Welcome to the fifth edition of CEO Online

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

Investment performance

Since inception on 1 July 2005, the performance of the PSSap investment choice options has been impressive. This has reflected a favorable financial environment, in which equity markets have risen strongly due to robust corporate profits growth and low risk aversion amongst investors. As at 31 December 2006, the Trustee Choice default investment option had returned 15.3% per annum (p.a.) since its inception on 1 July 2005, well above its medium term return target of 7% p.a. (that is, 4.5% p.a. in excess of inflation which is expected to average 2.5% p.a. over the medium term).

The other three pre-mixed options have also performed well since inception, with the Aggressive option returning 17.7% p.a., the Balanced option 11.2% p.a. and the Conservative option 8.5% p.a.

For those members creating their own investment mix using our single asset class investment options, performance has generally been strong, with all but the fixed interest and cash options delivering double digit returns.

The fixed interest option’s performance since inception of 3.0% p.a. is low, but reflects a rising interest rate environment and the fact that rising interest rates depress the capital values of fixed interest securities. Overall though, the last eighteen months has seen strong performance figures for the PSSap.

Find out more about investment performance.

Your Half Yearly Statements out now

Shortly you will receive an email or postcard reminding you to check your Half Yearly Statement online.

Your statement includes important information including your account summary and your super performance over the last six months.

It’s easy to access your Half Yearly Statement:

1 Go to our home page (www.pssap.gov.au)

2 Select ‘Your account’, and login securely using your member number (you can find this on your membership card), date of birth and access number

3 Select ‘My statements’ in the left hand menu and choose the December 2006 Half Yearly Statement.

For more information about access numbers read our article below.

PSSap awarded Platinum Rating from SuperRatings

Last December we were pleased to be awarded the Platinum Rating by independent ratings firm SuperRatings for 2006/07.  Platinum is SuperRatings’ highest rating and is awarded to only 15 per cent of the funds they rate.

The Platinum Rating is given to “the best value for money funds operating in a robust, secure and proven governance and risk framework”. Find out more.

Check out our new-look website

In late January we were excited to launch our new-look PSSap website. We’ve redesigned the site to make it easier for you to find the information you need about your super.

To help you find your way around the site we encourage you to take the five minute online tour. The tour not only shows you around the site but also shows you tools for goal setting for retirement, helps you access information to make plans to achieve that goal and also helps you keep track of your super as your lifestyle and financial situation change.

So take a moment to check out our new look PSSap website.

Using your access number online

Your account is a convenient way to help you manage your super online. Here you can check your balance and transaction history, change your details, use calculators and more.

But to access these services you need your member number (you can find this on your membership card), date of birth and access number.

If you do not have an access number email members@pssap.gov.au or call 1300 725 171 and we’ll send you one.

Budget update 2006

On 9 May 2006 the Government announced a plan to simplify and streamline superannuation benefits.

These changes have been passed by Parliament and have an implementation date of 1 July 2007.

One of the key issues arising from the changes relates to the provision of members’ Tax File Number to their super fund.

After 1 July, if you have not provided your TFN to us, any personal (after tax) contributions paid to the PSSap will not be able to be accepted and will need to be returned. Any salary sacrifice (pre tax) contributions and employer contributions will be taxed at the highest marginal tax rate (plus Medicare levy).

If you have not provided your TFN to us, you can do so by calling us on 1300 000 277.

We are currently working on a range of fact sheets with further details about the new simpler superannuation rules. We expect the fact sheets to be available online in late March.

I look forward to reporting to you again soon.

Steve Gibbs

February 2007

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