Freqently Asked Questions - Lost Super
Why Are Benefits Transferred To ISPF?
ISPF is an Eligible Rollover Fund. Small and lost member account balances are transferred to ISPF in order to reduce costs in the feeder fund while at the same time protecting those accounts until such time as they can be merged with your active superannuation account.
What Fees Are Charged By ISPF?
ISPF deducts a fee from members' accounts at the rate of 27.5 cents per week. This fee is limited by member benefit protection rules. Refer to the most recent Product Disclosure Statement for full details on Fees and Charges.
What Is Member Benefit Protection?
Member protection legislation prohibits trustees of superannuation funds from charging administration fees in excess of interest earned on member balances of less than $1000. This protection does not apply to government taxation or indirect fees. Indirect fees (such as the management fees paid to the investment managers) are deducted before the interest crediting rate is determined. Unlike other superannuation funds, Eligible Rollover Funds must protect all members' account balances, even if they exceed $1000. This means that the account balance of a member in ISPF must be protected from erosion by fees or charges, That is, fees or charges cannot exceed the amount of interest credited to a member's account in any reporting period. The only exception to this is for periods where the Fund's total investment earnings to be distributed to members are insufficient to cover the total administration costs to be debited to members' benefits. In this case, each protected member can be charged no more than an amount equal to their investment return plus $10.00.
Are Commissions Paid To Agents?
ISPF does not pay commissions to sales agents or advisers. ISPF is a not-for-profit fund which means that all earnings after operating costs and taxes are returned to members.
What Interest Rates Have Applied To ISPF?
For the year ended 30 June 2006, ISPF has credited interest to member's accounts at the rate of 14 % per annum.
The table below shows the interest rate credited to members, compared with the earning rate, after tax and fees.
| Financial Year Ended |
Interest % Credited to Members |
Fund Earning Rate % |
| 30 June 2009 |
-6.5 |
-8.21 |
| 30 June 2008 |
-10.5 |
-13.3 |
| 30 June 2007 |
16.5 |
17.10 |
| 30 June 2006 |
14.0 |
13.72 |
| 30 June 2005 |
11.0 |
12.25 |
| 30 June 2004 |
7.0 |
7.48 |
| 30 June 2003 |
2.0 |
3.9 |
| Average* |
8.41 |
9.27 |
*"Average" is the compound average of the net earning rates and crediting rates over the most recent 5 years. Past performance is not a reliable indicator of future performance. Future performance depends on various factors including the experience of the investment markets or underlying managers used from time to time. Current assets allocations or managers may be different to past allocatons and managers.
What Is ISPF's Investment Strategy?
ISPF has a 70/30 investment strategy. That means that 70% of assets are invested in growth investments with 30% in defensive assets. Growth assets have a potential for greater returns over the longer period. The investment objectives and strategy is as follows:
Investment Objectives
The Trustee aims to achieve a rate of return which is competitive against a peer group of other Eligible Rollover Funds through investment in a diversified range of assets whilst also maintaining sufficient liquidity to cover all operating costs of the Fund. Earnings are expected to exceed inflation by at least 2% averaged over rolling 5 year periods. However, despite this objective, there may be periods when the net returns, after tax and expenses, are negative.
In making decisions on the asset strategy, the Trustee will have regard to the protection of members' account balances, the Trust Deed provisions and will comply with all applicable legislative requirements. The Fund's investments will be managed to ensure that there is sufficient liquidity to meet expected cash flow requirements.
Investment Strategy
In seeking to achieve these objectives, the Trustee will adopt a diversified asset allocation which will contain defensive assets to ensure stability and liquidity as well as growth assets which have the potential for higher returns over the longer period. Defensive assets include cash, bank bills and other securities which have a lower expected volatility of return but usually offer lower returns in the longer run. Growth assets such as Australian and International shares carry a higher level of investment risk over shorter periods with the possibility of higher returns over the longer term.
The Trustee will invest the assets of the fund in a number of carefully selected specialist fund managers. However, the Trustee does not specifically take into account labour standards or environmental, social and ethical considerations in the selection of fund managers. The international equity portfolio is fully hedged back to Australian Dollars but may be changed at a later time. The Trustee regularly reviews the performance of the fund managers.
Can I Claim My Money From ISPF?
The Government has placed restrictions on when a person can have access to preserved benefits and that person generally cannot access benefits until they reach age 65 or retire after they reach their preservation age (see below for explanation of preservation age).
A member's account balance can be released from the Fund on:
- Retirement after attaining the preservation age
- Permanent Incapacity
- Death
- Transfer to another superannuation fund
- Departing Australia Superannuation Payment (available only on departure of some temporary residents)
Release of benefit on the grounds of Financial Hardship or Specified (compassionate) Grounds is not available. Preserved benefits under $200 can only be released as a rollover to another superannuation arrangement.
What Is My Preservation Age?
A member's preservation age depends on when the member was born. The following table explains this:
| People born |
Preservation Age |
| Before 1 July 1960 |
55 |
| 1 July 1960 - 30 June 1961 |
56 |
| 1 July 1961 - 30 June 1962 |
57 |
| 1 July 1962 - 30 June 1963 |
58 |
| 1 July 1963 - 30 June 1964 |
59 |
| After 30 June 1964 |
60 |
|
