In January 2019, we introduced some changes to fee and insurance premium arrangements in FirstChoice Employer Super.
The following changes apply to all FirstChoice Employer Super accounts opened before 11 June 2013 and that have money invested in the closed FirstChoice Employer Super menu*:
FEE REBATE FOR MEMBERS IN EMPLOYER PLANS WITH NO PLAN ADVISER
From January 2019, if you are part of an Employer Plan with no plan adviser, you will automatically receive a fee rebate to your account on future fees for options on the closed FirstChoice Employer Super menu. The rebate is up to 0.40% and reduces the total fees and costs that apply to your investment.
Rebates are calculated and paid monthly. If you close your account, your withdrawal amount will only include a rebate calculated to the end of the previous month. The rebate will be paid to your most conservative investment option (as determined by us), unless you nominate another investment option. If you receive a rebate, this transaction will be referred to as a ‘Service Fee rebate’ on your future statements.
INSURANCE COMMISSION REBATE FOR MEMBERS IN EMPLOYER PLANS WITH NO PLAN ADVISER
The following change applies if you have insurance cover through the fund that commenced before 1 July 2014. From January 2019, if you are part of an Employer Plan with no plan adviser, you will receive an insurance commission rebate that reduces your future insurance premiums by up to 22%^.
Please note: If you took out insurance through the fund after 1 July 2014, you already pay a reduced insurance premium. You will also receive a fee rebate on future fees for these options and insurance commission rebate (if applicable) if your Employer Plan ceases to have a plan adviser after this time.
FEE REBATE FOR MEMBERS IN EMPLOYER PLANS WITH A PLAN ADVISER
Where your Employer Plan has a financial adviser, we may pay commissions from the fees that we receive and the total insurance premiums you pay to your Employer Plan adviser. Financial advisers have the ability to rebate some or all of the commissions they receive to you. Your plan adviser can confirm if you are able to receive any commission rebates. From January 2019, if you wish to remove your plan adviser from your account, you will automatically receive a fee rebate to your account on future fees. You may also receive an insurance commission rebate that reduces your future insurance premiums by up to 22%^.
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Please refer to the flyer for more information.
To find out how these changes may affect you, call us on 1300 654 666, or speak to your financial adviser.
* These options were closed to new investments to new investments from 11 June 2013.
^ If you are on a fixed premium arrangement, your sum insured may increase.
Colonial First State Investments Limited ABN 98 002 348 352, AFS Licence 232468 (Colonial First State) is the issuer of super, pension and investment products. This document may include general advice but does not take into account your individual objectives, financial situation or needs. You should read the relevant Product Disclosure Statement (PDS) carefully and assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. A PDS for Colonial First State’s products are available at colonialfirststate.com.au or by calling us on 13 13 36.