June 2017

86 APAC / June 2017 , 1701AP29 We’re in It Together As part of our CEO of the Year coverage, we spoke to Paul Cahill about Club Plus Super, which was established in 1987 for employees of registered and licensed clubs. Paul was the long- standing CEO the firm, until he stepped down in early 2017. Club Plus Super was set up back in 1987 for employees of registered and licensed clubs. Today, the fund has roughly 100,000 members across Australia, with more than $2bn under management and is open for all investors, no matter what type of employment they are in. Paul Cahill became the firm’s inaugural CEO in 2007, after performing the same role in the Australian Meat Industry Superannuation (AMIST) for 16 years. Paul begins by detailing the firm’s ethos, what superannuation is and why it is a great investment. “We believe we’re in it together and that the success of the fund depends on the success of its members. By combining the very latest products and technology with a ‘good-old-fashioned’ approach to customer service, we remain by your side with personalised education and financial advice to support you through the different stages of your life. “Superannuation is your hard- earned money, and someday you’re going to need it. So, it’s important to ensure you understand how it works and how you can make the most out of it. On the Superannuation Guarantee (SG), as an eligible employee, super is compulsory and forms part of your overall pay. Your employer must pay a minimum 9.5% of your ordinary time earnings (OTE) as a contribution to a complying super fund like Club Plus Super. This is called the Superannuation Guarantee (SG). “I do believe that Super is a great investment. What makes super so special is the way in which investment returns are taxed. Unlike other comparable investments, which are typically taxed under marginal income tax rates (as high as 45%), the investment returns of your super fund are generally taxed at only 15%. This low rate of tax means your super can potentially grow in value at a faster rate than other investments invested in the same assets. When you contribute to super, your money is pooled together with those of other fund members and invested by professional fund managers.” Typically, super funds like Club Plus Super, have several different investment options, each with its own investment strategy. Paul goes on to enlighten us further on this point and explains when and how you can access your super. “Depending on what options you choose, your money can be invested in Australian and international assets including shares, property, fixed interest and cash. They can be invested primarily in a single asset class, say, Australian shares, or they can be invested in a diversified mix of asset classes, for example, the MySuper / balanced option which contains a range of different asset classes including shares, property and fixed interest. “You can access your super when you reach age 65, or when you reach ‘preservation age’ (see table below) and retire and under the rules of a ‘Transition to Retirement’ pension (if you are eligible). “You may also be able to access your super under the following special conditions: financial hardship (conditions apply); compassionate grounds, e.g. to cover medical treatment, funeral expenses or to prevent foreclosure on your home; total and permanent disability; terminal illness; you are a temporary resident departing Australia permanently; your benefit is less than $200 and you leave your employer and when you take out a transition to retirement pension if you are aged 55 or more and continue to work.” If you die, your super is generally paid to your nominated beneficiary. If you have not nominated a beneficiary, the fund trustee will decide where your benefit goes. Club Plus Super also offers members the ability to make a ‘binding death benefit nomination’. Paul reveals more about this in his own words as well as offering his concluding thoughts on keeping your money in the super system. “A binding death benefit nomination is a written direction to the trustee of Club Plus Super, that allows you to state who you want to receive your benefit payment upon death. With a valid binding death benefit nomination in effect at the date of your death, the trustee must pay your benefit to the beneficiaries you have named in the percentages you have allocated. “Once you meet your preservation age or one of the conditions of release above, you have three options available to you: you may keep your funds in a super account and withdraw a lump sum from time to time; you may roll over your funds to an account based pension and receive regular payments (like an income stream) or you can simply withdraw the funds. “Keeping your money in the super system can be a very tax-effective approach, but the advantages will depend on your overall situation. If you need any assistance with your super investment, insurance or pension or are interested in attending one of our free educational seminars please contact Club Plus Superannuation on 1800 680 627.”