Welcome to the second edition of CEO Online  

In this edition, I'll discuss:

Investment performance

We are very pleased with how the PSSap investment choice options are performing. Most financial markets have risen strongly this financial year and as at the 27 th of April the "Trustee Choice" default fund had returned 16.1% since its inception on 1 July, well above its medium term target return of 7% per annum.

The other three pre-mixed options are also performing very well with the aggressive option leading the way with a return of 19.2% followed by the balanced option's 11.3% and the conservative option's 8.3%.

For those members who have chosen to mix their own option our single strategy options are also generally performing well with all but the fixed interest and cash options delivering double digit returns.

The fixed interest option's performance of 1.7% is disappointing but reflects the rising interest rate environment we are in and the fact that rising interest rates depress the capital values of bonds. All in all though, it has been a very promising first year of life for your new fund.

Find out more about investment performance.  

Making contributions to the PSSap - your choice

While your employer must make contributions to your super account on your behalf, you also have the choice to make contributions to your PSSap account.

Your employer contributes at least 15.4% of your superannuation salary and you may choose to top this up with either a personal (after tax) contribution or as a salary sacrifice which you may be able to arrange with your employer.

In making a choice about contributing you should remember that your retirement income may have to last for 20 years or even more, so it is important that you have adequate super for when you retire.

We can't advise you on whether you should make contributions or how much super you will need for retirement, but we do encourage you to consult a licensed professional, such as a financial adviser, to help you with advice that takes into account your personal objectives, financial situation or needs.

It's worth a visit to the website of the Association of Superannuation Funds of Australia (ASFA) to check research it has done on how much you will need in retirement. ASFA also has a calculator you can use to work out how much you should put aside each year to achieve your retirement target.

For more information, see Contributing and transferring.  

Australian Government Super Co-contribution

To help people on low income (currently lower than $58,000 per annum), the government contributes up to $1.50 for each $1 you contribute up to a maximum of $1500. This is called the Super Co-Contribution.

Find out more, see Contributing and transferring.  

Transferring to the PSSap

Many of you have super with other funds, but more and more members are transferring their super into their PSSap account. This makes a lot of sense, because having all your super in the one place has some clear advantages.

To start with, you can avoid paying unnecessary fees on your extra super accounts. There's no point paying extra fees when superannuation is about saving.

By consolidating your accounts in the PSSap you can save time as well. With only one statement to read and one fund to keep track of, you have more time for the other important things in your life.

Find out more in Contributing and transferring.

Membership grows

Since opening on 1 July 2005, the membership of the PSSap has reached more than 15,500 members with new applications being processed at around 1,000 a month.

Following is a checklist of key considerations which lets you see, in brief, how the PSSap stacks up. All these considerations are covered in more detail in our Quick Guide and Product Disclosure Statement :

If you would like more information about any of our services please call us on 1300 725 171.

Keeping up-to-date with your super

We will send you a 'member update' email whenever we have important news to pass on, or to alert you to the publication of the next edition of CEO Online. The object of the update is to help you become more familiar with our website and the benefits of using online access to see how your super nest egg is growing.

By entering your access number in Your Account you can:

Do we have your current contact details?

Please check Your Account to be sure we have your current contact details. To access Your Account you will need your 10 digit membership number and your access number. If you have mislaid your access number please call us on 1300 725 171 .

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


Steve Gibbs
May 2006

 

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