We've compiled some key questions to support you through the migration. If you can’t find your answer here, contact us.
The migration process
All managed and listed investments will be migrated as an in-specie transfer without any assets having to be sold or repurchased.
Whilst clients are migrating from one product to another, there is no change to the super fund or service operator, therefore no capital gains tax event will occur. All investment options that clients hold will be migrated as an in-specie transfer without any assets having to be sold or repurchased. As a result, clients will not incur any CGT consequences.
Existing pricing arrangements for clients in all migrating products (excluding LifeTrack) will either be maintained or reduced.
LifeTrack account fee structure consisted of administration, account keeping, expense recovery & expense reimbursement fees. We have simplified & standardised our fee structure to an administration and account keeping fee. For a small number of clients this has resulted in a fee increase, as the fees previously paid were very low. We have capped the fee increase at $150 pa, and usual Protecting Your Super rules apply. All clients will receive an indication of their post-migration fees in their Significant Event Notice letter. For further details, please contact your Client Solutions Manager.
Where managed funds and listed securities are currently held, each tax parcel will be transferred separately to the new account with relevant CGT cost base information attached. Although assets will be transferred, not sold and re-bought, the transaction histories for both old and new accounts will show “sell” and “buy” transactions respectively with the same unit/asset cost, as at the migration date, for each of the parcels.
Yes. We will provide margin lenders with new account details following migration. All existing margin loans will be transferred without any action required by adviser or client, and without any change in the terms and conditions of their existing margin loan.
There will be a transaction freeze prior to the migration to ensure there are no pending transactions at the time of migration.
No, only open accounts will be migrated. Closed accounts including historical transaction information will be available via Portfolio Online until the second half of 2022.
Yes, there will be a transaction freeze period to support the migration. The freeze period will be a temporary suspension on transactions to support the migration of data and assets. Withdrawals, contributions, transfers, and trade instructions will be temporarily suspended prior to the migration and until the migration has been completed.
If you decide to transfer prior to the migration, you will be required to complete and submit an application form for the new account before the 22 October transfer freeze.
If you do decide to transfer prior to the migration, any pensions will be classified as a new pension for Centrelink purposes.
Term deposits and annuities cannot be transferred between accounts prior to migration ie. they must be broken and the cash proceeds can be transferred.
Super and Pension Members
Contributions received after the transaction freeze on 2 December but before migration will be held in the Cash Account until migrated. Contributions received for new eXpand or IOOF Essential accounts after migration will be applied to the new account. Contributions received in December, but after migration for closed accounts will be applied by our ClientFirst team to each member’s new account.
As soon as possible after members receive their Welcome Letter, they should provide their contributing employer with the new fund & account details provided.
All existing pensions will continue. There will be no change to pension payment details and no impact on members’ Centrelink/ Department of Veteran's Affairs benefits.
Pension clients that are currently paid twice-monthly on the 14th and the 28th of each month will be paid on a fortnightly basis, with payments made every second Tuesday. The first fortnightly payment will be on 7 December 2021. The total annual payment will be the same amount as your existing pension payment.
Going forward, pension clients on fortnightly payments will receive either 26 or 27 payments depending on the number of Tuesdays in the year. As a starting point, we will keep annual pension amounts the same, meaning a slightly lower payment per fortnight compared to the 24 payments under a twice-monthly arrangement. We wrote to pension clients early in July confirming their 2021-22 pension amount (noting that pension minimums will be reverting to pre-Covid levels from 1/7/2021) and providing clients the opportunity to change the amount. Pension payments on frequencies other than fortnightly will continue at the current rate and frequency.
All death benefit nominations made by members through their existing product will be transferred to their new account. This includes expired nominations where a binding nomination has lapsed and become non-binding. The types of death benefit nominations offered by the Trustee and the terms under which they operate will remain the same.
We will report new account details to Centrelink but the transfer of your clients’ pensions will be treated as a continuation for social security purposes. As a result, there will not be any impact on clients’ Centrelink/ Department of Veteran's Affairs benefits or deeming. Clients do not need to advise Centrelink of their new account details.
Clients will receive confirmation of the migration including their new account details and closure of their previous account. This will be in the form of the following:
An Exit Statement from previous account
An Exit Statement from the previous account
A Welcome Letter (including new account number and how to register for online access)
A Welcome Letter (including new account number, Choice of Fund form and how to register for online access)
A Welcome Letter (including new account number, Centrelink Schedule and how to register for online access)
A final Quarterly Statement from the previous account
2021/22 Tax Statements for the previous and new accounts
2021/22 Annual Statement for the new account
We may require your assistance to ensure that your clients’ information is up to date before migration, and will contact you directly if required.
To further support you and your support staff, we are developing a series of demo videos to show you how to maximise the benefits of IOOF Online.