Questions and answers

What has changed?

The PSS Board (which managed the PSSap and the PSS and their corresponding Funds) and the CSS Board (which managed the CSS and its corresponding Fund) have merged into a single Trustee called Australian Reward Investment Alliance (ARIA) which:

This creates a simplified, sustainable and more effective governance structure.

Will there be any change to members' entitlements and benefits?

It's obvious there is no need to change the strengths of the PSSap benefit structure, and your benefits and entitlements will remain the same. The PSSap and its corresponding Fund will continue to be managed in accordance with the Superannuation Act 2005.

But, over time, your Scheme will benefit through cost-efficiencies. For example, by managing the PSSap, PSS and CSS Funds through a single investment Trust, the PSSap will benefit from greater economies of scale. This reduces transaction costs.

Why make the change?

The superannuation environment in Australia and our own framework has undergone a huge change over the past few years, with financial services reform, increased regulation and Choice of Fund. Our existing structure, in combination with that of the CSS Board, created duplications which meant that super arrangements for Australian Government employees would not have been sustainable or cost-effective in the long term.

It was obvious that we had to adapt in order to continue to meet members' needs into the future.

A simplified, sustainable and more effective governance structure will have a positive effect on investment returns and therefore members' benefits over time. It brings the Funds in line with the Australian Government's response to the 2004 Uhrig Report which outlined best-practice corporate governance principles for the public sector.

Through cost-efficiencies, simplification of outdated complexities and improved governance, ARIA will help ensure the Australian Government's superannuation arrangements continue to meet its employees' and employers needs into the future.

Is there any disadvantage to having the three Funds managed through a single Trust?

No. Our principal responsibility remains the same, to manage the three separate Schemes and invest their corresponding Funds to maximise the benefits to members in accordance with their respective legislation:

Each Scheme's individual focus will be retained.

Isn't this just about more cost saving for the Government?

No, this is about cost saving for members. A simplified, sustainable and more effective governance structure will have a positive effect on investment returns and therefore members' benefits over time.

Who will manage ARIA?

ARIA is managed by Trustees who were previously members of the PSS Board, the CSS Board or both .

The Trustees are responsible for all aspects of the management of your Scheme including administration, investment strategy and member communications.

There will be no change to the method of appointment of Trustees by the Minister for Finance and Administration.

There are seven Trustees of ARIA - three nominated by the employer (the Australian Government), three nominated by the Australian Council of Trade Unions (ACTU) and the Chairman is independent.

Meet the Trustees

Why change the name?

We conducted discussions and research with members, employers, key Government Departments, as well as our administrator, custodian and staff. Their feedback showed it would have been too confusing to use the name of one of the Schemes and too cumbersome to call ourselves the PSS/CSS/PSSap. We were encouraged to create a name that better reflected our purpose and role:

The ARIA logo uses the seven points of the Federation Star to illustrate your super lifecycle - we will be with you from small beginnings through growth to retirement

Have members and employers been informed?

As soon as the details were developed and the relevant legislation was submitted to Parliament in March 2006, we advised members and employers with announcements on their website and e-newsletters. The Minister for Finance and Administration, Senator Nick Minchin, also issued a media release in March.

The legislation was passed in June. We are now posting this Question and Answers webpage to provide more information. We will keep it updated with any additional questions which might be useful to share with all members. We will also provide information about ARIA to members' in their 2006 ANNUAL REPORT which will be distributed in September. Employers will receive information in their regular newsletter EMPLOYER NEWS.

Have the industry regulators been informed?

The Australian Prudential Regulatory Authority (APRA) and the Australian Securities and Investments Commission (ASIC) have been briefed on all relevant issues.

We are also accountable to the Minister for Finance and Administration and his Department. The Minister is responsible for the Superannuation Acts which govern our Schemes. The Minister has been fully involved in the process and we are very appreciative of his support, and that of his Department.

Who is paying for this change?

Establishment of a single Trustee entity will be funded from the administration charge paid by the Government. The use of a single investment Trust will be facilitated by appropriate taxation relief.

We believe that the long-term benefits to members of this change significantly outweigh the limited initial costs involved.

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