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Feature Article

Introducing new rates for Term and TPD insurance
Effective 1 February, TOWER is introducing new rates for Term and TPD insurance. The good news is that in most cases rates will be reduced. While it’s a little late for Christmas, we are sure you and your clients will remain pleasantly surprised!

View the pdf for more details »

Life Insurance Cover for TOWER’s range of Legacy Investment Products

When TOWER’s range of Legacy Investment and Superannuation products closed to new business, they remained operational for existing Members and continued to accept contributions as per the applicable product rules.

Although most benefits and conditions remained, from the closure, date new life insurance riders were no longer accepted for existing policies. Instead, life insurance cover became available only via an alternative stand alone life insurance policy.

Advisers were previously informed of this business rule via the issue of a TOWER Information Memorandum (TIM) as each product closed to new business. The TIM outlined that although Members with existing insurance cover could request increases to that cover; new requests for insurance riders could no longer be accommodated.

This is a reminder that any new requests for life insurance cover for your clients within the following products be submitted in line with the above business rule:

  • Assurety Plans
  • Blue Ribbon Executive
  • Blue Ribbon Plus
  • Blue Ribbon Series
  • BMA Foundation Plan
  • BMA Growing Dollar Plan
  • BMA Super Flex
  • Investment Account Series B
  • Investment Account Series C
  • Master Assurety Plan
  • Passport Superannuation
  • Personal Superannuation Plan
  • Private Superannuation Plan
  • Preferred Choice Personal Super
  • Regular Premium Plan
  • Regular Premium Plan Super
  • TOWER Retirement Account
  • Unit Linked Regular Premium
  • Unit Linked Regular Premium (Ex FPLA)
  • Assurety Bond (APS
  • Assurety Superannuation Bond
  • Capital Guaranteed Plan
  • Easy Super
  • Superannuation Rollover Master Plan (SRMP)
  • Blue Ribbon Executive Ordinary
  • TOWER Savings Account
  • Blue Ribbon Investment Series - Ordinary
  • Blue Ribbon Plus Ordinary
  • Unit Regular Premium Ordinary
  • BMA Growing Dollar Plan Ordinary
  • BMA Foundation Plan Ordinary

If you have any further queries in regards to this information, please contact Adviser Services on 1800 226 364.

Understanding the Importance of Protection

As part of our objective to better manage and enhance our routine customer communications we have developed a brochure to be included with certain Anniversary and/or Renewal Notices.

The objectives of this brochure are to:

  • reinforce the customers' purchase decision
  • sell TOWER insurance product successes
  • advise the available payment options
  • detail information around insurance statistics
  • provide a claimants' testimonial

Implementation of this brochure is effective 16 January 2006 for a 6 month period, following which the brochure will be reviewed and/or updated for the next 6 month period.

At this stage the brochure will be issued as part of the Anniversary and/or Renewal Notice pack to TOWER Protection Plan policyholders only. Similiar communications are being developed during 2006 for customers of our other insurance products.

View a sample brochure »

If you have any questions please contact your Sales Manager or Natalie Kleibert from Sales Marketing.

Superannuation Contribution Splitting

The Government recently introduced Regulations allowing certain superannuation contributions to be split between member and spouse accounts. The move is designed to maximise superannuation benefits for families and make superannuation a more attractive savings vehicle.

TOWER is working towards offering superannuation contribution splitting on the ARC Master Trust with a view to having this feature up and running for contributions made from 1 July 2006. If you would like more information on what superannuation contribution splitting is, please see the Super Fast Facts section of TOWER Talk or contact one of our Adviser Service Consultants.

Super Guarantee Contributions cut off dates

Cut off date

5:30pm 30 January 2006

This is the last day for SG contributions to be made for Quarter 2 (1 October – 31 December 2005).

Cheque

Original cheques and completed documentation must be received at TOWER by 5.30pm 30 January.

BPAY Internet

Contributions received via BPAY Internet must be entered by 30 January.

BPAY Phone
(not available for ARC Corporate Superannuation)		 Contributions received via BPAY Phone must be entered by 30 January.
New Applications All new applications must be received by 30 January.

Please note, the Government has introduced changes to cases where an employer pays a quarterly superannuation contribution late to a superannuation fund or retirement savings account.

For more information, visit the ATO website »

Updated Pension Valuation Factors for pensions commencing on or after 1 January 2006

The Government has updated to the minimum and maximum Pension Valuation Factors for new pensions or annuities commencing on or after 1 January 2006. These changes are to bring the valuation factors in line with current life expectations and to increase the certainty that our clients will not outlive their retirement savings.

ARC Allocated Pension Plan
There is a transitional period for any new ARC Allocated Pension commencing from 1 January 2006 to 30 June 2006. During this time, old Pension Valuation Factors will be used to calculate the value of these pensions. From 1 July 2006, these pensions will automatically be revalued using the new Pension Valuation Factors.

TOWER is currently communicating this to our clients via a supplementary Product Disclosure Statement (PDS).

Changes to annuity and pension products commencing before January 2006

The Government has introduced some recent changes applicable to annuity and pension products that commenced before January 2006.

For members of a TOWER annuity or pension product that commenced before 1 January 2006, the Maximum Pension Valuation Factor for age group 80 to 100+ has changed from 0 to 1. This is to give these clients the option of drawing down the entire account balance at any time during the year.

Which products are affected?
 The following TOWER annuity and pension products will be affected by this change.

Annuities

  • Advance Asset Deferred Annuity
  • Assurety Deferred Annuity
  • Blue ribbon Deferred Annuity
  • Cap-Guaranteed Deferred Annuity
  • Deferred Annuity – Unit Linked
  • Deferred Annuity – Unit Linked (MultiBond)
  • Growth Bond Deferred Annuity
  • Macquarie Bond
  • Prestige Deferred Annuity Bond
  • TOWER Allocated Annuity
  • TOWER Managed Deferred Annuity
  • TOWER Unitised Annuity
  • Unit Linked Deferred Annuity
  • Unit Linked Deferred Annuity (MultiBond)

Pensions

  • TOWER For The General Public Deferred Pension
  • TOWER For The General Public Pension
  • TOWER Superannuation Fund Allocated Pension

Any questions? If you have any questions or require further explanation, please see our Superannuation Fast Facts section of TOWER Talk or contact one of our Adviser Service Consultants on 1800 286 937.

This document has been prepared to be used by financial planners and advisers only. It is not to be provided to individual clients. The information contained in this document is general information only and cannot be considered to be financial advice. The information does not take account of the investment objectives, financial situation or particular needs of any particular client. To the extent permissible by law, TOWER Australia Limited (ABN 70 050 109 450, AFSL 237848) and its related companies (TOWER) specifically disclaims any liability that may arise for any direct, indirect, incidental, consequential or special damages that may arise from the access to or use of this document. No liability is accepted by TOWER for errors and omissions or for loss or damage suffered as a result of reliance on this document.

 

Super Fast Facts

  1. Transition to Retirement
    The ATO has recently released a fact sheet titled ‘Transition to Retirement’ which assists with strategies to access superannuation benefits once preservation age has been reached.

  2. Super Contribution Splitting
    The ATO has recently released fact sheets on superannuation contribution splitting for Superannuation Funds and Individuals. These fact sheets outline the basic facts on what contribution splitting is, who is eligible, which contributions are able to be split and other general information relevant to each party.

    ‘Superannuation Contributions Splitting - Super Funds’ fact sheet »

    ‘Superannuation Contributions Splitting - Individuals’ fact sheet »

  3. Regulations to implement outcomes of review of Pensions in Small Superannuation Funds
    Regulations have been released which update Pension Valuation Factors to bring in line with current life expectancy and improve flexibility of market linked pension products. These regulations are an attempt to enable retirees to better manage their income needs and increase certainty that they will not outlive their retirement savings.

    Read the Press Release ».

  4. New Centrelink Rates
    Centrelink has released updated rates effective 1 January 2006 to 19 March 2006.

  5. Superannuation late payment offset
    The government has introduced changes to the superannuation guarantee law to provide some relief from penalties incurred when superannuation guarantee contributions are paid to the superannuation fund shortly after the quarterly cut-off dates.
    Find out more on relief from double payments »

Canberra Corner

There are many changes made to legislation that may affect you and your clients month to month.

Read the latest changes »

Further Information

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