Where are you at with your super?

QIEC Super Merger with NGS Super - Member FAQs

QIEC Super (and its former super funds) have been caring for our members’ retirement needs for nearly 30 years.

QIEC Super considers that it needs to look beyond being a stand-alone fund and in the interests of our members has chosen NGS Super as a merger partner.  NGS is a larger like-minded industry fund specialising in the non-government education sector and community focussed organisations.

You may have many questions as to how the merger between QIEC Super and NGS Super will affect you, so we have developed a number of questions and answers to assist your understanding of the process.

Please review and if you have any further questions please contact us on 1300 360 507 or email on info@qiec.com.au.  Alternatively, you can contact one of our dedicated team of Client Services Managers who are able to visit your workplace.

 

Questions and Answers

General

QIEC Super is merging with NGS Super.

NGS Super is the leading industry super fund for those working in non-government education, mutual finance and community focused organisations. NGS Super is open to all* and have approximately 98,000 members.  They have low fees, award-winning insurance and provide their members with quality education and affordable financial planning advice.

You can find out more about them on their website at: ngssuper.com.au

* NGS Super is a public offer fund meaning that family members and friends are able to join the Fund.

The Trustees of NGS Super and QIEC Super believe that the merger will be in the best interests of the members of both funds. 

QIEC Super is a strong and respected superannuation fund in Queensland. As a like-minded fund with aligned values and a similar heritage serving the non-government education and community services sectors, it has a strong cultural fit with NGS Super.

The merger will see Fund assets increase to around $10.3 billion and membership increase to around 125,000.

The larger merged Fund will be well positioned to offer members improved products and services at sustainably low Industry Super fund fee levels.

This merger is a positive and exciting step for members. The larger merged Fund will have a stronger presence in the superannuation industry with greater bargaining power with service providers, and we expect to gain benefits from the merger that will underpin new products and services we can offer members in future.

The merger will take effect in May 2019, subject to the successful completion of comprehensive due diligence and risk assessment being undertaken by both parties.

NGS Super will be the “Successor Fund” therefore it is expected that QIEC Super members will automatically transfer to a new QIEC division in NGS Super. 

All members and assets of QIEC Super will transfer to NGS Super at the merger date.

The QIEC brand will be a sub-division of NGS Super and you will continue to receive services aligned to the unique requirements of QIEC membership.

At the merger date, QIEC Super member will  have access to all the benefits and features of NGS Super members including:

  • Access to all of NGS Super’s investment options.
  • an immediate reduction in the administration fees (weekly member fee and asset based fee) deducted from your account.
  • Continuation of servicing from experienced Client Services Managers.

You do not need to do anything now.

Over the coming months as we get closer to the official merger date, we will provide further updates on the progress and what exciting changes you can expect post-merger.

In addition, 90 days prior to the merger date, each QIEC Super member will receive a Significant Event Notice.  This is a detailed document advising members of the merger and how it affects them.  At this time you may be required to take action depending on your circumstances.

No, we will liaise with your employer and provide updates on the progress of the merger.

One of the efficiencies of merging QIEC Super and NGS Super is that members in both funds will be able to bring their superannuation into a single Fund with aligned values and a similar heritage. 

Initially your two accounts will remain separate.  Following the merge, we will contact all members we identify as having two accounts to enquire whether they would like to combine their superannuation accounts.

You can use the independent Chant West Apple Check tool to compare NGS Super. Access  to the Chant West Apple Check tool is available on the NGS Super website by simply selecting either:

  • Super Apple Check, or
  • Pension Apple Check

Yes, the NGS Super Board will add two representatives from the current QIEC Super Board; one employer representative and one member representative.

The individuals filling these roles will be confirmed prior to the merger.

Investments

We will match your current investment options to the closest similar option within the NGS Super suite of investment options (in terms of objective, strategy and risk).

Prior to the merger date, each QIEC Super member will receive a Significant Event Notice, it is within this document that we will advise you how your current investment option(s) will be mapped to the investment options in NGS Super.

Yes, NGS Super does offer a socially responsible investment option.  Details of the investment options currently available with NGS Super are available in the Product Disclosure Statement (PDS), the Investment Guide and the Fees, costs and tax fact sheet available on the NGS Super website.

QIEC Super use weekly crediting rates to apply investment earnings to your account.  However, NGS Super currently use weekly unit pricing.

What is unit pricing?

Unit prices provide an estimated snapshot of what your super or pension investment option is worth at a specific point in time.

Any contributions into your super account ‘buy' a number of units in your chosen investment option(s) based on the unit price when the contribution is received. The opposite happens, however, if any money is deducted, or you receive a pension payment. Any deductions from your account (including administration fees) ‘sell' a number of units in your chosen investment option based on the unit price when the request is received.

The unit price for each investment option moves up or down, depending on the performance of the underlying investments contained in each portfolio. The value of your super is the number of units multiplied by the unit price for the investment options you are in.

For example, if you have a super balance of $10,000 and the unit price for the MySuper option is $1.00, you will have 10,000 units. At the end of the financial year, if you still have 10,000 units and if the unit price has increased to $1.10, you will have an account balance of $11,000.

The unit prices are normally determined weekly, at the close of business each Friday. The value of all the assets at that time is calculated over the next few days and then posted on the website usually on the following Wednesday.

An advantage of unit pricing is that this method is considered to be more tightly and explicitly tied to movements in underlying assets at the end of each unit pricing period than crediting rates.  A consequence of this is that the matching of members’ liabilities and their supporting assets may be more tightly monitored and managed.

Ultimately, both crediting rate and unit pricing methods are a means to the same end: the appropriate distribution of investment earnings to members.

NGS Super Diversified (MySuper) investment option was in the top ten performing funds for 2017/18.

For specific investment option performance over 1, 3, 5 and 10 years refer to the Investment Performance Summary available on the NGS Super website.

Insurance

We are currently negotiating with our insurers to secure the best insurance arrangement for members and will advise when this can be confirmed.

Yes, you can continue to change your insurance arrangements in QIEC Super at any time up to the merger date.

The 2018 Federal Budget outlined proposed changes to default insurance arrangements that can be offered by superannuation funds. If the legislation is passed by the Parliament, the proposed changes will come into effect shortly after the merger date and may affect the insurance benefits which can be provided after the merger date.

We are currently negotiating with our insurers to secure the best insurance arrangement for members and will advise when this can be confirmed.

No, your payments will not be impacted by the merger.

Binding Death Benefit Nominations cannot legally be transferred between super funds.

If you have a Binding Death Nomination we will contact you prior to the merger as you will need to complete and submit a new Binding Death Nomination form to NGS Super after the merger date.

Your non-binding (preferred) beneficiary nomination will be carried across to your new NGS Super account. You do not need to take any action.

Your reversionary nomination will be carried across to your new NGS Super account. You do not need to take any action.

Education and Financial Planning

QIEC Super members can continue to contact the QIEC Super Client Services Managers.

NGS Super and QIEC Super are currently working through the staffing impacts of the merger. We understand the value of personal relationships and will ensure you continue to receive the personalised and high level of service you rightfully expect from the Fund.

All members will be welcome to take advantage of services provided under both QIEC Super and NGS Super brands, this includes the member education services offered from time to time.

QIEC Super members can continue to seek financial advice through QIEC Financial Planning by calling 1300 360 507.

There are still aspects of the merger to be finalised. We will provide further updates in due course.

QIEC Super is legally unable to transfer a third-party authority across to another super fund.

Any third-party authority, including to allow a financial planner to access account information or for a power of attorney to give account instructions to QIEC Super, will lapse at the merger date. A new third party authority will need to be set up with NGS Super post-merger.