May 2001
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eTU online |
| May 15th, 2001 | Volume 2, Issue 5 |
eTU online is a e-newsletter for members and supporters who have registered their e-mail address with the union. It aims to keep you informed of the latest developments within your Union.
Please forward a copy to other members or print off a copy for the notice board.
In This Issue
- Occupational Health and Safety Courses
- Connect Superannuation news
- Paid training leave
- Tasmanian News
- The ETU womens support network
- Next edition of eTU online
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Occupational Health and Safety representatives in general industry (not labour hire or contracting) are advised that training courses for representatives have been scheduled.
The courses are conducted by the Victorian Trades Hall Council (VTHC). Costs and times will be advised.
It is anticipated that a brochure will be available for distribution in the next two weeks. Contact Margot Hoyte at the VTHC for further details.
ph (03) 9662-3511
fax (03) 9639-0408
email: ohsunit@vthc.org.au
web: www.vthc.org.au
OHS Week Venues & Dates
Warrnambool
Monday 18 June
Warrnambool Function Centre
163 Timor St
Warrnambool
Ballarat
Tuesday 19 June
The Ballarat Lodge
613 Main Rd, Ballarat
Melbourne
Tuesday 19 June
The Melbourne Convention Centre
John Batman Theatre
Cnr Spencer & Flinders Sts, Melbourne
Bendigo
Wednesday 20 June
Barclay On View Motor Inn
181 View St
Bendigo
Geelong
Thursday 21 June
Geelong West Town Hall
153 Pakington St, Geelong West
Morwell
Thursday 21 June
The Morwell Club
136 Helen St
Morwell
Shepparton
Friday 22 June
The Wyndhamere Motel
65 Wyndham St
Shepparton
| 2. Connect Superannuation news |
Ken Mayes reports that members of Connect Superannuation can now access their accounts online. Members can verify payments have been made to their accounts. Check under member details.
www.connect-super.com.au/frames/frameset.htm
Ken also outlines the benefits of Industry Superannuation.
Low Fees may mean BIG Dollar Savings for you. We compared CONNECT to retail funds.
Retail funds are commercial organizations such as banks and other financial institutions who offer superannuation. Industry funds like CONNECT are superannuation needs of a particular industry.
ALL PROFITS GO BACK TO THE MEMBERS.
It is important to look past all the hype and look at the facts when comparing super funds. One of the most important selling points of any super fund is its ability to generate solid investment returns that will create a generous retirement pay-out for you and your family.
Retail funds spend a lot of money to let you know about their returns. However, as our study below shows, low fees are also extremely important when it comes to the pay out you get from super.
Click here for graphical display (PDF 72Kb)
The above study was commissioned by CONNECT in June 2000. The study assumed a starting salary of $35,000 indexed to Average Weekly Earnings of 4%, Superannuation Guarantee Contributions over a 35 year membership period, an average annual investment return (after tax) of 8.6%, average retail fees of 1.92% and average retail entry fees of 4.08% on contributions (fee comparisons are based on the averages from 12 major retail funds in 2000). The study was conducted by William M. Mercer who is the investment advisor to CONNECT.
Important: When making important financial decisions, you should seek professional financial advice.
The above study is based on the assumption that investment returns of the average retail fund and CONNECT are, and will continue to be the same.
There are no guarantees that this will continue to be the case. CONNECT may have higher investment returns than the average retail fund or they may achieve lower investment returns than the retail average. If the same investment returns over a 35 year period are assumed, the impact of lower fees makes an enormous difference to your super.
The graph shows, if you invest with CONNECT you stand to gain an extra $104,000 at the end of a 35 year period than if you had paid the same contributions into the average balanced retail fund, assuming the same investment returns. Considering how hard it is to earn your money, why not maximise what it can do for you in retirement.
How does CONNECT do it?
One of the main reasons CONNECT has such an advantage over retail funds is its fee structure.
Retail fees v CONNECT fees.
The main superannuation fee you pay for are administration fees, investment management fees and contribution fees. CONNECT's administration fee is a flat fee - so even as your account gets bigger over time, the fee stays the same. This means that as your account increases, the proportion you pay in administration fees decreases. The investment management fees CONNECT pays are wholesale rates which are typically much lower than retail investment management fees. As its assets grow, CONNECT can negotiate lower fees with its investment managers and pass the benefit directly to you.
By contrast, most retail funds combine their administration fee and investment management fee and charge an annual percentage based fee. So as your account grows the dollar percentage based fees increases. Most retail funds also charge a contribution fee that can be up to 4% of every dollar you invest. CONNECT's entry fee is much lower at around 0.8% and represents the actual cost CONNECT incurs to buy and sell assets.
As our study showed, CONNECT's fees could be up to 60% lower than the average retail fund over a 35 year period. More of your money is put to work for you. It's the ability of CONNECT to put marginally larger amounts under investment earlier, that can produce much higher returns later on. The wonder of compound interest over time. Much better than having your money reduced by high fees!
CONNECT delivers because:
- No shareholder's dividends or big advertising budgets.
- More of your money being turned into your retirement payout due to a flat fee structure.
- An awareness of the industry in which you work.
- Portability - if you change jobs within the industry you can keep your super with CONNECT.
- Information delivered in a way that you find easy to understand.
If you have any queries please call the CONNECT enquiry hotline on 1800 025 464 or the CONNECT Field Officer Ken Mayes on 0418 561 727 or email connect@etu.asn.com
| 3. Paid training leave |
The Metal and Engineering and Associated Industries Award was recently varied to include Shop Steward training in the dispute settling clause of the Award.
Shop Stewards will be able to access paid training leave to help them better understand the Award and the Act.
This type of training has been claimed in EBAs and will continue to be claimed.
| 4. Tasmanian news |
The Tasmanian Branch is making great progress and the State Secretary, Kevin Harkins, reports a steady growth in union membership. Recently the branch recruited 50 members at INCAT. This had previously been a non-union shop.
A full report on the goings-on in Tasmania can be found in the Southern Cross newsletter on the Tasmanian page.
| 5. The ETU women's support network |
The ETU women's support network meets each month at the Carlton office. Come and join us for a chat or raise any issue that you may have in your workplace.
Venue:
ETU Building
516 - 520 Swanston Street
Carlton South
Date(s):
24th May
28th June
26th July
23rd August
27th September
25th October
22nd November
December TBA
Time: 5pm - 6pm.
Contact Colleen Polgar on 03 8341 5555 for further information.
| 6. Next edition eTU online |
Thanks for reading this issue of eTU online. You'll receive your next issue on June 5.
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