December 2002 Volume 83 Number 12 "serving the protectors"
Police Super Update www.policesuper.sa.gov.au
By Micheal Hogg

Summary of 2001-2002 report to members of the Police Superannuation Scheme

The following information provides you with a summary of the Report to Members for 2001-2002 which was recently forwarded to you with your Member Benefit Statement as at 30 June 2002.

Police Superannuation Board

The Police Superannuation Board is responsible for the administration of the Police Superannuation Scheme. The Police Occupational Superannuation Scheme (POSS) was merged into the Police Superannuation Scheme, with effect 1 July 2001.

Police Superannuation Scheme

Police Superannuation Fund

The market value of the Police Superannuation Fund as at 30 June 2002 was $233 million compared to $249.6 million as at 30 June 2001. Funds SA is responsible for the management and investment of the assets of the Police Superannuation Fund. The decrease in the market value of the Fund resulted from significant negative returns from world share markets over the past financial year. For example, the United States share market recorded a return of –19.6%, Japan -20.0%, United Kingdom –14.1% and Germany –25.8%.

Investment Return

For the 2001-2002 financial year Funds SA achieved investment returns, on a money weighted basis (net of fees), of negative 5.3 per cent for the Pension Scheme and negative 5.2 for the Lump Sum Scheme. The past financial year was very challenging for investors, globally. The negative investment returns resulted from significant negative returns from world share markets.

Crediting Rates

While investment returns were negative, the three year average crediting rate policy used for member contribution accounts resulted in a positive crediting rate. However, crediting rates for voluntary contribution accounts and roll over accounts are based on the actual investment earnings of the Fund.

Account	Pension Scheme	Lump Sum Scheme
Member Contribution Account	4.9%	4.8%
Voluntary Contribution Account	-5.3%	-5.4%
Roll Over Account	-5.3%	-5.4%

For the 2001-2002 financial year, the Board declared the following crediting rates to be applied to the following accounts.

Membership

The Police Superannuation Scheme is closed to new police officers and as at 30 June 2002 had a total of 2,939 members which comprised 2,783 contributors and 156 preserved members. During 2001-2002 a total of 106 members ceased membership of the Scheme. As at 30 June 2002 a total of 1,098 pensions were being paid.

Employer contribution

During 2001-2002 a total of $22.7 million ($25.7 million in 2000-2001) was deposited into the Police Employer Account to meet the Government’s proportion of benefit payments. As at 30 June 2002 the balance of the Police Employer Account stood at $179.8 million, compared with $196.5 million as at 30 June 2001.

Benefit Payments

During 2001-2002 the pension and lump sum benefits paid to members, spouses and children totalled $37.8 million ($40.1 million 2000-2001). The Government’s prescribed proportion of benefit payments during 2001-2002 was $28.7 million ($31.1 million 2000-2001). The Fund’s prescribed proportion of benefit payments during 2000-2001 was $9.1 million ($9 million 2000-2001).

During 2001-2002 a total of $1.5 million ($1.8 million in 2000-2001) was paid by the Fund to the 33 members who resigned and elected to take a cash withdrawal benefit (a refund of personal contributions plus accrued interest).

Greetings

On behalf of the Police Superannuation Board and the staff of the Police Superannuation Office we wish all serving and retired members and their families a merry Christmas and a happy New Year.

Police Superannuation office:
Ground floor, 30 Flinders St, Adelaide, 5000.
Postal Address: GPO Box 1539, Adelaide, 5001.
Internal postcode: 128.
Phone: 8204 2964 or 8204 2965.
Fax: 8204 2303.
E-mail: admin@policesuper.sa.gov.au
SAPOL Intranet: Police Superannuation,
Services, Business Service, FMSB.

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