Processing of contributions and withdrawals
The following section provides information about the circumstances in which we may suspend the processing of contributions and withdrawals. Our current process may differ to the description in your original product terms.
We reserve the right to suspend the processing of all contributions or withdrawals under certain market conditions or extraordinary circumstances, if in our opinion, to continue processing would not be in the collective best interests of members. If the suspension on withdrawals continues for a long period, the Trustee must seek approval from the Australian Prudential Regulation Authority (APRA). Please note that before you rollover, transfer or withdraw a benefit, you can ask us for any assistance or information on anything you are unsure of, including benefits, fees and charges, or the possible effects of rolling over / transferring your benefit.
Identification requirements
TOWER has processes in place to help to prevent unauthorised people from gaining access to your investments. However, there are some steps that individuals can take to help protect their personal information from unauthorised access or use. To view information about steps you can take to help protect your personal information click here. The Anti-Money Laundering and Counter-Terrorism Financing Act 2006 (the AML/CTF Act) requires us to identify you and verify your identity when you withdraw benefits from your policy. Generally, you will need to provide certain documents (such as your passport or current driver's licence) for sighting and verification of your identity. If you do not provide identifying documents we will not be able to pay your benefit. The AML/CTF Act also imposes reporting obligations on us if we form suspicions about the identity of someone we are transacting with or about the transaction itself. In these circumstances we may decide to delay or decline to process that transaction and report it to the regulator if we are concerned that the request or transaction may be in breach of the provisions of the AML/CTF Act or cause us to commit an offence under that Act. If we take this step we will not incur any liability to you.
Unit pricing
The following section provides information about unit pricing. Our current process may differ to the description in your original product terms. We reserve the right to alter our process at any time without notice.
How unit pricing works
When you invest money in a fund, your money is pooled together with that of other members. TOWER then uses this pool of funds to buy assets which are managed on behalf of all members. All units within each unit linked investment option have an equal value. Unit prices for these investment options are determined daily (for each business day) by dividing the total net asset value of the investment option by the number of units on issue within that investment option.
The net asset value of the investment option includes the market value of the assets (including some tax benefits that may arise in the future) and provisions for fees, taxes, transaction costs and any other expenses of the fund. We use the most recent best estimate of these provisions in each day's net asset value. These estimates are updated regularly.
The only options that are not unitised are the TOWER Capital Assured, TOWER Capital Guaranteed and Investment Series C investment options, which credit income via an interest rate.
Benefit payments
TOWER's current procedure is to calculate the withdrawal value using the latest available unit price at the time of calculating the payment. Our current process has been updated and may differ from the benefit calculation procedure in your original product terms.
Adjustments
Unfortunately, from time to time administration or unit pricing errors occur that may affect the value of accrued benefits in the Fund. When a material error has been identified, TOWER will adjust members' accounts as follows:
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for members who are still current, we will adjust your investment to ensure it is in the position it should have been had the error not occurred; and
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for members who have exited, compensation will be paid where the adjustment is $20 or more.
Where an exited member has been overpaid, TOWER may seek to recover the overpayment from the Trustee. In these circumstances, the Trustee reserves its right to recover the overpayment from the exited member.
Fees
We will provide you with at least 30 days notice before introducing any additional fee(s) or before any increases (other than Consumer Price Index increases) to existing fees.
Lost members
The Australian Taxation Office (ATO) maintains a register of 'lost members'. Members may search this register to help trace any superannuation entitlements that may have been transferred to an eligible rollover fund. It is important to ensure that we are always advised of any change of address.
Unclaimed benefits
In some circumstances, your benefit in the Fund may become subject to the unclaimed money laws.
For example, if you reach the prescribed age (i.e. 65 years of age) and a benefit from the Fund is to be paid to you but we have not received any contributions or rollovers into your account in the last two years and, after making reasonable efforts and after five (5) years, we are unable to contact you about the benefit payable, your benefit will be considered as an unclaimed benefit.
We must pay unclaimed benefits to the ATO.
To claim any benefit transferred to the ATO, you or your dependants will need to contact the unclaimed money service of the ATO. The contact details are:
Call 13 10 20
Website www.ato.gov.au
On transfer to the ATO, any benefit entitlement (including any insurance protection benefit, if applicable) that you have in the Fund will cease.
Changes to lost and unclaimed superannuation rules
From 1 July 2010, in addition to the current Unclaimed Monies legislation, the government will require superannuation providers to report and pay the following accounts to the ATO as unclaimed super:
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Lost accounts with balances of less than $200 (small lost member accounts), and
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Lost accounts which have been inactive for a period of five (5) years and have insufficient records to ever identify the owner of the account (insoluble lost member accounts).
Superannuation surcharge
The Government abolished the superannuation surcharge with effect from 1 July 2005. However, if an assessment is still outstanding, the surcharge will be deducted from your account balance. Details of any such deduction will be shown on your Annual Statement.
Approved eligible rollover fund
We are required by superannuation law to select an Eligible Rollover Fund (ERF) to which we may transfer your withdrawal benefit in certain circumstances including if:
Small accounts of $1,000 or less may also be transferred to the ERF. If we pay your benefit to the ERF, you cease to be a member of the Fund and become a member of the ERF. On transfer to the ERF, any benefit entitlement (including any insurance protection benefit) that you have in the Fund ceases. You are able to transfer or withdraw your benefit from the ERF as the governing legislation permits.
The Trustee has nominated the Australian Eligible Rollover Fund as the Fund's ERF. The contact details are:
Australian Eligible Rollover Fund
Locked Bag 5429
Parramatta NSW 2124
1800 677 424