The information below summarises the overall class of consumers that fall within the target market for the Division 5 Accumulation Scheme, based on the product key attributes and the objectives, financial situation and needs that it has been designed to meet.
The Division 5 Accumulation Scheme has been designed for consumers whose likely objectives, financial situation and needs (as listed below) are aligned with the product (including the key attributes). The Division 5 Accumulation Scheme is for those who:
- are looking to invest for retirement through superannuation and can make an active investment choice by selection in one or more of the offered investment options.
Product description and key attributes
The key eligibility requirements and product attributes of the Division 5 Accumulation Scheme are:
- access to 4 investment options
- access to insurance options
- online member portal
- online education
- face-to-face meetings with Member Services staff
- over-the-phone financial advice (limited topics)
Objectives, financial situation and needs
The table below sets out the class of customers that each investment option within Division 5 Accumulation Scheme has been designed for.
Investment option 1:
High Growth
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The member in the High Growth investment option would be expecting investment returns, after taxes and fees, of more than 4% above CPI per year over rolling 10 year periods.
They would understand that this option is fully invested in growth investment with a very aggressive investment risk profile.
The member in this option would have an investment time horizon of 10 years or more and be comfortable with a negative return in 4-5 years in every 20 years. |
Investment option 2:
Balanced Growth (default)
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The member in the Balanced Growth investment option would be expecting investment returns, after taxes and fees, of more than 3% above CPI over rolling 10 year periods and above the median return in the SuperRatings Survey of balanced options over rolling 10 year periods.
They would understand that this option is around 70% invested in growth assets with a moderately aggressive investment risk profile.
The member in this option would have an investment time horizon of 10 years or more and be comfortable with a negative return in 3-4 years in every 20 years. |
Investment option 3:
Conservative Growth
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The member in the Conservative Growth investment option would be expecting returns, after taxes and fees, of more than 1.5% above CPI over rolling 10 year periods.
They would understand that this option is around 30% investment in growth assets with a moderately conservative investment risk profile.
The member in this option would have an investment time horizon of 3 years and be comfortable with a negative return in 1 year in every 20 years. |
Investment option 4:
Cash
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The member in the Cash investment option would expect investment returns, after taxes and fees, matching the Bloomberg AusBond Bank Bill index, over rolling annual periods.
They would understand that this option is fully invested in short-term fixed interest investments with a very conservative investment risk profile.
The member in this option has no minimum investment time horizon and is not comfortable with any negative return. |
The table below sets out the class of customers that each insurance option within Division 5 Accumulation Scheme has been designed for.
Death and Total and Permanent Invalidity
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The member who holds this insurance has a need for an insurance benefit in the event of their death or total and permanent disability.
The cost of this insurance is covered by the same premium as charged for any Income Protection insurance.
Active members are provided with cover that is based on a percentage of their salary and their age. A default amount is offered on joining, but the member can request to increase, decrease or opt out of insurance at any time.
Retained members are provided with cover that is in units (that is, a dollar amount) to the amount of cover they had before becoming a retained member, rounded down to the nearest $500. The member can request to increase, decrease or opt out of insurance at any time.
Spouse members may opt-in to this type of insurance cover in units (that is, a dollar amount). Once their insurance is accepted they may request to increase, decrease or opt out of insurance at any time.
Health information may be requested from members when applying or increasing their insurance cover. Limitations or exclusions may be applied due to pre-existing conditions or for other reasons. |
Income Protection
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The member who holds this insurance has a need for a fortnightly insurance benefit of two-thirds of their salary in the event of being unable to work due to illness or injury.
For active members, there is no waiting period, but a maximum claim period of 12 months (or up to 18 months in special circumstances). A retained member has a 90-day waiting period, but a maximum claim period of up to 2 years.
The cost of this insurance is covered by the same premium as charged for any Death and Total and Permanent Invalidity insurance.
Spouse members cannot apply for or receive Income Protection insurance.
Limitations or exclusions may be applied due to pre-existing conditions or for other reasons. |
Included class of consumers
In addition to the suitability of the product criteria above for an individual, the Division 5 Accumulation Scheme is only open to employees of SA Power Networks, ElectraNet and AGL and their spouses (spouse as defined under Commonwealth law). A member can continue to retain their membership on leaving employment with these employers.
Consistency between target market and the product
The product is likely to be consistent with the objectives, financial situation and needs of the class of consumer in the target market based on an assessment of the terms, features and attributes in the Division 5 Accumulation Scheme.
