Reforms to the Management and Administration of NTGPASS
Bulletins and information regarding reforms to the management and administration of NTGPASS are being added to this page as they are issued.
In December 2018, the Superannuation Trustee Board, trustees of the NTGPASS fund, selected Statewide Superannuation (Statewide Super) to receive the transfer of NTGPASS accumulation accounts.
A legal agreement has now been signed for the transfer of all NTGPASS accumulation accounts to Statewide Super on 8 May 2019.
The Commissioner of Superannuation issued a Significant Event Notice to all members on 2 April 2019.
The notice, which is being both emailed and posted to members, formally explains how the transfer of NTGPASS accumulation accounts will happen, how member accounts will change and other important aspects of this transfer.
Background to reforms
The Northern Territory Government and Public Authorities’ Superannuation Scheme (NTGPASS) is a hybrid defined benefit scheme that closed to new members in August 1999.
NTGPASS members have an accumulation account (a superannuation savings account) that contains their fortnightly contributions and investment earnings.
They also have an entitlement to receive a defined benefit that is paid as a lump sum by the Northern Territory Government (NTG) when they leave the scheme.
In May 2018, government announced a range of management and administration reforms to the NTGPASS arrangements. This includes, among other things, a successor fund transfer (SFT) of all NTGPASS accumulation accounts to an external superannuation fund to manage and invest members’ savings on their behalf.
Importantly, there is no change to the NTGPASS defined benefits, which will continue to be paid by the NT Government whenever NTG employees cease membership of the scheme.
What is a successor fund transfer?
A SFT is a compulsory transfer of member benefits from one superannuation fund to another superannuation fund.
In this case, all NTGPASS accumulation accounts will be transferred at the same time to Statewide Super on 8 May 2019. Statewide Super will then become responsible for managing and investing NTGPASS member superannuation contributions and earnings.
Statewide Super was selected from a pool of high calibre superannuation funds following a competitive process.
Key to Statewide Super's selection was its history of providing consistently strong investment returns for members and its willingness to double its Territory-based staffing to four employees, bringing more families to the Territory.
Statewide Super will also offer its members access to free financial advice using its own associate financial planners.
Statewide Super is a South Australian-based industry superannuation fund with a member centre in Adelaide and two staff currently located in the Territory.
As part of its selection, Statewide Super has committed to employing an additional two Territory-based staff to service members (bringing their Territory staffing to four employees, two of whom will be associate financial planners).
Key features of Statewide Super include:
- History of providing consistently strong investment performance for members
- Choice of 10 investment options from conservative to high growth
- Flexible low-cost insurance (life, Total and permanent Disability and income protection)
- Online tools, calculators, resources and free member seminars
- Transition-to-retirement and account-based pensions available
- In-house financial planners and accredited financial advisers in Darwin, Adelaide and regional areas.
In selecting Statewide Super, the Superannuation Trustee Board was mindful of the impact that consistent high returns have on members’ retirement outcomes.
The below table compares the returns of the NTGPASS and Statewide Super default investment options over the last five financial years.
|Statewide Super MySuper||14.95%||11.48%||5.08%||11.10%||11.34%|
In addition to providing higher returns than NTGPASS, Statewide Super’s investment returns over the last five years were the highest of all the funds who submitted proposals.
As part of their selection, Statewide Super has agreed to provide NTGPASS members with tailored death, total and permanent disability and income protection insurance, which takes into account the NTGPASS death and invalidity benefits.
What this means for NTGPASS members
Statewide Super will be able to offer members many additional, contemporary services and products that the NTG cannot provide.
Once transferred, members will be able to move their account to any other scheme – something they cannot do now, under the current NTGPASS arrangements.
Staff from the Superannuation Office and Statewide Super conducted seminars for NTGPASS members and their spouse/de facto partners in the Territory’s major population centres during March 2019 to explain the services that Statewide Super will provide to them, as well as the transfer process.
View the Superannuation Office portion of the presentation.
View the Statewide Super portion of the presentation.
Copies of the seminar slides delivered to members and their spouse/de facto partners in June 2018 can be accessed here.
Answers to member questions
During the June 2018 seminars many members asked questions about a range of issues relevant to the reforms and to NTGPASS more broadly.
These questions, and answers to them, have been updated with information about Statewide Super and are recorded on this page.
Information for older members
Many members had questions about retirement and moving to part time employment.
OCPE has provided assistance in setting up a dedicated page that provides this information, as well as links to a range of resources.
No action is required from members other than to keep themselves informed of changes as they progress by regularly checking this web page.
More information is available in the bulletin below.
Last updated: 15 July 2019