December 1998 Volume 79 Number 12 "serving the protectors"
Finance

Police Credit Union

Carrying Currency Overseas?

It's two o'clock in the morning. You've just arrived at your first stop overseas and nothing is open. There is nowhere to exchange your traveller's cheques or your native currency, an ATM is nowhere to be seen and all you want to do is get to your hotel.

It's a traveller's nightmare that can be so often avoided by carefully planning the types of funds you carry.

There is often debate as to what is the best way to carry currency overseas. Experts agree that it is best to take three forms of funds when travelling abroad. By having currency in the form of traveller's cheques, cards and cash you should ensure that you are not caught short of money at your destination.

All three forms have their advantages and disadvantages

Travellers cheques purchased from PCU are a very secure way of carrying travel funds and are accepted all over the world. With traveller's cheques you know how much you have paid for the currency (if possible it's best to purchase the cheques in the local currency of your destination) and are a good way of keeping an eye on spending. If lost or stolen while abroad, traveller's cheques purchased from PCU can generally be replaced within 24 hours.

It is important to keep your traveller's cheque receipts and serial numbers separate from the cheques. Traveller's cheques have costs of about a 1 per cent commission on purchase and are often converted free of charge but at varying rates. They should be used in conjunction with cards and cash, as they are the least convenient of these forms of currency.

Credit cards are convenient and good for major purchases. With a PCU VISA card you are able to use Visa's Emergency Assistance Centre (VEAC). It provides assistance in your native language from anywhere in the world on aspects such as card replacement and emergency cash. If you are going away as a couple make sure that you take a card each so that if something happens to one, you can still use the other.

The downside of card use is that you may not be able to use your card if:

• It’s eaten by an ATM.
• Your magnetic strip is damaged.
• You are in a country without an adequate banking infrastructure.

All purchases are free, however, there is generally a fee charged for any cash withdrawals (PCU charges $4 per overseas cash withdrawal). Cards are therefore best used for purchases and as an emergency source of funds.

Foreign Cash will always get you out of the stickiest situations. Having foreign currency when you arrive ensures that you will have money even if there are no local exchange services at the airport or such services are present but closed. Also foreign cash will save you queuing at the airport for foreign exchange and is useful when "haggling" for a purchase. If you cannot get local currency, US dollars are widely accepted around the world.

So what should you take most of? Unfortunately there is no simple solution as the form of money you take depends on your individual circumstances and your destination. A guide to the best forms of currency for your next holiday destination is:

• Thailand - Pound/Sterling, Australian or US dollars.
• Bali - Australian dollar, traveller's cheques.
• Asia - Traveller's cheques are more useful than cards, Australian or US dollars.
• Europe - Credit cards for purchases (except regional areas). $250 money packs are available from Phil Hoffman travel, which include a range of currencies.
• Eastern Europe - Traveller's cheques, US dollars.
• United States - US dollars and credit cards.
• South America - US dollars and traveller's cheques.

PCU lends money for any worthwhile purpose including a holiday. So, if you would like to travel now, it's possible with a personal loan from PCU. Phone 8208 5750 (loans direct) or come in and see one of our friendly loan staff for your dream holiday.

Police Super Update   By Michael Hogg

Summary Of 1997-98 Report To Members of the Police Superannuation Scheme

Summary Of 1997-98 Report To Members of the Police Superannuation Scheme

The following information provides a summary of the report to members for 1997-98. It will be forwarded to members shortly with their Member Benefit Statement as at 30 June 1998.

Police Superannuation Board

The Police Superannuation Board is responsible to the treasurer for all aspects of the administration of the Police Superannuation Scheme, except the management and investment of the assets of the Police Superannuation Fund, which is undertaken by Funds SA. The Board is also responsible for the administration of the Police Occupational Superannuation Scheme.

Police Superannuation Scheme

Investments

The market value of the Fund as at 30 June 1998 was $195.1 million compared to $173.3 million as at 30 June 1997. For the 1997-98 financial year crediting rates, the pension and lump sum scheme divisions of 13.5 and 12.6 per cent respectively were applied to members' contribution accounts at 30 June 1998.

Membership

The Police Superannuation Scheme is closed to new police officers and as at 30 June 1998 had a total membership of 3,392 which comprised 3,291 contributors and 101 preserved members. During 1997-98 a total of 107 members ceased membership of the Scheme. As at 30 June 1998 a total of 1,045 pensions were being paid.

Benefit Payments

For the financial year 1997-98 pension and lump sum benefits paid to members, spouses and children totalled $28 million. The Government's portion of benefit payments was $21.7 million and the Fund's portion was $6.3 million.

Police Occupational Superannuation Scheme

For the financial year 1997-98 a total of 106 payments were made from the Scheme amounting to $846,000.

Merry Christmas and Happy New Year

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.