AMP Flexible Super ® fact sheets

144 Pages·2015·4.12 MB·English

₁ ₂₀₁₅
Issued July
Getting to know your
AMP Flexible Super®
Fact sheet
®RegisteredtrademarkofAMPLimitedABN49079354519
ThisisafactsheetforAMPFlexibleSuper®.TheAMPFlexibleSuperfactsheetsandmemberbenefitschedule(for
employeemembersonly)areimportantdocuments.Youshouldreadthemwiththeapplicableproductdisclosure
statementtounderstandhowAMPFlexibleSuperworks.
Contents
HowAMPFlexibleSuperworks 3
Investinginsuper 11
Insurancethroughsuper 18
Makingacontribution 20
Taxesandfees 24
Startingyourretirement 39
OtherinformationaboutAMPFlexibleSuper 43
TheinformationinthisdocumentformspartoftheproductdisclosurestatementforAMPFlexibleSuperdated1July2015(PDS).To
understandhowAMPFlexibleSuperworks,readthisfactsheetwiththeapplicablePDS,theinvestingandyouroptionsfactsheet,
theapplicableinsurancefactsheetand,andforemployeemembers,thememberbenefitschedule.
Informationinthisdocumentmaychangefromtimetotime.Wemayupdateinformationwhichisnotmateriallyadversetoyouand
makeitavailableatamp.com.au/pdsupdates.Apapercopyoftheupdatecanalsobeobtained(atnocharge)bycallinguson131267
orfromyourfinancialadviser.
Theinformationprovidedinthisdocumentisgeneralinformationonlyanddoesnottakeintoaccountyourpersonalfinancialsituation
orneeds.Youshouldobtainfinancialadvicetailoredtoyourpersonalcircumstances.
AMPFlexibleSuperispartoftheAMPRetirementTrust.AMPSuperannuationLimitedisthetrusteeandisreferredto‘ASL’,‘trustee’,
‘we’or‘us’inthisdocument.
NoothercompanyintheAMPgroupofcompaniesoranyoftheinvestmentmanagersoftheinvestmentoptions:
– isresponsibleforanystatementsorrepresentationsmadeinthisdocument
– guaranteestheperformanceofASL’sobligationstomembers,orassumesanyliabilitytomembersinconnectionwithAMP
FlexibleSuper.
ExceptasexpresslydisclosedinthePDSorafactsheet:
– investmentsintheinvestmentoptionsarenotdepositsorliabilitiesofASL,AMPBankLimitedABN15081596009(AMPBank),
anyothermemberoftheAMPgrouporanyoftheinvestmentmanagers
– nopersonguaranteestheperformanceofthissuperproductoranyoftheinvestmentoptions,anyparticularrateofreturnor
therepaymentofcapital.
ThetrusteemayenterintofinancialorothertransactionswithrelatedbodiescorporateinrelationtoAMPFlexibleSuper.Thatrelated
bodycorporatemaybeentitledtoearnfees,profits,reimbursementsorexpensesorotherbenefitsinrelationtoanysuchappointment
ortransactionandtoretainthemforitsownaccount.
AMPFlexibleSuperismanagedandadministeredinaccordancewiththePDSandfactsheets.WemaychangethewayAMPFlexible
Superismanagedandadministeredatanytimewith,inthecaseofanincreaseinfees,atleast30days’notice.Otherwise,noticewill
beprovidedbeforeorassoonaspracticableafterthechangeoccurs.
Thisofferisavailableonlytopersonsreceiving(includingelectronically)thePDSandfactsheetswithinAustralia.
IssuedbyAMPSuperannuationLimitedABN31008414104,AFSLLicenceNo.233060,RSELicenceNo.L0000550,thetrusteeofthe
AMPRetirementTrust,ABN73310248809.
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Section :
How AMP
Flexible Super
works
Inthissectionyou’lllearnmoreaboutsuperandhowitworks:
HowtosetupyourAMPFlexibleSuper
Thestepsyouneedtotaketosetupandunderstandyoursuper.
Whenyoucanaccessyoursuper
Weexplaintherulesaroundaccessingyoursuper,andexplorethe
definitionsofpreservationage,retirementageandconditionsofrelease.
Yourbeneficiaries
Makingthetransitiontoretirement
Whatisatransitiontoretirementandwhatisinvolved.
Keepingyouinformed
Whatinformationwe’llsendyou.
Superisoneofthebestwaystosaveforretirement.Therearetaxconcessionswhichmakesavingthroughsupermore
effectivethaninvestinginthesamemarketsoutsideofsuper.
Savinginsuperis,inpart,compulsory.Ifyou’reasalaryorwageearner,youremployerhastomakeSuperGuarantee
contributionstoyourfund.Andifyou’reself-employed,contributingtosupernotonlyhelpsyousaveforretirement,
butalsooffersyougoodtaxdeductions.
WithAMPFlexibleSuper,youcanaccessmanykindsofinvestmentsandenjoytaxbenefitsdesignedtohelpyou
maximiseyourretirementsavings.
AndwithAMPFlexibleSuper’sretirementaccountoption,youcanuseittomakethetransitiontoretirement,andalso
whenyouhavefullyretired,withouthavingtoopenanewaccount.It’stheonlysuperyou’lleverneed.
HowtosetupyourAMPFlexibleSuperaccount
1.Howcloseareyoutoretirement?
AMPFlexibleSuperisoneproductwhichcanlookafteryourretirementneeds,fromyourfirstjob,throughtoretirement.
Theaccountoptionyouchoosewilldependonthestageyouareat:
1. Savingforretirement–Yoursuperaccountisdesignedtohelpyousaveforretirement.
2. Makingthetransitiontoretirement(superaccountandretirementaccount)–ifyou’reclosetoretirementand
workinglessthanyouusedto,youcanuseAMPFlexibleSupertostartyourtransition.
3. Inretirement–youcanstartyourownpensiontowithdrawfromyoursuperwithoutneedingtosetupanew
account.
IfyouareanemployeememberyoucanaskyouremployertosetupanAMPFlexibleSuperaccountforyou.
2.Consideryourinvestmentstyle
Youhaveachoiceofthreedifferentinvestmentlevelsdesignedtocaterfordifferentinvestmentstyles.
Andwehavetoolstohelpyouworkoutwhatsortofinvestoryouarebeforeyoupickyourinvestments.
Thereismoreinformationaboutinvestinginsection2ofthisfactsheet.
3.Decideonlifeinsurancecover(superaccountsonly)
Youcanfinanciallyprotectyourselfandthepeopleclosesttoyoubyaddinglifeinsurancecover.Paydirectlyfromyour
superaccount,makingitaconvenientandpossiblyamoretax-effectiveoptionforyou.
IfyouopenedyourAMPFlexibleSuperthroughyouremployer,yourinsurancecoverhasbeenselectedforyou.Please
refertotheinsuranceforemployeesfactsheetforinformation.Whenyoujoin,yourmemberbenefitschedulewill
havedetailsofyourinsurance.
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Forothercustomers,therearetwooptionsavailable:
Whetheryouapplythroughyourfinancial
adviseroronyourown,thereismore
informationaboutinsuranceinsectionthree
ofthisfactsheet.
4.Startmakingcontributions
Therearedifferenttypesofcontributionsandwaystoboostyoursuper.Theseareexplainedinsectionfourofthisfact
sheet.
5.Understandingyourtaxesandfees
Superandretirementaccountsreceivedifferenttaxtreatmentwhichcanmakethembetterwaystosavefor,andspend
in,retirement.Thereisanoutlineofourfeesandhowourrebatescanhelpyousave.Allthedetailsareinsectionfive
ofthisfactsheet.
6.Retirement
Findouthowtostartyourretirementaccountandhowmuchandhowoftenyoucanreceiveincome.Formore
informationrefertosectionsixofthisfactsheet.
Whenyoucanaccessyoursuper
Generally,youcantakeyoursuperonceyouhave:
– permanentlyretiredafterreachingyourpreservationage
– stoppedemploymentatage60orover
– reachedage65,or
– reachedyourpreservationage,butyoukeepworking,andstartatransitiontoretirementincomestream.
Yourpreservationage
Yourpreservationageistheminimumageyoucandrawonyoursuperandvariesdependingonwhenyouwereborn.
Dateofbirth Preservationage
Before1July1960 55
1July1960to30June1961 56
1July1961to30June1962 57
1July1962to30June1963 58
1July1963to30June1964 59
1July1964andafter 60
Superbenefitcomponents
Superbenefitsconsistofthreeparts:
– Unrestrictednon-preserved:youcanaccessthisamountatanytime.
– Restrictednon-preserved:generally,youcanaccessthisamountwhenyoustopworkingfortheemployerwhohas
contributedtoyouraccount.
– Preserved:youcanaccessthisamountonlyincertaincircumstancessetbysuperlaw.
Allcontributionsandinvestmentearningssince1July1999arepreserved.Anynon-preservedamountsyouhave
accumulatedbeforethisdateremainasnon-preserved.
Youwillseethesecomponentsinyourannualstatement.
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Retirement
Youareretiredifyouhavereachedyourpreservationageandstoppedemployment.Ifyoustoppedworkingbeforeor
atage60,weneedtobereasonablysatisfiedthatyoudonotintendtoreturntoworkfor10ormorehoursaweek.
Makingthetransitiontoretirement
Investinginaretirementaccountunderthetransitiontoretirementrules
Whenyoureachyourpreservationageandyouarestillworking,youcaninvestinbothsuperandretirementaccounts
underthetransitiontoretirement(TTR)rules.
Youmustmakeatleastonepaymentayearfromyourretirementaccountandyoucanwithdrawupto10%ofthe
accountbalanceeachyear.
Aretirementaccountunderthetransitiontoretirementrulesdoesnotgenerallyallowlump-sumwithdrawalsuntil
youcanaccessyoursuperonothergrounds.
Youcanfindmoreinformationabouttransitiontoretirementrulesatamp.com.auorspeaktoyourfinancialadviser.
Otherconditionsofrelease
Theothercircumstanceswhichallowyoutowithdrawmoneyfromyoursuperincludewhereyou:
– haveaterminalmedicalcondition
– becamepermanentlyincapacitated
– qualifyoncompassionategroundsorseverefinancialhardship
– ifyouwereatemporaryresident1ofAustralia,whenyoupermanentlyleaveAustraliaandyourequestinwriting
forthereleaseofyourbenefits.(Thisoptionisnotavailabletoholdersofsubclasses405and410,Australianor
NewZealandcitizensorAustralianpermanentresidents)
– stopworkingfortheemployerwhohascontributedtoyouraccountandpurchaseanon-commutablelifepension
orannuity,or
– terminateyouremploymentwithanemployer-sponsorandyourpreservedbenefitislessthan$200.
– werealostmemberandaresubsequentlyfound,andyouraccountvalueis$200orless.
1 Superfundsare,undercertaincircumstances,requiredtotransferatemporaryresident’ssupertotheATO
followingtheirdeparturefromAustralia.Suchatransferwouldonlyoccurwhenatleastsixmonthshavepassed
sincethetemporaryresident’svisahadceasedtobeineffect,theyhadleftAustraliaandnottakentheirbenefit.
FormertemporaryresidentscansubsequentlyaccesstheirbenefitfromtheATO.TheATOcanbecontactedon
131020.
RelyingonASICrelief,wearenotobligedtonotifyorgiveanexitstatementtoamemberwhowasatemporary
residentwherewetransfertheirsupertotheATOfollowingtheirdeparturefromAustralia.
Note:Ifyouareorwereatemporaryresident,youwillgenerallyonlybeabletoaccessyourbenefitunderthe
followingconditionsofrelease:
– Death
– Terminalmedicalcondition
– Permanentincapacity
– Temporaryincapacity
– DepartingAustralia—SuperPaymentpaidtotemporaryresidentsleavingAustraliapermanentlyandwho
applyinwritingforthereleaseoftheirbenefits
– TrusteepaymentstotheATOundertheSuperannuation(UnclaimedMoneyandLostMembers)Act1999
– ReleaseAuthoritiesundertheIncomeTaxAssessmentAct1997,and/or
– Ifyoumetaconditionofreleaseallowedunderasuperannuationlawbefore1April2009.
Note:Ifyouareorwereatemporaryresident,youwillgenerallynotbeabletoaccessyourbenefitunderthe
followingconditionsofrelease:
– onretirement
– onreachingage65.
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Permanentincapacity,terminalmedicalcondition,compassionategroundsandseverefinancial
hardship
Youcanaccesssomeorallofyoursuperbenefitsatanyageincertaincircumstances–forexample,ifyouhavea
terminalmedicalcondition,retirementduetopermanentincapacity,severefinancialhardshiporcompassionate
grounds.
Therearespecificconditionsforthereleaseofbenefitsand,inthecaseofcompassionategrounds,releaseisalsosubject
toapprovalbytheDepartmentofHumanServicesandtheTrustee.
YouarepermanentlyincapacitatediftheTrusteeisreasonablysatisfiedthatyourillhealth(whetherphysicalormental)
makesitunlikelythatyouwillengageingainfulemploymentforwhichyouarereasonablyqualifiedbyeducation,
trainingorexperience.
Yousufferaterminalmedicalconditionifthefollowingcircumstancesexist:
– Tworegisteredmedicalpractitionershavecertified,jointlyorseparately,thatyousufferfromanillness,orhave
incurredaninjury,thatislikelytoresultinyourdeathwithinaperiod(thecertificationperiod)thatendsnotmore
than24monthsafterthedateofthecertification.
– Atleastoneoftheregisteredmedicalpractitionersisaspecialistpractisinginanarearelatedtotheillnessorinjury
suffered.
– Foreachofthecertificates,thecertificationperiodhasnotended.
Yourretirementageforsocialsecuritypurposes
Yourretirementageisimportant,asitistheagewhenyouaccesstheagedpension.
Itiscurrentlyage65.From2017theretirementagewillincreasebysixmonthseverytwoyearsuntilitreaches67.
Whenyoumusttakeyoursuperbenefit
Superrulesdonotrequireyoutotakeyourbenefitsatanymaximumage.Thisallowsyoutokeepyourinvestmentin
yoursuperaccountindefinitely.Yourbenefitmustbepaidoutonyourdeath.
CurrentUnclaimedmonieslegislationformembersoverage65requiresustotransferyourbenefittotheAustralian
TaxOffice(ATO)ifallofthefollowingconditionsaremet:
– youhavenotcontributedtoyoursuperinthelast2years,and
– ithasbeen5yearsormoresinceyouhavetransactedonyouraccountorwelasthadcontactwithyou,and
– weareunabletocontactyouafterreasonableeffortshavebeenmade.
Transfertoanothersuperfund
Youcanaskustotransferyoursuperbenefittoanothersuperfundatanytime.
Ifyoutransferyourwholebalance,anyinsurancecoverwillgenerallyceaseonthedateoftransfer.
Youraccountbalanceondeath
Ifyoudie,youraccountbalancewillbetransferredtotheSuperEasyCashinvestmentoption,asatthedateweare
notifiedofyourdeath.
Anti-detrimentpayments–extraamountforsomedeathbenefitpayments
Taxlawmayallowustopayanextraamountifwepayyourdeathbenefitdirectlytoacertaindependant(s)(orindirectly
tothemviayourlegalpersonalrepresentative/estate).
Yourbeneficiaries
Ifyouareage18yearsorover,youcannominateoneormorebeneficiariestoreceiveyourdeathbenefit.Generally,all
beneficiariesmustbeyourdependant(s).Youcanalsonominateyourestate(wecallthisyourlegalpersonal
representative).Ifyouareunderage18,youoryourparentorguardiancannotmakeadeathbenefitnomination.
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Whoisadependant?
Adependantundersuperannuationlawincludes:
– yourspouse(includingadefactospousewhetheroftheoppositeorsamesex)
– yourchildren(includinganadoptedchild,astepchild,orex-nuptialchild)
– anypersonwhoisfinanciallydependentonyou,and
– anypersonwithwhomyouhaveaninterdependencyrelationship.
Apersonmustbeadependantonthedateofyourdeathtobeabeneficiary.
Thereismoredetailedinformationaboutwhoisadependantandinter-dependentrelationshipsintheothersuper
informationguideavailablefromamp.com.au/flexiblesuper.
Payingyourdeathbenefit
Youcanchoosehowyouwantyourbenefitpaid.Youhaveachoiceof:
– BindingNomination
– Non-Binding(Preferred)Nomination
– ReversionaryNomination
– NoNomination
Adescriptionoftheseoptionsaredetailedbelow:
Bindingnomination
Bindingnominationsarevalidforaperiodofuptothreeyears,andmustberenewedonexpiry.Inmostcircumstances
wemustpayyourbenefittothebeneficiariesyouhavenominatedinavalidbindingnominationandintheproportions
youhavespecified.
Youmustbeaged18orovertomakeabindingnomination.
Forabindingnominationtobevalid:
– thetotalallocationmustequal100%andmustbeinwholenumbers
– youcanonlynominateadependantand/oryourestate/legalpersonalrepresentative(LPR)
– yournominationmustbesignedanddatedinthepresenceoftwowitnesseswhoareoverage18andwhoarenot
nominatedbeneficiaries.
Whenwereceiveyournominationwewillnotcheckifyournominatedbeneficiariesareyourdependantsoryourlegal
personalrepresentative.
Detailsofwhatwillmakeabindingnominationinvalidandtreatedasanon-bindingnominationareoutlinedunder
theheadingwhenwillmybindingornon-lapsingnominationbetreatedasanon-bindingnomination?.
Non-lapsingnomination
FromNovember2015,non-lapsingnominationswhichdonotexpire(andsodonotneedtoberenewed)willbeavailable.
Anon-lapsingnominationisarequestbyyoutothetrusteetopayyourbenefittothebeneficiariesyouhavenominated
andintheproportionsyouhavespecified.Ifthetrusteeconsentstothenominationanditisvalidatthetimeofyour
death,thetrusteeisboundtopayyourdeathbenefitinaccordancewiththenomination.
Anon-lapsingnominationwillcontinuetoapplyuntilyourevokeanexistingnominationormakeanewnomination.
Incertaincircumstancesanon-lapsingnominationwillbetreatedasanon-bindingnomination-seewhenwillmy
bindingornon-lapsingnominationbetreatedasanon-bindingnomination?inthisfactsheet.
Itisimportantthatyoureviewyournon-lapsingnominationregularlytoensurethatitisstillappropriateforyou.
Youmustbeaged18orovertomakeanon-lapsingnomination.
Foranon-lapsingnominationtobevalid:
– thetotalallocationmustequal100%andmustbeinwholenumbers
– youcanonlynominateadependantand/oryourestate/legalpersonalrepresentative(LPR)
– yournominationmustbesignedanddatedinthepresenceoftwowitnesseswhoareoverage18andwhoarenot
nominatedbeneficiaries.
Whenwereceiveyournominationwewillnotcheckifyournominatedbeneficiariesareyourdependantsoryourlegal
personalrepresentative.
Detailsofwhatwillmakeabindingnominationinvalidandtreatedasanon-bindingnominationareoutlinedunder
theheadingwhenwillmybindingornon-lapsingnominationbetreatedasanon-bindingnomination?
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Whenwillmybindingornon-lapsingnominationbetreatedasanon-bindingnomination?
Wewillautomaticallytreatyournominationasthoughitwasanon-bindingnominationif:
– youand/oryourwitnessesdonotsignorcompletethebindingnominationcorrectly
– ifyouhavealapsingbindingnomination,threeyearshavepassedfromthedateyousignedthebindingnomination
form(youwillneedtoreconfirmyournominationeverythreeyearsifyouwanttocontinuetohaveabinding
nomination)
– anynominatedbeneficiarydiesbeforeyoudie
– anynominatedbeneficiary(otherthanthelegalpersonalrepresentative(LPR))isnotadependantatthedateof
yourdeath
– yourrelationshipchangesaftersigningtheBindingNominationformorthenon-lapsingnominationform,egyou
getmarried,enterintoadefactorelationship,getdivorcedoryourdefactorelationshipends.
Ifyourevokeyourbindingnominationoryournon-lapsingnominationinwritingwithoutmakinganothernomination,
thenwemustpayyourdeathbenefitinaccordancewiththenonominationoption.
NominatingabeneficiaryunderPowerofAttorney
Youcannominateapersonorpersonsunderapowerofattorneytooperateyourmembership.Todoso,sendusa
certifiedcopyofavalidpowerofattorneytogetherwithadeclarationthattheappointmenthasnotbeenrevoked.The
legislationisdifferentforeachstateandfurtherinformationcanbefoundonlineat
australia.gov.au/content/powers-of-attorney.
Youmustexplicitlystateinthepowerofattorneydocumentthatyouallowthepersonyouhavenominatedasyour
attorneytonominatethemselvesasabeneficiaryofyoursuper,ifthisisyourdesire.Ifyoudon'texplicitlystatethat
theappointedattorneycannominatethemselvesasabeneficiarythetrusteewillnotimplementanydirectionfrom
theattorneytodoso.
Non-bindingdeathbenefitnomination
Withanon-binding(orpreferred)nominationthetrusteemustpayyourdeathbenefittooneormoreofyourdependants
orLPRinproportionsthatthetrusteedetermines.IfnodependantorLPRisappointedwithinareasonabletime,the
trusteemustpayyourdeathbenefittoanyotherpersonorpersonsinproportionswhichthetrusteedetermines.
Anon-bindingnominationwillcontinuetoapplyuntilyoucancelanexistingnominationormakeanewone.
Reversionarynomination
Ifyoumakeareversionarynomination,yourretirement/pensionaccountwillcontinuetobepaidtoyourspouse.You
canonlynominateyourspouse(includingdefactospouse)asareversionarynomination.Iftheyarenotyourspouse
whenyoudiethenwewillpayyourbenefitinaccordancewiththenonominationoption.
Nonomination
Ifyoudonotmakeanominationoryoucancelyourexistingnomination,wemustpayyourdeathbenefittoyourestate.
However,ifyourestateisinsolventorifanLPRhasnotbeenappointedwithinareasonableperiodoftime,thenwe
willlooktopayyourdependants;or,ifnone,otherpersonsinproportionswhichthetrusteedetermines.
Ifyoudonothaveadeathbenefitnominationyoushouldconsidermakingawill.
Itisimportanttoreviewyournominationregularlyandupdateitifyourcircumstanceschange.
Whenandhowwepayyourdeathbenefit
Oncewereceivenotificationofyourdeath,thebalancewillbepaidtotheSuperEasyCashinvestmentoption.
Ifyoumadeareversionarynomination,allamountsinyourretirementaccountwillremaininyourchoseninvestment
options,withtheexceptionofanyamountheldinaSuperEasyTermDeposit,inwhichcasethetermdepositwillbreak
andtheamounttransferredtoSuperEasyCash.Interestwillbeallocatedatanadjustedcreditingrate.Formore
informationpleaserefertotheadditionalinformationaboutSuperEasyTermDepositssectionintheinvestingand
youroptionsfactsheet.
It’simportanttounderstandthedifferencesbetweenabinding,non-lapsingandnon-bindingnominationandthe
definitionsofadependant,asthismayaffectthepaymentofyourbenefitanditstaxation.
Formoredetailsaboutthetermsandconditionsrelatingtoeachoftheseoptions,pleaserefertothebeneficiaries
sectioninthisfactsheet.
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Keepingyouinformed
Electroniccommunications
Thisproductismovingtoelectroniccommunications.Byjoiningthisproduct,youagreetoreceiveoraccessallofour
communications,suchasconfirmationoftransactions,annualstatementsandothercorrespondence,byanelectronic
means(suchasfromoursecurewebsite,MyPortfolio).Wewillnotifyyouwhenthisoccurs.
Thecorrespondenceyoureceiveincludes:
Superaccounts Retirementaccounts
– Welcomeletter – Welcomeletter
– Memberbenefitschedule–foremployeemembers – Confirmationofcertaintransactions
only – Annualstatement
– Confirmationofcertaintransactions – Annualupdate
– Annualstatement – PAYGpaymentsummary
– Annualupdates. – Annualaccountreview–30June
– Guidetoyourtaxreturn.
Ifyouleaveyouwillreceive: Ifyouleaveyouwillreceive:
– Paymentsummaryand/orsuperannuation – Paymentsummaryand/orsuperannuation
rolloverbenefitstatement rolloverbenefitstatement
– Exitstatement. – Exitstatement.
TheannualreportforAMPFlexibleSuperisavailablefromamp.com.au/flexiblesuper.
Youshouldkeepacopyoftheaboveinformation,thePDS,yourmemberbenefitschedule(employeemembers)and
thefactsheetsforfuturereference.
Membertip
Helpustokeepyouinformed.Wewanttomakesureyoureceivealltheinformationyouneedtomanageyoursuper.
Pleaseletusknowimmediatelyifyourpersonaldetailschange.
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