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Welcome to the seventeenth edition of CEO Online  

In this edition, I'll bring you up-to-date with:

Investment performance

PSS default Fund

From 1 July 2003 to 21 April 2006, the estimated performance (after adjustments for tax, fees and the reserve) is 40.10%. This translates to a daily compound exit rate of 0.032939 for exits from 26 April 2006.

PSS Cash Investment Option for preserved benefit members

From 1 December 2004 to 21 April 2006, the estimated performance (after adjustments for tax, fees and the reserve) is 6.67%. This translates to a daily compound exit rate of 0.012742% for exits from 26 April 2006.

Remember that past performance is no indication of future performance. Returns are volatile and it is impossible to predict when they will go up or down.

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 our Product Disclosure Statement .

Find out more about your Fund's investment performance, investment strategy and Cash Investment Option for preserved benefit members.  

A single governance structure

On 29 March 2006, the Minister for Finance and Administration introduced the Superannuation Legislation Amendment (Trustee Board and other Measures) Bill 2006 into Parliament.

This will allow the PSS and CSS Boards to merge into a single Trustee entity, creating a simplified, sustainable and more effective governance structure which does not require any change to the three individual Schemes (the PSS, CSS and PSSap).

The simplification of the existing governance structure will deliver improved cost-efficiencies through consolidation of the two current Boards into a single Trustee and the use of a single investment Trust through which to manage the three separate Funds.

New global fixed income manager

The PSS Board, in conjunction with the CSS Board, has appointed Brandywine Asset Management as a global fixed income manager.

Brandywine joins three other independent firms who between them manage both the PSS and CSS funds' 18% strategic allocation to fixed interest. The other firms are Mondrian (previously Delaware ) International Advisers Ltd, Blackrock Financial Management Inc, and Bridgewater Associates.

These four firms represent a diversification of investment styles to tap into different sources of excess returns and thereby maximise the likelihood of consistently strong returns.

Rule changes for distribution of earnings for preserved benefit members

If the Superannuation Legislation Amendment (Superannuation Safety and Other Measures) Bill 2005 is passed by the Parliament, it will enable the Board to allocate more equitably fund earnings between members who leave the Scheme during a period of negative earnings and those who stay.

We took the first step in a transition phase towards more equitable distribution of earnings with the changes to the crediting and exit rate policies in 2004 , which took effect from 1 July 2003.

The Bill represents the next step in this transition phase, however even if the Bill is passed this year it will not be possible to make immediate changes as administrative capabilities will need to be assessed, and upgraded if necessary.

We'll keep you posted on progress.

For more information, go to the full story.

Transition to retirement arrangements

The Government is currently considering if their transition to retirement arrangements can be offered to PSS members.

At the present time, these arrangements do not apply to PSS members as our Rules require that a member must cease their employment before any benefits can be paid.

We will keep you posted on any changes to the existing arrangements.

For more information see the facts about transition to retirement.

Email service for members

Research we conducted shows that more than 70% of members prefer to receive information by email, yet many are not aware that we have been offering an email service for some time.

If you would like to receive important updates on your super by email, simply send us an email or call us on 1300 000 377 and provide your email address.

Now is the time to let us know your current postal address, so we know where to send your Annual Member Statement

If you have not already done so, please supply us with your current postal address so we know where to send your Annual Member Statement and report this year.

This is particularly important if you have moved or changed jobs in the last year. You can update your address via Member Services Online (if you have an Access Number), send us an email or call us on 1300 000 377.

To ensure you receive your Annual Member Statement this year, please supply your contact details by 31 July 2006.

I look forward to reporting to you again in the new financial year.

Steve Gibbs

May 2006