Planning for retirement

Zurich Superannuation Plan and Zurich Account-Based Pension closed to new members from 1 October 2021

Please be advised that effective 1 October 2021, the Zurich Superannuation Plan (ZSP) and the Zurich Account-Based Pension (ZABP) are closed to new members.    

Existing ZSP and ZABP members

There is no impact to existing ZSP and ZABP members from this announcement.  All aspects of their existing policy remain the same, including the ability the ability to make changes to their investment strategy, make additional contributions (ZSP), and change the level of retirement income to be received (ZABP).
 

KDEG-019727-2023

Zurich Australia Limited ABN 92 000 010 195 AFSL 232510 has re-located its head office.

All references to “5 Blue Street North Sydney NSW 2060” in the following PDSs are replaced with “118 Mount Street North Sydney NSW 2060”:

• Zurich Ezicover Income Protection, with issue date 27 May 2019
• Zurich Ezicover Life Insurance, with issue date 1 November 2018
• Zurich FutureWise, with issue date 1 October 2016
• Zurich FutureWise (Supplementary PDS), with issue date 27 May 2019
• Zurich Insurance-only Superannuation Plan, with issue date 27 May 2019
• Zurich Superannuation Plan and Zurich Account-Based Pension, with issue date 1 July 2019
• Zurich Superannuation Plan Optional Protection Benefits, with issue date 1 July 2019

Contact details in the above documents are otherwise unchanged, including the postal address: Locked bag 994 North Sydney NSW 2059.

MMEA-016261-2020

Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Investment Option Booklet: Change to Buy/Sell spread for the Global Growth Share option

The buy/sell spread for the Global Growth Share option changed following a review of the underlying transaction costs incurred by the fund. Refer to the table below for the change effective 1 December 2020.
 

Please refer to the Zurich Superannuation Plan & Zurich Account-Based Pension Investment Option booklet for further information on buy/sell spreads and transaction costs.

KDEG-016284-2020

Updates to the Zurich Superannuation Plan and Zurich Account-Based Pension PDS (and Investment Option Booklet): Standard Risk Measure information

The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period.

Investment options are graded across seven ‘risk bands’; from ‘very low risk’ to ‘very high risk’ (refer to the table below).

 
The current Standard Risk Measures (measured at 1 December 2020) are as follows:
 

*The SRM change for the Cash Investment Option is predominantly due to current lower interest rate environment.
 

Note:

• The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return.
• Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.
  

Updates to the Zurich Superannuation Plan and Zurich Account-Based Pension PDS (and Investment Option Booklet): Indirect Cost Ratio

The Indirect Cost Ratio (ICR) for all investment options have been reviewed taking into consideration transaction costs and certain investment-related costs incurred within the underlying investments during the period 1 July 2019 to 30 June 2020.  The current ICRs are shown in the table below.   

It is important to note these changes do not represent new or increased costs charged by Zurich but simply reflect updated information in line the Fund’s disclosure obligations* and there have been no changes to way in which the investment options are managed.

*Disclosure requirements of fees and costs for superannuation funds and managed investments are set out in the Australian Securities and Investment Commission (ASIC) Regulatory Guide 97 - Disclosing fees and costs in PDSs and periodic statements (‘RG 97’). RG97 was recently enhanced requiring the calculation of ICRs to also take into account transaction costs and certain investment-related costs incurred within the underlying investment. These types of costs have always existed and were taken into consideration into your net-of-fee return but were not previously required to be specifically disclosed in the ICR.

KDEG-016284-2020

Updates to the Zurich Superannuation Plan and Zurich Account-Based Pension PDS (and Investment Option Booklet): Indirect Cost Ratio

The Indirect Cost Ratio (ICR) for all investment options have been reviewed taking into consideration transaction costs and certain investment-related costs incurred within the underlying investments during the period 1 July 2018 to 30 June 2019.  The current ICRs are shown in the table below.   

It is important to note these changes do not represent new or increased costs charged by Zurich but simply reflect updated information in line the Fund’s disclosure obligations* and there has been no changes to way in which the investment options are managed.

*Disclosure requirements of fees and costs for superannuation funds and managed investments are set out in the Australian Securities and Investment Commission (ASIC) Regulatory Guide 97 - Disclosing fees and costs in PDSs and periodic statements (‘RG 97’).  RG97 was recently enhanced requiring the calculation of ICRs to also take into account transaction costs and certain investment-related costs incurred within the underlying investment. These types of costs have always existed and were taken into consideration into your net-of-fee return, but were not previously required to be specifically disclosed in the ICR.

KDEG-015630-2020

Updates to the Zurich Superannuation Plan and Zurich Account-Based Pension PDS (and Investment Option Booklet): Standard Risk Measure information

The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period.

Investment options are graded across seven ‘risk bands’; from ‘very low risk’ to ‘very high risk’ (refer to the table below).

 
The current Standard Risk Measures (measured at 25 October 2019) are as follows:
 

Note:

• The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return.
• Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.

Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Investment Option Booklet: Change to Buy/Sell spread for Global Property Securities option

The buy/sell spread for the Global Property Securities option changed following a review of the underlying transaction costs incurred by the fund. Refer to the table below for the change effective 18 October 2019.

Please refer to the Zurich Superannuation Plan & Zurich Account-Based Pension Investment Option booklet for further information on buy/sell spreads and transaction costs.

KDEG-015630-2020

Updates to the Zurich Superannuation Plan and Zurich Account-Based Pension PDS (and Investment Option Booklet): Indirect Cost Ratio

The Indirect Cost Ratio (ICR) for all investment options have been reviewed taking into consideration transaction costs and certain investment-related costs incurred within the underlying investments during the period 1 July 2016 to 30 June 2017.  The current ICRs are shown in the table below.

It is important to note these changes do not represent new or increased costs charged by Zurich but simply reflect updated information in line with the Fund’s disclosure obligations* and  there has been no changes to the way in which the investment options are managed.

*Disclosure requirements of fees and costs for superannuation funds and managed investments are set out in the Australian Securities and Investment Commission (ASIC) Regulatory Guide 97 - Disclosing fees and costs in PDSs and periodic statements (‘RG 97’).  RG97 was recently enhanced requiring the calculation of ICRs to also take into account transaction costs and certain investment-related costs incurred within the underlying investment. These types of costs have always existed and were taken into consideration into your net-of-fee return, but were not previously required to be specifically disclosed in the ICR. 

KDEG-013101-2018

Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Fee Guide and Additional Information Booklet: Non-commutable account-based pension (transition to retirement pension)

The non-commutable account-based pension (transition to retirement pension) described on page 15 of the Zurich Superannuation Plan and Zurich Account-Based Pension Fee Guide and Additional Information Booklet, with an issue date of 1 January 2017, has been closed to new pensioners and is no longer available.

KDEG-013101-2018

Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Investment Option Booklet: Change to Buy/Sell spread for Global Growth Share option

The buy/sell spread for the Global Growth Share option changed following a review of the underlying transaction costs incurred by the fund. Refer to the table below for the change effective 1 December 2017.

Please refer to the Zurich Superannuation Plan & Zurich Account-Based Pension Investment Option booklet for further information on buy/sell spreads and transaction costs.

KDEG-013101-2018

Updates to the Zurich Superannuation Plan and Zurich Account-Based Pension PDS (and Investment Option Booklet): Standard Risk Measure information

The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period.
Investment options are graded across seven ‘risk bands’; from ‘very low risk’ to ‘very high risk’ (refer to the table below).

The current Standard Risk Measures (measured at 1 December 2017) are as follows:

Note:

• The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return.
• Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.

KDEG-013101-2018

Effective 1 April 2017 the minimum monthly Portfolio Management Charge for the Zurich Superannuation Plan and Zurich Account-Based Pension, increased from $21.56 to $21.88.

As disclosed in the PDS, the increase has been calculated on the Consumer Price Index (‘CPI’) increase measured over the 12 months ending 31 December of the previous year (ie. 2016). The CPI is the “Weighted Average of Eight Capital Cities Index” published by the Australian Bureau of Statistics.

KDEG-012133-2017

Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Information Booklet on Investment options: Change in objective for the Zurich Global Thematic Share option

With effect 1 October 2015, the primary objective of the option is to provide long term capital growth with the benefits of global diversification. The option aims to achieve risk adjusted returns that exceed the MSCI World (ex-Australia) Accumulation Index in $A (net dividends reinvested) over periods of seven or more years.

KDEG-010735-2015

Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Information Booklet on Investment options: Change in objective for the Zurich Global Thematic Share option

With effect 1 October 2015, the primary objective of the option is to provide long term capital growth with the benefits of global diversification. The option aims to achieve risk adjusted returns that exceed the MSCI World (ex-Australia) Accumulation Index in $A (net dividends reinvested) over periods of seven or more years.

KDEG-010735-2015

Update to the Zurich Superannuation Plan / Zurich Account-Based Pension Additional information guide: death benefits

The following text is added at the end of the booklet:

From 1 July 2016 there will be a change in the way death benefits are paid. From that date, the arrangements described elsewhere in this booklet will no longer apply and the following will apply instead:

What happens on death?

Binding Death Benefit Nomination (ZSP and ZSBP)

If you die with a valid Binding Death Benefit Nomination, the Trustee must pay your death benefit to your nominated beneficiaries in the proportions specified in the nomination.  

For a nomination to be valid:

• The proportion  of your death benefit to be paid to each beneficiary must be clearly set out (and total 100 per cent)
• The nomination must be signed and dated by you in the presence of two witnesses, both of whom are over 18 years of age and are not nominated to receive a benefit
• The nomination must have been made, or confirmed within 3 years of the your death and
• You must not have revoked your nomination.

Each nominated beneficiary must be your Dependant (refer below), or your Legal Personal Representative (generally the executor of your will or the administrator of your estate).

Generally, you may choose for benefits to be paid as a lump sum or as a pension.  However, it must be paid as a lump sum if  the benefits are payable to your Legal Personal Representative or to a child aged over 18, unless the child is: 

• Under 25 and financially dependent on you immediately prior to your death, or
• Permanently disabled.
   

Definition of Dependant

A Dependant includes:

• Your current spouse (including de facto spouse) of either gender,
• Your children of any age (including adopted children, stepchildren and your spouse’s children),
• Someone who is financially dependent on you, or
• Someone with whom you have an ‘interdependency relationship’

Two people have an ‘interdependency relationship’ if:

• They have a close personal relationship;
• They live together; and
• One or each of them provides the other with financial support; and
• One or each of them provides the other with:
  • Domestic support and personal care, but not if one of them provides domestic support and personal care to the other under an employment contract or a contract for services or on behalf of another person or organisation such as a government agency, a body corporate or a benevolent or charitable organisation; or
  • Support or care of a type and quality normally provided in a close personal relationship, rather than by a mere friend or flatmate 
• Two people also have an interdependency relationship if they have a close personal relationship but they do not meet the other requirements of interdependency because:
  • Due to either or both of them suffering from a disability including a physical, intellectual or psychiatric disability, or
  • They are temporarily living apart. 

A Dependant must be alive and meet the definition of Dependant immediately before your death.

What if a nominated beneficiary is not your Dependant or your Legal Personal Representative?

In such cases, the portion of the benefit to be paid to that nominated beneficiary will be paid as if there is no valid Binding Death Benefit Nomination.

No nomination

Where there is no valid Binding Death Benefit Nomination, the Trustee must pay the death benefit (or applicable proportion) in accordance with the trust deed. This generally means that the benefit will be paid to your Legal Personal Representative, unless the Trustee:

• Is unable to identify  your Legal Personal Representative within 6 months of the Trustee being notified of your death; or
• Has reason to believe your estate is insolvent

If either of the above apply, benefits are instead paid to spouses or, if none, children in equal shares (where there are more than one).  For example, if you have no spouse and two children, both children would receive 50 per cent. 

Note that a person is only a 'spouse' or a 'child' if the Trustee is aware of the person's existence and is satisfied of their status as such.

If there is no spouse or child, then the Trustee must pay the death benefit to your Legal Personal Representative (even if the estate is insolvent) or deal with the death benefit under applicable laws relating to unclaimed super. 

Making a Binding Death Benefit nomination

For further information on binding nominations, including the nomination form, please ask your financial adviser to provide you with a copy of the Zurich Super Estate Management Binding Nomination brochure. Alternatively a copy of the brochure can also be obtained by contacting the Zurich Client Service Centre on 131 551 or through our website at www.zurich.com.au. There may be taxation or other implications to consider. You should consult your financial adviser for information regarding the nomination of a beneficiary.

You must confirm your nomination every 3 years in order for it to remain valid. You can do this by giving us a written notice, signed and dated by you, to that effect before it expires, or simply complete the confirmation form we send to you. It is your responsibility to ensure your Binding Death Benefit Nomination is confirmed before it expires.

If you wish to amend your nomination, you need to complete and submit a new binding nomination form which will then completely replace all previous nominations.

Reversionary pensioner nomination (ZABP only)

Instead of a Binding Death Benefit Nomination, under the ZABP, you can alternatively elect a reversionary pensioner. Your reversionary pensioner must be a Dependant who is eligible to receive a pension (as explained above).

If you elect a reversionary pensioner, in the event of your death, the regular payments will continue to be made to the Dependant you nominate as a reversionary pensioner on the application form. Only one reversionary pensioner can be nominated, who must be nominated when your pension is commenced.

If your reversionary pensioner dies before you, or your reversionary pensioner is not a Dependant (or in the case of a spouse, no longer your spouse) at the time of your death, your nomination will become invalid and the money will be paid as if there is no nomination in place (as explained above).

If payments to the reversionary pensioner have commenced, and the reversionary pensioner subsequently dies whilst still entitled to a pension, the balance of the benefit will be paid as if the reversionary pensioner is you and there is no nomination in place (refer above).

A reversionary pensioner nomination is binding on the Trustee and is irrevocable. This means that you cannot change your decision once you have nominated a reversionary pensioner. The only way to change your nomination  is to commute your pension (provided you did not elect to make it non-commutable when setting it up) and then set up a new one.

Making a reversionary pensioner nomination may have taxation and other implications. We recommend you discuss the appropriateness of such a nomination with your financial adviser.

KDEG-010554-2015

Update to the Zurich Superannuation Plan & Zurich Account-Based Pension PDS: Taxable component of superannuation lump sum

The taxable component of a superannuation lump sum is as follows:

Below preservation age*:             Whole amount - 20% + medicare levy

Preservation age* to 59:               Amount up to low rate cap* - Nil
                                                           Amount above low rate cap* - 15% + medicare levy

Age 60 and above:                        Whole amount - Nil

*For information regarding your preservation age and the low rate cap amount, refer to the Superannuation Rates & Thresholds page.

KDEG-010274-2015

Update to the Zurich Superannuation Plan & Zurich Account-Based Pension Information Booklet on Investment options: Zurich Equity Income option fee reduction

With effect 1 July 2015, the Indirect Cost Ratio (Investment management cost deducted from the underlying assets) reduced from 1.87% pa to 1.39% pa.

KDEG-010274-2015

Update to the Zurich Superannuation Trustee Investment Plan Information Booklet on Investment options: Zurich Equity Income option fee reduction

With effect 1 July 2015, the Indirect Cost Ratio (Investment management cost deducted from the underlying assets) reduced from 1.87% pa to 1.39% pa.

KDEG-0102735-2015

Update to the Zurich Superannuation Plan & Zurich Account-Based Pension PDS and Fee Guide: Increase to the minimum Monthly Portfolio Management Charge

Effective 1 April 2015 the minimum monthly Portfolio Management Charge for the Zurich Superannuation Plan and Zurich Account-Based Pension, increased from $20.85 to $21.20.

As disclosed in the PDS, the increase has been calculated on the Consumer Price Index (‘CPI’) increase measured over the 12 months ending 31 December of the previous year (ie. 2014). The CPI is the “Weighted Average of Eight Capital Cities Index” published by the Australian Bureau of Statistics.

KDEG-010274-2015

Update to the Zurich Superannuation Trustee Investment Plan PDS:  Increase to the minimum Monthly Portfolio Management Charge

Effective 1 April 2015 the minimum monthly Portfolio Management Charge for the Zurich Superannuation Trustee Investment Plan (ZSTIP), increased from $20.85 to $21.20.

As disclosed in the PDS, the increase has been calculated on the Consumer Price Index (‘CPI’) increase measured over the 12 months ending 31 December of the previous year (ie. 2014). The CPI is the “Weighted Average of Eight Capital Cities Index” published by the Australian Bureau of Statistics.

KDEG-0102735-2015

Updates to the Zurich Superannuation Plan and Zurich Account-Based Pension PDS (and Investment Option Booklet): Standard Risk Measure information
The Standard Risk Measure is based on industry guidance to allow members to compare investment options that are expected to deliver a similar number of negative annual returns over any 20 year period.
Investment options are graded across seven ‘risk bands’, from ‘very low risk’ to ‘very high risk’ (refer to the table below).

The system also estimates how many negative annual returns are expected for each option over a 20-year period, to give you a clear idea of how a particular risk level may affect a long-term investment.

The Standard Risk Measures at 31 December 2014 are as follows:

Note:

• The Standard Risk Measure is not a complete assessment of all forms of investment risk, for instance it does not detail what the size of a negative return could be or the potential for a positive return to be less than a member may require to meet their objectives. Further, it does not take into account the impact of administration fees and tax on the likelihood of a negative return.
• Members should still ensure they are comfortable with the risks and potential losses associated with their chosen investment option/s.

KDEG-009888-2015