Product Disclosure Statement - PSS
Product Disclosure Statement - PSS
Product Disclosure Statement - PSS
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6. Fees and costs<br />
Did you know<br />
Small differences in both investment performance<br />
and fees and costs can have a substantial impact on<br />
your long-term returns.<br />
For example, total annual fees and costs of 2% of<br />
your fund balance rather than 1% could reduce<br />
your return by up to 20% over a 30-year period<br />
(for example, reduce it from $100,000 to $80,000).<br />
You should consider whether features such as<br />
superior investment performance or the provision of<br />
better member services justify higher fees and costs.<br />
You may be able to negotiate to pay lower contribution<br />
fees and management costs where applicable.* Ask the<br />
fund or your financial adviser.<br />
To find out more<br />
If you would like to find out more, or see the impact<br />
of the fees based on your own circumstances, the<br />
Australian Securities and Investments Commission<br />
(ASIC) website (www.moneysmart.gov.au) has a<br />
superannuation calculator to help you check out<br />
different fee options.<br />
* We are required by law to provide you with the above<br />
information. As you are not charged contribution fees for<br />
the <strong>PSS</strong> and the only management costs are the investment<br />
management costs recovered from the fund as a whole, you<br />
cannot negotiate contribution fees and management costs<br />
with the <strong>PSS</strong>. The calculator on the ASIC website can be used<br />
to calculate the effect of fees and costs on account balances.<br />
Fees and costs of the Default Fund<br />
The main fees and costs involved in investing in the<br />
Default Fund are set out in the following table:<br />
Type of fee or cost<br />
Amount<br />
Example of annual fees and costs<br />
for the Default Fund<br />
This table gives an example of how the fees and costs in<br />
the Default Fund investment option can affect your super<br />
investment over a one (1) year period. You should use this<br />
table to compare this product with other superannuation<br />
products you may be considering.<br />
Example – Default Fund<br />
(a balanced investment<br />
option)<br />
Contribution<br />
fees<br />
Plus<br />
management<br />
costs<br />
Equals<br />
cost of the fund<br />
Nil<br />
Balance of $50,000 with<br />
total contributions of $5,000<br />
during the year<br />
For every $5,000 you put in,<br />
you will be charged $0<br />
0.80% And, for every $50,000 you<br />
have in the fund you will be<br />
charged $400 each year<br />
If you put in $5,000 during<br />
a year and your balance was<br />
$50,000, then for that year<br />
you will be charged fees of:<br />
$400*<br />
What it costs you will<br />
depend on the investment<br />
option you choose.<br />
* Please note that this is a notional amount only. This<br />
amount is not deducted from, nor does it have any effect<br />
on the value of, your account or benefit while you are<br />
a contributing member. As your benefit is a defined<br />
benefit, and is not impacted by Fund earnings, the Fund’s<br />
management costs do not affect the amount of your<br />
benefit while you are a contributing member.<br />
Note that we are required by law to include the above<br />
example. Additional fees may apply, for example<br />
reconsideration fee —$150.<br />
Changes to fees and costs<br />
We may change these fees and costs from time to time<br />
without your consent. We will let you know of any fee<br />
change that we believe will materially affect you at least<br />
30 days before the changes take effect.<br />
Fees when your money moves in or out of the fund<br />
Establishment fee<br />
Contribution fee<br />
Withdrawal fee<br />
Termination fee<br />
Nil<br />
Nil<br />
Nil<br />
Nil<br />
We do not pay commissions or adviser service<br />
fees to financial advisers. However you may pay<br />
‘fee for service’ fees if you consult a financial<br />
adviser. Refer to the <strong>Statement</strong> of Advice from your<br />
financial adviser for more details.<br />
Management costs<br />
The fees and costs<br />
for managing<br />
your investment<br />
0.80% p.a. (including estimated<br />
performance-based fees)<br />
of the average net assets of the<br />
Default Fund<br />
The information in this template can be used to<br />
compare costs between different superannuation<br />
products. There may be additional fees payable in<br />
relation to your investment in the <strong>PSS</strong>. Fees and costs<br />
are paid by you or from the fund assets as a whole.<br />
You should read the important information about<br />
fees and other costs of both of our investment<br />
options before making a decision. Go to the<br />
Fees and other costs booklet available at<br />
www.pss.gov.au/pds. The material relating to<br />
fees and other costs may change between the time<br />
when you read this <strong>Statement</strong> and the day when<br />
you acquire the product.<br />
6 of 8<br />
Your Government Super at Work