April 2020 Significant Event Notice
Changes are coming
Statewide Super is making changes that may impact you as a member. In summary, these changes are as follows:
- insurance premiums will be reduced* and our insurance offering will change based on recent legislation;
- a fee-cap will be introduced to limit the amount of asset-based administration fees charged to members;
- our investment objectives are being updated; and
- our investment management fee, and dollar-based and asset-based administration fees are increasing.
*Reduction not applicable to Salarylink insurance. Refer to the Statewide Super Salarylink Member Guide for information regarding Salarylink insurance options.
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Insurance cover premium reduction from 1 April 2020
After a review of the insurance offered to our members by our insurer, we are pleased to provide a reduction in the cost of premiums for our insured members who have their insurance premiums deducted from a Statewide Super accumulation account.
From 1 April 2020:
- Death only insurance cover premium rates will reduce by 22.7%
- Death & TPD insurance cover premium rates will reduce by 2.6%
- IP insurance cover premium rates will reduce by 1.1%.
Insurance premiums will apply from 1 April 2020 as outlined in the tables below.
Unitised cover premiums from 1 April 2020
Per insured member, per unit, per week:
Cover Type
Standard
White Collar
Professional
Death (including terminal illness) only
$0.679 $0.377 $0.339 Death (including terminal illness) and TPD $1.834 $1.018 $0.917 Fixed cover premiums from 1 April 2020
Rates per $1,000 annual insured cover (inclusive of government charges, excluding any administration loadings):
Standard
White Collar
Professional
Age next birthday
Death Only
Death & TPD
Death Only
Death & TPD
Death Only
Death & TPD
16
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 17
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 18
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 19
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 20
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 21
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 22
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 23
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 24
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 25
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 26
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 27
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 28
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 29
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 30
$0.579 $1.563 $0.321 $0.869 $0.289 $0.781 31
$0.592 $1.602 $0.330 $0.890 $0.297 $0.802 32
$0.609
$1.644 $0.338 $0.913 $0.304 $0.821 33
$0.623 $1.687 $0.347 $0.938 $0.313 $0.843 34
$0.642 $1.735 $0.358 $0.963 $0.321 $0.866 35
$0.660 $1.782 $0.367 $0.991 $0.330 $0.890 36
$0.679 $1.834 $0.377 $1.018 $0.339 $0.917 37
$0.706 $1.906 $0.392 $1.060 $0.353 $0.953 38
$0.736 $1.986 $0.409 $1.104 $0.368 $0.993 39
$0.768 $2.072 $0.427 $1.151 $0.383 $1.037 40
$0.802 $2.167 $0.446 $1.204 $0.401 $1.084 41
$0.851 $2.298 $0.473 $1.276 $0.426 $1.148 42
$0.905 $2.445 $0.504 $1.358 $0.453 $1.221 43
$0.953 $2.577 $0.531 $1.432 $0.477 $1.289 44
$0.994 $2.686 $0.553 $1.492 $0.496 $1.342 45
$1.054 $2.846 $0.586 $1.580 $0.526 $1.423 46
$1.121 $3.027 $0.623 $1.681 $0.560 $1.514 47
$1.197 $3.231 $0.665 $1.796 $0.598 $1.616 48
$1.307 $3.530 $0.727 $1.962 $0.653 $1.766 49
$1.441 $3.891 $0.802 $2.162 $0.721 $1.946 50
$1.568 $4.238 $0.873 $2.353 $0.785 $2.118 51
$1.721 $4.651 $0.958 $2.583 $0.860 $2.326 52
$1.858 $5.017 $1.033 $2.786 $0.929 $2.509 53
$2.075 $5.608 $1.154 $3.115 $1.039 $2.804 54
$2.277 $6.151 $1.266 $3.418 $1.139 $3.075 55
$2.613 $7.062 $1.454 $3.923 $1.308 $3.530 56
$2.823 $7.628 $1.570 $4.237 $1.412 $3.814 57
$3.208 $8.667 $1.785 $4.816 $1.605 $4.333 58
$3.921 $10.593 $2.182 $5.884 $1.961 $5.297 59
$4.411 $11.917 $2.454 $6.620 $2.207 $5.959 60
$5.430 $14.668 $3.020 $8.148 $2.716 $7.334 61
$5.882 $15.891 $3.271 $8.827 $2.942 $7.944 62
$6.417 $17.335 $3.569 $9.628 $3.209 $8.667 63
$7.059 $19.068 $3.926 $10.591 $3.530 $9.534 64
$7.842 $21.187 $4.362 $11.770 $3.922 $10.593 65
$8.822 $23.834 $4.908 $13.241 $4.413 $11.917 66
$8.822 $23.834 $4.908 $13.241 $4.413 $11.917 67
$10.083 $27.240 $5.609 $15.131 $5.044 $13.620 68
$10.083 $27.240 $5.609 $15.131 $5.044 $13.620 69
$10.083 $27.240 $5.609 $15.131 $5.044 $13.620 70
$11.764 $31.780 $6.544 $17.653 $5.884 $15.891 Income Protection Cover
Maximum benefit period of 2 years. Cost per unit of cover, per week:
Age Next Birthday
Standard
Age Next Birthday
White Collar
Age Next Birthday
Professional
16-30 $0.367 16-30 $0.293 16-30 $0.246 31 $0.436 31 $0.349 31 $0.290 32 $0.503 32 $0.402 32 $0.336 33 $0.585 33 $0.468 33 $0.391 34 $0.654 34 $0.523 34 $0.436 35 $0.707 35 $0.567 35 $0.472 36 $0.789 36 $0.632 36 $0.527 37 $0.858 37 $0.685 37 $0.573 38 $0.925 38 $0.741 38 $0.617 39 $0.993 39 $0.794 39 $0.663 40-67 $1.076 40-67 $0.860 40-67 $0.718 -
Putting Members’ Interests First (PMIF) legislation
In late 2019, the Australian government passed the Putting Members’ Interests First (PMIF) legislation to help protect the super balances of young people and those with low account balances from being eroded by the the cost of insurance cover they may not need or want.
The PMIF law requires us to cancel the insurance cover of current members who have insurance cover through their Statewide Super account on 1 April 2020 if they:
- have an account with a balance less than $6,000; and
- have not had an account with a balance equal to or greater than $6,000 since 1 November 2019; and
- they have not told us in writing, before 1 April 2020, that they wish to keep their insurance cover.
Additionally, from 1 April 2020 any new members who join Statewide Super will not be eligible for default insurance cover until:
- they reach the age of 25; and
- they have reached a balance of at least $6,000 in their Statewide Super account,
unless they opt-in to have insurance cover before meeting those conditions.**
Statewide Super has communicated with members affected by the PMIF laws regarding how they may be impacted and whether there is anything they need to do.
The PMIF changes are in addition to the Protecting Your Super changes to insurance through Super which took effect from 1 July 2019. The Protecting Your Super changes aim to protect inactive super account balances from erosion as a result of deduction of insurance premiums.
For additional information about recent changes and the pros and cons of insurance in your super you can refer to ASIC’s MoneySmart website at www.moneysmart.gov.au. Remember if you have insurance through your Statewide Super account you don’t want or need, you are able to cancel your insurance cover at any time.
**Other eligibility conditions also apply as set out in the policy between Statewide Super and its insurer MetLife Insurance Limited ABN 75 004 274 882.
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Fee Changes
As a profit-to-member super fund, we only charge fees to manage the fund.
We constantly strive to enhance the efficiency of our operations to provide a high standard of product, service and benefit to our members.
However, the cost to deliver these services has risen over recent years and as a result we need to change our fee structure.
Dollar-based administration fee from 1 May 2020
The dollar-based administration fee charged to accumulation and pension accounts will increase from $1.50 per week to $1.75 per week, from 1 May 2020. Over a full financial year this amounts to an additional $13 per account, bringing the total annual fee to $91.
Asset-based administration fee cap from 1 July 2020
From 1 July 2020, Statewide Super will cap the annual asset-based administration fee at $500 per accumulation account.
For pension members, Statewide Super will cap the annual administration fee at $750 (a reduction from the previous cap of $1,000).
The relevant fee cap is applied at 30 June each year and based on your average daily balance. It is not available to members who exit Statewide Super during the year before 30 June.
Asset-based administration fee from 1 May 2020
The asset-based administration fee will increase by:
- 0.05 per cent (5 basis points) per year for accumulation accounts (from 0.06 percent to 0.11 per cent); and
- 0.01 per cent (1 basis point) per year for pension accounts (from 0.15 per cent to 0.16 per cent). This will mean:
- for an accumulation account with a balance of $50,000, an increase of $25 per year; and
- for a pension account with a balance of $200,000, an increase of $20 per year.
The asset-based administration fee is deducted from the returns of each investment option before net earnings are allocated to member accounts through daily unit prices.
Investment Management fees from 1 May 2020
From 1 May 2020 Investment Management fees for all accumulation and pension accounts will increase by 0.04 per cent (4 basis points) per year to cover the additional costs of investing the Fund’s assets. This fee increase will apply to all investment options except the Cash option. The Investment Management fee for the Cash option will remain unchanged.
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Investment Review
On an annual basis, Statewide Super’s investment committee reviews its investment strategy.
Based on analysis from our investment advisers, the investment objectives for some investment options may be difficult to achieve given current and expected market conditions.
As a result, we have revised our long term investment objectives and made a change to the investment objectives for the High Growth and Conservative options. These changes are outlined in the table below. All other investment option objectives, after review, remain unchanged.
Current Objective
Proposed Objective
Change
Current Timeframe (Years)
High Growth CPI + 4.0% CPI +3.5% -0.50% 10 MySuper CPI + 3.0% CPI +3.0% 0.00% 10 Salarylink CPI + 3.0% CPI +3.0% 0.00% 10 Active Balanced CPI + 2.5% CPI +2.5% 0.00% 10 Sustainable Diversified CPI + 2.5% CPI +2.5% 0.00% 10 Conservative Balanced CPI + 2.0% CPI +2.0% 0.00% 7 Conservative CPI + 1.5% CPI +1.0% -0.50% 7 We have also reviewed our single-asset class option investment objectives to further align with our investment strategy and to show the gross returns generated before the deduction of any applicable fees and taxes.
Current Objective
Proposed Objective
Australian Shares S&P/ASX 300 Accumulation Index return (after tax and fees) over rolling 7 year periods Equivalent or greater return to the S&P/ ASX 300 Accumulation Index return (before tax and after fees) over rolling 7 year periods International Shares MSCI ACWI (ex-Australia) Index return (after tax and fees) over rolling 7 year periods Equivalent or greater return to the MSCI ACWI (ex-Australia) Index return (before tax and after fees) rolling over 7 year periods Diversified Bonds Bloomberg Ausbond Composite Bond Index (50%) and Barclays Capital Global Aggregate Index (50%) return (after tax and fees) over rolling 5 year periods Equivalent or greater return to the Bloomberg Ausbond Composite Bond Index (50%) and Barclays Capital Global Aggregate Index (50%) return (before tax and after fees) over rolling 5 year periods Cash Bloomberg Ausbond Bank Bill Index return (after tax and fees) over rolling 12 month periods Equivalent or greater return to the Bloomberg Ausbond Bank Bill Index return (before tax and after fees) over rolling 12 month periods Proposed Strategic Asset Allocation (SAA) from 1 July 2020
Annually, Statewide Super reviews the longer-term Strategic Asset Allocations (SAA) and ranges that apply to all of our diversified investment options.
These strategic allocations provide members with information regarding the relevant risk profile of the investment options and allow them to select an option that meets their own personal risk profile and appetite.
As part of our most recent review we have made some minor changes to the strategic asset allocations as outlined in the table below. These changes will take effect from 1 July 2020.
Proposed SAA (%)
High Growth
MySuper
Active Balanced
Conservative Balanced
Conservative
Australian Shares 34 27 23 15 8 International Shares 36 28 24 16 9 Property 7 9 9 9 8 Infrastructure 8 9 8 6 5 Growth Alternatives 10 7 6 4 3 Growth Assets 95 80 70 50 33 Diversified Bonds - 8 16 19 23 Defensive Alternatives 3 6 8 16 18 Cash & Equivalents 2 6 6 15 26 Defensive Assets 5 20 30 50 67 TOTAL 100 100 100 100 100 Changes to SAA (%)
High Growth
MySuper
Active Balanced
Conservative Balanced
Conservative
Australian Shares -2 -1 -1 -1 -1 International Shares 2 1 1 1 1 Property - - - - - Infrastructure - - - - - Growth Alternatives - - - - - Growth Assets - - - - - Diversified Bonds - - - -1 -1 Defensive Alternatives - - - 1 1 Cash & Equivalents - - - - - Defensive Assets - - - - - TOTAL - - - - -
Changes to Risk Labels for various investment optionsThe table below provides the current and proposed risk labels applicable across Statewide Super’s diversified investment options. These risk labels, together with other information provided in our ‘How we invest your money’ booklet, allows members to understand the level of risk they are undertaking with respect to their investment option selection.
As a result of our latest review, all investment options have moved to a lower risk label as outlined in the following table.
Option
Risk Label - Current SAA
Risk Label - Proposed SAA
High Growth High Medium to High MySuper High Medium to High Sustainable Diversified High Medium to High Active Balanced Medium to High Medium Conservative Balanced Medium Low to Medium Conservative Low Low We have also reviewed the percentage ranges that apply to the asset classes underlying all investment options. This is to ensure that we have appropriate flexibility to make changes to the composition of each investment option to meet ongoing market conditions. Information regarding each investment option is provided in our ‘How we invest your money’ booklet.
As a result of that review, with effect from 1 July 2020, we have changed the range applicable to the Defensive Alternatives asset class in the Conservative investment option. This is reflected in the table below.
Conservative Option
Current
Proposed
Lower Upper Lower Upper Defensive Alternatives Range 0.0% 20.0% 0.0% 25.0% The investment ranges for all other investment options will remain unchanged.
Any questions? We’re here to help
If you have any questions regarding the above Significant Event Notice please contact our Member Services team on 1300 65 18 65, we are happy to help.
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Important information
Statewide Superannuation Pty Ltd ABN 62 008 099 223 (AFSL 243171) Trustee and RSE Licensee of Statewide Superannuation Trust ABN 54 145 196 298 (“Statewide Super”). In deciding whether to acquire, or continue to hold, a Statewide Super product, please consider the applicable Product Disclosure Statement (PDS) available at statewide.com.au or by calling 1300 65 18 65. Issued on March 2020.
The information provided contains general advice which does not take into account your specific objectives, financial situation or needs. Before investing, you should consider the appropriateness of this general advice with regard to your personal circumstances. You may also wish to obtain independent financial advice. This Significant Event Notice is not intended to be, and should not be construed in any way as, investment, legal, or personal advice. Statewide Super holds an Australian Financial Services Licence (AFSL) that allows it to provide general and personal financial advice. Statewide Super Financial Planners are employees and Authorised Representatives of Statewide Super, who is responsible for any advice given to you by them.
Investment returns can go up and down and are not guaranteed. All investments have risk, and past performance is not a reliable indicator of future performance. For more information on risks associated with investing, consider the “Risks of Super” and “How we invest your money” booklets available at statewide.com.au or by calling 1300 65 18 65.