HIRE and RENTAL

vestments. These are naturally far more
volatile than the capital guaranteed/capital
stable type investments but
over the long term have historically
provided significantly higher returns.
There may even be a number of financially
aware employees who would
prefer to have their contribution placed
with the aggressive, performance
oriented market linked managers. While
these are the managers who demonstrate
the highest level of volatility, they are
also the managers who provide the
highest average return over the long
term - after all, award/occupational superannuation
is a long term investment.
To meet this broad diversity of
employee preferences, the Fund
provides total freedom of choice for
each employee to nominate the type of
investment they prefer. In fact, the five
investment options are
i) capital guaranteed/capital stable
mix
ii) capital stable
iii) conservative (core) market linked
iv) aggressive (performance) market
linked
v) a50%:50%splitbetweenanyofthe
above four options.
Most importantly, the Fund provides
employees total flexibility to change
their preferred investment option every
year, simply by ticking a box on the
relevant form. For employers, there is
no work required other than to remit the
employees' application forms to the
fund administrator.
It will be seen that the ASBA Fund
provides 100% security for all compulsory
contributions paid by employers as
these are automatically deposited in the
capital guaranteed/capital stable investment
pool. Employees who choose to
pay additional contributions to the
Fund, in fact have five options available
as to the type of investment they require.
Optional insurance cover for death
and total and permanent disability. Virtually
all union and union/confederation
type superannuation funds for award
employees have been designed to include
a compulsory level of insurance
cover providing a benefit to the
employee or their dependants in the
event of total and permanent disability,
or death. The cost of this insurance
cover is generally around $1 to $1.50 per
week, per employee, and this is automatically
deducted from the compul-
FEATURE
sory contributions made by the
employer. In a couple of funds,
employees have been provided with a
single option of selecting no insurance
cover.
The ASBA Superannuation Fund is
vastly different. By simply ticking a box
on the application form, each employee
is able to select the level of insurance
cover best suited to their personal needs,
that is if they simply do not want insurance
cover they can tick the box indicating
nil cover required. For those
who are only seeking a small benefit, a
special low cover option has been
provided at a cost of just 60 cents per
week per member. Like the majority of
union type superannuation funds, the
ASBA Fund also offers employees a $ 1
per week insurance cover level. However,
the amount of insurance benefit
provided is significantly higher than that
provided for the same cost invirtually
any other fund. ASBA have recognised
that some employees (particularly those
with high financial liabilities, young
families, etc), will have a preference for
even higher cover than is provided at the
standard $1 per week level. Accordingly,
a special high option, at a cost of $2
per week, has been included in the
ASBA fund. It is also recognised that the
needs of each individual for insurance
cover can vary over time. The ASBA
Fund provides each employee with total
flexibility to change their insurance options
every year at the Fund Review
Date (30 June). As with the investment
choices, this simply requires ticking a
box on the appropriate form.
In addition to the four special insurance
options outlined above, the
ASBA Superannuation Fund also
provides every member with access to a
totally flexible range of top-up covers
and even non-superannuation insurance
benefits. For example, employees may
wish to commence special investment or
insurance plans for their spouse,
children's education, special savings
programmes with highly tax advantaged
benefits, etc. The ASBA Superannuation
Fund is unique in providing these
top-up options for members.
Each employee can simply 'tick a
box' to elect either Nil Cover, Low
Cover, Standard Cover, High Cover,
and special "Top Up Cover". The levels
of cover are both far higher and less
expensive than virtually any other oc­
cupational superannuation fund in
Australia. Employees have freedom to
change their elected cover option every
year.
Direct Control. The Fund's Board of
Governors include equal representation
of actual employee members of the
Fund and ASBA nominated employers.
This is a fund run by, and for, small
business!
One of the distinct advantages of the
ASBA Superannuation Fund is that it
has been established to meet the specific
needs and requirements of small businesses
and their employees. Unlike the
majority of other superannuation funds,
the ASBA Fund is functionally controlled
by a Board of Governors, fifty per
cent of whom are nominated employee
representatives who are actually participating
members in the Fund, and
fifty per cent are nominated small business
employer representatives appointed
by ASBA. Moreover, to ensure
that the Fund is administered strictly in
accordance with the Trust Deed, an independent
professional trustee has also
been appointed.
Flexible Retirement benefit options.
The ASBA Superannuation fund
provides a truly worthwhile range of
retirement benefit options for all
employees who leave service on or after
attainment of age 55. At that time, the
employees entitlement will be equal to:
i) the total of all contributions made
by their employer, including all interest
and investment income thereon,
less the nominal costs of
administration and insurance cover
(if any) plus
ii) the total of all additional voluntary
contributions made by the
employee, including all interest and
investment income thereon.
Note: There are never any costs
deducted from the employees' voluntary
contributions.
Many union and union/confederation
type superannuation funds provide very
limited options to employees at retirement
as to the "type"of benefit the
employee can receive. The ASBA Fund
however, enables each employee
(having regard to their own personal
circumstances and tax position at the
time of retirement), to select the type of
benefit which will be most tax efficient
or suited to their personal requirements.
This is, employees may elect to receive
HIRE and RENTAL - APRIL 1990 - 69