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ROLLOVERS
Do you have super accounts all over the place? If you have any private super accounts or super from a previous employer, it may be in your interests to combine all your accounts in the CISF. This could save you administration fees and help you keep track of your super and ensure any pre 1983 service dates are maximised for taxation purposes.
If you would like any help in tracking down any lost super accounts or looking at the option of rolling other super into the CISF please contact the Fund or complete the attached Easy Rollover Form and return to the Fund..
SPOUSE ACCOUNTS + CONTRIBUTIONS (see also)
The Fund provides this facility for your spouse to open a superannuation account in the Fund. You can make after-tax voluntary contributions into your spouse’s account, and these will be credited with earnings at the Fund’s interest rate. Once your spouse becomes a member of the Fund, your spouse can also make personal (after tax) contributions into their superannuation account.
A minimum initial deposit may apply in order to establish your spouse’s account if you do not make a regular deduction from your pay or if your spouse is not rolling in an amount from elsewhere. (you should contact the Administration Manager for details).
The same low fees apply to spouse membership as apply to other Accumulation only members which is $1 per week.
No insurance cover is available for spouse members.
Once you cease to be a member of the Fund, your spouse will also be required to withdraw or transfer their money out of the Fund.
ADDITIONAL INSURANCE
From 1 March 2006 members will be able to purchase additional insurance cover if they wish above the standard cover already provided to members as part of their defined benefit.
The additional Death and Total and Permanent Disablement cover can be purchased in multiples of $50,000 and the premiums have been negotiated at very reasonable rates. Please see the table below for premium rates. For more information and a quotation please contact the Fund.
Annual Premium Rates per $50,000 of Insured Benefit are as follows:
GETTING FINANCIAL ADVICE
It is important that members are aware of what independent fee for service financial planning advice is compared to those financial planners who are commission based only. Independent fee for service financial planners usually charge a fee for their advice and do not base that fee on receiving a commission from the investment product they sell you. If you are dealing with a financial planner ensure you are made aware of any fees and commissions payable so that your retirement benefit is not eroded unnecessarily. If you are contemplating an Allocated Pension make sure the financial planner you see compares returns and the fees and charges and is made aware of the CISF Allocated Pension if that is what you are considering. CISF returns have been historically very good, there are no commissions paid and fees are kept to a minimum to cover costs only.
CO CONTRIBUTIONS
The Governments co-contributions scheme is an incentive for low to middle-income earners to boost their retirement savings. If your total income is $28,000 or less, the maximum co-contribution is $1,500, based on $1.50 from the government for every $1 you contribute. Co-contributions reduce as your income increases, phasing out completely for total incomes of $58,000 or more.
More details are available online at: www.ato.gov.au/content/42616.htm
If you have a low income spouse they could use a spouse account with the CISF to make the contributions to qualify for the co-contribution.
CONTRIBUTION SPLITTING
Contribution splitting allows members to split their contributions with their spouse in order to maximize the benefits available in superannuation and to provide a means for spouses to share in superannuation benefits.
The new regulations apply to contributions made to a superannuation fund on or after
1 January 2006.
However no action is required immediately should you wish to take advantage of contribution splitting. The regulations provide for an annual split of superannuation contributions. That is, after the end of the financial year (i.e. post 30 June), you could request that some portion of you contributions made in the previous year be split with your spouse.
Please note: to allow the contribution split to happen the government regulations state that a spouse must be under their preservation age for superannuation or if over preservation age still; working.
Preservation ages are as follows:
MEMBER APPOINTMENTS IN COLLIE
If you wish to ask any questions about your superannuation or obtain a projection of benefits you may make an appointment to see Gary Peirce in Collie. Gary is usually In Collie on a 4-6 weekly basis.
You may either phone, fax or email him at the following to make an appointment or alternatively contact the Miners Union office:-
Coal Industry Superannuation Fund
Phone: 08 93881840 Fax: 08 93883545 Email: cisb@bigpond.com
LEAVING EMPLOYMENT ADVICE (see also)
The Fund allows you to retain your superannuation in a Retained Account as either a Defined Benefit or Accumulation or an Account Based Pension.
The Account Based Pension is a very flexible option:
- It allows you to keep your superannuation fully invested beyond retirement age.
- Investment earnings on your superannuation account are tax-free once you have commenced an allocated pension.
- You must draw a minimum amount each year (see Supplementary Pension Guide in the Forms and Publications for details)
- You have the flexibility to withdraw additional lump sum amounts if required.
- Any remaining capital on death is paid to your dependants.
The fees charged by the Fund will usually be much lower than what you would be charged if you purchased the same product through a financial planner.
For more information, please contact the Fund for a brochure.
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