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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.

  • 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.

  • 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.

  • 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%

    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
    International Shares 36  28  24 16 
    Property
    Infrastructure
    Growth Alternatives 10  3
    Growth Assets 95  80  70  50  33 
    Diversified Bonds  - 16  19  23 
    Defensive Alternatives 16   18
    Cash & Equivalents 15  26 
    Defensive Assets 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      
    Property  -  -
    Infrastructure
    Growth Alternatives
    Growth Assets
    Diversified Bonds -1  -1 
    Defensive Alternatives 1
    Cash & Equivalents
    Defensive Assets
    TOTAL


    Changes to Risk Labels for various investment options

    The 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.

  • 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.