Living Super glossary

A

Account or accounts

This refers to an ING Living Super account. This can either be a super account, transition to retirement account or a pension account.

Active employment

Means a person who is employed by an employer and in the insurers 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

Refers to 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 like). However, 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 fees:

A fee is an activity fee if:

- the fee relates to costs incurred by the trustee/s that are directly related to an activity of the trustee/s:

- 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

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

Administration fees

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; and

- indirect costs that are not paid out of the superannuation entity that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee/s of the entity or in an interposed vehicles or derivative financial product; and

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

Advice fee

A fee is an advice fee if:

- the fee relates 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

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

Application

Means an application to open an ING Living Super account

APRA

Australian Prudential Regulation Authority.

ASIC

Australian Securities & Investment Commission.

B

BPAY®

BPAY® is a registered trademark of BPAY Pty Ltd ABN 69 079 137 518 of Level 4, 3 Rider Boulevard Rhodes NSW 2138, telephone (02) 8252 0500.

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 spreads

A buy-sell spread is a fee to recover transaction costs incurred by the trustee in relation to the sale and purchase of assets of the entity.

C

Capital gains tax

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

Cash Hub

Means your ING Living Super cash transaction account.

Casual basis

Means employed by an employer other than in 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 accounts you hold with ING.

Codes

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

Contribution or contributions

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

Contributions mix

The investment options you choose for your rollover/contributions to be added to and the percentage of each rollover/contribution that will be added to each of those investment options.

Corporate actions

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

Corporations Act

The Corporations Act 2001 (Cth).

Covered person

Means 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

Means 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

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

Defensive assets

Are typically less risk and generally produce lower returns over the long term.

Defined fees guide

The ING Living Super Defined fees guide.

Dependants

In relation to a person, includes the spouse of the person, any child of the person, a financial dependant and any person with whom the person has an interdependency relationship.

Disabled or disability

Means solely 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; and

(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

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

Disability income

Means any 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

Means 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

Refers to the process where your dividends from managed investments are automatically reinvested in additional units in those managed investments rather than providing them as a cash payment.

Domestic duties

Means duties normally performed by a person who remains at home who is not working in regular employment for income; these duties include cleaning the home, laundry, shopping for food, cooking meals, and, where applicable, looking after a dependant.

Duty of disclosure

Has the following meaning; Before we enter into a contract of insurance with the insurer and on any renewal of insurance cover, we have a duty of disclosure under the Insurance Contracts Act 1984 (Cth). To enable us to comply with that duty of disclosure, you have a corresponding duty to disclose to the insurer every matter that you know, or could reasonably be expected to know, that is relevant to the insurers decision whether to accept the risk of the insurance and, if so, on what terms. You have the same duty to disclose those matters to the insurer before you vary or reinstate a contract of insurance. Your duty however does not require disclosure of a matter;

- that diminishes the risk to be undertaken by the insurer;

- that is of common knowledge;

- that your insurer knows, or, in the ordinary course of his/her business, ought to know; and

- as to which compliance is waived by the insurer.

The duty of disclosure continues until the insurer accepts (or declines) your application and issues confirmation in writing. Please ensure that all applicable questions are fully answered.

If you fail to comply with your duty of disclosure and the insurer would not have entered into the contract on any terms if the failure had not occurred, the insurer may avoid the contract within three years of entering into it. For applications accepted from 28 June 2014 onwards, the insurer can exercise the right to avoid the contract even if it would have provided you with cover on different terms.

If your non-disclosure is fraudulent, the insurer may avoid the contract at any time.

An insurer who is entitled to avoid a contract of insurance may, within three years of entering into it, elect not to avoid it but to reduce the sum that you have been insured for in accordance with a formula that takes into account the premium that would have been payable if you had disclosed all relevant matters to the insurer.

The insurer has the same rights if you make a misrepresentation to it.

The insurer is required to treat some policies as comprising 2 or more separate contracts of life insurance and elect whether to apply its rights to each contract separately. For example, death, TPD and income protection benefits may be treated as separate contracts. Additionally, default cover and any additional cover will also be treated separately.

For all cover except death cover received by members from 28 June 2014 onwards, the insurer has the following additional rights if you fail to comply with your duty of disclosure or make a misrepresentation to us:

- elect to reduce the sum insured according to a formula prescribed by the law at any time;

- if we have not avoided the contract or varied the sum insured, we can vary the contract in a way that places us in the same position we would have been if the non-disclosure or misrepresentation had not occurred.

The insurer also has these additional rights for policies issued before 28 June 2014 if it agrees to:

- increase the sum insured; or

- provide additional kinds of insurance cover but only to the extent of the variation.

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

Means 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

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

Exit fees

An exit fee is a fee to recover the costs of disposing of all or part of members' interests in the superannuation entity.

F

Fund

The ING Superannuation Fund ABN 13 355 603 448.

G

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.

GST

Means goods and services tax and is 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.

H

High income earner contributions tax

An additional tax on concessional contributions (non-excessive) where a member has earnings in excess of $300,000 ($250,000 from 1 July 2017) (conditions apply).

I

Illness

Means sickness, disease or disorder.

Income assets

Refers to 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 that growth assets.

Income Means:

(a) If a person 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) If a person is employed on a permanent or casual basis or works as a contractor, income is the total annual remuneration (before-tax and excluding superannuation contributions of 10% or less) earned by them from all regular occupations 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; and

(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 or retirement plans, or 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

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

Indirect cost ratio

The indirect cost ratio (ICR), for an investment option offered by the fund, is 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.

Injury

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

Insurance fee

A fee is an insurance fee if:

(a) the fee relates directly to either or both of the following:

(i) insurance premiums paid by the trustee, or the trustees, of a superannuation entity in relation to a member or members of the entity;

(ii) costs incurred by the trustee, or the trustees, of a superannuation entity in relation to the provision of insurance for a member or members of the entity; and

(b) the fee 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 exit fee, an activity fee or an advice fee.

Insurance premiums

The sum of money paid to purchase insurance against death, total and permanent disability or income protection.

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:

two persons (whether or not related by family) have an interdependency relationship if:

(a) they have a close personal relationship; and

(b) they live together; and

(c) one or each of them provides the other with financial support; and

(d) one or each of them provides the other with domestic support and personal care.

Two persons (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

An investment fee is 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

� costs that relate to the investment of assets of the entity, other than:

(i) borrowing costs; and

(ii) indirect costs that are not paid out of the superannuation entity that the trustee has elected in writing will be treated as indirect costs and not fees, incurred by the trustee/s of the entity or in an interposed vehicle or derivative financial product; and

(iii) costs that are not otherwise charged as an administration fee, a buy-sell spread, a switching fee, an exit 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 how to pay a benefit in the event of your death, as long as the nomination is valid and in force at the date of death. This type of nomination will expire after three years and therefore a new binding nomination needs to be done at least every three years for it to be valid.

Limited cover

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

Listed securities

Investments such as shares, trusts and other types of securities that are available to buy and sell on a public 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. The Cash option, Balanced option and Select category options are managed investments.

Marginal tax rate:

may include the Temporary Budget Repair Levy where relevant.

Medical practitioner

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

(a) a covered person;

(b) a covered persons parent, child or sibling;

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

(d) a covered persons business partner, associate or employee.

Medicare levy

Means all levies payable under Medicare Levy Act 1986 (Cth). This includes for example amounts levied for the National Disability Insurance Scheme.

Minimum hours

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

Monthly income

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

O

Occupation

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

P

Partially disabled or partial disability means a covered person

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

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

(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; and

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

Partial disability monthly benefit

when used in section 9, means a benefit payable in accordance with the following formula:

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

A type of retirement income arrangement under which you invest a lump sum and then draw down an income. With ING Living Super you can establish a Pension account.

Pension

a retirement income arrangement under which an individual invests a lump sum and then draws down an income at regular intervals.

Pension payment days

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

Permanent employment

Means a person is employed 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; and

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

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

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

(e) Is not employed on a casual basis.

Permanent incapacity

Means 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 cant access until you meet a condition of release.

Product disclosure statement (PDS)

the ING Living Super Product Disclosure Statement dated 1 June 2017.

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 credits

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.

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)

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 switching fee for superannuation products other than a MySuper product, is 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 in the entity to another.

T

Tax dependant

A tax dependant includes 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 and a person with whom you were in an interdependency relationship 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: means

(a) Two medical practitioners, one of whom specialises in the covered persons illness, certifies in writing that despite reasonable medical treatment the illness will lead to the covered persons 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 persons death within 12 months of the date of the certification referred to in paragraph (a).

Terminal medical condition: A terminal medical condition is 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 the certification; and

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

Top marginal tax rate:

should include the Temporary Budget Repair Levy where relevant.

Total and permanent disablement cover (TPD): means

(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); or

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

(iii) the covered person through illness or injury and having provided proof to the satisfaction of us 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

(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 is at the date of disablement:

- employed for less than the Minimum Hours; or

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

- Unemployed but 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

- 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; 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 (TTR)

An account that allows you to commence a pension while you are still working. You must have reached your preservation age and you cannot withdraw more than 10% of your account 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 good faith and 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

Means if you have a U.S. residential, postal or fiscal address, phone number, citizenship, Green card or U.S. related proxy.

W

Waiting period

Means 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 an covered person benefit;

(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, our

Refers to the trustee unless otherwise specified.

Y

'You or your' :

the person opening an ING Living Super account.