Sponsors News - Cbus
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CEO welcome

Welcome to the May edition of Cbus Sponsor News.

Investment returns

Cbus investment returns to the end of April 2014 remain strong with the Growth (Cbus MySuper) returning 11.96%* FYTD, maintaining our place in top ten of the SuperRatings SR50 Balanced Index.

Cbus Growth places in the SuperRatings top ten for the rolling 10, 7, 3 and 1 year periods demonstrating sustained performance for members.

*Based on the crediting rate, which is the return net of investment fees and taxes and the Trustee Operating Cost. This does not take into account the administration fee of $1.50 per week. Past performance is not a reliable indicator of future performance.

Budget

The recent Commonwealth Budget announced moving pension age out to 70 by 2035 and raised debate about potential moves in the superannuation preservation age.

The Superannuation Guarantee (SG) will increase to 9.5% from 1 July 2014 with the Government announcing a pause in future increases for SG for the next three years.

For more information visit the Cbus News – Budget special

Industry inquiries

There are a number of inquiries underway in the superannuation industry. Cbus has been actively participating in the:
  • Productivity Commission Inquiry into Public Infrastructure
  • Fair Work Australia review into Default Superannuation in Modern Awards, and
  • Financial Systems Inquiry (FSI)
Insurance contract renegotiation

Over the last six months Cbus has been in negotiations to secure a new insurance offer for members. The insurance market has tightened and we have seen a number of other superannuation funds increasing their premiums over the last 18 months. Driving this increase is the significant growth in TPD claims by members.

Cbus’s focus has been on securing the best possible deal for members, including maintaining current coverage levels. This is the first increase in premium in 15 years, and over this time Cbus has achieved significant enhancements in coverage for members.

By now, members will have received communication about their new premium rates. To ensure members understand the changes to their coverage, communications has been personalised to show members current premiums and new premiums from 1 July 2014.

If members would like to discuss their insurance cover or change their current level of insurance they are invited to contact the Service Centre on 1300 361 784 between 8am and 8pm Monday to Friday.

Privacy

Recent Fairfax media reports have alleged possible breaches of Cbus privacy policies in regard to the release of members’ personal information to sponsoring organisations.

Cbus takes these allegations very seriously and the Cbus Board has authorised an immediate internal investigation, to be overseen by KPMG.

The Fund is very aware and supportive of the need to respect the confidentiality of members’ personal details and we have moved to strengthen safeguards over the information while the investigation is proceeding.

We are also aware of our responsibilities to ensure members’ superannuation entitlements are paid and our work on arrears payments has seen us recover around $340 million in members’ funds since 1991.

As usual, if there is anything you’d like to speak with me about, don’t hesitate to make contact.

Please read on for further Fund updates.

Yours sincerely

David Atkin
Chief Executive Officer, Cbus
  
 
 
  Staying with Cbus  
 

As part of the Cbus Retention program, we are proactively communicating with exiting members whose employer chooses to make another super fund their default.

A comprehensive set of materials have been developed, so members are fully aware of their companies changing circumstances and provided with material on how they can stay with Cbus.

Members in this situation can expect to receive:

  • a personalised letter and choice of fund form
  • an email with the same correspondence
  • an SMS a week later advising members how they can choose to stay with Cbus.
Cbus will follow members up three months after the initial correspondence in the event we haven’t received a payment.

This interaction will remind them of the value of their membership.
 
      
 
Marketing campaigns at a glance

ATO SuperMatch

12,111 members who were identified as having multiple super accounts were contacted by Cbus about consolidating their super.

Of these, 2,395 rolled funds into Cbus, bringing in $35m.

Electronic payment for employers

From 1 July 2015 employers will only be permitted to make superannuation payments electronically via a clearing house.

Cbus has commenced an education campaign amongst employers with over 20 employees to transfer them across to electronic payment over the next year.

The Cbus campaign kicked-off in March 2014 and as at 1 May, a total of,1,671 employers had registered on the Cbus Clearing House.^

Over 60% of these employers are already submitting their employee super payments using the clearing house.

These submissions accounted for 33,000 Cbus members and over $18 million dollars in April.

^The Cbus Clearing House is provided by Westpac at the request of Cbus.
  
 
 
 
 
  Getting financial advice closer to home  
 

Cbus is embarking on a program to make getting financial advice more convenient.

In conjunction with the Financial Planning Association of Australia, Cbus members will be able to visit financial planners located right around Australia.

So for members living in rural or outer-suburban communities, a number of highly qualified financial planners will be promoted by Cbus to members.

This means members can get advice locally, without having to travel to capital cities.
 

 
      
 
 
  Online rollover  
 

Getting your super together has been made a whole lot easier for Cbus members.

Members now have the option to go online and complete the process, including identification verification.

The online rollover function was launched on 14 April with 46 roll in requests received on the second day alone!
 

 
      
 
 
Cbus Self Managed is coming
Cbus will soon be introducing our new investment option, Cbus Self Managed. 

Cbus Self Managed has been developed in response to Cbus members calling for more control of their super.

Advertising has begun to appear in sponsoring publications promoting Cbus Self Managed and the initial response has been very positive.
  
 
 
Self-service for members has arrived
Cbus has launched a new self-service model for incoming phone calls, allowing members to ascertain the following information whenever they want (even when the Service Centre is closed):
  • account balance enquiries
  • requests for recent member statements
  • updating TFN details.
This initiative is expected to result in around 10% of members using the self-service model when they phone Cbus.
  
 
 
Cbus is turning 30!
  Cbus is turning 30 in July this year.

To recognise the path travelled and how we have evolved as a Fund, Cbus will be communicating with members around the issue of getting financial advice – and the benefit of our members who’ve taken advice over our 30 years.

Stay tuned for more updates on this project.
 
  
 
 
Cbus Property
  To support the Cbus Property value proposition with our members, a new ‘Built by us’ website has been launched.

The website displays real-life stories of Cbus members working on Cbus Property sites.

The site features the latest news about the 1 William Street, Brisbane development and will also include updates from the 50 Flinders Street, project in Adelaide from June.

‘Built by us’ is linked to the Cbus Property website.
 
  
 
 
Mother's Day Classic
  More than 70 Cbus staff and their families and friends took part in the recent Mother’s Day Classic.

The Cbus team raised $16,550 for breast cancer research.
 
  
 
 
 
Web: www.cbussuper.com.au
Phone: 1300 361 784
Fax: (03) 9657 4201
Cbus'Trustee: United Super Pty Ltd
ABN 46 006 261 623 AFSL 233792
Cbus ABN 754 933 63 262
Cbus
 
  This information is about Cbus. It doesn't take into account your specific needs, so you should look at your own financial position, objectives and requirements before making any financial decisions. Read the Cbus Product Disclosure Statement to decide whether Cbus is right for you. Contact 1300 361 784 or visit www.cbussuper.com.au for a copy.  
 

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