Appendices

Appendix A: Changes to legislation

The Superannuation Act 1976 (CSS Act)

The Statute Law Revision Act 2011 amended the definition of ‘Department’ in the CSS Act to specify Departments of the Parliament that have been established under the Parliamentary Service Act 1999. This amendment had effect from 19 April 2011.

The Superannuation Act 1990 (PSS Act)

The Statute Law Revision Act 2011 amended the definition of ‘Department’ in the PSS Act to specify Departments of the Parliament that have been established under the Parliamentary Service Act 1999. This amendment had effect from 19 April 2011. There have been no amendments to the PSS Trust Deed.

From 1 July 2011, the 34th and the 35th Amending Deeds to the PSS Trust Deed will take effect. The 34th Amending Deed allows PSS members who continue in employment between ages 70 to 75 to continue to accrue employer benefits in the scheme. The 35th Amending Deed makes changes to the Trust Deed consequential to the merger legislation (see below).

The Superannuation Act 2005 (PSSap Act)

The Statute Law Revision Act 2011 amended the definition of ‘Department’ in the PSSap Act to specify Departments of the Parliament that have been established under the Parliamentary Service Act 1999. This amendment had effect from 19 April 2011. There have been no amendments to the PSSap Trust Deed.

From 1 July 2011, the 5th Amending Deed to the PSSap Trust Deed will take effect. The 5th Amending Deed makes changes to the Trust Deed consequential to the merger legislation (see below).

Merger legislation

A legislative package comprising the Governance of Australian Government Superannuation Schemes Act 2011, ComSuper Act 2011 and the Superannuation Legislation (Consequential and Transitional Provisions) Act 2011 was passed by Parliament on 21 June 2011, which, amongst other things, consolidated the trusteeship of the main civilian and military superannuation schemes. As a result ARIA, the MSB Board and the DFRDB Authority merged to form a consolidated trustee body, Commonwealth Superannuation Corporation, with effect from 1 July 2011. Various consequential amendments to the scheme legislation have been made as a result of the trustee consolidation.

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Appendix B: Organisation chart

Tony Hyams
Chairman
Tony Hyams

The Executive Team

Mr Peter Carrigy-Ryan – Chief Executive Officer:

Management of ARIA and implementing the strategy and policies of the Trustee Board.

Alison Tarditi – Chief Investment Officer:
Management of investments, investment risk, fund performance and ensuring the Trustee is provided with impartial investment advice.

Bronwyn McNaughton – Senior Executive Legal & Risk:
Management of legal advice, organisational risk management, audit and compliance programs.

Leonie McCracken – Senior Executive Operations:
Oversight of the investment operations, treasury and tax functions, including management of custody arrangements.

Kevin Thompson – Senior Executive Finance & Technology:
ARIA’s financial management, corporate finance and information technology.

Helen Ayres – Senior Executive Trustee & Business Services:
Trustee Corporate Secretary, and ARIA business and corporate services.

Christine Pearce – Senior Executive Member & Employer Services:
Oversight of the strategies, policies and practices for member and employer services, communications and related functions.

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Appendix C: Functional chart

Functional chart

*Benefit payments for CSS and PSS are paid from the consolidated fund.

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Appendix D: Access to information

Freedom of information

Organisation, functions and decision making powers

ARIA’s functions and powers are set out in sections 27C and 27D of the Superannuation Act 1976 (CSS Act), clause 3 of the PSS Trust Deed and clause 3 of the PSSap Trust Deed.

The general functions of ComSuper, the administrator of the CSS, PSS and PSSap, are described in the main body of this report and detailed in the Commissioner for Superannuation Annual Report 2010/11.

The authority for ARIA to delegate its powers and functions is contained in section 27Q of the CSS Act, clause 12 of the PSS Trust Deed and clause 8 of the PSSap Trust Deed.

Informal consultative arrangements

Informal arrangements exist whereby the national, state and territory branches of the Superannuated Commonwealth Officers’ Association (SCOA) and those unions whose members are covered by the CSS, PSS and PSSap may make representations relating to the general administration of the schemes.

Representations are also received which relate to the determination of individual contributors’ benefit entitlements.

Requests for consultation and representations relating to policy aspects of the schemes and their underlying legislation are referred to the Superannuation Branch of the Department of Finance and Deregulation, which has responsibility for advising the Minister for Finance and Deregulation on such matters.

Categories of documents

In accordance with an enactment, other than the Freedom of Information Act 1982 (FOI Act) ARIA does not maintain any categories of documents that are open to public access as part of a public register or otherwise. Books and fact sheets that describe various aspects of the superannuation schemes, and annual reports, are made available to the public free of charge upon request. They are also available free of charge via the ARIA website. ComSuper keeps and maintains member records.

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Facilities for access

Facilities for viewing member records and other documents are provided at ComSuper’s office in Canberra. Publications may be inspected at ComSuper’s offices and copies (for which there may be a charge) can be obtained by writing to ComSuper. Information about facilities for access by people with a disability can be obtained by contacting the Freedom of Information (FOI) Unit.

Freedom of information procedures

Matters associated with the administration of the FOI Act relating to members and their personal information are dealt with by ComSuper's FOI Unit.

Enquiries relating to the disclosure of information about members of the CSS, PSS and PSSap, under the provisions of the FOI Act should be made in writing to:

Postal address FOI Unit
ComSuper
PO Box 22
Belconnen ACT 2616
Phone 02 6272 9080
Fax 02 6272 9804
TTY 02 6272 9827
Email foi@comsuper.gov.au

Decisions to grant access, levy charges, or refuse access are made by an appropriate delegate in the FOI Unit.

Matters relating to the management and investment of the schemes and matters relating to investment governance are dealt with by ARIA.

Table A1: Freedom of information requests 2010/11
  CSS PSS PSSap Total
Total number of requests 42 42 6 90
Number fully granted 40 41 5 86
Number partially granted 1 1 1 3
Number refused 1 0 0 1
Number transferred to other agencies 0 0 0 0
Number of requests for internal review under section 15B 0 0 0 0
Number of requests for review by the Information Commissioner (part VII of the FOI Act) 0 0 0 0
FOI requests not finalised – consultation in progress 0 0 0 0
Number withdrawn 0 0 0 0

Note: This table includes both ARIA and ComSuper statistics.

From 1 May 2011 agencies subject to the Freedom of Information Act 1982 (FOI Act) are required to publish information to the public as part of the Information Publication Scheme (IPS). This requirement is in Part II of the FOI Act and has replaced the former requirement to publish a section 8 statement in an annual report.

The text of section 8 of the FOI Act prior to 1 May 2011 is available on the Comlaw website.

Further information on section 8 statement requirements is available from the Department of the Prime Minister and Cabinet FOI Guidelines, Reporting and Disclosure Obligations of Agencies.

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Appendix E: Publications

ARIA publishes the following communications, publications and fact sheets for the benefit of members. In addition to those publications listed below there are also calculators and a wide range of other tools and information for members available online.

Annual reports

  • ARIA Annual Report to Parliament
  • Annual reports and guides to members
  • ARIA annual trustee report

Newsletters

  • Employer news – issued monthly via email and online
  • Aspire... your super update – issued quarterly online
  • Pensioner news – issued twice a year via mail
  • On the case – issued quarterly online

Pensions

  • Death benefits
  • Good news about completing your tax return
  • Tax and your CSS benefit
  • Tax and your PSS benefit
  • The super surcharge
  • Taxation concessions for pensions
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Employers

Quick guides

  • Membership eligibility
  • Part-time members
  • What to do in the case of a contributing member’s death
  • Casuals
  • Continuous service and membership numbers
  • How to complete departmental reports for CSS and PSS members
  • Tax file numbers
  • 0% member contributions in the CSS and PSS
  • Salary reductions
  • Transition to retirement (CSS only)
  • Part-time members (CSS only)
  • Commencing new members (PSSap only)
  • Ceasing members (PSSap only)
  • PSS members ceasing scheme membership – administration arrangements
  • PSS members electing to cease membership

Training notes

PSSap training notes

  • Employer training manual

PSS training notes

  • Contributions
  • Employer productivity superannuation
  • General benefit accrual
  • Medical status
  • Membership
  • Part-time and casual membership
  • Reduction in salary
  • Salary for superannuation
  • Shift allowance

CSS training notes

  • Contributions
  • Employer productivity superannuation
  • General benefit accrual
  • Membership
  • Permanent part-time membership
  • Reduction in salary
  • Shift allowance

Other

  • Employer services online
  • Invalidity notes
  • CSS PIP application – help sheet
  • PSS PIP application – help sheet
  • PSS PIP review – help sheet
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CSS

Publications

  • CSS product disclosure statement (including supplementary and online updates)
  • Market volatility and your super – 5 steps to guide you through
  • CSS benefit tables
  • Financial services guide
  • Family law and splitting super: how it’s done and what happens next
  • Service charter of our administrator ComSuper
  • Review: quarterly investment report
  • Explore... your expanded options booklet

Fact sheets

  • Accessing your super information online
  • Age retirement benefits
  • Allocation of CSS fund earnings
  • Cash Investment Option
  • Changing from permanent full-time to permanent part-time
  • Contributing to the CSS
  • Death benefits
  • Early access to superannuation benefits
  • How the 1 July 2007 changes affect you in the CSS
  • How the 1 July 2007 changes affect you in the CSS (deferred)
  • Invalidity benefits
  • Leave without pay
  • Postponement of benefits
  • Preservation of benefits
  • Retrenchment
  • Salary reduction and your super
  • Super co-contributions
  • Superannuation contributions surcharge
  • Tax and your CSS benefit
  • Taxation concessions for pensions
  • Transfers in
  • Transition to retirement
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PSS

Publications

  • PSS product disclosure statement (including supplementaries and online updates)
  • The PSS superbook: your guide to the PSS
  • Service charter of our administrator ComSuper
  • Market volatility and your super – 5 steps to guide you through
  • Financial services guide
  • Family law and splitting super: how it’s done and what happens next
  • Review: quarterly investment report
  • Explore... your expanded options booklet

Fact Sheets

  • Additional death and invalidity cover
  • Allocation of PSS fund earnings
  • Cash Investment Option for preserved benefit and associate members
  • Ceasing PSS membership
  • Changing from full-time to part-time
  • Contributing to the PSS
  • Death benefits
  • Early access for superannuation benefits
  • Getting info online
  • How the 1 July 2007 changes affect you in the PSS (contributor)
  • How the 1 July 2007 changes affect you in the PSS (preserver)
  • Invalidity benefits
  • Leave without pay
  • Maximum benefit limits
  • Multiple PSS memberships
  • Preservation of benefits
  • Rolling money into the PSS
  • Retrenchment benefits
  • Salary reductions and your PSS super
  • Super co-contributions
  • Superannuation contributions surcharge
  • Tax and your PSS benefit
  • Taxation concessions for pensions
  • Transition to retirement
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PSSap

Publications

  • PSSap product disclosure statement (including supplementaries and online updates)
  • Financial services guide
  • Your quick guide to the PSSap
  • Market volatility and your super – 5 steps to guide you through
  • Review: quarterly investment report

Fact Sheets

  • Beneficiary nomination
  • Contributions
  • Dependants
  • How the changes to tax on super affect you in the PSSap
  • Income protection claims
  • Insurance
  • Super co-contributions
  • Superannuation salary
  • Tax and your super
  • Transfers
  • Type of employment
  • Withdrawing your super
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Appendix F: Contact officer

Information relating to ARIA, or the schemes it manages, is made available to Members
of Parliament, Senators and members of the public on request.

In the interests of timeliness and conciseness, this report has been designed to provide fundamental information. Requests for more detailed information should be directed to:

Web www.aria.gov.au
Street address ARIA
Level 8
121 Marcus Clark Street
Canberra City ACT 2601
Postal address ARIA
GPO Box 1907
Canberra City ACT 2601
Phone 02 6263 6999
Fax 02 6263 6900
TTY 02 6272 9827
Email secretary@aria.gov.au
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Appendix G: List of requirements

While this report is not a departmental annual report, ARIA has endeavoured to comply with the ‘Requirements for Annual Reports’, where applicable. Details of the scheme administrator’s (ComSuper) operations are provided separately in the Commissioner for Superannuation Annual Report 2010/11.

Description Requirement Page
Letter of transmittal Mandatory v
Table of contents Mandatory vii
Index Mandatory 253
Glossary Mandatory 251
Contact officer(s) Mandatory 242
Internet home page address and internet address for report Mandatory ii
Review by departmental secretary Mandatory xv-xix
Summary of significant issues and developments Suggested xvii-xix, 25-26
Overview of department’s performance and financial results Suggested 7-9, 13-34
Outlook for following year Suggested xix
Overview description of department Mandatory 13-17, 234
Role and functions Mandatory 2, 7, 234
Organisational structure Mandatory 19-34, 234
Outcome and program structure Mandatory 11-12
Where outcome and program structures differ from PB Statements/PAES or other portfolio statements accompanying any other additional appropriation bills (other portfolio statements), details of variation and reasons for change Mandatory -
Review of performance during the year in relation to programs and contribution outcomes Mandatory 13-34
Actual performance in relation to deliverables and KPIs set
out in PB Statements/PAES or other portfolio statements		 Mandatory 13-34
Performance of purchaser/provider arrangements Suggested 9, 20-21,
246-248
Where performance targets differ from the PBS/PAES, details of both former and new targets, and reasons for the change Mandatory -
Narrative discussion and analysis of performance Mandatory 13-34
Trend information Mandatory 37, 41
Factors, events or trends influencing departmental performance Suggested xvii, 25-31
Significant changes in nature of principal functions/services Suggested -
Performance against service charter customer service standards, complaints data, and the department’s response to complaints Mandatory 41-44
Contribution of risk management in achieving objectives Suggested 10
Social justice and equity impacts Suggested -
Discussion and analysis of the department’s financial performance Mandatory 8-9
Discussion of any significant changes from the prior year or
from budget		 Suggested xiii, xvii, 25-31
Agency resource statement and summary resource tables
by outcomes		 Mandatory 250
Developments since the end of the financial year that have affected or may significantly affect the department’s operations or financial results in future Mandatory xiii, xix, 232
Statement of the main corporate governance practices in place Mandatory 10
Names of the senior executive and their responsibilities Suggested 233
Senior management committees and their roles Suggested -
Corporate and operational planning and associated performance reporting and review Suggested 7-8
Approach adopted to identifying areas of significant financial or operational risk and arrangements in place to manage risks Suggested 10-11
Agency heads are required to certify that their agency comply with the Commonwealth Fraud Control Guidelines Mandatory 11
Policy and practices on the establishment and maintenance of appropriate ethical standards Suggested 10
How nature and amount of remuneration for SES officers
is determined		 Suggested 7
Significant developments in external scrutiny Mandatory 41-44
Judicial decisions and decisions of administrative tribunals Mandatory 43
Reports by the Auditor-General, a Parliamentary Committee or the Commonwealth Ombudsman Mandatory 44
Assessment of effectiveness in managing and developing human resources to achieve departmental objectives Mandatory 7-8
Workforce planning, staff turnover and retention Suggested 7
Impact and features of enterprise or collective agreements, Individual flexibility arrangements (IFAs) determinations, common law contracts and AWAs Suggested -
Training and development undertaken and its impact Suggested 8
Occupational health and safety performance Suggested 8
Productivity gains Suggested -
Statistics on staffing Mandatory 7
Certified agreements, IFAs determinations, common law contracts and AWAs Mandatory -
Performance pay Mandatory 7
Assessment of effectiveness of assets management Mandatory 9
Assessment of purchasing against core policies and principles Mandatory 9
Summary statement detailing new consultancy services contracts let during the year Mandatory 9, 246-247
Absence of provisions in contracts allowing access by
the Auditor-General		 Mandatory -
Contracts exempt from the AusTender Mandatory 246-247
Financial statements Mandatory 45-229
Occupational health and safety (section 74 of the Occupational Health and Safety Act 1991) Mandatory 8
Freedom of Information (subsection 8 (1) of the Freedom of Information Act 1982) Mandatory 235-236
Advertising and Market Research (Section 311A of the Commonwealth Electoral Act 1918) and statement on advertising campaigns Mandatory 248
Ecologically sustainable development and environmental
performance (Section 516A of the Environment Protection and Biodiversity Conservation Act 1999)		 Mandatory 9
Grant programs Mandatory -
Disability reporting – explicit and transparent reference to agency-level information available through other reporting mechanisms Mandatory 249
Correction of material errors in previous annual report Mandatory -
List of requirements Mandatory 243-245
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Appendix H: New consultancies

ARIA engages consultants where specialist skill or expertise is required or where internal resources are unavailable. Consultants are typically engaged to:

  • investigate or diagnose a defined issue

  • carry out defined reviews or evaluations

  • provide independent advice, information or solutions to assist ARIA in
    its decision making.

These consultancies are distinguished from other service provider contracts by the nature of the work performed, which typically involves the application of expert professional skills and the exercising of expert judgement.

ARIA administration consultancies

Policy

ARIA’s policy on selection and engagement of consultants accords with its purchasing principles and policies outlined in Section 5 – ARIA.

Table A2 provides details of consultancies engaged by ARIA during 2010/11 with a contract value, GST inclusive, of $10,000 or more.

This list includes contracts referring to the administration of the schemes and excludes contracts related to the management and investment of the three funds.

Table A2: New consultancies 2010/11
Consultant name Description Value
$		 Selection method Principle justification
David Lawson Succession planning advice 12 712 Direct B
Dymond Foulds & Vaughan PSSap outsourcing – advice 17 585 Direct B
PriceWaterhouse Coopers Complaints handling process – advice 68 546 Direct B
PriceWaterhouse Coopers Business continuity audit 11 000 Direct B
Professional Financial Services Superannuation industry advice 22 000 Direct B
Rayndawn Pty Ltd PSSap outsourcing – advice 12 870 Direct B
Ipsos Member seminars evaluation 27 842 Direct B
Ipsos Member survey 33 400 Direct B
ORIMA Member related research 42 272 Direct B
Total new consultancies 248 227  

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Selection method categories
The selection methods used for consultancies are categorised as follows:
Open tender Public tenders are sought from the marketplace using national and major metropolitan newspaper advertising.
Select tender Tenders are invited from a short list of competent suppliers.
Direct sourcing Single supplier invited to bid reflecting unique qualifications or circumstances.
Justification categories
A Need for access to the latest technology.
B Need for specialised skills.
C Need for an independent view.
Table A3: Legal services expenditure 2010/11
  Expenditure $
Mallesons Stephen Jaques 166 602.99
McArdle Legal 2 310.00
DLA Phillips Fox 550.00
Australian Government Solicitor 59 908.76
Henry Davis York 49 675.69
Allens Arthur Robinson 17 435.00
Total 296 482 .44

Appendix I: Advertising and market research

In respect of public monies, during 2010/11 the expenditure for advertising and market research on contracts individually more than $11,200 (inclusive of GST) amounted to $103,514.02 (inclusive of GST).

The following list contains details of payments, as required under section 311A of the Commonwealth Electoral Act 1918. All amounts include GST.

Table A4: Advertising and market research expenditure 2010/11
Organisation Purpose Expenditure $
Ipsos Member related research 61 242
ORIMA Member related research 42 272
Total 103 514
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Appendix J: National Disability Strategy

Since 1994, Commonwealth departments and agencies have reported on their performance as policy adviser, purchaser, employer, regulator and provider under the Commonwealth Disability Strategy. In 2007-08, reporting on the employer role was transferred to the Australian Public Service Commission’s State of the Service Report and the APS Statistical Bulletin. These reports are available at www.apsc.gov.au. From 2010-11, departments and agencies are no longer required to report on these functions.

The Commonwealth Disability Strategy has been overtaken by a new National Disability Strategy which sets out a ten year national policy framework for improving life for Australians with disability, their families and carers. A high level report to track progress for people with disability at a national level will be produced by the Standing Council on Community, Housing and Disability Services to the Council of Australian Governments and will be available at www.fahcsia.gov.au. The Social Inclusion Measurement and Reporting Strategy agreed by the Government in December 2009 will also include some reporting on disability matters in its regular How Australia is Faring report and, if appropriate, in strategic change indicators in agency Annual Reports. More detail on social inclusion matters can be found at www.socialinclusion.gov.au.

ARIA recognises and considers the needs of people with disabilities when developing and delivering policy, programs and services. Through the scheme administrator, we have:

  • engaged an independent company to carry out client satisfaction surveys annually. Those surveys seek feedback on members' satisfaction with our services including telephone advice, benefit payments, written estimates, seminars, counselling services and online services. Superannuants are another client group which was surveyed.

  • provided access to a TTY Telephone Typewriter Service (TTY), which is available through a separate telephone number and directed to a trained Customer Service Representative.

  • Customer Service Representatives that aim to meet the needs of a culturally and linguistically diverse and indigenous clientele. Our Customer Service Centre provides members with verbal and written information and scheme-specific email addresses.

  • quality improvement and assurance mechanisms used during the year consisted of client satisfaction surveys, which have been conducted since the 1997/98 financial year.

Appendix K: Summary resource table by outcomes

Outcome 1 – Retirement benefits for past and future Australian Government employees through investment and administration of government superannuation funds and schemes.
  Budget Actual expenses Variation
2010/11
$’000		 2010/11
$’000		 $’000
Price of departmental outputs  
Output Group 1.1 – Superannuation scheme governance
Revenue from other sources 18 709 16 194 2 515
Total price of Outputs 18 709 16 194 2 515
Total for Outcome 1 18 709 16 194 2 515
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Appendix L: Glossary

AAS25 Australian Accounting Standard 25
AASB Australian Accounting Standards Board
AAT Administrative Appeals Tribunal
ABM Accrued Benefit Multiple
ABN Australian Business Number
ACTU Australian Council of Trade Unions
administrator ComSuper, Commissioner for Superannuation
AD(JR) Act Administrative Decisions (Judicial Review) Act 1977
AFS Australian Financial Services
ANAO Australian National Audit Office
APRA Australian Prudential Regulation Authority
ARIA Australian Reward Investment Alliance
ASFA Association of Superannuation Funds of Australia
ASIC Australian Securities and Investments Commission
ASX Australian Stock Exchange
ATO Australian Taxation Office
AWA Australian workplace agreement
BZW Barclays der Zoete Wedd
CEO Chief Executive Officer
CPI Consumer Price Index
CPSU Community and Public Sector Union
CRF Consolidated Revenue Fund
CSS Commonwealth Superannuation Scheme
CSS Act Superannuation Act 1976
ESG Environmental, social and corporate governance
FBT Fringe benefit tax
FMA Act Financial Management and Accountability Act 1997
FOI Freedom of information
GAS Governance Advisory Service
GST Goods and services tax
HTML Hypertext Markup Language
HTTP Hypertext Transfer Protocol
IAG Insurance Australia Group Limited
ISBN International Standard Book Number
ISSN International Standard Serial Number
MBL Maximum Benefit Limit
MSCI Morgan Stanley Capital International Inc
OECD Organisation for Economic Co-operation and Development
p.a. per annum
PBS Portfolio Budget Statement
PAES Portfolio Additional Estimates Statements
PDS Product Disclosure Statement
PSS Public Sector Superannuation (scheme)
PSS Act Superannuation Act 1990
PSSap Public Sector Superannuation accumulation plan
PSSap Act Superannuation Act 2005
PRI Principles for Responsible Investment
RAC Reconsideration Advisory Committee
RSE Registrable Superannuation Entity
S&P Standard and Poor’s
SCT Superannuation Complaints Tribunal
SES Senior Executive Service
SIS Act Superannuation Industry (Supervision) Act 1993
SPIN Superannuation Product Identification Number
SRC Act Superannuation (Resolution of Complaints) Act 1993
TTY Text Telephone (tele-typewriter)
UN United Nations
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