Corporate Super - acceleratedprotection.com.au · Corporate Superannuation and ARC Corporate...

Corporate Super Product Upgrade | Effective from 1 October 2011

Product Corporate Superannuation

Issuer and Trustee TAL Superannuation Limited ABN 69 003 059 407 AFSL 237851 RSE L0000642

Superannuation Fund TAL Superannuation and Insurance Fund ABN 20 891 605 180 RSE R1000894

Issue date: 8 August 2011 Significant Event Notice

2 Product Upgrade

About this bookletThis booklet provides important information about the upgrade of the investment and insurance benefits for your corporate super product.

From 1 October 2011 your Corporate Superannuation product will be automatically upgraded to the ARC Master Trust product (ARC).

This product upgrade does not mean that your superannuation fund is changing. You will remain a member of your current division of the TAL Superannuation and Insurance Fund (Fund), formerly TOWER Master Fund, and the circumstances in which your account balance and any insurance benefit is payable (generally, retirement, disablement or death) will not change.

The changes that will occur involve upgrading your benefits to the ARC set of product features which are explained in more detail in this booklet. It contains important information about the differences between your current insurance and investment offering and ARC to help you understand ARC’s features, benefits and services.

The information in this booklet is current at the date of issue but may be subject to change.

The information in this booklet is of a general nature and does not take into account your individual objectives, financial situation or needs. Before acting on this information, you should consider how appropriate ARC is in regard to your objectives, financial situation and needs, and seek advice from your financial adviser before making any changes to investment options or insurance cover.

We review our products regularly to ensure that they continue to meet the current needs and future expectations of members and, as a result, we may make further changes to the terms and conditions of your product in the future. Where required by law, we will give you prior written notice of the change. Otherwise, we will notify you of the change in either your Annual Statement or the Fund’s Annual Report.

Corporate Superannuation and ARCCorporate Superannuation and ARC are products within the Fund, which is a complying superannuation fund registered by the Australian Prudential Regulation Authority. The trustee of the Fund is TAL Superannuation Limited (Trustee).

The Trustee (and any company related to the Trustee) does not guarantee the performance of ARC or the repayment of capital, with the exception of the guarantee by TAL Life Limited associated with investments in the ARC Capital Assured investment option.

3 Product Upgrade

IntroductionAbout the product upgradeYour upgrade to ARC means we’ll be making the following changes to your product features and benefits:

• Improvinginvestmentmanagementstrategy

• Improvinginsurance;and

• Changingfeesandcharges.

This booklet outlines the changes to the above features and benefits in easy-to-reference sections and outlines what you need to do in order to understand the changes that are being made.

Your product will be automatically upgraded to ARC effective 1 October 2011.

What you need to do • Readtheletteryoureceivedwiththisbooklet

• Readthisbooklettounderstandthechangestoyourproduct

• Frommid-October2011,logintoyournewonlineARCaccountatwww.arcmt.com.au to view your upgraded account details, insurance and investment information. Please refer to the letter you received withthisbookletforyouraccountlogininformation;and

• IfyoudonothavetheabilitytoaccessyournewonlineARCaccount, please contact us on 1300 209 088 or email us at [email protected] and we will provide you with hard copies of the information you require.

For more information Throughout this booklet you will see references to the ARC Product Disclosure Statement which was issued by TAL Superannuation Limited on 1 July 2009 and provides full details of ARC’s features, benefits and services. We recommend that you also read the ARC Product Disclosure Statement which is available on our website at www.arcmt.com.au or by calling us on 1300 209 088.

We’re here to help If you have any questions about your product upgrade please contact us on 1300 209 088 or email us at [email protected]

4 Product Upgrade

Introduction............................................................................................................. 3

About the product upgrade ............................................................................... 3

What you need to do ............................................................................................. 3

For more information ............................................................................................ 3

We’re here to help ................................................................................................... 3

About the Investment Changes .................................................................... 6

What do the investment changes mean for me? ....................................... 6

Your new ARC investment options .................................................................. 7

Changes to the investment management style ......................................... 8

Why active investment management?........................................................... 8

ARC’s multi-manager investment options. ................................................... 9

ARC’s single-manager investment options .................................................. 9

Why is my investment management fee changing? ..............................10

Changes to the investment management fees ........................................12

About the Insurance Improvements ........................................................14

What do the insurance improvements mean for me? ...........................14

When can I see my new improved insurance online? ............................15

ARC’s enhanced insurance benefits ...............................................................16

About the Fee Changes....................................................................................17

What do the fee changes mean for me? ......................................................17

Why are my fees changing? ..............................................................................17

Comparison between your current product fees and new ARC fees .....18

Contents

5 Product Upgrade

About ARC’s Improved Features and Services ....................................26

Your online access .................................................................................................26

More ways to pay contributions ......................................................................27

Your Questions Answered ..............................................................................28

About our Name Change On 1 June 2011, TOWER changed its name to TAL. You’ll start to see our new name TAL, used in place of TOWER. Over the next few months as we transition to the new name you may receive correspondence from us referencing either name.

Only our name has changed.

Who we are, what we do, how we do business and with whom remains the same. That includes no change to our ABNs and AFSL numbers. The new names of your insurer, trustee and superannuation fund are shown below.

If you would like more information on our name change please call us on 1300 209 088 or visit www.tal.com.au

TAL Life Limited ABN 70 050 109 450 AFSL 237848, formerly TOWER Australia Limited. TAL Superannuation Limited ABN 69 003 059 407 AFSL 237851, formerly TOWER Australian Superannuation Limited. TAL Superannuation and Insurance Fund ABN 20 891 605 180, formerly TOWER Master Fund.

6 7 Product Upgrade Product Upgrade

Corporate Superannuation investment option

Nearest equivalent ARC investment option

Investment timeframe

Risk and return profile

Investment manager

Multi-manager investment options

TOWER Assured Caution ARC* Security Focus 3+ years Low-moderate

Russell InvestmentManagement Limited

TOWER Balanced Growth ARC* Balanced Growth 5+ years Moderate-high

TOWER Capital Assured ARC* Capital Assured 3 years Low

TOWER Cash ARC* Cash Up to 1 year Low

TOWER Conservative Balanced ARC* Conservative Balanced 3+ years Moderate

TOWER Growth Maximiser ARC* Growth Maximiser 5+ years High

TOWER Security Focus ARC* Security Focus 3+ years Low-moderate

Additional investment options available to you upon the upgrade to ARC

ARC* Australian Shares 5+ years High

ARC* International Shares 5+ years High

ARC* Australian Fixed Interest 3+ years Low-moderate

For more information refer to section on ARC’s multi-manager investment options on page 9

Single-manager investment options

Additional investment options available to you upon the upgrade to ARC

ARC* Ethical Growth 5+ years High AMP Capital Investors Limited

ARC* Australian Property 5+ years High Vanguard Investments Australia Ltd

For more information refer to section on ARC’s single-manager investment options on page 9

About the Investment ChangesWhat do the investment changes mean for me? We’ve provided a quick summary of the investment changes here.

• Youraccountbalancewillbetransferredintothenearestequivalent ARC investment option(s)

• Theinvestmentmanagementstyleforsomeinvestmentoptions (i.e. whether they are managed using active or passive styles), willbechanging;and

• Thefeesforyourinvestmentoption(s)willbechanging.

You can read further details on each of these changes below.

Your new ARC investment options The table below shows the investment options available in your current product and the nearest equivalent ARC investment options that will apply following the product upgrade. The current investment timeframes and risk and return profiles for the ARC investment options are generally the same as the timeframes and profiles for the nearest equivalent Corporate Superannuation investment options. The investment timeframes and risk and return profiles of the investment options may change from time to time.

* These options were formerly referred to as TOWER. Refer to the ‘About our Name Change’ section.

8 Product Upgrade

Changes to the investment management style In your current product, the investment options are generally managed in a combination of ‘passive’ and ‘active’ styles - usually 70% active and 30% passive. Under ARC, these investment options are all actively managed, with the exception of the ARC Australian Property investment option which is passively managed.

Why active investment management?The Trustee has decided that your superannuation investment options should be actively managed, where appropriate, because generally a skilled active investment manager should, over the long-term, outperform the market by investing in undervalued securities which it has identified through extensive research.

About investment management stylesActive managementAn active investment management style aims to outperform the index for a particular investment option. Prevailing market trends, the economy, political and other current events, and company specific factors (such as earnings growth) all affect an active manager’s decisions. Active managers believe there are certain irregularities in the market that can be taken into consideration to achieve potentially higher returns.

Passive management A passive investment management style is commonly referred to as indexing. The approach aims to closely track the risk characteristics and holdings of an index for a particular investment option (for example, the S&P/500 Index).

9 Product Upgrade

ARC’s multi-manager investment options Multi-manager investment options use a number of underlying investment managers to invest across different asset classes, different investment styles and different investment managers.

ARC’s multi-manager investment options are actively managed by Russell Investment Management Ltd (Russell), ABN 53 068 338 974. Since being founded in 1963, Russell’s extensive understanding of markets, managers and investors has enabled them to design funds that seek to deliver consistent long-term results.

Russell believes risk can be managed at multiple levels without sacrificing long-term investment returns and, as such, Russell’s time-tested investment approach rests on the following foundations:

• Diversifyingamongassetclassesisoneofthemostprudentapproaches to managing risk

• Investmentsmoveinandoutoffavourwiththemarket;and

• Eventhebestinvestmentmanagersdonotstayontopforextended periods of time.

For more than 30 years, Russell has pioneered the multi-manager investing approach, objectively combining the individual strengths of multiple investment managers. Known as MULTI-ASSET MULTI-STYLE MULTI-MANAGER™, or simply multi-manager, the process is based on three levels of diversification, allowing you as an investor to benefit from long-term diversification and active management, giving you and your adviser more time to focus on goal-oriented planning.

ARC’s single-manager investment optionsSingle-manager investment options use only one investment manager to manage a single asset sector. The ARC Ethical Growth investment option is actively managed by AMP Capital Investors Limited and the ARC Australian Property investment option is passively managed by Vanguard Investments Australia Ltd.

More information on investment options For further information regarding the investment options, including unit prices, investment performance, asset allocation and investment objectives please visit www.arcmt.com.au and select ‘Investment Options’ from the menu.

10 Product Upgrade

Why is my investment management fee changing? Investment management fees associated with actively managed investment options are generally higher due to the additional activity involved in managing the investments (for example, researching and selecting specific stock holdings and regularly monitoring portfolio positions and performance).

A skilled active manager aims to, over the long term, outperform the market.

To illustrate the difference in historical investment performance of actively and passively managed investment options, the following chart compares the investment performance of the Corporate Superannuation Balanced Growth investment option and the ARC Balanced Growth investment option. The actively managed ARC Balanced Growth investment option has outperformed for all periods.

The graph to the right represents the period since July 2007 that Russell Investments has been managing the investment options.

11 Product Upgrade

10.0

8.0

6.0

4.0

2.0

0.0

-2.0

-4.0

-6.0

1 year

Perfo

rman

ce R

etur

ns (%

)

2 year 3 year

ARC Corporate Superannuation

4 year

• Pastperformanceisnoguaranteeoffutureperformance.• Performancereturnsarenetoftheadministrationandmanagementfees

and costs, and net of tax. In accordance with industry standards regulating the reporting of performance returns, the returns exclude any other fees that may apply to your investment.

• Thevalueofyourinvestmentmayriseorfallinlinewithfactorsincludingmovements in the market, inflation rate, economic conditions and taxation.

Balanced Growth Option Performance for 1 to 4 years Comparison between ARC & Corporate Superannuation

Compound Annualised Returns as at 30 June 2011


Corporate Superannuation investment option

Investment management fee (% pa net of tax)^

Nearest equivalent ARC investment option

Investment management fee (% pa net of tax)^

TOWER Assured Caution 0.217 ARC* Security Focus 0.856

TOWER Balanced Growth 0.394 ARC* Balanced Growth 0.957

TOWER Capital Assured 1.141 ARC* Capital Assured 1.141

TOWER Cash 0.051 ARC* Cash 0.329

TOWER Conservative Balanced 0.331 ARC* Conservative Balanced 0.928

TOWER Growth Maximiser 0.411 ARC* Growth Maximiser 1.025

TOWER Security Focus 0.266 ARC* Security Focus 0.856

Additional investment options available to you upon the upgrade to ARC N/A

ARC* Australian Shares 1.007

ARC* Ethical Growth 1.030

ARC* International Shares 1.140

ARC* Australian Property 0.450

ARC* Australian Fixed Interest 0.700

Changes to the investment management fees The table below shows the changes to the investment management fees that will apply following the product upgrade.

^ The Fund receives a 15% tax deduction in respect of the fees that you pay and the benefit of this tax deduction is passed on to you in the form of a reduced fee. It is this reduced fee, the ‘Net Fee’, that is shown in the table above. For example, the gross fee for ARC Balanced Growth is 1.126% pa but the net fee you pay is 0.957% pa because the benefit of a 15% tax deduction (0.169% pa) is passed on to you. Where applicable the Net Fee includes GST less any Reduced Input Tax Credit.

* These options were formerly referred to as TOWER. Refer to the ‘About our Name Change’ section.

For further information about ARC’s investment management fees please refer to pages 7-15 of the ARC Product Disclosure Statement dated 1 July 2009, or visit the website at www.arcmt.com.au

Changes to investment management fees – an example Jane’s account balance of $10,000 is invested in the Corporate Superannuation TOWER Balanced Growth Option. On upgrade to ARC, Jane’s account balance will be invested in the ARC Balanced Growth Investment Option and she will incur additional investment management fees of $56.30 pa.

For a detailed comparison of fees including contribution and administration fees, please refer to ‘Fee changes - an example of a balanced investment option’ on pages 24-25.

14 Product Upgrade

What do the insurance improvements mean for me? Under the improved insurance arrangements, each member is affected differently depending on the type of insurance benefits they hold and the insurance arrangements their employer arranged for the employer plan in their current product.

For the vast majority of members with a fixed premium based insurance benefit, one of the following will occur:

• Theirinsurancebenefitwillincrease,whilethepremiumwill remainthesame;or

• Theirpremiumwillbereducedforthesamelevelof insurance benefit.

For members with a non-fixed premium or formula based insurance benefit, their insurance benefit will be converted to a fixed amount equal to their sum insured at the time of the product upgrade.

About the Insurance Improvements

*This example is based on an average member in Corporate Superannuation.

Insurance improvements - an example John is 40 years of age and has Death and TPD insurance benefits, calculated at a fixed premium*. The below table shows the changes to John’s insurance cover.

Comparison between John’s current cover and the new cover

Current benefit New benefit

Premium amount $1/week ($52 pa) $1/week ($52 pa)

Benefit amount $22,500 $38,600

15 Product Upgrade

When can I see my new improved insurance online?From mid-October 2011 you will be able to view your insured benefit and premium when you login to your online member account at the ARC website at www.arcmt.com.au . Your improved insurance benefit and premium will also be detailed in your 2011 Annual Member Statement. Alternatively, you may contact us on 1300 209 088.

16 Product Upgrade

ARC’s enhanced insurance benefits All insured members will receive ARC’s enhanced insurance benefits of:

• Terminal illness benefit, payable if they have Death insurance and once evidence has been received that they have been diagnosed with a terminal illness

• Choice of benefit periods for Income Protection of either two years or until age 65

• Death and Total and Permanent Disablement (TPD) insurance has been increased to age 70. Please note that members 65 or over, are considered totally and permanently disabled if they are permanently unable to perform at least two of the five activities of daily living without the physical assistance of another person. In this circumstance the Trustee cannot pay a benefit to the member until a condition of release under superannuation law is satisfied. Please refer to the section titled ‘About Total and Permanent Disablement insurance’ on page 11 of the Incorporated Material of the ARC Product Disclosure Statement (ARC Incorporated Material) dated 1 July 2009 for more information. The ARC Incorporated Material can be accessed online by visiting www.arcmt.com.au or by calling us on 1300 209 088

• Overseas cover, Members can now be covered for Death and TPD while travelling or working overseas for up to three years (subject toacceptancebytheinsurer);and

• Employer approved leave, Death & TPD cover can continue indefinitely while on employer approved leave (where approved leave is not due to illness). After the first year TPD cover will be subject to TPD Definition 2 (‘Activities of Daily Living’).

Please refer to pages 17-19 of the ARC Product Disclosure Statement dated 1 July 2009 for more information about insurance, including definitions.

17 Product Upgrade

What do the fee changes mean for me?We’ve provided information on the changes to the administration fees on pages 17-25. The changes to the investment management fees are detailed in ‘About the Investment Changes’ on pages 6-13.

Why are my fees changing? Following a recent review of your product, the Trustee has decided that a fee increase is necessary to meet rising administration and compliance costs, as well as to maintain future service levels.

One of the options considered by the Trustee was a fee increase for your current product. However, for a lower fee increase the Trustee decided that it is in the interests of members to upgrade to ARC which provides improved investment choices, improved insurance benefits and access to online services.

The Trustee is confident that the upgrade to ARC provides members overall with better value for money and a more modern superannuation product.

About the Fee Changes


Product Corporate Superannuation (the Net* Fee you are currently charged)

Corporate Superannuation (the Net* Fee effective from 1 October 2011)

ARC (the Net* Fee you will be charged after the upgrade effective 1 October 2011)

Type of Fee or Cost How and When Paid Amount

Fees when your money moves in or out of the Fund

Establishment fee The fee to open your account.

Not applicable. Nil. Nil. Nil.

Contribution fee The maximum fee on each amount contributed to your account.

Corporate Superannuation and ARC Corporate Plan members: This is determined by your employer.

The Contribution fee is deducted from your account at the time of receipt of each contribution, rollover or transfer.

Up to 5% on each contribution, rollover or transfer.



Withdrawal fee The fee on each amount you take out of your account.

The withdrawal fee is charged when the benefit is paid. It is deducted from the benefit payment.

Nil for the first payment. For each additional withdrawal: $46.54

Nil for the first payment. For each additional withdrawal: $46.54

Nil.

Termination fee4

The fee to close your account.

This fee is deducted from your account upon termination.

Nil. Nil. $67.69

Comparison between your current product fees and new ARC fees The below table compares your current product fees against the proposed fee increase that would have applied to your current product effective 1 October 2011, and the fees that will apply from 1 October 2011 as a result of your product’s upgrade to ARC.





Management costs

Administration fee4

The fees and costs for managing your investment1.

The Administration fee is calculated daily and is deducted from each investment option’s unit price2.

1.60% pa of your total account balance.

0.495% of the administration fee is paid as remuneration to the financial adviser.

1.60% pa of your total account balance.

The monthly administration fee described above is subject to a minimum $12 fee per month for each member.

0.495% of the administration fee is paid as remuneration to the financial adviser.

1.40% pa maximum fee which is reduced in accordance with the following table:

ARC Corporate Employer Plan balance

ARC Personal Account balance

Administration fee pa

First $150,000 1.40%

Next $250,000 1.05%

Next $600,000 0.75%

Over $1,000,000 0.45%

The monthly administration fee described above is subject to a minimum $12 fee per month for each member.

Up to 0.55% of the administration fee is paid as remuneration to the financial adviser.

Please refer to page 21 of the ARC Product Disclosure Statement dated 1 July 2009 for more information.

Member fee4 (Corporate Superannuation and ARC Corporate Plan only)

If you are a member of the Corporate Plans the fee, where applicable, is deducted at the end of the month from your account. The amount may depend on the number of members in the plan. If you make a full withdrawal, this fee is deducted on the date your benefit is withdrawn in full.

No. of members in Plan

Fee

1- 9 $8.72/month

10 -19 $7.12/month

20 or more $5.97/month

No. of members in Plan

Fee

1- 9 $8.72/month

10 -19 $7.12/month


No. of members in Plan Fee

1- 4 $6.76/month


Members with an ARC Corporate account balance of $26,342 or more are not charged this fee.

This fee is not applicable if you are part of the ARC Personal Plan.





Investment Management fee This is the amount charged for each investment option.

The Investment Management fee for each investment option is deducted when daily unit prices are calculated2.

An estimated 0.051% to 1.141% pa of the amount invested in each investment option.



Service Fees3

Switching Fee The fee for changing investment options.

This fee (if charged) may be deducted from your account each time you switch investment options.

You may switch investment options once each annual Plan review year (year end 30 September) at no cost. Thereafter, we reserve the right to charge up to 1% of future amounts switched.

You may switch investment options once each annual Plan review year (year end 30 September) at no cost. Thereafter, we reserve the right to charge up to 1% of future amounts switched.

Nil.

Family Law, Request for Information Fee4 This is payable when information is requested for Family Law purposes.

Fee is payable by the person making the request for information and payable upfront. Fee is not payable by the member.

$175.99 $175.99 $67.69

Family Law, Splitting or Flagging Fee4 This is charged when the Trustee implements a flag, split or court order.

Generally split equally when implementing the flagging or splitting agreement or court order.

Nil. Nil. $67.69

*The Fund receives a 15% tax deduction in respect of the fees that you pay and the benefit of this tax deduction is passed on to you in the form of a reduced fee. It is this reduced fee, the ‘Net Fee’ that is shown in the table above. For example, ARC’s gross administration fee is 1.65% pa but the net fee you pay is 1.40% pa because the benefit of a 15% tax deduction (0.25% pa) is passed on to you. Where applicable the Net Fee includes GST less any Reduced Input Tax Credit.

1 This fee includes an amount payable to your employer’s (Corporate Plan) financial adviser or your own (Personal Plan).

Please see ‘Administration fee remuneration’ on page 23 in the ARC Product Disclosure Statement dated 1 July 2009 located at www.arcmt.com.au for more information.

2 The exception to this is the TOWER Capital Assured investment option where it is deducted as part of the declared and interim interest rate calculations.

3 Other service fees may apply. For further information on service fees refer to the ARC Product Disclosure Statement dated 1 July 2009.

4 This fee may be indexed in line with any increase in Consumer Price Index (CPI) on 1 January each year.


Example Corporate Superannuation (the fee you are currently charged)

Corporate Superannuation (the fee effective from 1 October 2011)

ARC (the fee you will be charged after the upgrade effective 1 October 2011)

Type of Fee Net* Fee Net* Fee Net* Fee

Contribution fee Between $0 to $50 Between $0 to $50 Between $0 to $40

PlusManagement costs(this includes Administration fee, Member fee and Investment Management fee)

$3041 $3041 $262 to $3173 4

Equals

Cost of Fund

$304 to $3545

What it costs you will depend on the investment option(s) you choose, your account balance, and the fees negotiated between your employer and the Plan’s financial adviser.

$304 to $3545

What it costs you will depend on the investment option(s) you choose, your account balance, and the fees negotiated between your employer and the Plan’s financial adviser.

$262 to $3572

What it costs you will depend on the investment option(s) you choose, the value of and number of members in your employer’s ARC Corporate Plan, your ARC Personal or ARC Corporate Plan account balance, and the fees negotiated between you (or your employer) and the Plan’s financial adviser.

*The Fund receives a 15% tax deduction in respect of the fees that you pay and the benefit of this tax deduction is passed on to you in the form of a reduced fee. It is this reduced fee, the ‘Net Fee’ that is shown in the table above. For example, ARC’s gross administration fee is 1.65% pa but the net fee you pay is 1.40% pa because the benefit of a 15% tax deduction (0.25% pa) is passed on to you. Where applicable the Net Fee includes GST less any Reduced Input Tax Credit.

1 Includes a member fee of $104.64 ($8.72 per month x 12) based on an employer with less than 10 members.

2 Additional fees may apply such as an Adviser Service fee (if applicable) of between 0.00% and 1.00% pa of the value of your account (between $0.00 pa and $10.00 pa per $1,000 invested) and if you leave ARC you will also be charged a Termination fee of $67.69.

3 The lower management costs figure of 1.81% pa in the range above is the fee that would apply if the 0.55% ongoing adviser remuneration is negotiated down to 0% with your own or your employer’s financial adviser.

4 Includes a member fee of $81.12 ($6.76 per month x 12), based on an employer with less than 5 members. This fee does not apply to ARC Personal members.

5 Additional fees may apply.

More information about feesRefer to pages 20 - 25 of the ARC Product Disclosure Statement dated 1 July 2009 for full information about these fees and how they are applied to your account.

The ARC fees and costs may change from time to time. However, before the introduction of any additional fee(s) or before any increases (other than CPI increases) to the fees and charges occur, we will provide you with at least 30 days’ notice.

Fee changes - an example of a balanced investment optionThis table gives an example of how the fees and costs in the balanced growth investment option for your current product and ARC can affect your superannuation investment over a one year period. You should use this table to compare your current product with ARC.

The example below is for an average member of Corporate Superannuation with $10,000 account balance which receives $1,000 pa in contributions. The final cost will depend on the value of and number of members in your Employer’s Plan.

26 Product Upgrade

Although some of your fees may be increasing, ARC provides you improved features and services within your superannuation fund such as wider investment choice (refer to section titled ‘About the Investment Changes’) and improved insurance (refer to section titled ‘About the Insurance Changes’). One of the major service improvements you receive is online access to your superannuation account.

Your online accessFrom mid-October 2011 you can view and manage your superannuation online by visiting www.arcmt.com.au

Your online access is a great way to manage and keep track of your account 24/7 and to also keep up to date with the latest on superannuation news and strategies.

You can view your:• personalaccountdetails• contributionhistory• investmentinformation• insuranceinformation• transactionhistory(includingfeesandpremiums);and• annualreports.You can also:• updateyouraccountdetails• requestaninvestmentswitch;and• consolidateyoursuperannuation.It’s easy to register Simply go online at www.arcmt.com.au, select ‘Member Login’ and then using your personal User ID provided on the letter you received with this booklet, follow the prompts on the website to activate your online profile.

About ARC’s Improved Features and Services

27 Product Upgrade

More ways to pay contributions ARC makes paying contributions easy with the following contribution payment options for you (if you’re making personal contributions) and your employer (for superannuation guarantee or other contributions). Please note that maximum limits (or caps) apply to certain contributions that you or your employer make to your superannuation. For more information refer to page 3 of the ARC Incorporated Material dated 1 July 2009 which can be accessed online by visiting www.arcmt.com.au

BPAY® You can pay contributions by BPAY, via your financial institution’s telephone or internet banking facilities at any time.

When using these facilities you will need the following information:

• BillerCode293357(forsuperannuationguaranteeor Award contributions)

• BillerCode116947(forsalarysacrificecontributions)• BillerCode116954(forpersonalcontributions)• YourCustomerReferenceNumber–contactustoobtainthis.Once you’ve completed your payment, you’ll be issued with a receipt number by your financial institution confirming your BPAY payment.

® Registered to BPAY Pty Ltd ABN 69 079 137 518

Direct Debit If you’re an ARC Personal member you can arrange regular contributions by Direct Debit from your nominated financial institution, with the flexibility of monthly, quarterly, half-yearly or yearly payments deducted on either the 1st, 8th, 15th or 22nd of the month. Contact us for more information.

ChequeYou can choose to make contributions by cheque at any time. PleasemakechequespayabletoTALLifeLimited–ARCMasterTrust[Member Name/Employer Name] and send to us at TAL Life Limited, PO Box 142, Milsons Point NSW 1565, together with your membership details.

28 Product Upgrade

Why is the Trustee upgrading my product? The Trustee has reviewed your product, and, after considering all available options, has decided that it is in the interests of members to upgrade to ARC, a more modern product that will continue to meet members’ current needs and future expectations.

Do I need to do anything to receive the upgrade? No, your account will be upgraded automatically.

When is the upgrade happening? The effective date of the upgrade is 1 October 2011.

How do I obtain online access to view my account? The letter you received with this booklet contains your User ID.

Visit www.arcmt.com.au, select ‘Member Login’ and then using your personal User ID follow the prompts on the website to activate your online profile.

When can I view my upgraded account details online?From mid-October 2011 you can view your upgraded account details, including your improved insurance benefits, at www.arcmt.com.au by logging into your ARC member account.

Will my account balance change? No. Your account balance will remain the same however, the number of units you hold in your investment option(s) will change.

Your Questions Answered

29 Product Upgrade

Will my fees change? Yes. For changes to investment management fees refer to the section titled ‘About the Investment Changes’. For changes to administration fees refer to the section titled ‘About the Fee changes’.

Will I receive confirmation of my improved insurance? Yes. From mid-October 2011, once the upgrade is completed, you can view your improved insurance benefits online at www.arcmt.com.au Alternatively, your upcoming 30 September 2011 Annual Member Benefit Statement will show your new insurance details. You can contact us for more information.

Can I change my investment options?Once the upgrade to ARC is completed your account balance will be transferred to the nearest equivalent investment option (refer to the section titled ‘About the Investment Changes’). From mid-October 2011 you can go online to view your investment strategy and switch to an alternative investment strategy if you wish to do so. Or, call us on 1300 209 088 and we’ll send you out a form to complete and return to us. Before making any changes to your investment strategy however you should seek independent financial advice.

Will I pay for the upgrade? No. You will not incur any transfer transaction fees, costs or charges as a result of the product upgrade.

30 Product Upgrade

How do I increase my insurance? To increase your insurance cover you’ll need to complete a personal statement and send it to us for assessment. You may need to provide further medical evidence. You can download a Personal Statement Form from the ARC website at www.arcmt.com.au We recommend that you speak to a financial adviser to help with your insurance needs.

Is my superannuation fund changing?No. You will remain a member of the Fund and the circumstances in which your account balance and any insurance benefit is payable (generally, retirement, disablement or death) will not change.

Will my reporting period change?No. Your reporting year will remain as 30 September.

What happens when I leave my employer? If you stop working for your current participating employer, your membership will be transferred from ARC Corporate to ARC Personal. Your account will then be subject to ARC Personal’s standard fees and charges and premiums for any insurance benefits. For more information read page 23 of the ARC Product Disclosure Statement dated 1 July 2009, which can be accessed online by visiting www.arcmt.com.au or by calling us on 1300 209 088.

If you wish to transfer to a different fundIf you don’t wish to have your product upgraded and would prefer to transfer your account to another superannuation fund, you need to let us know by 16 September 2011 to avoid the changes taking effect.

Your Questions Answered

31 Product Upgrade

To arrange this, please download a Benefit Payment Request Form from www.tal.com.au (or call us on 1300 209 088 and we will send you a form) and return it to us by no later than 16 September 2011. As your insurance and other valuable benefits your product provides would cease from the date of your exit, we strongly recommend that you obtain your own independent financial advice before you take this decision.

You can transfer your account at any time to another superannuation fund but if you do not let us know before 16 September 2011 then your account will be upgraded with the new ARC terms and conditions. If you decide to transfer your account after your product has been upgraded to ARC, ARC’s standard termination fee ($67.691) will be waived. This waiver only applies for the period of three (3) months from the date your 30 September 2011 Member Annual Statement is issued to you. After this date, if you transfer your account to another superannuation fund ARC’s standard termination fee will be imposed.

Where can I find more information about ARC? If you would like to read more about ARC, please refer to the ARC Product Disclosure Statement and the ARC Incorporated Material which can be accessed on line by visiting www.arcmt.com.au or call us on 1300 209 088 and we will send you the information.

What if I have more questions about the upgrade? If you have a question about your product upgrade or require further information about ARC please call us on 1300 209 088. Alternatively, email us at [email protected] or write to us at:

TAL Superannuation LimitedPO Box 142Milsons Point NSW 1565

(1) This is a net fee - for more information on this fee please see page 18.

If you have a complaint please write to us atComplaints ManagerTAL Superannuation LimitedPO Box 142Milsons Point NSW 1565

If your complaint has not been resolved to your satisfaction within 90 days of lodging your complaint, you may refer your complaint in writing to the Superannuation Complaints Tribunal at the following address:

Superannuation Complaints TribunalLocked Bag 3060GPO Melbourne VIC 3001Call 1300 884 114 Email [email protected] Website www.sct.gov.au

TALI5106 07/11 Product Upgrade Booklet (Corporate Superannuation)

TAL Superannuation Limited80 Alfred Street SouthMilsons Point NSW 2061

ContactCustomer Service Centre 1300 209 088 Email [email protected]

www.tal.com.au

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