AIMPE

SUPERANNUATION

(updated 24 04 17)

Finergy Solutions have recently provided an update on the latest changes to the superannuation system - AIMPE members may like to consider this advice.

Reductions in concessional Superannuation Contributions allowable

There are a number of changes coming into effect from 1 July 2017 that may impact members’ current strategies. Finergy has created the following emailer outlining these changes and the possible impact it may have for members. Our Super Factsheets will be updated with these changes and available post 1 July 2017 for members via Member Central or directly from Finergy.

 

A summary of the changes are:

 

Concessional (pre-tax) contributions cap

From 1 July 2017, the cap reduces to $25,000 for everyone, previous caps were $30,000 for people 48 or under and $35,000 for people age 49 and over.

 

Tax on concessional contributions for high income earners

The 30% concessional tax rate high income earners has decreased from $300,000 down to $250,000. People earning under $250,000 remain at the 15% concessional tax rate. 

 

Non-concessional (after-tax) contributions cap

From 1 July 2017, the cap reduces to $100,000 p.a. or $300,000 over a three-year period if certain conditions are met. Previous cap was $180,000 p.a. or $540,000 over a three-year period if certain conditions are met.

 

Super Pension Limits

From 1 July 2017, a lifetime cap of $1.6 million applies to everyone. People with existing pensions over $1.6 million will need to reduce their total pension balance

to or below this limit by 1 July 2017 to avoid penalties. Any amount exceeding $1.6 million can be held in an accumulation account.

 

Transition to Retirement Pension

Earnings tax rates from 1 July 2017 will rise from 0% to 15%.

 

If you could send out the emailer below to all staff it would be great (by clicking on the “Learn More” tab it will open up the full update for staff). We have also included this update as an attachment for those staff not on email or should you wish to post on your intranet.

 

Should you have any questions, feel free to contact  one of the team members at Finergy on 1300 071 540.

The MOST fund

The Maritime Officers Superannuation Trust [MOST] is an accumulation style superannuation fund set up by AIMPE in 1990 specifically to provide for casual officers who, prior to that time, were not entitled to any superannuation. MOST originated in the Shipping sector and was then extended to the Offshore Oil and Gas sector.

Contribution rates were originally uniform for all MOST members and were struck at 13% [company] and 5% [member] contributions of an average rate of pay for 3/E on blue-water ships. In recent years many Enterprise Agreements have been negotiated with companies to provide contributions based on actual salary [not the average 3/E figure] and in some cases at higher levels of company contributions.

MOST originally carried insurance cover for Death, Total and Permanent Disablement and Temporary Disablement however this proved too expensive and the Temporary Disablement cover was eliminated. MOST members are automatically covered for Death and TPD but if desired may opt out of this cover – by notifying the Administrator in writing.

MOST is now incorporated within the AMP’s CustomSuper master trust. CustomSuper provide a website which enables members to set up online access to their accounts. To register, MOST members should go to AMP Superannuation and enter the MyPortfolio section to register.

MOST fund members can take advantage of personal superannuation advice from Finergy Solutions - just use the information on the following link:

Contact_Finergy_solutions_for_superannuation_advice.pdf Contact_Finergy_solutions_for_superannuation_advice.pdf (5.40 MB Tue Feb 7 16:15:33 2017)

The MODIF fund

The Maritime Officers Dredging Industry Fund (MODIF) is an accumulation fund similar in nature to the MOST fund. MODIF pre-dated the MOST plan by many years. MODIF has only a relatively few members.

Like MOST, MODIF is managed within AMP's CustomSuper master trust.

MODIF fund members can take advantage of personal superannuation advice from Finergy Solutions - just use the information on the following link:

Contact_Finergy_solutions_for_superannuation_advice.pdf Contact_Finergy_solutions_for_superannuation_advice.pdf (5.40 MB Tue Feb 7 16:15:33 2017)

The AIMPE fund

The AIMPE Superannuation Plan has a history which goes back many decades. It was in part established to cover employers which did not want to operate superannuation funds for their employees. The AIMPE fund also applied to AIMPE employees.

Originally the AIMPE fund was a Defined Benefit scheme with benefits caculated on a formula taking into account length of membership of the fund and final average salary. The Defined Benefit section of the fund is now closed to new members and the majority of members of this fund are now in the accumulation section which is similar to MOST.

The AIMPE fund is now part of the "SignatureSuper" scheme.

Superannuation Advice

AIMPE has engaged with the Finergy Solutions company to provide members of the three funds with financial advice.

Members can take advantage of personal superannuation advice from Finergy Solutions - just use the information on the following link:

Contact_Finergy_solutions_for_superannuation_advice.pdf Contact_Finergy_solutions_for_superannuation_advice.pdf (5.40 MB Tue Feb 7 16:15:33 2017)

In addition, Finergy has provided information sheets on the following subjects:

Superannuation contribution limits Finergy_Superannuation_contribution_limits.pdf Finergy_Superannuation_contribution_limits.pdf (553.75 KB)

(Note new contribution limits will apply from 1 July 2017)

Nomination of beneficiariesFinergy_Nominating_a_beneficiary.pdf Finergy_Nominating_a_beneficiary.pdf (2.95 MB)

Salary sacrificeFinergy_Pay_your_super_before_you_pay_your_tax.pdf Finergy_Pay_your_super_before_you_pay_your_tax.pdf (402.89 KB)

Consolidation of superannuationFinergy_Consolidate_your_super_.pdf Finergy_Consolidate_your_super_.pdf (1.99 MB)

InsuranceFinergy_Insurance.pdf Finergy_Insurance.pdf (2.96 MB)

Co-contributions for low income earnersFinergy_Boost_your_super_with_the_government_co-contribution.pdf Finergy_Boost_your_super_with_the_government_co-contribution.pdf (2.04 MB)

CONTACTS

Finergy can be contacted at:

enquiry@finergy.com.au
or 1300 071 540

The contact person at AMP is Wendy Ho:

Wendy_Ho@amp.com.au

The toll free number for AMP is 1300 653 456


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