THE HARMERS WORKPLACE LAWYERS SUPERANNUATION FUND – FEBRUARY 2007
MLC MasterKey Business Super offers members a wide choice of investment options, with online capabilities that allow, four FREE switches per financial year (with no buy and sell costs for investment switches), to achieve competitive returns. The fund has an additional advantage, that being, it incorporates a new life and disability insurance structure without (in most cases) requiring further evidence of health.
Benefits of Remaining in MLC MasterKey Business Super
Harmers Workplace Lawyers wishes to position itself as a Firm that continues to innovate and provide value for its Members. With this in mind we have taken the responsibility of ensuring that all Members of the Harmers Workplace Lawyers Superannuation Fund have access to an appropriate benefits package that ensures your needs are fulfilled.
• Life and Total and Permanent Disability (TPD) insurances up to specified limits without having to supply evidence of health. Group risk insurance premiums are normally cheaper.
For employees who choose other Personal superannuation funds, these benefits are often available at a higher cost, if at all.
The following Benefits are provided to the employees of Harmers Workplace Lawyers:
Superannuation
MLC MasterKey Business Super offers a wide range of investment options at a lower management cost. When compared to MLC MasterKey Super (ie the Retail offering), members of the Harmers Workplace Lawyers Superannuation Fund are charged a management fee which is 0.58% pa lower. Below is an illustration of the management fee on the default fund which is MLC MasterKey Horizon 5 – Growth Portfolio. The percentage saving is 28% pa.
Management Fee
| The Harmers Workplace Lawyers Super Fund | 1.48% (before tax) | 1.33% (after tax) |
| MLC MasterKey Super | 2.06% (before tax) | 1.83% (after tax) |
Insurances
Harmers Workplace Lawyers have selected a program that offers each member of the Employer Fund (the Harmers Workplace Lawyers Fund within MLC MasterKey Business Super) the following benefits.
It automatically grants a Life Cover of $350,000 and a Total and Permanent Disability (TPD) Cover of $350,000 to all members of the Employer Fund, without medical underwriting requirements, given certain employment timeframes. If any existing employee, who has his/her superannuation benefits invested in a Personal Fund with MLC or other funds, and wishes to join the Employer Fund, medical underwriting may apply. Please verify this with the Office Manager.
Term Life and Total and Permanent Disability (TPD) Insurance
Over the last couple of months we have done extensive reviews on the structure of the fund. We believe that it is appropriate for both moral and fiduciary reasons for a life insurance component to be incorporated. Thus with effect from 1 March 2007, all existing members of the Employer Fund will be granted Life and TPD Cover for $350,000 each. We have been able to achieve this without any need for medical evidence.
• Term Life insurance is insurance cover which you are entitled to take out until you reach 65 years of age. Your accumulated superannuation benefits at the time of your death plus the Life Cover will be paid to your dependants or legal personal representative.
Insurance rates are approximately 30% cheaper in the Employer Fund as opposed to Personal Super Plans.
Additional Features include:
Your family member (e.g. Spouse) may opt to join the Harmers Workplace Lawyers Superannuation plan. Effectively every member can add their family members to the Employer Plan and thereby derive the following benefits.
– The group fee structure will extend to the joining family members, ie, they are also entitled to the same management fee rebates as all other members.
– The family members that join may apply for insurance cover subject to evidence of health. The insurance premiums are based on group insurance rates and are determined by age, gender and occupation. They are normally cheaper than retail rates. Please refer to the MLC Business Super Product Disclosure Statement for details.
Consolidate your Super
If you have a superannuation account from your previous employer or other superannuation accounts that have been set up during your working career; you may wish to consolidate them into the Harmers Workplace Lawyers Superannuation Fund. The benefits include:
– There is less administration hassle in managing a single account.
– Combining your funds into a single account will generally be cheaper, and
– Your investments should be more effective in one account than in many which mean that you will always know exactly how much you have accumulated.
Increase Life and TPD Cover
Each member can apply to increase their Life and TPD cover to suit their individual circumstances by contacting either Horizon Wealth Management or MLC directly and requesting the relevant forms. The premiums will be deducted from your superannuation account balance; this means that no extra funding is required from your salary to pay for these premiums. In this regard, MLC MasterKey Business Super may require the member to be medically underwritten for the increased insurance cover.
Summary of the Key Benefits of a switch to The Harmers Workplace Lawyers Superannuation Fund (MLC MasterKey Business Super)
1. Lower management fees.
2. Lower insurance premiums.
3. No exit fees to switch from MLC MasterKey Personal Super to MLC MasterKey Business Super. Please advise Horizon Wealth Management if or when you make a transfer.
4. New insurance design on the Employer Fund which ensures a more appropriate level of cover for all members.
5. Access to objective and unbiased advice from Horizon Wealth Management.