Super’s getting stronger
The rules of the game are changing for Super, with many Government reforms taking place over the coming years. They are the Federal Government’s package of reforms, called StrongerSuper, which are designed to make Super better, fairer and more efficient.
Virgin Money has always been against the complexity of Super in Australia and we’re proud to be one of the few brands that is already living so much of what the Government’s Super reforms are all about.
The reforms include two very important changes:
- MySuper – making it easier and more transparent for people to compare default Super products. All Super funds will need to offer a low cost product for members who haven’t made a choice.
- SuperStream– making processing Super transactions easier, faster and cheaper by introducing electronic payment systems and standardising data.
In line with the reforms, Virgin Money will take the opportunity to review Virgin Super. Every member will be informed of any changes via mail. We’ll also keep this page updated with all the latest information so it’s worth checking back here regularly over the coming months.
By 1 January 2014, all employers must pay contributions into a MySuper authorised product for any employee who has either not made a choice of fund or an investment option within the fund.
A MySuper product must be authorised by APRA and include:
- A single diversified investment option.
- Same fees for all – fees must be the same for all members and there must be no entry fees, adviser fees or commissions.
- Automatic Insurance – to ensure all members are protected, Automatic Death and Total & Permanent Disablement Insurance will be added to every account which members can tailor or opt-out completely.
At Virgin, we’re proud to be one of the few brands that are already living so much of what the Government’s Super reforms are all about in terms of the creation of a simple, low-cost default Super product in MySuper.
If you are a Virgin Super member and are in the LifeStage Tracker® – Balanced investment option (our current default option), then this already complies with most of the MySuper product rules. In the coming months, we’re changing our default option’s name to Super Essentials. We’re also in the process of seeking MySuper authorisation and expect this to happen by the end of 2013.
Members in LifeStage Tracker® – Balanced option, will automatically be moved to Super Essentials.
If a member has any other type of investment option (LifeStage Tracker® – Aggressive or Select Your Own), they will be moved to Super Plus.
- All members will be contacted with details relating to their account before any changes take place.
- Rest assured all members will have the opportunity to review each offering and switch between products if they wish.
SuperStream aims to make processing Super transactions easier, faster and cheaper by introducing electronic payment systems. There’s no action for you as an individual member of a Super fund, it just means that processing Super across the board will get faster and more efficient. We’ve included a snapshot of some of the changes in legislation in case you’re interested:
- July 2013: the Super Guarantee contributions will increase from 9.00% to 9.25%.
- July 2013: employers will need to report the Super contributions actually made on employees payslips.
- July 2013: the upper age limit for paying super to an employee is being removed to encourage mature workers to remain in the workforce. You may need to make Super Guarantee Contributions for eligible employees aged 70+.
- Jan 2014: if an employee doesn’t make a choice of fund or investment strategy within the default fund, employers will have to make all default payments to a MySuper compliant product. We expect Virgin Super Essentials to achieve MySuper authorisation later this year. Please keep checking this page for the latest updates.
The returns for 2012 have been announced and Virgin Super saw great returns across all investment options.
|LifeStage Tracker® - Aggressive|
|Category||Portfolio||1 Year Return*|
|Under 40's||100% Growth||16.20%|
|40's mix||85% Growth||15.10%|
|50's mix||70% Growth||13.70%|
|Over 60's mix||50% Growth||11.70%|
|LifeStage Tracker® - Balanced|
|Category||Portfolio||1 Year Return*|
|Under 40's||85% Growth||15.10%|
|40's mix||70% Growth||13.70%|
|50's mix||50% Growth||11.70%|
|Over 60's mix||20% Growth||7.90%|
|Select Your Own|
|Portfolio||1 Year Return*|
|Cash & Fixed Interest (Defensive)||5.20%|
*Source: Atchison Consultants, 31 December 2012. Past performance is not an indicator of future performance. Net earnings are calculated after the deduction of applicable taxes and costs. The actual interest credited to your account will vary from the figures shown due to factors such as investment switches, cash flow, fees and insurance payments.
For the fourth year running, Virgin Super has been awarded a Gold Rating by independent superannuation research company, SuperRatings.
The verdict is in: a staggering 80% of Australians find the jargon used around Super confusing meaning they’re potentially missing out on billions of dollars at retirement. 71% think that language is a barrier to managing their funds effectively. 9 out of 10 Aussies said they’d support a campaign to simplify Superannuation terminology - and that’s exactly what we’re doing.
Congratulations to M Vien from NSW who won the $1,000 pre-paid Visa card for updating his details with us.
For those of you that didn’t win, you can still update your details with us to receive the latest news on your super account and how we can help you maximise your super savings.
To update your details, log onto your online account, or give us a call on 1300 652 770 between 8am and 6pm ESDT, weekdays.