other super you have to your UniSuper account, complete the Combine my super (rollover) form and return it to us or use our easy online rollover tool available at unisuper.com.au.

unisuper account

otHer account/s

Make a decision within the first 24 months of membership about whether you want to remain in the DBD or transfer to Accumulation 2 (refer to page 24). For more information read the Choosing your style of super fact sheet available on our website. Before you make any decision make sure you seek financial advice.

accumulation 2 deFined beneFit

Read this PDS and the important information referred to in the PDS.

Complete the Defined Benefit Division/

Accumulation 2 application form and return it to your employer when you’re done. If you don’t complete the Defined Benefit Division/

Accumulation 2 application form, you will be deemed to be a DBD member from the date UniSuper first accepts an employer contribution on your behalf or such other date as determined by UniSuper.

20

_Overview

do you like the idea that part of your benefit will be determined by a formula?

Your DBD benefit (excluding any accumulation component) is based on a formula that generally takes into account your age, benefit salary, period of service, average service fraction, and average contribution fraction.

Generally greater protection from market downturns - this defined benefit component of your super is not directly subject to market volatility, as investment returns do not directly change the formulas used to calculate these benefits. However, this also means that you may not reap the rewards when the investment markets are producing good returns.

Salary linked benefits – these may provide members with an increased ability to more effectively estimate their benefit at retirement.

The payment of defined benefits is subject to the risks that the DBD will not have sufficient assets to meet all obligations to its members. These risks are explained on page 28. You should bear in mind the possibility that reductions in the level of defined benefits may be made.

How long do you expect to remain employed by a unisuper employer?*

The DBD is more likely to be suited to members who expect that they’ll be employed within the higher education and research sector for a reasonable period of time.

age-based lump sum factors and time in the higher education and research sector

While employer contributions to the DBD are made at the same percentage of pay for most DBD members, the lump sum factors that are used to calculate a member’s ultimate defined benefit increase with age.

Lumps sum factors are based on the member’s age when he/she leaves the DBD (not the age at which the member joins the DBD). The table on page 87 shows how the lump sum factor changes as a member nears retirement age.

The following questions are just a few of the things you might want to consider in making your decision but we have not considered your objectives, financial situation or needs. For that reason, you should carefully consider this information and how it applies to your personal circumstances.

Still not sure which type of super will

suit you best?

* A UniSuper employer is an employer that has entered into a participation agreement with the Trustee. To find out if this applies to your employer, please call us on 1800 331 685.

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

21

Overview

do you know when you plan to retire?

DBD members can generally better plan their benefit at retirement with greater certainty than accumulation members.

It is important to note that the age at which a member leaves the sector determines their lump sum-not their joining age. The member’s salary and service also play a very important role.

do you want control over the way your super is invested?

With Accumulation 2, you can choose how all your super is invested from our range of available investment options. In the DBD, you only choose how your accumulation component is invested.

external insurance cover or inbuilt benefits?

If you choose to transfer to Accumulation 2, your inbuilt benefits will be transitioned to unitised external insurance cover provided through our Insurer (if you are eligible). A pre- existing condition (PEC) exclusion will apply to some or all of the transitioned cover. Once you receive this external insurance cover you can tailor it to suit your personal circumstances. See page 40 for more information.

As a DBD member you are provided with inbuilt temporary incapacity, terminal medical condition, disablement and death benefits as part of the DB benefit design, subject to eligibility criteria. These benefits are calculated based on a formula set out in the Trust Deed and contain an inbuilt component which is self- insured by UniSuper. It can be helpful to think of these as similar to insurance benefits, but you can’t opt out of them because they’re built into your overall DBD membership.

Eligible DBD members may also receive and pay for one unit of default Death and TPD or Death- only cover through our Insurer. You can apply for more cover or opt out of the default cover if you want to.

What about fees and costs?

A

As a DBD member, fees, costs, taxes and charges (including those for inbuilt benefits) are accounted for in the formula used to calculate your defined benefit. Applicable fees, costs and taxes relating to the

accumulation component and premiums for insurance cover (if applicable) are deducted from your accumulation component.

A

As an Accumulation 2 member, fees, costs, taxes and premiums for insurance cover (if applicable) are deducted from your account.

Read the ‘Fees and costs’ section on page 67 to find out more.

22

_Overview

A

DBD member, Dale Teasel , Senior Groundsman at The University of Sydney

Defined Benefit Division and Accumulation 2 Product Disclosure Statement

23

Overview

When considering your investment in super, it’s important to understand that:

A

the value of investments will vary and go up and down

A

the level of investment returns will vary and future returns may differ from past returns

A

investment returns are not guaranteed and you may lose some of your money

A

super laws may change in future

A

your future savings (including contributions and returns) may not be enough to provide adequately for your retirement

A

the appropriate level of risk for you will depend on a range of factors including your age, your investment time frame, your other investments and your personal risk tolerance.

Risks of super

All investments, including super, have some level of risk. The types of risks your super may be exposed to can be broadly categorised as either general or investment risks, and include operational risk, legislative risk, inflation risk, investment option risk and so on. There are also risks associated with your membership category. There are differences in risks for DBD members and Accumulation 2 members.

risks specific to dbd members

For DBD members, defined benefits are based on a formula that takes into account your age, benefit salary, period of service, average service fraction and average contribution factor.

Defined benefits are supported by a pool of assets into which your employer contributes and which we invest in a diversified portfolio of investments. The DBD is designed so that in the longer term investment returns are expected to be sufficient to provide for UniSuper’s defined benefits, although this is not guaranteed. In addition, over short periods the funding position may vary with investment volatility.

The main risks to your standard of living in retirement are that you do not contribute enough in standard member contributions or your period of service is not long enough to produce an adequate final benefit.

There is, also, a risk that the defined benefit pool is or could be insufficient to meet all obligations to DBD members, in which case your defined benefit may be reduced. More information about this risk is provided on page 28 under the heading ‘Risks associated with defined benefits’. The accumulation component for DBD members is also subject to investment risk.

For more detail on these differences and to read more about the risks mentioned, read pages 59 to 61.

24

_Overview

24 months to make a decision about

your membership

If you are joining the DBD for the first time, you have a 24-month period from when you join to decide whether to remain in the DBD or transfer your benefit to Accumulation 2. If you do not elect to transfer to Accumulation 2 within this period, you will remain a DBD member.

24 montHs to decide

When you join as a DBD member you will have 24 months from when your Defined Benefit Division/

Accumulation 2 application form is accepted by UniSuper, or the first employer contribution paid on your behalf is accepted by UniSuper (or such other date as determined by UniSuper) to decide whether to remain in the DBD or transfer to Accumulation 2.

Once you have made your decision, you can’t change your mind.

If you don’t elect to transfer to Accumulation 2 within this period, you will remain a DBD member.

If you cease employment during your election period and the value of your defined benefit component (together with your accumulation component) is transferred to Accumulation 1, and you subsequently re-join the DBD at a later point in time, you will have a further 24-month election period from the date you re-join the DBD to make this decision, unless:

A

your previous DBD membership was longer than the election period applicable at that time, or

A

you ceased employment within the election period applicable at the time you were previously a DBD member, and you elected to defer your defined benefit component.

Once you have made your decision, you can’t change your mind. Your decision will continue to apply throughout the life of your UniSuper membership. This means that if you do not elect to transfer to Accumulation 2 within the timeframe allowed you will not be able to make an election to transfer to Accumulation 2 if you later re-join the DBD through another employer.

The only way you may be able to have another election period is if you completely exit the Fund (i.e. close your account), take your entire account balance when you cease employment and then re-join through another UniSuper participating employer as a new member.

Defined Benefit Division

02