Superannuation
Until 30 June 2007, the Government Superannuation Office was responsible for delivering the superannuation output. This included providing advice, products and services and administering legislation relating to the management of superannuation for Queenslandpublic sector employees. The Government Superannuation Office administered the QSuper Fund (State Public Sector Superannuation Fund), the Parliamentary Contributory Superannuation Fund and the pension entitlements of judges. This output reports on managing the State's superannuation investments and reserves through QSuper and helping members achieve financial security in retirement. From 1 July 2007, the Government Superannuation Office changed as outlined below.
Vision
As a leading Australian superannuation fund, QSuper will be recognised for our contribution to the quality of each member's life through low fees, real service, better knowledge and solid returns.
Structure
- Under Treasurer, Gerard Bradley
- Deputy Under Treasurer, Tim Spencer
- Chief Executive Officer, Rosemary Vilgan
- Chief Strategy Officer, Don Kofoed
- General Manager, Investment Services, Adam Walk
- General Manager, Fund Development, Karen Waldon-White
- General Manager, Strategy, Paul Smith
- Chief Operating Officer, Helen Coyer
- General Manager, Technical Services, Lyn Melcer
- General Manager, Operations, David Wood
- General Manager, Insurance Management, Barry Cook
- General Manager, Member Services, John Sawtell-Rickson
- Chief Financial Officer, Cliff Kaye
- Acting General Manager, Information and Communications Technology, Baden Sharples
- General Manager, Finance, Peter Lockington
- Manager, Corporate Administration, Bronwyn Ash
- Chief Strategy Officer, Don Kofoed
- Chief Executive Officer, Rosemary Vilgan
- Deputy Under Treasurer, Tim Spencer
Key issues facing the output
- Maintaining high levels of service for a growing and increasingly engaged membership while retaining our low-cost position.
- Continuing to develop innovative and valued products that improve member retirement outcomes.
- Providing tailored financial education through various mediums to meet the needs of a diverse membership.
- Ensuring QSuper has enabling technology and supporting infrastructure to meet its strategic business priorities.
Output performance highlights
| Measure | Target | Actual |
|---|---|---|
| Quantity | ||
| Percentage of members who elect to retain their voluntary monies with QSuper | 80% | 79% |
| Quality | ||
| Percentage of external audits resulting in no qualifications | 100% | 100% |
| Timeliness | ||
| Meeting the performance benchmarks in the QSuper Trustees' Administration Mandate and other agreements in place for the administration of funds other than QSuper | 95% | 97% |
| Cost | ||
| Administration costs per member are within the lowest quartile when benchmarked to peers | 100% | 100% |
Changes ahead for QSuper
During 2006-07, the QSuper Board of Trustees reviewed its governance and corporate structures to more closely align the fund to federal regulatory standards. From this review, a new corporate entity, QSuper Limited, was established as a wholly owned subsidiary of the Board. From 1 July 2007, QSuper Limited assumed responsibility for administering QSuper, and the Government Superannuation Office ceased to be a distinct portfolio office of Queensland Treasury. Current Government Superannuation Office staff will remain Treasury employees and continue to support QSuper under a services agreement.
Under these new arrangements, superannuation will no longer be reported as an output in Queensland Treasury's annual report from 2007-08 onwards. Reporting on management of the State's superannuation arrangements will continue to be provided to Parliament by the QSuper Board of Trustees as the responsible statutory authority.
QSuper seminar attendance
Analysis: Seminar attendance increased by a massive 86 per cent in 2006-07. External factors such as the Commonwealth Government's Better Super legislation, an ageing population and increased media awareness coupled with QSuper's targeted marketing campaigns have contributed to this growth.
Strategic business priorities
Strategic business priority
Focus on delivering high quality superannuation and general financial education through the QSuper website and tailored publications to improve the financial literacy of members.
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Education for a better retirement
In partnership with the Department of Education, Training and the Arts (DETA), we introduced financial literacy seminars during 2006-07 to help members make more informed financial decisions. First piloted with DETA staff, the program has now been extended to all public sector employees.
Our broader seminar program has continued to be very popular and was expanded to meet increased member demand. More than 37,000 members and their spouses - an increase of 86 per cent over last year - attended over 600 seminars across the State. In 2007-08, a comprehensive financial literacy program will be introduced for all members, supported by research with Queensland University of Technology to measure and track financial literacy. We will also broaden our seminar program's scope and coverage, and develop new educational tools using DVD and online delivery. Our member education services will be further tailored to focus on specific member segments.
QSuper provides high quality, low-cost financial planning services to members through Q Invest. To ensure this service can continue to be offered to all members, we introduced a two-tier co-payment for superannuation and retirement planning advice. This fee will also support Q Invest's expansion through regional offices, extending access to members outside Brisbane.
Strategic business priority
Focus on branding and product attributes to position QSuper as a leading superannuation provider and industry expert providing lifestyle solutions.
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An industry leader
QSuper has grown to be one of Australia's largest funds, developing over time from a predominantly defined benefit fund to one that provides a broad member offer with a large proportion of accumulation-style accounts. In recognition of our growth, during 2006-07 we progressed considerations on opting into Commonwealth Government regulation which would place QSuper on the same regulatory footing as other superannuation providers. We will continue to work with regulators during 2007-08 to finalise these considerations.
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New options for a flexible retirement lifestyle
In 2006-07 we introduced transition to retirement arrangements for our members. This new facility allows members to use a mix of earned income and superannuation savings to help achieve their ideal retirement lifestyle.
In 2007-08, we will continue to improve members' retirement options by developing an enhanced accumulation product to manage the various life stages of membership, and adding new investment choices and asset classes to our suite of investment options. We will also consider expansion of our member offer to accept contributions from new employers of members who have left the public sector.
Strategic business priority
Focus on developing products focusing on the core superannuation offering, supporting members in achieving a better lifestyle in retirement, and also delivering services over multiple channels and tailored where possible to suit members' needs.
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Better super for our members
We successfully implemented the Commonwealth Government's Better Super rule changes (announced in May 2006), requiring major changes to our information systems, processes and member education products. We also conducted a comprehensive education campaign using seminars, publications and new web-based resources to ensure our members understood and could make the most of the new rules.
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Delivering solid returns
During the year, we enhanced our investment processes by introducing alpha-beta separation and after-tax management.
In the alpha-beta separation process, active and market return streams are separately constructed and optimised. In the beta (market return) management process, we introduced new asset classes (such as infrastructure and commodities) into the fund and worked with QIC (QSuper's investment manager) to set investment strategies that optimise results across the full range of member objectives.
Key milestones in the alpha (active return) process included implementing new governance and decision-making processes at QIC and introducing greater diversity into the alpha portfolio.
Importantly, we have also worked with QIC to commence measuring and reporting investment performance on an after-tax basis. This industry-leading initiative will ensure that investment managers take account of tax costs in making investment decisions, to deliver the best after-tax result for members.
Together, these new approaches mean that we can better align our investment processes to provide solid returns while remaining a low-cost fund.
Strategic business priority
Focus on marketing QSuper through proactive, scientific and targeted contact with members, including personalised materials and retention programs.
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Understanding our members' needs
More than 60 per cent of QSuper members are women, so it's important that we ensure that they are well informed about their superannuation options. This year we continued our popular Women and Super seminar program. In 2006-07, over 1,800 women attended 19 events around Queensland.
Although open to all women, the seminars targeted members who were likely to benefit most, that is women in early- to mid-career with lower account balances.
We also conducted a range of educational campaigns covering issues such as consolidating superannuation, spouse contributions and salary sacrifice. An increase in enquiries and other positive member actions after these campaigns indicates they were very successful. Seminars specifically for senior staff were also held as these members were particularly affected by the Better Super changes.
To ensure we understand our members' needs, we conducted research into customer satisfaction, brand attributes, and readership of key publications.
The research showed QSuper compares very favourably to other funds, and provided valuable insight into what members value most about our products and services.
In 2007-08, we will continue to meet our clients' information needs with communication programs tailored to specific generational and member segments.
Targeted retention programs will focus on members most at risk of leaving QSuper, to ensure they make informed choices. We will also engage leading financial education experts to help us develop innovative and effective marketing and communication material.
An award-winning year for an award-winning fund
From communication and education programs to products and services, QSuper is working hard to shape the superannuation solutions its members need to put them on the road to a comfortable retirement.In recognition of these efforts, QSuper received a raft of awards from industry bodies throughout the year, including gold and silver awards for communication at the Conference of Major Superannuation Funds, and two separate awards from leading independent ratings firm SuperRatings: the Rising Star award for QSuper's Accumulation account, and Runner up - Pension Fund of the year for its Allocated Pension account.
However QSuper's biggest accolade during 2006-07 was the prestigious platinum rating it received from SuperRatings - a rating given only to the very best super funds.
To find out more about QSuper, visit the QSuper website.
Last reviewed 29 September 2008
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