21 June 2006 update

The Superannuation Legislation Amendment (Trustee Board and Other Measures) Bill 2006 received Royal Assent on 9 June 2006.

Update: 31 May 2006

The Superannuation Legislation Amendment (Trustee Board and Other Measures) Bill 2006 was passed by Parliament on 29 May 2006 and, subject to Royal Assent, will take effect 1 July 2006.

PSS and CSS Boards support Australian Government super merger

The Public Sector and Commonwealth Super Schemes' Boards have unanimously supported a Bill which will see the two entities merged into a single governance structure.

The Superannuation Legislation Amendment (Trustee Board and other Measures) Bill 2006 has been introduced to Parliament and will, on passing, enable the Boards to create a simplified, sustainable and more effective governance structure. Read the announcement from the Minister for Finance and Administration, Senator Nick Minchin.

The proposed new structure will deliver improved cost-efficiencies through consolidation of the two current Boards into a single Trustee (called Australian Reward Investment Alliance) and the use of a single investment Trust through which to manage the three separate Funds (the CSS, PSS and PSSap). The simplicity of the proposed new structure means that cost-efficiencies will be achieved without any change to the individual structures of the three Schemes.

Chairman of the PSS and CSS Boards, Susan Doyle, states: "A simplified governance structure will greatly enhance our ability to serve the interests of members.

"It will enable us to manage more effectively the administration of the three Schemes and investments of their corresponding Funds, and therefore strengthen our ability to focus on the needs of members in each specific Scheme.

"This is a rational response to the new superannuation environment which has emerged over the past few years with financial services reform, increased regulation and choice of fund. It enables us to eliminate outdated complexities to ensure the Australian Government's super arrangements are in line with best-practice governance standards and can continue to meet its employees' needs into the future.

"We are very appreciative of the support provided by the Minister for Finance and Administration and his Department."

29 March 2006