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 on 6 May 2019, with QIEC Super members transferring into a QIEC Super division within 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.

During the week commencing 25 February 2019, QIEC Super will begin distributing a Significant Event Notice (SEN) to members via email or post depending on their communication preferences.

It is important that you read this document carefully as some members will need to take action immediately prior to, or following the merger. Pages 26-33 of the SEN outline what is changing and what you may need to do. Members who need to take an action will also receive a letter from QIEC Super prior to the merger date outlining the action in detail they may need to take.

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.  Patrick Ponting and Terry Burke have been nominated by their respective organisations to be the Directors on the Board of NGS Super from the merger date, subject to satisfaction of NGS Super's Board fitness and properiety requirements.

Your online access will be available as “read only” from the commencement of the limited service period i.e. 5pm on 24 April 2019.

Yes, on merger your membership number will change. However, your existing membership number will become a “9” digit number and will be prefixed by the numbers “44”. Depending on how many digits are in your current membership number “0s” will be used after the “44”. For example if your number is currently 12345 from merger date it will become 440012345.

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

From the merger date, some of the benefits that QIEC Super members will see:

  • Some immediate benefits such as an immediate reduction in the administration fees deducted from your account. The Weekly Fixed Administration Fee will decrease from $1.75 to $1.25 per week for Accumulation and Transition to Retirement members (see page 13 of the SEN). Income Stream members will see their Weekly Fixed Administration Fee decrease from $2.00 to $1.25 per week (see page 16 of the SEN).
  • The indirect administration fee that is deducted from investment earnings prior to determination of the crediting rates/unit price will reduce by up to 0.20% of your account balance. For those members with an account balance of $500,000 this means the fee will be capped at $500 per annum.
  • Removal of the exit fee on all withdrawals;
  • Removal of the investment switching fee; and
  • Access to the additional investment options available through NGS Super.

More information about the fees and costs following the merger can be found on pages 13-19 of the Significant Event Notice (SEN).

In order to prepare for the transfer of member account balances to NGS Super, transactions on your QIEC Super account will be limited for a period of time beginning 5pm AEST on 24 April 2019 until the merger date. Following the merger, NGS Super will also experience a period of limited service, with some transactions and account updates unable to be processed from 6 May to 26 May 2019 inclusive.

Services that will be unavailable or partially restricted during the QIEC Super limited service period:

  • Member Online access will be “read only” from 5pm AEST on 24 April 2019
  • Contribution and rollover processing will be receipted up to 2 May 2019
  • Investment switches will not be processed after 5pm AEST on 24 April 2019
  • Account updates (i.e. name, contact details, beneficiary, contribution splits etc) will be updated up to 5pm AEST on 3 May 2019
  • Withdrawals will not be processed after 5pm AEST on 24 April 2019
  • Insurance changes
  • Underwriting requests will not be processed after 5pm AEST on 24 April 2019
  • Claims processing will cease at 5pm AEST on 2 May 2019

Incomplete work will be forwarded to NGS Super’s administrator, Mercer, for processing after the limited service period is over on 26 May 2019.

Up to and including 3 May 2019, queries should be directed to QIEC Super Client Contact Centre on 1300 360 507.

From 6 May 2019, queries should be directed to the NGS Super Customer Service Team on 1300 133 177.

If you would like to split you super contributions for 1 July 2018 to 3 May 2019 and/or the 2017/2018 financial year, QIEC Super will need to receive your completed Contribution Splitting Form by 5pm AEST on 24 April 2019. If QIEC Super does not receive your request by this time, your request will be unable to be processed.

For contribution splitting for the period on or after 6 May 2019, you will be able to request a split of eligible contributions paid to NGS Super in the financial year that follows the financial year the contributions were paid i.e. you will be able to split contributions paid to NGS Super for the period 6 May 2019 to 30 June 2019 after 1 July 2019.

You can claim a tax deduction for your personal contributions made to QIEC Super by giving notice to QIEC Super pre-merger, or by giving notice to NGS Super post-merger.

If you would like to claim a tax deduction for your personal contributions made to QIEC Super before the merger, you will need to complete a Notice of intent to claim or vary a deduction for personal super contributions Form and return it to QIEC Super by 5pm AEST on 24 April 2019.

If you would like to claim a tax deduction for your personal contributions made to QIEC Super after the merger, you will need to complete the Notice of intent to claim or vary a deduction for personal super contributions form available on the NGS Super website. You will need to lodge this notice by the earlier of:

  • the day you lodge your income tax return for the year that the contributions relate to; or
  • the end of the income year following the year in which the contributions were made.

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.

Following the merger on 6 May 2019, NGS Super will remove their investment switch fee to enable members to make investment switches at no additional cost.

Insurance

Following the merger, TAL Life Limited will be the insurer for Death, Total and Permanent Disablement and Income Protection cover. However, if you are currently in receipt of income protection benefits through CommInsure, this will continue through CommInsure. Similarly if you suffer an injury or illness prior to the merger date, in most cases this will still be assessed by CommInsure.

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

If you have existing Death, TPD or Income Protection at the merger date, it will be transferred to your new NGS Super account as a Fixed Cover amount. The sum insured will remain the same but the insurance fees change each year on your birthday. For members aged 61 and over, your fixed amount of TPD cover will taper off gradually.

The terms and conditions of cover will be similar but there are some differences which should be noted, as contained within the Significant Event Notice in Appendix 3 –Summary of Key Insurance Terms and Conditions (page 60). The fees will also be different from merger date and the applicable fees can be found in the Premium Rates – QIEC Super Transitioning Members Factsheet.

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. At the date of the merger, NGS Super will engage QIEC Super’s Client Services Managers to continue to service members and employers based in Queensland.

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.