This edition, I'll be bringing you up to date with:
- investment performance including preliminary end-of-year results
- your annual member statement pack for 2005
- super surcharge
- transition to retirement
- new phone and email for information about your PSS super
Investment performance
PSS contributing members are largely unaffected by investment performance. However, I know members find it useful to understand how super investments work over the long term.
It's been another solid investment year for your fund. Although audited figures are not yet finalised, the default Fund is estimated to have earned 13.5% after tax and fees, well above the target return of 7% per annum over the long term. This gives the default Fund a three-year performance rate of 10% also above the 7% target.
The Fund's investment performance continues to compare favourably with most other superannuation funds. The asset consulting firm Intech produces a comprehensive survey of Australian superannuation fund returns. The PSS return over the last three years ranks in the top ten of the 64 growth funds in the Intech survey. (CEO note: Intech results were updated on 13 September 2005)
In the seven months since it was introduced, the Cash Investment Option for preserved benefit members has earned 2.7% after tax and fees in line with our target of 3.3% before tax and fees.
The ongoing performance of the default Fund and Cash Investment Option is below.
Please remember that past performance is no indication of future performance - returns are volatile and it is not possible to predict when they will go up or down, or how quickly this will happen.
PSS default Fund
From 1 July 2003 to 9 August 2005, the estimated performance (after adjustments for tax, fees and the reserve) is 28.80%. This translates to a daily compound exit rate of 0.032947% for exits from 11 August 2005.
PSS Cash Investment Option for preserved benefit members
From 1 December 2004 to 5 August 2005, the estimated performance (after adjustments for tax, fees and the reserve) is 3.24% . This translates to a daily compound exit rate of 0.012861% for exits from 10 August 2005.
Find out more about your Fund's investment performance, investment strategy and Cash Investment Option for preserved benefit members.
If you are planning to retire or claim your benefit in the next 12 months, please call us on 1300 000 377 for a detailed estimate of your benefit; and read ABOUT WITHDRAWING YOUR BENEFIT in the our Product Disclosure Statement
Keep an eye out for your annual member statement pack
If we have your current personal postal address details by the end of August, your statement will be posted directly to you in October. Otherwise it will be sent to you via your employer.
If you haven't yet provided us with your current personal postal address and you'd like the convenience of having important information about your super sent directly to you in the future, you can provide (or update) your address details by:
- using the secure Member Services Online area (if you have an active Access Number);
- emailing your postal address, name, membership/AGS number and date of birth to members@pss.gov.au; or
- calling us on 1300 000 377.
Super surcharge
Legislation to abolish the superannuation contributions surcharge was passed in the new Senate on 10 August 2005, and will apply from the 2005/2006 financial year onward.
Members whose adjusted taxable income was more than the lower threshold of $99,710 in 2004/2005 will still be subject to surcharge and the maximum rate for that period is 12.5%.
Find out more at the ATO's surcharge information page online or call them direct on 13 10 21.
Transition to retirement
The Government has announced that the new transition to retirement measures cannot yet be offered to PSS members.
The Government is considering what options may be available in the future but it is a complex issue because of the defined benefit nature of the PSS and its largely unfunded status.
We will keep you informed of any changes.
New phone and email for information about your PSS super
We will soon be announcing new phone and email contacts dedicated to PSS members. We will send you the new contact details in your annual member statement pack.
I look forward to reporting to you again soon.
Steve Gibbs
August 2005
