Voluntary member contributions – salary
sacrifice
The State Government has introduced new salary sacrifice
arrangements for members of State Government superannuation schemes. Under the
new arrangements members of the Police Superannuation Fund (the Fund) have the
option to salary sacrifice additional voluntary superannuation contributions
directly to the Fund, without engaging a service provider.
If you currently have a salary sacrifice arrangement with a
service provider, Remunerator (Aust) Pty Ltd or McMillan Shakespeare Australia
Pty Ltd for additional voluntary superannuation contributions you can continue
with this arrangement or elect to change to the new arrangements.
Superannuation contributions paid through salary sacrifice are
additional voluntary superannuation contributions, which will accumulate
in a separate voluntary contribution account within the Fund and will provide
you with a separate lump sum superannuation benefit upon separation from SAPOL.
The voluntary contribution account will be completely separate from your
existing defined Police Pension or Police Lump Sum superannuation benefits and
will not attract any additional employer contributions. The voluntary
contribution account will earn the actual investment returns of the Fund, which
can be positive or negative. The investment returns are different from the
Fund’s crediting rates for members’ contribution accounts, which is a
three-year average of the Fund’s investment returns. Therefore, earnings
on your voluntary contribution account will be more volatile.
Investment of voluntary member contributions
Funds SA is a statutory body established under the
Superannuation Funds Management Corporation Act 1995 and is responsible for the
management and investment of the Police Superannuation Fund. Voluntary member
contributions, in the same way as current superannuation contributions, paid
into the Fund will be invested by Funds SA in the following investment classes
and allocations:
| • International
Shares 38% |
• Australian Shares 34% |
| • Inflation Linked
Bonds 13% |
• Property 8% |
| • Australian Fixed Interest 5% |
• Cash 2% |
Investment performance
Investment markets can be volatile in the short term and it
is therefore more meaningful to consider returns over longer periods. The
following table shows the investment returns (after fees) achieved by Funds SA
in each of the past five years and the average return for the five-year period,
compared to the rate of inflation.
Investment Returns
| SCHEME |
1998 |
1999 |
2000 |
2001 |
2002 |
5 years
to
2002 |
| PENSION |
12.8% |
9.5% |
16.9% |
3.2% |
-5.3% |
7.2% |
| LUMP SUM |
12.0% |
10.3% |
17.0% |
3.2% |
-5.3% |
7.1% |
| INFLATION |
0.7% |
1.1% |
3.2% |
6.0% |
2.8% |
2.7% |
You can obtain more information about the investment
objectives and strategies of Funds SA from its website:
www.funds.sa.gov.au
Member information
For information regarding superannuation, contact the Police
Superannuation Office or refer to the website above. Access to the website is
now available on the SAPOL Intranet under Services, Business Service, FMSB.
Group information sessions can be arranged upon request.
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.
