6. What happens when I permanently cease employment in the meat industry?

Once employment ceases, eligibility for membership of the Scheme also ceases. On your last day of employment visit your pay office to complete and sign your “Benefit Calculation Request” form. Payroll will send the form to Mercer. Check the form shows your current address and, if applicable, confirm with your pay office that your Scheme benefit should be paid into your personal bank account in your own name (the same bank account that your wages are paid into). If you wish to defer receipt of your benefit until a later date, please request that your pay office ticks the “Leave benefit in Scheme” box on your exit form. The exit form is still required to be sent to Mercer. Mercer will write to you and advise your benefit amount and how to claim the funds at a future date. As noted in the answer to question 21, “Can I transfer my funds to KiwiSaver?”, you also have an option to transfer 100% of your account balances to KiwiSaver. If you choose this option, a second page needs to be completed.

7. How long will it take for my benefit to be paid?

Your benefit cannot be paid until your final contributions have been received and processed by payroll. Most payrolls only remit contributions to Mercer monthly and once the contributions have been remitted, Mercer needs time to process the contributions before processing your benefit. This means that depending on when in a month you leave, your final benefit will be paid up to four to five weeks, and in some cases, up to six weeks after your last day of employment.

8. What investment return do I get if I leave the Scheme during the year ended 31 March 2024?

When a benefit payment is made, “interim interest” is applied to your account balances for the period from the last completed review (31 March) to your date of exit. The rate of interim interest is calculated each month based on the actual returns achieved by the investment managers, less tax and a provision for certain expenses. Until the Scheme’s actual return is known each month, a weekly proxy interest rate is applied to your account balances if you leave during the Scheme year before the relevant monthly interim investment return has been calculated.

With effect from 22 June 2022 a weekly proxy interest rate based on the Mercer Super Trust Moderate Fund has been introduced. The expense deduction is currently 0.30% per year (or 0.025% each month). Interest rates can be highly volatile and can be positive or negative. The cumulative interest rates for the Scheme year to 31 March 2024 are shown on page 7 of the Annual Report.

9. Can I be paid my benefit while I am still employed in the industry?

The Scheme is designed to assist you to save for your retirement. You can only be paid your benefit when you leave the meat industry for good, or when you reach the age of 65 if you request payment of your benefit.

10. What happens when I reach age 65?

If you reach age 65 and you are still working in the meat industry, you will have the following options:

(a) You can ask for your retirement benefit to be paid to you from the Scheme or transferred to your KiwiSaver scheme. If you elect this option, you will be paid your benefit in cash (or your benefit will be transferred) and your membership of the Scheme will cease and your insurance cover (if any) will also stop.

(b) You can continue as a member of the Scheme, in which case your contributions and your employer subsidy will continue for as long as you remain in employment, and your insurance cover (if any) will continue until the earlier of you ceasing to be employed in the meat industry or reaching age 69.

You will have three months from when you turn 65 to decide whether you want your retirement benefit to be paid. If you don’t make an election within those three months, then your membership will continue until you permanently cease employment within the meat industry. The Scheme Administrator will write to you before your 65th birthday to explain your options. Please advise your pay office of your decision.

11. Do I have to take my benefit out of the Scheme when I retire or leave the industry?

No. If you don’t want to take an immediate cash payment, you may elect to defer receiving your benefit. In this case, your benefit will be held in the Scheme. An investment return will be credited or debited, and expenses will be deducted from your Deferred Benefit until you elect to withdraw your benefit. You may draw down from your Deferred Benefit, subject to rules set by the Trustees from time to time. The following rules apply at present:
• withdrawals are limited to four per year;
• withdrawals must be for a minimum of $1,000 per withdrawal;
• a minimum balance of $3,000 must remain after a withdrawal (unless you withdraw the total amount).

You will be charged a fee (currently $20) for each withdrawal, and this will be deducted from your Deferred Benefit. The fee can be reviewed by the Trustees. This facility will provide you with an ongoing tax-paid investment, or an opportune time to defer and withdraw your benefit at a later date if investment returns have been low or negative. If you are considering deferring your benefit, you should seek advice from your regular Financial Adviser.

12. Will my benefit from the Scheme be subject to tax?

No. When your benefit is paid, it is not subject to tax.

13. Who is the death benefit paid to?

If you die while you are a member of the Scheme, your death benefit will be paid to your Dependant(s) or personal representative, at the discretion of the Trustees.

A Dependant (as defined in the Scheme’s Trust Deed) is any person who you have nominated in writing to the Trustees (your nominated Beneficiary), or any other person whom the Trustees consider was wholly or partly dependent on you. The Trustees would like to know your wishes in this regard, and ask that you nominate the person(s) that you would like to receive this benefit. It is important for you to make sure your nomination(s) are kept up to date, particularly if your circumstances change. Copies of forms for changing your Beneficiaries can be obtained from your Union Secretary or your pay office, and there is a tear-off slip at the bottom of your Annual Confirmation enclosed with this Annual Report.

The Trustees also recommend that you make a Will and keep it up to date. If you have a Will, the Trustees recommend it includes details of your nominated Beneficiaries for your death benefit.

14. If I nominate someone as my Beneficiary, can I be sure that the Trustees will pay the death benefit to that person?

Not necessarily. While the Trustees are obliged to consider your nomination, they will also make enquiries to see whether your circumstances have changed since you made your nomination, and determine whether any other person should be included as a Beneficiary or Dependant. The Trustees will also take into account other factors including their legal obligations. If your Annual Confirmation does not show a Beneficiary, please complete the tear-off slip and return it to Mercer at the address on the form. If you have a Will, the Trustees recommend it includes details of your nominated Beneficiaries for your death benefit.