[ :: CBUS Super - Cbus News April 2006

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If you have any feedback about the content of the newsletter please email Gordon Noble at gnoble@cbusmail.com.au.

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Choice on the Way for State Award Employees

The Federal Government has introduced legislation to override state awards to require that employers that are constitutional corporations are required to offer their employees choice as to which superannuation fund compulsory superannuation contributions are to be paid to from 1 July 2006.

Cbus wil provide more clarification on what employers will need to do to satisfy choice rules for employees previously covered by state awards once the Australian Taxation Office issues formal guidelines.

To download a pre-populated Standard Choice Form click here.

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Research Shows Industry Super Funds Outperform Master Trusts

Research commissioned by Industry Funds Services (which is part owned by Cbus) and undertaken by Rainmaker Information has revealed that in the workplace super sector, where the employer plan size is $10 million, industry super funds delivered $19.00 of earnings for every dollar of fees taken out over a one year period compared to master trusts that delivered only $9.00 per dollar of fees. (Source: Rainmaker Information, Members Net Benefit Survey December 2005)

Over a three year period industry super funds delivered $17.80 per dollar against $8.20 for master trusts while over a five year period the ratio was $12.40 to $5.40.

According to Rainmaker Information the main reasons that industry super funds outperformed master trusts was due to lower fees, investment out-performance and the fact that industry funds tended to have a higher proportion of growth assets in their portfolios.

The Rainmaker Information study reviewed 94 funds covering $188 billion of funds for 10 million member accounts. This included 38 industry funds, 31 corporate master trusts and 24 personal master trusts.
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Education

Going Online with your Cbus Account

Cbus members are able to get online access to their Cbus accounts.

Members can check their estimated current account balance, view details of each contribution to the account since the last statement, view rollovers into account since last statement, check insurance beneficiaries, investment options and address details.

To access accounts online members need to obtain a PIN (Personal Identification Number) from Cbus Administration. To obtain a PIN members can ring Cbus Administration on 1300 361 784 between the hours of 8:00 am and 8:00 pm (EST).
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The Alternative to Self Managed Super Funds

Information released by the Australian Taxation Office reveals that many Australians are paying exorbitant fees to run their own self managed super fund.

According to answers to Questions on Notice supplied to the Australian Parliament from the Commissioner of Taxation in the 2003-2004 financial year the average cost of managing a Self Managed Super Fund with a balance of $50,000 - $100,000 was in the range of 2.2% - 4.5%, for $100,000 to $200,000 the cost was 1.7% to 3.5% while for funds of between $200,000 and $300,000 the cost was 1.9% to 2.9%

According to the Investment and Financial Services Association's February 2006 Investment Trends Self Managed Super Funds Report, 28% of self managed super funds have balances of less than $100,000 and the average cost of running a SMF is $3,500. IFSA's research cites the main reasons for establishing a SMF as including greater control over investment decisions and costs and concern about the poor performance of existing super funds.

Cbus has introduced a new product Cbus Self Select to provides an alternative for those who want greater control of their super without the costs and hassles of running their own self managed super fund.

Cbus Self Select gives members access to a diverse range of investment options including individual investment managers and the top 100 ASX listed companies. Cbus Self Select's cost structure is related to the account balance with larger account balances having a lower percentage administrative fees. The minimum investment for Cbus Self Select is $50,000. For more information on Cbus Self Select click here.

To download a Cbus briefing on Self Managed Super Funds click here.

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Other Issues

Manchester Unity Health Insurance Discounts for Cbus Members

Cbus and Manchester Unity have tailored a range of health cover options to meet the needs of Cbus members and their families, whatever their lifestage. Manchester Unity offers members of Cbus extra value health cover with:

Reduced rates
No waiting on some benefits usually requiring six months membership
No waiting on some extras usually requiring two months membership.

Like Cbus, Manchester Unity returns all profits to its members through improved services and benefits.

To go to the special Manchester Unity website for Cbus members click here.

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Cbus is the industry superannuation fund for the building, construction and allied industries. It is also a 'public offer' fund, able to offer membership to anyone working in any occupation and any industry. Cbus is managed solely for the benefit of its members. All profits belong to them, and Cbus pays no commissions to sales agents and no shareholder dividends. Complaints should be directed to "The Complaints Officer, Cbus Administration, Locked Bag 999, Carlton South, Vic, 3053.

P: 1300 361 784 (8:00 am to 8:00 pm EST) • F: 1300 361 794 • Cbus, Locked Bag 999, Carlton South, VIC, 3053 • www.cbussuper.com.au

Important Information about this Newsletter:

This newsletter contains general information about superannuation, Cbus and the products available to Cbus members and employers. It doesn't take into account your specific needs so you should look at your own position before making any financial decisions. You should read the Cbus Product Disclosure Statement or the Product Disclosure Statement relating to the product to determine whether it is right for you. See above for contact details or click on the Cbus website and go to the Publications Section.

Cbus' Trustee: United Super Pty Ltd, ABN 46 006 261 623 AFSL 233 792.