BT Lifetime. Personal Super Flexible Pension. Annual Report. for the year ended 30 June PDF

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BT Lifetime Personal Super Flexible Pension Annual Report for the year ended 30 June 2015 BT Funds Management Limited ABN AFSL Westpac Banking Corporation ABN Table
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BT Lifetime Personal Super Flexible Pension Annual Report for the year ended 30 June 2015 BT Funds Management Limited ABN AFSL Westpac Banking Corporation ABN Table of contents Recent developments in superannuation 1 Proposed changes to superannuation 3 Product changes 4 Understanding your investment 12 Performance information 16 Investments exceeding 5% 17 Other important information 22 Financial information 24 About this Annual Report BT Funds Management Limited ABN , AFSL , is the Trustee ( Trustee ) of the BT Lifetime Super Fund ( the Fund ) ABN BT Lifetime Personal Super and BT Lifetime Flexible Pension (referenced as the Plan throughout this document) are parts of the Fund. The Fund is a regulated superannuation fund under the Superannuation Industry (Supervision) Act 1993 (SIS) and is not subject to a direction under section 63 of SIS. The trust is governed by the terms of the BT Life Superannuation Trust Deed. A Product Disclosure Statement (PDS) is available for BT Lifetime - Personal Super and BT Lifetime - Flexible Pension and can be obtained by calling , or visiting bt.com.au. You should obtain and consider the PDS before deciding whether to acquire, continue to hold or dispose of interests in BT Lifetime - Personal Super and BT Lifetime - Flexible Pension. The investment manager for the BT investment options is BT Investment Management (Institutional) Limited (BTIM) ABN , AFSL and for the BT Multi-manager investment options, the investment manager is Advance Asset Management Limited ABN , AFSL The Trustee may use other investment managers from time to time which are detailed within relevant disclosure material. Investments in BT Lifetime Personal Super (referenced as BT Super throughout this document) and BT Lifetime Flexible Pension (referenced as BT Pension throughout this document) are not an investment in, deposit with or any other liability of Westpac Banking Corporation ABN (the Bank) or any other company in the Westpac Group. It is subject to investment risk, including possible delays in repayment of withdrawal proceeds and loss of income and principal invested. The Bank and its related entities do not stand behind or otherwise guarantees the capital value or investment performance of any investment option offered through BT Lifetime - Personal Super and BT Lifetime - Flexible Pension. This information has been prepared without taking account of your objectives, financial situation or needs. Because of this you should, before acting on this information, consider its appropriateness, having regard to your objectives, financial situation and needs. Past performance is not a reliable indicator of future performance. A financial services guide in relation to the Trustee is available on our website bt.com.au or by calling The tax position described is a general statement and is for guidance only. It has not been prepared by a registered tax agent. It does not constitute tax advice and is based on current tax laws and our interpretation. Your individual situation may differ and you should seek independent professional tax advice. The Annual Report was prepared on 30 November 2015. Recent developments in superannuation /16 superannuation thresholds The superannuation contributions caps and various other superannuation thresholds that apply for the 2015/16 financial year are as follows: Low rate cap: $195,000 Concessional contributions cap: Age 49 or over on 30 June 2015 $35,000 Under age 49 on 30 June 2015 $30,000 Non-concessional contributions cap: $180,000 1 Capital Gains Tax (CGT) Cap (lifetime limit): $1,395,000 Government Co-contributions: maximum co-contribution 2 $500 lower threshold $35,454 upper threshold (cut off) $50,454 1 If you were under age 65 on 1 July 2015 you may be able to make up to $540,000 of non-concessional contributions over three financial years. If you triggered the bring forward non-concessional cap in 2013/14, you can only make non-concessional contributions up to $450,000 over the relevant 3 year period. 2 The maximum co-contribution payable is phased out by cents for every dollar of total income over the lower threshold, until it reaches zero at the upper threshold. 2. Higher concessional contributions cap An increased concessional contribution cap of $35,000 pa (not indexed) is available for members aged 59 years or over on 30th June 2013 or 49 years or over from 30 June 2014 (see table below). Income Year Concessional cap for those aged 49 years or over on 30 June years or over on 30 June years or over on 30 June $35,000 $35,000 $35, $35,000 $35,000 $30, $35,000 $25,000 $25,000 From 1 July 2015 the general concessional contribution cap is $30,000 pa. The higher cap will cease to apply when the general concessional contributions cap reaches $35,000 as a result of indexation. 3. Preservation Age increases Generally you can access your superannuation when you have permanently retired on or after reaching your preservation age or after you reach age 65. You can access your superannuation in other limited circumstances such as if you become permanently incapacitated, are suffering from a terminal medical condition or are suffering severe financial hardship. If you are aged between preservation age and age 65 you can also commence a transition to retirement pension allowing you to access your superannuation in the form of a non-commutable income stream. If you were born before 1 July 1960 your preservation age is 55. If you were born on or after 1 July 1960 your preservation age is between 56 and 60 depending on your date of birth (see the table below). Date of Birth Preservation When you will reach Age Preservation Age Before Before 55 1 July July July July June June July July June June July July June June July July June June 2023 After 30 June After 30 June Terminal Medical Condition of release From 1 July 2015, the certification period has been extended from 12 to 24 months for individuals suffering from a terminal medical condition. If you are suffering from an illness or have incurred an injury that is likely to result in death within 24 months, you may be eligible to access your super as a tax-free lump sum benefit. It s important to note that if you hold insurance and you withdraw your entire superannuation benefit you will lose any insurance you currently have. To continue your insurance you will need to leave sufficient balance in your account to fund future premiums. This information is intended as a guide only and does not constitute advice. Before making a withdrawal under Terminal medical condition you should speak to your financial adviser about the impacts this could have on your insurance entitlements. Annual Report Recent developments in superannuation Con t 5. Deeming of account-based income streams Account-based income streams that commenced on or after 1 January 2015 are subject to deeming rules for income test purposes when determining an individual entitlement to Centrelink and DVA benefits. Under the deeming provisions, all financial investments are assumed to earn a certain rate of income regardless of the income actually generated. Customer Threshold^ Deeming Rate Single Up to and 1.75% including $48,600 Above 3.25% Member of a couple (combined) Member of allowee couple Up to and 1.75% including $80,600 (combined) Above 3.25% Up to and 1.75% including $40,300 Above 3.25% ^Rates and thresholds are effective from 1 July 2015 and are indexed in line with CPI each year. For account-based pensions that commenced prior to 1 January 2015 will adopt the grandfathering provisions if: you were in receipt of an income support payment immediately before 1 January 2015; and you have been continuously receiving an income support payment since 1 January 2015; and your account-based pension commenced before 1 January 2015 and has continued to be provided to you since the commencement date. An income support payment includes common pensions and allowances such as the age pension, disability support pension, carer payment (not carer allowance), a DVA service pension, DVA income support supplement and newstart allowance. If you are eligible under the grandfathering provisions, you should note that: any changes in your circumstances resulting in you becoming ineligible for income support after 1 January 2015 may mean income from your account-based pension will be assessed using the deeming rules if you commute your existing pension to commence a new account-based pension, income from the new pension will be assessed using the deeming rules if you have made an automatic reversionary death benefit nomination for your spouse to continue to receive your account-based pension in the event of your death, your spouse may be eligible to continue to have income from the pension assessed using the current income test provided certain conditions are satisfied You should speak to your financial adviser or Centrelink or DVA about how these changes may impact your income support payment entitlements. 6. Lost member accounts transferred to the ATO If your account is considered to be lost*, the Trustee may be required to transfer your account balance to the ATO if: your account balance is less than the small lost account threshold; or the Trustee is satisfied that it will never be possible to pay an amount to you (because you cannot be identified based on the information reasonably available to the Trustee). From 31 December 2015, the small lost account threshold will increase to $4,000 (currently $2,000) and from 31 December 2016 it will increase further to $6,000. If your account balance is transferred you will be able to reclaim it from the ATO. The ATO will pay interest on unclaimed super money amounts paid directly to eligible individuals for the period the money was held by the ATO after 1 July Any interest paid is tax free. *Your super account will generally be considered lost if: no contributions or rollovers have been added to your account in the last year and either the Trustee has never had an address for you or mail sent to you by the Trustee has been returned unclaimed, or for default employer super plans, no contributions or rollovers have been added to your super account in the last five years 2 BT Lifetime Proposed changes to superannuation ATO payment of unclaimed super money In certain circumstances superannuation funds may be required to transfer super account balances to the ATO as unclaimed superannuation money. Currently, the ATO can only pay this money directly to a person, if they have reached age 65 or the amount is less than $200. It is proposed that from 1 July 2016, the ATO will be able to pay unclaimed superannuation money directly to individuals suffering from a terminal medical condition. Requests for payment can be made using the ATO Payment of unclaimed super money - individual form. Certified copies of medical certificates must also be provided from two registered medical practitioners, one of which is a specialist in the area related to the individual s illness or injury, certifying that the individual suffers from an illness, or has incurred an injury, that is likely to result in the death of the individual within 24 months. Individuals can also request the ATO to transfer unclaimed superannuation money held on their behalf to a complying super fund at any time. Annual Report Product changes Insurance definition changes impacting BT Lifetime Personal Super As a result of changes to superannuation regulations, the insurance definitions for Total and Permanent Disability (TPD) were amended for new insurance cover issued within BT Lifetime Personal Super on or after 1 July These definitions, along with the other terms of your cover, determine whether you are eligible for a payment from the insurer due to a terminal medical condition or incapacity. The table below illustrates the changes to these definitions. Type of cover Pre 1 July 2014 definition Post 1 July 2014 definition Total and Permanent Disability (TPD) Total and Permanent Disability definitions You may receive a lump sum benefit for TPD under either of the definitions outlined below. Definition 1 You have suffered the total and irrecoverable loss of use of: both hands; or both feet; or one hand and one foot; or the sight of both eyes; or one hand and the sight of one eye; or one foot and the sight of one eye. OR Definition 2 a. If you re an Insured Member under age 65 and are working 15 or more hours per week (including as a Casual Employee and Contractor): you re unable to follow your usual occupation by reason of an illness, accident or injury for a period of six consecutive months after the occurrence of the illness, accident or injury; and in the opinion of the Insurer (after consideration of medical and other evidence satisfactory to it), you re unlikely ever to be able to follow your usual occupation and any other occupation for which you re reasonably suited by education, training or experience. b. If you re: an Insured Member aged 65 and above; or an Insured Member under age 65 and are working less than 15 hours per week (including as a Casual Employee or Contractor); or a non-working Insured Member Total and Permanent Disability definitions You may receive a lump sum benefit for TPD under either of the definitions outlined below. Definition 1 You have suffered the total and irrecoverable loss of use of: both hands; or both feet; or one hand and one foot; or the sight of both eyes; or one hand and the sight of one eye; or one foot and the sight of one eye and in the opinion of the Insurer (after consideration of medical and other evidence satisfactory to it), you re unlikely ever to be able to follow your usual occupation and any other occupation for which you re reasonably suited by education, training or experience. Definition 2 a. If you re an Insured Member under age 65 and are working 15 or more hours per week (including as a Casual Employee and Contractor): you re unable to follow your usual occupation by reason of an illness, accident or injury for a period of six consecutive months after the occurrence of the illness, accident or injury; and in the opinion of the Insurer (after consideration of medical and other evidence satisfactory to it), you re unlikely ever to be able to follow your usual occupation and any other occupation for which you re reasonably suited by education, training or experience. 4 BT Lifetime Type of cover Pre 1 July 2014 definition Post 1 July 2014 definition Total and Permanent Disability (TPD) and you re continuously and totally unable to perform at least two of the following Activities of Daily Living, as certified by a qualified medical practitioner appointed by the Insurer. Bathing; the ability to wash oneself either in the bath or shower or by sponge bath without the standby assistance of another person. Dressing; the ability to put on and take off all garments and medically necessary braces or artificial limbs usually worn, and to fasten and unfasten them, without the standby assistance of another person. Eating; the ability to feed oneself once food has been prepared and made available, without the standby assistance of another person. Toileting; the ability to get to and from and on and off the toilet, without the standby assistance of another person and ability to manage bowel and bladder functions through the use of protective undergarments or surgical appliances, if appropriate. Transferring; the ability to move in and out of a chair without the standby assistance of another person. b. If you re: an Insured Member aged 65 and above, or an Insured Member under age 65 and are working less than 15 hours per week (including as a Casual Employee or Contractor), or a non-working Insured Member and you re continuously and totally unable to perform at least two of the following Activities of Daily Living, as certified by a qualified medical practitioner appointed by the Insurer. Bathing; the ability to wash oneself either in the bath or shower or by sponge bath without the standby assistance of another person. Dressing; the ability to put on and take off all garments and medically necessary braces or artificial limbs usually worn, and to fasten and unfasten them, without the standby assistance of another person. Eating; the ability to feed oneself once food has been prepared and made available, without the standby assistance of another person. Toileting; the ability to get to and from and on and off the toilet, without the standby assistance of another person and ability to manage bowel and bladder functions through the use of protective undergarments or surgical appliances, if appropriate. Transferring; the ability to move in and out of a chair without the standby assistance of another person and in the opinion of the Insurer (after consideration of medical and other evidence satisfactory to it), you re unlikely ever to be able to follow your usual occupation and any other occupation for which you re reasonably suited by education, training or experience. If you apply for new insurance cover issued on or after 1 July 2014, please ensure you have carefully read the Insurance in your super section of the Product Disclosure Statement (PDS) issued on or after 1 July 2014 and any relevant disclosure documents to understand the impact of these changes to you before applying. You can obtain a copy of the current PDS and any other relevant disclosure documents by visiting bt.com.au or calling BT Customer Relations on Annual Report Product changes Con t Understanding the insurance changes to your BT Lifetime Super Personal Plan In conjunction with the Fund s insurer, AIA Australia Limited (AIA), changes were made to the insurance terms and conditions in BT Lifetime Super Personal Plan (the Fund) which were effective from 1 July The following tables explain these changes and how they will apply to you. The current Additional Information Booklet Part 3 Insurance is available at bt.com.au. Changes to the Fund s insurance terms and conditions What is changing? How this change applies to you Updated insurance definitions and terminology We are amending some of the Fund s insurance definitions and terminology to help to clarify existing policy terms for you, and to assist with the administration of the claims assessment process. Please refer to the table below which highlights the changes to the following insurance definitions and terminology in the Fund s PDS: Eligibility - Non-Australian Residents Active Service Hazardous occupations Total and Permanent Disability (TPD) Definitions and Current position New position terminology Eligibility - Non-Australian Summary of change: For further information as not currently disclosed Residents Not currently disclosed Active Service No action is required by you. Insurance cover will continue with the applicable new terms and conditions. Please note if you are currently in the process of claiming insurance benefits, the definitions applicable to you will be those in place at the date of your claimable event e.g. injury or illness diagnosis. Cover for non-australian Residents will only be provided to a Member who holds a Visa and permanently resides in Australia. All cover provided to a non Australian Resident will cease immediately upon the Insured Member departing Australia, except in the case of trips of three (3) months or less. For the purposes of this eligibility condition, Visa means a current and valid visa issued in accordance with the Migration Act 1958 (Cth) or any amending or replacing Act. Examples include: Subclass 457 working visa; Subclass 457 working visa (with an 8107 condition); or Spouse visa (spouse of a permanent Australian Resident on a two year temporary stay visa) without a no work condition. Australian Resident means an Australian Citizen, New Zealand Citizen or Permanent Resident who holds a visa to live and work in Australia. Summary of change: Clarifying that Insured Members are covered whilst pa
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