Notice date: 12 November 2019
Nature of event or change:
1. Reduction to your insurance premiums – effective 1 December 2019
We regularly complete a comprehensive review of the insurance arrangements offered through Virgin Money Super. Following the review of the insurance policies and premiums, OnePath Life Limited ABN 33 009 657 176 AFSL 238341 (OnePath) has been re-appointed as the insurer for Death, Total & Permanent Disablement (TPD) and Income Protection (IP) cover for another three years. Effective from 1 December 2019:
- Premiums for Death, TPD and IP cover will be decreasing. The premium rates are decreasing by about 21% for Death Only cover, 22% for Death & TPD cover and 20% for IP cover. The cost of insurance cover (if any) will continue to be deducted from your account balance at the end of each month.
- As a Virgin Money Super customer, if you hold insurance in your super account, there is no change to the way your insurance cover is calculated, and how the cost is paid.
Both the new and current insurance premiums can be found in Schedule A.
2. Changes to Lifestage Tracker investment option and Choice investment options - effective 1 January 2020
Virgin Money Super offers a range of investments, which have different investment styles or asset classes, including a LifeStage Tracker investment option and a range of Choice investment options.
The LifeStage Tracker investment option is an age path option based on the year of your birth. Each LifeStage Tracker age path aims to outperform the Consumer Price Index (CPI) by a certain percentage each year, for a certain time period.
Looking ahead, we believe economic growth will continue to be slow with investment returns generally expected to be lower than in recent years, particularly with respect to defensive investments such as fixed interest investments, which are sensitive to the low interest rate environment.
For this reason, to enhance the probability of the investment options meeting their investment objectives, effective from 1 January 2020 we will be:
- Increasing the growth allocation by 5% for all LifeStage Tracker age paths;
- Amending the investment objectives for a number of the LifeStage Tracker age paths; and
- Increasing the growth allocation by 5% for the Enhanced Index Growth and Enhanced Index Conservative Growth investment options.
You find details of changes to your asset allocation under the ‘Asset Allocation Table’ in Schedule B.
Full details of both of these changes are included in the Notice.
If you are a customer with Virgin Money Super and have questions regarding how these changes might affect your super please call the Customer Care Team on 1300 652 770.