APPENDIX E
EXTRACT FROM KEY FEATURES STATEMENT
First example
of the two sections on fees and charges
for a "typical" accumulation plan
What are the charges?
The Fund deducts from your account balance an administration charge
of $1 per week ($52 per year) while you continue contributing to the Fund.
In addition, the investment management fees payable by the Fund
for the year ending 30/6/97 were 0.6% of assets.
Illustration
Using the standard assumptions (*) set by the Insurance and Superannuation
Commission, the following table shows the percentage reduction in benefits
after 5, 10, 25 or 40 years due to charges and fees:
| Initial yearly salary
Initial yearly employer contribution
|
$20,000
$1,800
|
$40,000
$3,600
|
$60,000
$5,400
|
| Years in the Fund
5
10
25
40
|
Reduction in
benefit
4.2%
5.6%
10.0%
14.6%
|
Reduction in
benefit
2.8%
4.2%
8.7%
13.3%
|
Reduction in
benefit
2.3%
3.8%
8.2%
12.9%
|
* The assumptions used include no initial account balance or transfer
amount, no member contributions and no insurance cover. For more information
on other assumptions, please see the enclosed supplementary notes on superannuation.
The percentage reduction in benefit shown in each column increases the
longer you have been in the Fund. The reason for this is that the investment
management fees increase in line with the increases in your account balance.
EXTRACT FROM KEY FEATURES STATEMENT
Second example
of the two sections on fees and charges
for a "typical" accumulation plan
What are the charges?
The Fund deducts from your account balance an administration charge
of $1 per week ($52 per year) while you continue contributing to the Fund.
In addition, the investment management fees payable by the Fund
for the year ending 30/6/97 were 0.6% of assets.
Illustration
Using the standard assumptions (*) set by the Insurance and Superannuation
Commission, the following table shows the extra investment return needed
each year to offset the impact of charges and fees:
| Initial yearly salary
Initial yearly employer contribution
|
$20,000
$1,800
|
$40,000
$3,600
|
$60,000
$5,400
|
| Years in the Fund
5
10
25
40
|
1.85%
1.21%
0.83%
0.73%
|
1.22%
0.90%
0.71%
0.67%
|
1.01%
0.80%
0.68%
0.64%
|
* The assumptions used include no initial account balance or transfer
amount, no member contributions and no insurance cover. For more information
on other assumptions, please see the enclosed supplementary notes on superannuation.
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