Benefits & investments


The IAG & NRMA Superannuation Plan ("Plan") is a not-for-profit fund for employees of IAG, NRMA and their related companies. We focus on looking after your super and don't have to make profits for shareholders.

As well as saving for your retirement, your super also provides benefits for you and your family if you die or become permanently disabled while a member of the Plan.

Please see information below regarding your benefit type and related investment information.

Benefit types:

 

Accumulation

 

Your contributions (and any amounts you have transferred or rolled over to the Plan) and the contributions or allocations your employer makes for you, are credited to your member account and then invested (after allowing for tax and expenses) according to your choice of investment option(s). Your super benefit is your member account balance. So the amount you ultimately receive is directly linked to the Plan's investment performance.
 

Defined Benefit

 

As a Defined Benefit member, your benefits are based on a formula that combines your superannuation salary with your years of membership. You are also able to make voluntary member contributions if you wish to increase your final benefit.

As a Defined Benefit member, the Plan provides for:

  • A lump sum or pension benefit upon leaving your employer and the Plan
  • Flexible member contribution options, payable either as before or after-tax contributions
  • The ability to roll over superannuation benefits from other superannuation funds
  • Generous death and disablement benefits (subject to satisfactory medical evidence), 24 hours a day, seven days a week at no cost to you, and
  • Any voluntary contributions you make and rollovers you receive are invested according to your choice of investment option(s).

 

Account-based pension

 

The plan offers both Allocated Pensions, generally suitable for those who have retired, and Transition to Retirement Income Streams, which are suitable for those members who are still working.

 

Allocated Pension

An Allocated Pension is an account based pension that allows you to access all or part of your super as a retirement income stream. As long as you have a minimum of $50,000 in your super in the Plan that is payable in cash (called unrestricted non-preserved amounts) this can be allocated to an AP Account and used to start your Allocated Pension. For details of your super entitlements, and when they are available, please refer to your Annual Benefit Statement and the Plan Product Disclosure Statement.

Pension payments are made monthly by deduction from your AP Account. The total of all payments each financial year (1 July to 30 June) must meet the minimum amount prescribed by legislation. There is no prescribed maximum amount, however you are obviously limited by the balance of your AP Account. If you wish, you may also make lump sum withdrawals.

Your AP Account is invested in one or more of the investment options available under the Plan, seleted by you. If you don't made a selection, your AP Account will be invested in the default option, currently the Pension Growth Option. Investment returns (positive or negative) are credited to your AP Account and fees and pension payments are debited from it.

Transition to Retirement Income Stream or TRIS?

If you have reached your preservation age (see table below), a Transition to Retirement Income Stream or TRIS is a particular type of allocated pension (also known as a Transition to Retirement Allocated Pension or TRIS) that allows you to receive an income stream from your preserved and unrestricted non-preserved amounts of super whilst you are still working.

Unlike an Allocated Pension, lump sum withdrawals are usually not possible. Also, the annual amount that you may receive through a TRIS is restricted to 10% of the total amount available in the AP Account at the start of the financial year. Otherwise, a TRIS works in the same way as an Allocated Pension.

A TRIS is available if you have a superannuation benefit of at least $50,000.

Depending on what you want to achieve, if you've reached your preservation age, you could:

  • Seek to work less (if your employer agrees) and use a TRIS to boost your everyday income, or
  • Continue working, increase your super contributions (within the limits prescribed under super laws) and use a TRIS to supplement your income
 

Before you consider obtaining a TRIS, it is important that you speak with a licensed or authorised financial adviser to:

  • Determine your eligibility
  • Determine your short-term, medium-term and long-term financial and lifestyle goals, and
  • Assess the potential risks and rewards of the various retirement strategy options available to you.
 

Your 'preservation age'

Your 'preservation age' (i.e. the age at which your preserved and restricted non-preserved super can be paid to you in cash if you have permanently retired from the workforce) depends on your date of birth:

If you were born: Your preservation age is:
After 30 June 1964 60
1 July 1963 - 30 June 1964 59
1 July 1962 - 30 June 1963 58
1 July 1961 - 30 June 1962 57
1 July 1960 - 30 June 1961 56
before 1 July 1960 55


Starting your Allocated Pension or TRIS

You transfer some or all of your super that is able to be accessed as a pension to an AP Account that we open in your name. Once started, under superannuation laws you cannot add to your AP Account. If you have other super available, you may be able to start another AP Account, alternatively you would be required to transfer your AP account back to super then commence a new AP account with the combined account.
 

Lifetime Pensioner

 

Becoming a pensioner

 

The IAG & NRMA pension is available, at the discretion of the Trustee, to members of the Plan (other than retained members, reserved members and spouse members) who wish to receive their super as a pension rather than a lump sum. To receive your super as a pension, you will need to complete the application form which accompanies the Lifetime Pensions PDS.

If you transferred to the Plan from another staff superannuation fund, you may be entitled to a different type of pension. If you are a member who is automatically entitled to receive a pension under the terms of the Trust Deed and Rules, then you only need to provide the Trustee with the required information, no Trustee approval is required.

Alternatively, if you are automatically entitled to receive lump sum benefits with an option to convert part or all of your lump sum benefit to a pension, you must complete an application form, if you wish to receive a pension. These pensions are issued when:

  • the Trustee acknowledges receipt of their election to receive a pension, or
  • the Trustee makes the first payment of the pension, whichever happens first.
 

Benefits of being a pensioner of the Plan

 

Receiving your benefit as a pension means that the Trustee makes monthly payments rather than paying you a single lump sum amount. These payments may or may not:

  • be indexed (i.e. adjusted annually with reference to inflation)
  • have a reversion, (i.e. on your death, a pension is payable, at a reduced level, for the lifetime of your surviving spouse or other dependant, if any). This pension is called a reversionary pension
  • be payable for a specified minimum term even if you die during that time), and/or
  • be commutable, (i.e. able to be converted to a lump sum payment at some time in the future using commutation factors advised by the Plan's actuary, subject to evidence of health and the Trustee's agreement).
 

Your pension is calculated in accordance with the Trust Deed and Rules. Depending on your category of membership, your pension will either be calculated using a formula in the Trust Deed and Rules or determined by the Plan's actuary with the agreement of the Trustee. Your specific pension terms and the amount of your pension will be advised to you in a letter confirming your pension entitlements before your pension commences.

Your pension is calculated at the time that you retire from your employer. All pension benefits paid from the Plan are paid monthly. Each monthly instalment is 1/12 of the pension entitlement for the year. The pension payments are made on or around the 15th of each month. The pension payments (net of tax) are made by direct credit to your nominated account with a financial institution in Australia.

How pensions work

 

Your benefits have accrued during your membership of the Plan as a result of employer contributions, investment earnings and, if applicable, your own contributions. Once your pension becomes payable, you cannot continue to contribute to the Plan.

Pension payments are made from the sub-plan in which you are registered. The Trustee invests the assets backing pension benefits in the Plan's Growth Option. The Trustee's strategy for this option is to invest the majority (70%), in growth assets such as Australian and overseas shares and listed property trusts, and the remaining (30%) in less volatile assets (such as fixed interest and cash). The Plan's investment managers may vary the actual asset allocation at any time either up or down from the target asset allocation by as much as 10%. The Trustee may also change the target asset allocation or investment strategy from time to time.

The amount of your pension benefits are not affected by the return on the Plan's investments. In other words, pensioners do not bear the investment risk. Your pension payments are set at the time your pension commences, subject to any indexation adjustments.

Every three years, the Plan's actuary conducts a review of the Plan and recommends a rate of employer contributions which in the opinion of the Plan's actuary will enable the Trustee to meet its expenses and pay pensions and other benefits to members. The Plan's actuary considers investment returns experienced by the Plan for the Growth Option and expected investment returns in the future when recommending the rate of employer contributions to the Plan.

Further information can be found in the Lifetime Pension PDS, available from the Documents & forms section


 
 

Investment information:

 

Investments

 

The Plan offers a choice of six investment options so you can choose the one that best suits your objectives for growth and your tolerance for risk. Each Option has a different mix across the asset classes - shares, property, fixed interest and cash. The amount you have invested in an Option is represented by units in that Option.

For more information on each of the Options available, please login to your account and visit the 'Your investments' section. Alternatively, you can access the Plan's PDS in the Documents & forms section.

Option 1 - Australian Shares
Option 2 - Overseas Shares
Option 3 - MySuper (formerly known as Growth)
Option 4 - Balanced
Option 5 - Conservative
Option 6 - Cash

Returns

 

 

Your investment purchases units. The net amount of your superannuation contributions (i.e. after any fees and/or taxes are deducted) buys what are known as 'units' in your chosen investment option(s). The number of units that your net contributions buy depends on the unit price at the relevant time. For example, if your net contributions are $1,000 and the unit price of your selected investment option is $1.00 at that time, then 1,000 units would be bought on your behalf.

Unit prices for each investment option are calculated on a weekly basis and fluctuate according to the investment performance of that investment option (i.e. the unit price for each option will reflect the value of the option's underlying investments after making provision for tax on those investments and investment management fees and other fees).
 

Investment information for Defined Benefit members

 

Defined Benefit members who joined the Plan before the year 2000

As defined benefit members some of your benefits may be based on your salary and period of service, and some on your account balances in the Plan. The account balances of defined benefit members are credited with a declared earning rate. Until 31 May 2011 this has included any additional voluntary account balances.

The Trustee has chosen to invest the assets supporting the entitlements of defined benefit members in the Growth Option. The Trustee has generally determined the declared earning rate by averaging actual returns over three years. However, given investment performance in recent years, the trustee has elected to place a floor under the earning rate of 0.01%.

This approach is known as "smoothing" and results in less fluctuation in the rate of interest being applied to member's accounts than would apply if the actual earnings were applied each year. However, over longer periods the difference in overall result is substantially reduced.

Investment of additional voluntary account balances

From 1 June 2011 any additional voluntary account balances have been invested according to each member's chosen investment strategy (or in the Cash option if no choice has been made).

Comparison of annual effective rates of net return and declared rates 1990 - 2016

The Plan's annual effective rate of net investment returns (i.e. actual investment returns less tax and expenses) and declared earning rates since 1990 for account balances of defined benefit members are as follows:

 
Year ended 30 June Effective rate of return
(% p.a.)
Declared earning rate
(% p.a.)
2016 1.60 8.30
2015 9.40 12.60
2014 14.20 9.40
2013 14.20 7.60
2012 0.50 3.70
2011 8.60 0.01
2010 11.10 0.01
2009 -10.30 0.01
2008 -11.30 6.00
2007 13.80 14.00
2006 15.60 13.90
2005 12.40 8.50
2004 13.60 2.70
2003 -0.40 0.20
2002 -5.10 5.30
2001 6.00 11.50
2000 15.00 15.00
1999 13.70 9.20
1998 11.70 7.00
1997 21.90 8.30
1996 10.20 10.20
1995 -0.50 15.60
1994 10.80 13.50
1993 18.80 11.30
1992 21.40 7.50
1991 17.30 12.50
1990 11.30 18.10
5-year compound average rate of return (% p.a.) 7.82 8.28
10-year compound average rate of return (% p.a.) 4.76 6.05
20-year compound average rate of return (% p.a.) 7.43 7.06
 

Note: past performance is not an indicator of future performance.

Defined Benefit members leaving during the year

For defined benefit members leaving the Plan during the year, before a final earning rate is available, benefits are calculated using an interim earning rate. The Trustee reviews interim rates each quarter.
 

Pensions within the IAG & NRMA Superannuation plan


IAG /NRMA Pension

This pension is available, at the discretion of the Trustee, to members of the Plan who wish to receive their super as a pension rather than a lump sum. The IAG & NRMA pension is available to both accumulation members and defined benefit members of the Plan (other than retained members, reserved members and spouse members).

You can request the Trustee to pay:

  • a lifetime pension (which is payable to you during your life) ; or
  • a reversionary pension (which is payable to you during your life and on your death to your Spouse during their life, if your Spouse survives you).
 

A request for a lifetime pension or a reversionary pension must be made to the Trustee in writing before you become eligible for a benefit. The Trustee has an absolute discretion whether or not to approve your request for a lifetime pension or a reversionary pension. If the Trustee grants your request for a lifetime pension, the pension is payable at an annual rate determined by the Trustee on advice of the Plan's actuary.

Where a contributory member of the old NRMA Superannuation Plan dies or is deemed Totally and Permanently Disabled by the Trustee a child pension is payable. The benefit equates to a maximum of 10% per child up to a maximum of 30% of the parent's salary. The child Pension the benefit continues till age 16 or age 21 with proof of continued education.

CGU Pension

A pension available to Members who were defined benefit members of the CGU Superannuation Fund on 1 December 2003. The pension payable to you if you:

  • leave Service (other than by reason of death) having attained age 60 years
  • are dismissed having attained age 55 years
  • resign and your employer determines that you should be paid a pension, or
  • leave Service (other than by reason of death or as specified above) and your employer declares that you are a Deferred Pensioner.
 

If you are a Deferred Pensioner, your pension commences on your 60th birthday or an earlier date determined by your employer.

Pension increases are indexed and effective the 1st January each year. They are given in line with the CPI increases for Australia using the September quarter's annual figures with a maximum of 5%. Example Sept Qtr 2007 to Sep Qtr 2008. The Pension is payable for a period of 7 years and thereafter during your life. If you die before 7 years' pension payments have been paid, unpaid pension payments for the remainder of the 7 year period (or the amount of these payments converted to a lump sum) will be paid by the Trustee as a Death Benefit. If you die on or after 7 years' pension payments have been paid, pension payments will cease on your death unless you have selected a reversionary pensioner.

CGU-VACC/FORTIS Pensions

A pension available to Members who were Category C or Category D members of the CGU-VACC Pension Fund (often referred to as the Fortis Fund). The pension is payable to you if you:

  • retire from Service on your Ex-CGU-VACC Normal Retirement Date (generally age 65)
  • retire from Service within 5 years prior to your Ex-CGU-VACC Normal Retirement Date
  • retire from Service within 10 years prior to your Ex-CGU-VACC Normal Retirement Date at the request, or with the written agreement, of your employer
  • retire from Service after your Ex-CGU-VACC Normal Retirement Date, or
  • are Totally and Permanently Disabled before your Ex-CGU-VACC Normal Retirement Date.
 

The Pension is not indexed. You can elect to convert all of your pension to an indexed pension. If you have commuted part of your pension to a lump sum, you can convert all of the remainder of your pension to an indexed pension. You cannot elect to receive part of your pension as an indexed pension and part of your pension as a pension that is not indexed. Currently, if you convert to an indexed pension, the initial amount of the indexed pension payable is 80% of the annual amount of the pension that would have been paid to you if you had not converted to an indexed pension.

Pension increases, if indexed, are effective the 1st January each year. They are given in line with the CPI increases for Australia using the September quarter's annual figures with a maximum of 15%.

SGIC Pension

A pension available to Members who transferred from the Pension Benefit Division of the SGIC Staff Superannuation Fund. The pension payable to you if you:

  • retire from Service on or after the age of 55 years
  • become Totally and Permanently Disabled and are contributing, or have contributed, to the Pension Benefit Division at the date of disablement
  • are a New Scheme Member and are retrenched after completing two years of membership of the Pension Benefit Division and elect to retain a pension amount in the Plan until you reach age 55 years
  • are an Old Scheme Contributor and are retrenched at age 45 years or more and the period of notice of retrenchment has expired, or
  • leave Service (in circumstances other than retirement, total and permanent disablement, total and temporary disablement, death or retrenchment) after completing two years of membership and elect to retain a pension amount in the Plan until you reach age 55 years.
 

Pension increases are indexed and effective the 1st July each year. They are given in line with the CPI increases for Adelaide using the March quarter's figures (subject to a maximum of 5% in relation to pensions accrued after 1 July 1995).

Where an ex SGIC Defined Benefit Member dies in receipt of a pension or dies where a pension amount is being retained in the Plan and they are not survived by an Eligible Spouse, a pension is payable to each Eligible Child until that Eligible Child reaches 18 years. The benefit equates to a maximum of 7.5% per child up to a maximum of 22.5% of the parent's salary.

RACV pension

A pension available to Members who transferred from the defined benefit section of the RACV Superannuation Fund. As an Ex-RACV Super Defined Benefit Member, you can elect to receive a pension instead of the whole or part of the lump sum benefit to which you would otherwise become entitled as a result of:

  • retiring from Service, or
  • leaving Service on the grounds of Total and Permanent Disability.
 

You can elect to receive a deferred pension instead of the whole of the lump sum benefit to which you are entitled in the event of:

  • redundancy after not less than 10 years' Service, or
  • termination of Service, for reasons other than dismissal for misconduct, after completing at least 10 years' Service.
 

If you elect to receive a deferred pension, your pension commences on the date you reach age 65. If you elect to receive a deferred pension and die while not in Service but before receiving the pension, your Eligible Spouse (if any) is entitled to a pension and can elect to receive a lump sum benefit instead of that pension.

Where you elect to receive part of your retirement benefit, or total and permanent disablement benefit as a pension, the amount of your pension is reduced in proportion to the amount of your benefits received as a lump sum. For example, if you receive half of your lump sum benefits as a pension, the amount payable will be half the size of the pension payable, if your received the whole of your benefits as a pension.

The Pension is not indexed. You can elect to convert all of your pension to an indexed pension and the Trustee will determine the new payment details of your chosen pension on the advice of the Plan's actuary.

Where an Ex-RACV Super Defined Benefit Member:

  • dies in Service
  • dies in receipt of a pension
  • retires from Service at the Normal Retiring Date, or
  • leaves Service on the grounds of Total and Permanent Disability
 

the Trustee will pay a pension in respect of each Child of the Ex-RACV Super Defined Benefit Member until the Child reaches 18 years, unless the child dies before reaching 18 years.

The pension payable in respect of each child will be 7.5% of the member's Final Average Salary provided that the total pensions in respect of all of the member's children must not exceed 22.5% of the member's Final Average Salary. The Trustee has an absolute discretion to increase the pensions payable to orphans or other children in need up to double the amount of the pensions which would otherwise be payable.

Account Based Pensions

Account Based Pensions (commonly referred to as Allocated Pensions (AP's) or Retirement Income Streams (RIS)) may be started, at any time after age 55, by purchasing what are known as 'units' in your chosen investment option(s). The number of units you buy depends on the unit price at the relevant time.

Product dashboard

 

Issued by IAG & NRMA Superannuation Pty Limited - ABN 77 000 300 934 - AFSL #439233 as Trustee of the IAG & NRMA Superannuation Plan - ABN 58 244 115 920.

This website is provided by Mercer Outsourcing (Australia) Pty Ltd (MOAPL) ABN 83 068 908 912, Australian Financial Services Licence #411980. The Trustee pays a fee for the provision of this service, however this fee is not conditional on you using this service or acting on the information or advice provided through this service.