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Important changes and information – May 2018


Published May 2018

A summary of significant product or regulatory changes that may impact your ANZ Smart Choice Super account.

ANZ Smart Choice Super product suite PDSs re-issued

The Product Disclosure Statements (PDSs) for the ANZ Smart Choice Super suite of products* were re-issued on 17 March 2018.  The PDS documents are available online and can be downloaded from anz.com/smartchoice.  

The following documents were re-issued, including a new Fees Guide:

Product Disclosure documents being updated
ANZ Smart Choice Super and Pension  PDS
Additional Information Guide
Electronic Access Terms and Conditions

ANZ Smart Choice Super for employers and their employees 

 

PDS
Additional Information Guide
Fees Guide (Incorporating fees, costs and buy-sell spreads)
Insurance Guides – Standard and Tailored Employer Plans
Electronic Access Terms and Conditions

ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees 

 

PDS
Additional Information Guide
Fees Guide (Incorporating fees, costs and buy-sell spreads)
Insurance Guide for QBE Management Services Pty Ltd and their employees
Electronic Access Terms and Conditions

 

*The ANZ Smart Choice Super suite of products consists of ANZ Smart Choice Super and Pension, ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees (together “ANZ Smart Choice Super”). ANZ Smart Choice Super and Pension is a retail product issued pursuant to the PDS dated 17 March 2018. ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees are both MySuper compliant employer products issued pursuant to separate PDSs dated 17 March 2018.

OnePath Life insurance changes

A number of changes have been made to the insurance arrangements provided by OnePath Life Limited (OPL) through ANZ Smart Choice Super. These changes are effective from 17 March 2018.

Click here for a 'Reminder of eligibility conditions for insurance cover'.

The table below summarises the key insurance changes applicable to members, via the relevant products and cover types. Each change is explained in further detail below the table.

Please note that the following changes are not relevant if your insurance cover is provided by an insurer other than OPL – you should refer to the Insurance Guide you received upon joining ANZ Smart Choice Super or your Welcome letter for the insurer that provides your insurance cover. Further, some of the changes below may not apply to you if you are part of a Tailored* insurance arrangement either with OnePath Life as the insurer, or an insurer other than OnePath Life.

 

Insurance changes effective from 17 March 2018 -OnePath Life

ANZ Smart Choice Super and Pension

ANZ Smart Choice Super for employers and their employees

ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees

a. Total and Permanent Disablement (TPD) Tapering

Choose Your Own TPD cover

(TPD cover is not available in pension accounts)

Choose Your Own TPD cover and when members leave their Tailored employer plan

Choose Your Own TPD cover applicable when members leave the QBE employer plan

b. Increased Terminal Illness certification period (for claim events after 17 March 2018)

Lifestage and Choose Your Own cover

Lifestage and Choose Your Own cover (Standard employer plans only, not for Tailored employer plans)

n/a

c. Cover whilst residing overseas

Death, TPD and IP cover

Death, TPD and IP cover

Death, TPD and IP cover

d. Cover whilst on paid and unpaid leave

n/a

Death, TPD and IP cover

Death, TPD and IP cover

e. Continuance of cover upon termination of a Tailored employer plan

n/a

Death, TPD and IP cover

Death, TPD and IP cover


*If you are part of a Tailored insurance arrangement, you will have received an Insurance Guide for Tailored employer plans upon joining.  A Tailored insurance arrangement is one whereby your Employer has negotiated a specific insurance arrangement on your behalf and may be different from the standard 'Default' insurance arrangement. If you are unsure as to whether your employer’s plan is a Tailored insurance arrangement, contact Customer Services on 13 12 87.


The OPL insurance changes detailed below include, but are not limited to, the following:

a. TPD Tapering

If you have Choose Your Own TPD cover (including if you are part of a Tailored insurance arrangement and convert to this cover when you leave your employer), once your Age Next Birthday reaches 62, your TPD cover amount will taper (reduce) each year by 20%. If your Age Next Birthday on 17 March 2018 was 62 or older, a TPD tapering percentage applicable to your calculated age applies. The following table provides an example of how tapering would apply to a member with $200,000 cover.
 

Age Next Birthday

Choose Your Own cover amount

% Taper

Actual cover

60

$200,000

0%

$200,000

61

$200,000

0%

$200,000

62

$200,000

20%

$160,000

63

$200,000

40%

$120,000

64

$200,000

60%

$   80,000

65

$200,000

80%

$   40,000

66

$200,000

100%


You should review your insurance arrangements regularly to ensure that they continue to meet your needs. You can apply to adjust your Choose Your Own cover amount, subject to underwriting and the Insurer’s approval, at any time via ANZ Internet Banking or anz.com/smartchoicesuperinsurance

While TPD Tapering may apply if you are part of a Tailored arrangement, you should refer to your Insurance Guide issued upon joining for more detail.

b. Increased Terminal Illness certification period

For Terminal Illness claim events on or after 17 March 2018, the certification period for the Terminal Illness insurance benefit (period for which medical practitioners have provided you with a medical certificate stating you are likely to die due to a terminal illness) has changed from 12 months to 24 months. This means that if you are diagnosed with a terminal illness with a life expectancy of 24 months or less, you will be able to claim your Terminal Illness benefit sooner.  Claims are subject to the Insurer’s assessment.

If you are part of a Tailored insurance arrangement either with OnePath Life as the insurer or an insurer other than OnePath Life, your certification period has not changed.

c.  Cover whilst residing overseas

If you have been residing overseas for more than two years or if you are on employment secondment with the ANZ Smart Choice Super participating employer for more than five years, your insurance cover will be retained, provided you have not permanently departed Australia and you are otherwise still eligible for your insurance cover, for example, you maintain a sufficient account balance to meet the cost of your insurance cover. If you have departed Australia permanently, or will depart Australia permanently in the future, please advise us as soon as possible by contacting Customer Services on 13 12 87 as you will no longer be eligible for insurance cover. If you permanently depart Australia, your cover will be viewed as having ceased from the day of departure, and you will not be eligible to claim.

d. Cover whilst on paid and unpaid leave

From 17 March 2018, there have also been favourable changes if you are on employer approved paid or unpaid leave for a period greater than two years.  Your cover will not cease provided that:

  • your Australian Residency is maintained, and
  • you continue to meet eligibility requirements.   

e. Continuance of cover upon termination of a Tailored employer plan

At a future date, if your employer terminates their default employer arrangement, any insurance cover that you hold will convert to Choose Your Own cover from the date you  are transferred out of the employer arrangement (i.e. delinked from the employer plan). The amount of Choose Your Own cover will be equal to the amount of any Voluntary cover plus any default cover applicable prior to your transfer out. From then, your insurance fees will be calculated in line with the Choose Your Own cover basis. In these circumstances, you will receive a notification from the Trustee outlining the implications on your insurance cover.


Changes to the strategic asset allocation for Lifestage investments

ANZ Smart Choice Super is making an important change to the strategic asset allocation (SAA) for the Lifestage investment options, so that the investment options are more appropriate for our members.

Since launch, the Lifestage investment options have adopted the risk profile that is suitable for the oldest members in each age group. For example, members born between 1970 and 1979 are placed into the ANZ Smart Choice 1970’s investment option, which invests in line with the risk profile suitable to members born in the year 1970.

Over the next three years the risk profile will be adjusted, so that it is based on the age of members born at the midpoint of the decade. In the example above, the risk profile for the 1970s investment option will be adjusted so that it is based on someone born in 1975.

What will this change mean?

Across the board this change will benefit investors by improving the expected returns from their Lifestage investment option.

With Lifestage investing, younger members’ savings are generally allocated mostly to growth assets (higher risk investments with higher potential returns) and older members are allocated more heavily to defensive assets (lower risk investments with greater stability). With this change, the SAA of the Lifestage investment options will shift closer towards the risk profile of slightly younger members, and this will result in an increase in exposure to growth assets.

With an increasing proportion invested in growth assets for each Lifestage option, this is expected to improve the long term returns for all ANZ Smart Choice Super members invested in these options, helping them achieve their retirement goals.

Any questions?

You can find more information on Lifestage investing and the risk profile of each option in your relevant Additional Information Guide:

If you have any queries, please feel free to contact us on 13 12 87 (available 8.30am to 6.30pm Monday to Friday AEST).

Talk to us about superannuation

13 12 87

Mon-Fri 8am to 7pm (AEST) 

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ANZ Smart Choice Super is a suite of products consisting of ANZ Smart Choice Super and Pension, ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees (together ‘ANZ Smart Choice Super’). ANZ Smart Choice Super and Pension is a retail product issued pursuant to a Product Disclosure Statement (PDS). ANZ Smart Choice Super for employers and their employees and ANZ Smart Choice Super for QBE Management Services Pty Ltd and their employees are both MySuper compliant employer products issued pursuant to a separate PDS for employer plans and PDS for QBE.

ANZ Smart Choice Super is issued by OnePath Custodians Pty Limited (OnePath Custodians) (ABN 12 008 508 496, AFSL 238346, RSE L0000673), and the ANZ Smart Choice Super and Pension product is distributed by Australia and New Zealand Banking Group Limited (ANZ) (ABN 11 005 357 522). ANZ is an authorised deposit taking institution (Bank) under the Banking Act 1959 (Cth). OnePath Custodians is the issuer of ANZ Smart Choice Super but is not a Bank. Except as set out in the relevant Product Disclosure Statement (PDS), this product is not a deposit or other liability of ANZ or its related group companies. None of them stands behind or guarantees the issuer or the capital or performance of any investment. Such investment is subject to investment risk, including possible repayment delays and loss of income and principal invested. Returns can go up and down. Past performance is not indicative of future performance.

ANZ Smart Choice Super and Pension received a Gold rating in SuperRatings’ 2019 product rating in both the Super and Pension categories. ANZ Smart Choice Super for employers and their employees received a Gold rating in SuperRatings’ 2019 MySuper product rating. SuperRatings does not issue, sell, guarantee or underwrite these products. Go to www.superratings.com.au for details of its ratings criteria.

This information is of a general nature and has been prepared without taking account of your objectives, financial situation or needs. Before acting on this information you should consider whether the information is appropriate for you having regard to your objectives, financial circumstances or objectives. ANZ recommends that you read the ANZ Financial Services Guide, the relevant Product Disclosure Statement, product and other updates which are available by calling Customer Services on 13 12 87, or visiting our website here or here (for employer members), and consider whether the product is right for you before making a decision to acquire or to continue to hold the product. 

Taxation law is complex and this information has been prepared as a guide only and does not represent taxation advice. Please see your tax adviser for independent taxation advice. The information on insurance cover is a summary only of the terms and conditions applying to the insurance cover. To the extent there is any inconsistency with the terms of the insurance cover provided by the insurer, the terms of the insurance policy will prevail. 

Before re-directing your super or moving your money into ANZ Smart Choice Super, you will need to consider whether there are any adverse consequences for you, including exit fees, other loss of benefits (e.g. insurance cover), investment options and performance, functionality, increase in investment risks and where your future employer contributions will be paid.

ANZ does not represent or guarantee that access to ANZ Internet Banking or the ANZ App will be uninterrupted. Temporary service disruptions may occur. ANZ recommends that you read the ANZ App Terms and Conditions available at anz.com and consider if this service is appropriate to you prior to making a decision to acquire or use the ANZ App. The ANZ App is provided by Australia and New Zealand Banking Group Limited (ANZ) ABN 11 005 357 522. Super, Shares and Insurance (if available) are not provided by ANZ but entities which are not banks. ANZ does not guarantee them.

In addition to their salary, ANZ staff members may receive monetary or non-monetary benefits depending on the product they are selling or providing advice on. You may request further information from ANZ. Other key features including insurance, available investment options and performance, exit fees and functionality are relevant when choosing a super fund. 

This information may be subject to change. Updated information will be available free of charge by calling Customer Services on 13 12 87.