Living Super glossary

A

Account or accounts

This refers to a super account, transition to retirement account or pension account held within ING Living Super.

Active Contribution

An amount received by the Fund on a member’s behalf that the Fund determines is sufficient for the continued provision of life insurance cover under the Superannuation Industry (Supervision) Act 1993 (Cth).

Active employment

A person who is employed by an employer and in the insurer’s opinion is capable of performing their identifiable duties without restriction by any illness or injury for at least 35 hours per week (whether or not they are actually working those hours).

Active service

A person's occupation as part of a military force (including without limitation the Defence Force, the army, the Armed Forces Reserve, the navy, the air force or the like). A member of the Australian Armed Forces Reserve will be in Active service if they are participating in a training period, military service, 'call out' service, natural disaster relief effort or any other related service.

Activity fee:

- A fee relating to costs incurred by the Trustee that is directly related to an activity of the Trustee:

- that is engaged in at the request or with the consent of a member; or

- that relates to a member and is required by law; and

- are not otherwise charged as an administration fee, an investment fee, a buy-sell spread, a switching fee, an advice fee or an insurance fee

Administration fee

A fee that relates to the administration or operation of the fund and includes costs that relate to that administration or operation, other than:

- borrowing costs;

– indirect costs that are not paid out of the fund that the Trustee has elected in writing will be treated as indirect costs and not fees incurred by the Trustee/s of the fund or in interposed vehicles or derivative financial product; and

- costs that are otherwise charged as an investment fee, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.

Administrator

Financial Synergy Holdings Pty Ltd ABN 66 126 127 197

Advice fee

A fee relating directly to costs incurred by the Trustee because of the provision of financial product advice to a member by:

– the Trustee; or

- another person acting as an employee of or under an arrangement with the Trustee; and

- are not otherwise charged as an administration fee, an investment fee, a switching fee, an activity fee or an insurance fee.

Application

An application to open an ING Living Super account

APRA

Australian Prudential Regulation Authority.

ASIC

Australian Securities & Investments Commission.

B

BPAY®

BPAY® is a registered trademark of BPAY Pty Ltd ABN 69 079 137 518.

Business day

A day on which banks are normally open for business in either Sydney or Melbourne other than a Saturday, Sunday or a day which is a public holiday in both Sydney and Melbourne.

Buy-sell spread

A fee to recover transaction costs incurred by the Trustee in relation to the sale and purchase of assets of the fund.

C

Capital gains tax or CGT

A tax on the increase in the capital value of investments, payable when the investment is sold.

Cash Hub

Your ING Living Super cash transaction account.

Casual basis

Employment by an employer other than permanent employment.

Client number

The number we give you to use with your Access Code in order to use an interactive service. We generally only allocate one client number, regardless of the number of account you hold with ING.

Codes

Your Access Code and any additional security code as a result of our enhanced security measures.

Contribution or contributions

Money deposited into a super account by you, your spouse, the Government or an employer. Rollovers or transfer amounts are not contributions.

Contributions mix

The investment/s you set for your rollover/contributions to be invested into and the percentage of each rollover/contribution that will be added to each of those investments

Corporate action

An action taken by a publicly listed company relating to its securities.

Corporations Act

The Corporations Act 2001 (Cth).

Covered person

A person who has an account with ING Living Super and meets the Eligibility Criteria and is accepted by the insurer for insurance cover in accordance with the policy.

CPI

Consumer price index.

D

Date of disablement

The later of the date on which a medical practitioner examines and certifies in writing that a covered person is disabled and the covered person ceases all work.

Death benefit

The amount payable to your beneficiaries, dependants and/or legal personal representative in the event of your death.

Defensive assets

Typically less risky investments which generally produce lower returns over the long-term.

Defined fees guide

The ING Living Super Defined fees guide.

Dependants

Includes the spouse, a child, a financial dependant and any person with whom the related person has an interdependency relationship.

Disabled or disability

As a result of illness or injury where a covered person is:

(a) unable to perform at least one income producing duty of his or her occupation;

(b) not working in any occupation, whether or not for reward; and

(c) under the regular care and following the advice of a medical practitioner.

Disability by accident

Disability as a result of bodily injury where disability occurs whilst a person is covered for the disability by accident benefits.

Disability income

Income earned by a covered person from personal exertion while disabled or partially disabled when the income is from their occupation, or any other occupation.

Disability monthly benefit

The lesser of:

(a) the insured percentage multiplied by monthly income; and

(b) the amount provided to a covered person which is accepted by the insurer; and

(c) the maximum monthly benefit.

Diversified portfolio

A portfolio that invests in a mix of different types of assets.

Dividends reinvested

The process where your dividends from managed investments are automatically reinvested in additional units in those managed investments rather than as a cash payment.

Domestic duties

Duties normally performed by a person who remains at home who is not engaged in regular employment for income such as cleaning the home, doing the laundry, shopping for food, cooking meals and looking after a dependant (if applicable).

E

Eligible rollover fund (ERF)

A holding account designed to receive the super benefits of lost members and those with low account balances and/or that are no longer receiving contributions.

Employed or employment

Being engaged in permanent employment, or on a casual basis or contracted as an employee or engaged in any capacity as a self-employed person.

Employer

An employer who engages the covered person in their principal occupation and can include the covered person if they are self-employed.

Exit fees

A fee, other than a buy-sell spread, that relates to the disposal of all or part of a member’s interests in the superannuation entity.

F

Fund

The ING Superannuation Fund ABN 13 355 603 448.

G

Goods and Services Tax or GST

A tax imposed on the supply of any goods, services, real or personal property. All fees expressed in this document are shown inclusive of GST.

Growth assets

A general term for assets such as shares and property that have the potential to provide higher long-term returns than conservative assets but typically come with higher risk.

H

High income earner contributions tax

An additional tax on concessional contributions (non-excessive) where a member has earnings in excess of $250,000 (conditions apply).

I

Illness

Sickness, disease or disorder.

Income assets

Asset classes that typically derive their investment performance from the payment of regular income distributions such as cash deposits or fixed income investments. Income assets may incur losses in the short term, but are generally less volatile than growth assets.

Income

(a) If a person who owns part of a business in which they perform their regular occupation, income is the total amount earned by that business as a direct result of their personal exertion, less their share of business expenses, but before income tax is deducted for the same period; or

(b) For a Covered Person who is employed or self-employed on a permanent or casual basis or works as a contractor is the total annual remuneration (before tax and excluding superannuation contributions of 10% or less) earnt by the Covered Person from all regular occupations as a direct result of their personal exertion in the 12 months immediately preceding the Date of disablement, including:

(i) Fringe benefits that they receive from their employer through salary sacrifice and will benefit from for at least six months after the date that the salary which they sacrificed for the fringe benefit would have been paid by an employer;

(ii) Performance related annual bonuses, commissions, overtime payments and shift allowances averaged over the previous two years or the period that they have been receiving such payments, whichever is shorter; and

(c) does not include investment income, income received from deferred compensation plans, disability income policies, retirement plans, income not derived from vocational activities or personal exertion; or

(d) If a person is not employed, income is the average of their regular income as defined above over the previous 12 months or the actual period if less, subject to a minimum averaged period of 6 months.

Income producing duty

A duty of the covered persons occupation that generates at least 20% of the covered persons monthly income.

Income protection or IP

Insurance cover to provide a regular income if you are disabled or partially disabled through injury or illness and are temporarily unable to work.

Income stream

Income that a person receives from a retirement plan such as a pension account or TTR account

Indirect cost ratio or ICR

The ratio of the total of the indirect costs for the investment option to the total average net assets of the fund attributed to the investment option.

Note: A free deducted from a member's account or paid out of the superannuation entity is not an indirect cost.

Injury

Bodily injury which is caused solely and directly by external, violent and accidental means and is independent of any other cause.

Insurance fee

Is a:

(a) fee relating directly to:

(i) insurance premiums paid by the Trustee/s of a superannuation entity for members of the entity;

(ii) costs incurred by the Trustee/s of a superannuation entity in relation to the provision of insurance for members of the entity; and

(b) does not relate to any part of a premium paid or cost incurred in relation to a life policy or a contract of insurance that relates to a benefit to the member that is based on the performance of an investment rather than the realisation of a risk; and

(c) the premiums and costs to which the fee relates are not otherwise charged as an administration fee, an investment fee, a switching fee, an activity fee or an advice fee.

Insurance premiums

The sum of money paid to purchase insurance against death, TPD or IP.

Insurer

MetLife Insurance Limited ABN 75 004 274 882, AFSL 238096.

Interactive service

Any service where you can access your accounts electronically using a secret code, such as an Access Code and/or personal identifiers. It includes the ING interactive phone service, mobile banking and the ING website.

Interdependency relationship:

A relationship between two people (whether or not related by family) whereby:

(a) they have a close personal relationship;

(b) they live together;

(c) one provides for the other or both support each other financially; and

(d) one provides for the other or both support each other domestically and with personal care.

Two people (whether or not related by family) may also have an interdependency relationship despite not satisfying the above conditions (b) to (d) if either or both of them suffer from a physical, intellectual or psychiatric disability.

Investment fees

A fee that relates to the investment of the assets of a superannuation entity and includes:

- fees in payment for the exercise of care and expertise in the investment of those assets (including performance fees); and

- costsincurred by the trustee of the entity that:

(i) relate to the investment of assets of the entity; and

(ii) are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an activity fee, an advice fee or an insurance fee.

Investment mix:

The investment options you choose to invest in and the percentage of your account balance that you choose to put into each of those options.

L

Lapsing binding nomination

A legally binding nomination that directs the Trustee on how to pay the death benefit in the event of your death as long as the nomination is valid and in force on the date of death. This type of nomination will lapse after three years, after which a new binding nomination needs to be submitted.

Limited cover

The person is only covered for an illness that first becomes apparent or an injury that first occurs, on or after the date the cover commenced.

Listed securities

Investments such as shares, trusts and other types of securities that are available to buy and sell on a securities exchange such as the Australian Securities Exchange.

M

Managed investment

An investment vehicle that pools the assets of multiple investors into a single amount with a common investment objective and strategy. Please refer to section 5 of this Product Guide for the managed investments available in Living Super.

Marginal tax rate:

The personal tax rate legislated by the Australian Government.

Medical practitioner

A person who is registered and practicing as a medical practitioner in Australia other than:

(a) a covered person;

(b) a covered person's parent, child or sibling;

(c) a covered person's spouse or partner, as determined by us in our absolute discretion; or

(d) a covered person's business partner, associate or employee.

Medicare Levy

means all levies payable under the Medicare Levy Act 1986 (Cth) such as amounts levied for the National Disability Insurance Scheme.

Minimum hours

15 hours per week or an average of 15 hours per week over an immediately preceeding period of 12 consecutive months for a self-employed person or a person employed on a casual basis.

Monthly income

The income earned by the covered person in one calendar month.

N

Non-binding nomination

Indicates your preference for the distribution of death benefit between your dependants and/or your estate. This nomination does not bind the Trustee to pay your death benefit to those you nominate. However it will be an important consideration.

Non-lapsing binding nomination

A legally binding nomination that directs the Trustee on how to pay your benefit in the event of your death as long as the nomination is valid and in force as the date of death. This type of nomination does not lapse. A new nomination can be made at any time.

O

Occupation

The employment or activity in which the person/covered person is principally employed by an employer.

P

Partially disabled or partial disability

A covered person:

(a) has been disabled for at least 7 days out of the first 12 working days of the waiting period;

(b) is unable to work in their occupation at full capacity as a result of the illness or injury resulting in disability;

(c) is working in their occupation or any other occupation but only in a limited capacity; and

(d) is earning a monthly disability income less than their monthly income;

(e) is under the regular care and following the advice of a medical practitioner

Partial disability monthly benefit

When used in section 9, 'Insurance through ING Living Super' of this Product Guide, means a benefit payable in accordance with the following formula:

((monthly income - disability income)/monthly income) x disability monthly benefit

Pension account or pension:

An account from which a retirement income stream is drawn at regular intervals.

Pension payment days

Every second Wednesday (or the preceding business day if Wednesday is not a business day).

Permanent employment

Employment of a person by an employer under a single and ongoing contract that

(a) Is of indefinite duration or is for a fixed term of no less than 6 months;

(b) Requires the person to perform identifiable duties of their occupation;

(c) Requires the person to work a regular number of hours each week;

(d) Provides for paid annual leave, sick leave and long service leave; and

(e) Is not on a casual basis.

Permanent incapacity or permanently incapacitated

Ill-health (whether physical or mental) where the Trustee is reasonably satisfied that you are unlikely, because of the ill-health, to engage in gainful employment for which you are reasonably qualified by education, experience or training.

Preserved super benefits

Money held in your super account that you can't access until you meet a condition of release.

Product disclosure statement or PDS

The ING Living Super Product Disclosure Statement dated 1 July 2019.

Product Guide

This ING Living Super Product Guide.

Promoter

ING, a business name of ING Bank (Australia) Limited ABN 24 000 893 292, AFSL 229823

R

RBA

Reserve Bank of Australia.

Reduced input tax credit

As a result of GST paid on all fees, a reduced input tax credit may be available from the ATO.

Reversionary nomination

A nomination that directs the Trustee to transfer ownership of your TTR or pension account in the event of your death as long as the nomination is valid and in force at the date of death.

Rollover

The transfer of a super fund benefit from one super fund to another.

S

Security code

An additional code we provide you to conduct certain transactions as a result of our enhanced security.

Security device

A physical device used as part of our enhanced security measures.

Self-employed

A person who directly or indirectly owns part or all of the business or professional practice in which the person earns a regular income.

SMSF

A self-managed superannuation fund.

Strategic asset allocation

The long-term mix of asset classes selected that are most likely to meet the investment objectives within an investment option. The actual asset allocation may vary from this position (within a range) to take advantage of changing market conditions.

Superannuation guarantee (SG)

Compulsory superannuation contributions made by employers.

Super account

The account in which you accumulate funds in preparation for your retirement.

Switching fee

A fee to recover the costs of switching all or part of a member’s interest in the superannuation entity from one investment option or product to another (other than a MySuper product).

T

Tax dependant

Your spouse or former spouse, your children under 18, a person who was wholly or substantially financially dependent on you at the time of your death or a person with whom you were in an interdependency relationship with at the time of your death.

Temporarily incapacitated

Where you have ceased to be gainfully employed due to ill-health (whether physical or mental) but does not constitute permanent incapacity.

Temporary access code

The initial Access Code we give to access your account using an interactive service until you select another Access Code.

Terminal illness:

(a) Two medical practitioners, one of whom specialises in the covered person's illness, certifies in writing that despite reasonable medical treatment the illness will lead to the covered person's death within 12 months of the date of the certification; and

(b) the insurer is satisfied, on medical or other evidence, that despite reasonable medical treatment the illness will lead to the covered person's death within 12 months of the date of the certification referred to in paragraph (a).

Terminal medical condition: where:

(a) Two registered medical practitioners, at least one of whom specialises in an area relating to the injury or illness, certify that you suffer from an illness or have incurred an injury that is likely to result in your death within 24 months of the date of certification; and

(b) for each of the certificates, the certification period has not ended.

Total and permanent disablement or TPD or total and permanent disability

(a) When a covered person is under age 65 and is employed for at least the minimum hours at the date of disablement and the covered person having provided proof to the satisfaction of us that the covered person has become incapacitated to such an extent as to render the covered person unlikely ever to engage in or work for reward in any occupation or work for which he or she is reasonably qualified by reason of education, training or experience and where one of the following applies:

(i) the covered person suffering the permanent loss of use of 2 limbs or the sight of both eyes or the loss of use of one limb and the sight of one eye (where limb is defined as the whole hand or the whole foot);

(ii) the covered person has been absent from their occupation with the employer through injury or illness for 3 consecutive months;

(iii) the covered person through illness or injury and having provided proof to our satisfaction is permanently unable to perform at least 2 of the following 6 basic activities of everyday living:

- Bathing - to shower or bathe;

- Dressing - to dress or undress;

- Toileting - to use the toilet including getting on and off;

- Feeding - to eat and drink;

- Mobility - to get out of a bed, a chair or a wheelchair; or

- Continence - to control bladder and bowel function.

If the covered person can perform the activity by using special equipment, they will be considered able to undertake that activity; or

(iv) the covered person through illness or injury and having provided proof to our satisfaction, is suffering from the permanent deterioration or loss of intellectual capacity that has required the covered person to be under continuous care and supervision by another adult person for 3 consecutive months and this care is likely to be ongoing and on a permanent daily basis.

(b) When a covered person as at the date of disablement is:

- employed for less than the minimum Hours;

- has been on employed approved leave for more than 24 months;

- unemployed and is not engaged in full time unpaid domestic duties in their own residence; or

- aged 65 or older;

and the covered person having provided proof to the satisfaction of us that the covered person has become incapacitated to such an extent as to render the covered person unlikely ever to engage in or work for reward in any occupation or work for which he or she is reasonably qualified by reason of education, training or experience and where one of the following applies:

(i) the covered person suffering the permanent loss of use of 2 limbs or the sight of both eyes or the loss of use of one limb and the sight of one eye (where limb is defined as the whole hand or the whole foot); or

(ii) the covered person through illness or injury, and having provided proof to our satisfaction, is permanently unable to perform at least 2 of the following 6 basic activities of everyday living:

- Bathing - to shower or bathe;

- Dressing - to dress or undress;

- Toileting - to use the toilet including getting on and off;

- Feeding - to eat and drink;

- Mobility - to get out of a bed or a chair or a wheelchair; or

- Continence - to control bladder and bowel function.

If the covered person can perform the activity by using special equipment, they will be considered able to undertake that activity; or

(iii) the covered person through illness or injury, and having provided proof to our satisfaction, is suffering from the permanent deterioration or loss of intellectual capacity that has required the covered person to be under continuous care and supervision by another adult person for 3 consecutive months and this care is likely to be ongoing and on a permanent daily basis.

(c) When a covered person is engaged in full time unpaid domestic duties at the date of disablement and the covered person has provided proof to our satisfaction that the covered person has become incapacitated to such an extent as to render the covered person unlikely to ever be able to perform their normal domestic duties and/or engage in employment in any occupation which the covered person is reasonably qualified by reason of education, training or experience and where one of the following applies:

- the covered person suffers the permanent loss of use of 2 limbs, the sight of both eyes, the loss of use of one limb and the sight of one eye (where limb is defined as the whole hand or the whole foot); or

- the covered person through illness or injury and having provided proof to our satisfaction, is permanently unable to perform at least 2 of the following 6 basic activities of everyday living:

- Bathing - to shower or bathe;

- Dressing - to dress or undress;

- Toileting - to use the toilet including getting on and off;

- Feeding - to eat and drink;

- Mobility - to get out of a bed or a chair or a wheelchair; or

- Continence - to control bladder and bowel function.

If the covered person can perform the activity by using special equipment, they will be considered able to undertake that activity; or

- the covered person through illness or injury and having provided proof to our satisfaction, is suffering from the permanent deterioration or loss of intellectual capacity that has required the covered person to be under continuous care and supervision by another adult person for 3 consecutive months and this care is likely to be ongoing on a permanent daily basis; or

- the covered person, as a result of illness or injury, is under the care of a medical practitioner and is unable to perform their normal domestic duties or leave their residence unaided for 3 consecutive months.

Transition to retirement or TTR account

An account that allows you to commence an income stream while you are still working. You must have reached your preservation age and you cannot withdraw more than 10% of your TTR balance each year.

Trust deed

The legal document that establishes the ING Superannuation Fund and sets out the rules governing its operation. You are entitled to view a copy of the trust deed upon request.

Trustee

Diversa Trustees Limited. The Trustee has legal responsibility for the running of the ING Superannuation Fund in accordance with the trust deed. The Trustee has a duty to act in the best interests of members and is regulated by the Australian Securities & Investments Commission (ASIC) and Australian Prudential Regulation Authority (APRA).

U

Underwriting:

Means a process undertaken by the insurer to assess the risks of insuring an individual. The underwriting process will provide a decision on whether the application is accepted for the individual and on what additional terms (if any).

Unemployed

Means the covered person is not employed, is not retired, is not about to retire and is not unable to work due to illness or injury.

Unrestricted non-preserved

Money held in your Super account that you can withdraw at any time or use to commence a Pension account.

U.S. Person

Someone with a U.S. residential, postal or fiscal address, phone number, citizenship, Green card or U.S. related proxy.

V

Valid Election

An election made by the Covered Person relating to the insurance cover/s they hold:

(a) after 8 May 2018 and before 1 April 2019, elected in writing to be provided with insurance cover through the Fund (including a request to change or maintain their existing insurance cover); or

(b) from 1 April 2019, elected in writing that cover will continue even if an Active Contribution has not been received in their account with the Fund for a continuous period of 16 months

W

Waiting period

The continuous period of 30, 60 or 90 days as accepted by the insurer, commencing from the date a medical practitioner examines and certifies a covered person is disabled and for which a covered person has to be disabled or partially disabled before a benefit starts to accrue under the policy, subject to the following requirements:

(a) the covered person must be disabled for at least 7 out of the first 12 working days of the waiting period to qualify for a covered person benefit; and

(b) If the covered person returns to work at full capacity during the waiting period, the waiting period starts again unless the covered person returns to work only once and it is for a period of 5 consecutive days or less. If the covered person returns to work only once for a period of 5 consecutive days or less, the number of days worked will be added to the waiting period.

War

Includes an act of war (whether declared or not), revolution, invasion, rebellion or civil unrest

We, us and our

Refers to the Trustee unless otherwise specified.

Y

You or your

The person opening or holding an ING Living Super account.