MySuper is part of the Stronger Super reforms, a Government initiative designed to make Australia's super system simpler and more efficient. BT Super for Life - Westpac Group Plan now offers an investment option that’s simple, easy to understand and has the same fees for all members – MySuper Lifestage investment options.
From 1 January 2014, members who had not made an investment choice had their super contributions from that date directed into the MySuper Lifestage investment options. However, the member’s existing balance at that time (known as an Accrued Default Amount) remained invested as it was.
If you have an Accrued Default Amount, the MySuper legislation requires us to move it into MySuper before 1 July 2017, unless you make an investment choice before that time. If you are impacted by these changes, we’ll be in contact with you well beforehand.
Q: What is MySuper?
MySuper is part of the Australian Government's Stronger Super Reforms which require super funds such as the BT Super for Life - Westpac Group Plan to offer a simple default super product which provides a single investment option, death and total and permanent disability cover and applies the same fees to all members.
Q: When did BT introduce MySuper?
On 1 November 2013, BT introduced MySuper into the BT Super for Life – Westpac Group Plan. From 1 January 2014, members who had not made an investment choice had their contributions from that date directed into the MySuper Lifestage investment options. The member’s existing balance at that time (known as an Accrued Default Amount) remained invested as it was.
Q: Why has BT chosen the Lifestage investment options for MySuper?
The MySuper initiative is about offering a simple, transparent and cost effective super solution so members can easily understand their super and grow their retirement savings more effectively.
Our market leading Lifestage investment options are backed by an award winning asset manager, Advance Asset Management Limited with a proven track record. Our MySuper Lifestage investment options are designed to meet members' long term saving needs and help them prepare for retirement.
A Lifestage investment option is well suited to members who want to leave it to the experts to manage their money. Your super is invested based on your decade of birth and the level of 'risk' (ie amount invested in 'riskier' investments like shares and property) automatically reduces as you get older.
Q: What is happening next?
Members who had not made an investment choice had their contributions from that date directed into the MySuper Lifestage investment option from 1 January 2014, however their existing balance remained invested as it was. The MySuper legislation requires us to move these existing super balances (known as Accrued Default Amounts) into MySuper options before 1 July 2017, unless the member makes an investment choice before that time. If you are impacted by these changes, we’ll be in contact with you well beforehand.
Q: What is an Accrued Default Amount?
Where a member has not made an investment choice for their super account and it was invested in the default investment option prior to the introduction of MySuper, that balance will be generally defined as an Accrued Default Amount. If you have an Accrued Default Amount, your last annual statement will have included information on it, including your balance.
Q: How do I know if this transfer impacts me?
Your last annual statement would have mentioned your Accrued Default Amount if you have an existing balance that is impacted by this transfer. You can find your statements via Online Banking. Please note, that if you have made an investment choice for your balance since the date of your last statement, you will not be impacted. If the transfer impacts you, you will receive a letter from us at least 90 days before we are proposing to transfer your super. The letter will explain the planned transfer, your options and outline what choices you may need to make.
Q: I don't want to transfer to the MySuper Lifestage investment option – can I stay where I am?
Yes! If you are impacted by this change, the letter you receive from us will clearly explain your options and where to go for more information including a website link where you can log in and choose 'Keep my super where it is’. These letters will be sent well before the transfer. Alternatively, you can choose another investment option at any time via Online Banking or by calling BT on 1300 776 417.
Q: Where can I find more information?
Log in to Online Banking and select your BT Super for Life – Westpac Group Plan account which contains comprehensive information on the Westpac Group Plan, including investment options.
Q: I'm a Defined Benefit member - does this impact me?
No. These MySuper changes do not apply to Defined Benefit members.
Q: What are Lifestage investment options?
When a member invests in the BT MySuper Lifestage options, they are invested in the option according to their decade of birth. Our investment experts then automatically adjust the asset mix throughout the member's life.
When you're young and have a lot of time until you reach retirement age, your money is invested into growth assets like shares and property. As you get older, the fund increases your investment towards more conservative assets like bonds and cash to reduce the likelihood of sudden significant changes in the value of your investment.
Q: Will my fees change if I move to MySuper?
Yes. All members of the Westpac Group Plan who are invested in MySuper are charged the same fees. The fees for the MySuper Lifestage investment options are different to those that currently apply to your Accrued Default Amount. You can find more information on the fees in the Product Disclosure Statement. When we write to you later this year, we’ll explain the fees in more detail.
Q: Where do I go for more information on how these changes impact me?
If you’re impacted by this transfer, you’ll receive a further details later this year that will explain all the changes and your options.
In the meantime, you can call one of our super specialists on 1300 776 417 (weekdays from 8.00am to 6.30 pm - Sydney time) or email us at email@example.com.
BT Funds Management Limited ABN 63 002 916 458, AFSL No. 233724, RSE No. L0001090 is the trustee and issuer of interests in BT Super for Life which is a part of Retirement Wrap ABN 39 827 542 991, RSE R1001327.
A Product Disclosure Statement (PDS) is available by logging in to your online banking. You should obtain and consider the relevant PDS before deciding whether to acquire, continue to hold or dispose of interests in the relevant product.
Westpac Life Insurance Services Limited ABN 31 003 149 157, AFSL No. 233728 is the issuer of insurance cover offered through BT Super for Life. Further information about the insurance available through BT Super for Life is included in the PDS.
The relevant Financial Services Guide (FSG) can be obtained by contacting your adviser or from the PDS downloads page.
The above information provides an overview or summary only and it should not be considered a comprehensive statement on any matter or relied upon as such. The information does not take into account your personal objectives, financial situation or needs and so you should consider its appropriateness having regard to these factors before acting on it.
Superannuation is a long-term investment. The Government has placed restrictions on when you can access your preserved benefits. The Government has set caps on the amount of money you can add to superannuation each year on a concessionally taxed basis. In addition, the Government has set a non-concessional contributions cap. For more detail, speak with a financial adviser or visit the ATO website. There may be limited circumstances where your employer is not required to accept your Choice of Superannuation fund form e.g. if you have already exercised Super Choice in the last 12 months.