SuperNews Nov 09
How is your super invested?Did you know that if you don’t make a choice about how your super is invested, LGsuper will make the choice for you? The investment option we choose for you is called the default investment option. The LGsuper Board of Directors continually monitors and reviews the default investment options applicable to LGsuper’s various accounts to make sure they are best suited to the members who are invested in them.
Recently, the Board of Directors decided to make changes to some of the default options from 1 January 2010. The Board made this decision for two reasons:
- to provide all members with an appropriate balance of investment risk and return, depending on how close they are to retirement age
- to make use of the Growth Smoothed reserve fairer for all members invested in that option
What if I leave local government employment after 1 January 2010?
Accumulation monies invested in the Growth Smoothed option will be moved to the Growth option (if you are under age 60) or the Balanced option (if you are aged 60 or over) when we open a Retained Benefit account after you leave local government employment. You are unable to stay in the Growth Smoothed option.
What if I re-commence local government employment after 1 January 2010?
Your existing balance at the date you re-commence employment with local government will stay in the investment option/s where it is already invested. Money received by LGsuper after you re-commence employment will be invested in the default options for the Accumulation Benefits Fund, as outline above.
Of course, LGsuper understands that each member has their own unique situation and that these default options may not suit everyone. That’s why we offer you investment choice. Investment choice enables you to change investment options for your existing super balance and/or money being paid into your super.
You can choose from seven investment options ranging from low risk/low return to high risk/high return. And, to give you even greater flexibility, you can select up to three (3) investment options at any one time, so you can tailor your investment to suit your situation.
Remember though, if you make an investment choice, you may not select the Growth Smoothed option. And, if you are currently invested in Growth Smoothed, you will forego this option entirely if you make an investment choice.
If you wish to change your current investment option, simply complete an Investment switch form and return it to LGsuper. Or, if you would like to discuss your investment strategy and options with us, please contact our Member Advice team on 1800 444 396.Australian Government bank guarantee lifted
In November 2008, in order to protect members’ capital against the fallout from the global financial crisis, the LGsuper Board of Directors decided to cover the fund’s underlying cash investments with the Australian Government bank guarantee. The cost of the guarantee was 0.7% p.a. and this was deducted from the investment return for members who had all or part of their benefit invested in cash.
As markets have now stabilised, the Board has decided to lift the bank guarantee with effect from 7 October 2009. This means that the 0.7% p.a. cost will no longer apply to monies invested in Cash.Pre-retirement Pensions for DBF members
Earlier this year we advised members of the Defined Benefits Fund (DBF) that they were temporarily unable to transfer their benefit to the Accumulation Benefits Fund in order to open a Pre-retirement Pension after age 55. This decision was made by the LGsuper Board of Directors due to unfavourable market conditions at the time, which had negatively impacted the fund.
The Board is pleased to advise, due to the improvement in market conditions, Pre-retirement Pensions are once again available to members of the DBF.
Please note that if you transfer your DBF to an accumulation account you are unable to invest in the Growth Smoothed option, but you still have a range of investment options to choose from. If you do not make an investment choice your remaining balance, contributions and transfers from other super funds will be invested in the default option applying at that time. This is currently the Balanced option.
Remember, LGsuper is here to help you. Call our Member Advice team on 1800 444 396 to discuss your pension options. This service is provided to LGsuper members at no additional cost.Is your letterbox full of super fund statements?
Has your mailbox been flooded with super fund statements over the last few months? Well, why not do something about it today and transfer your other super to LGsuper.
If you have super all over the place, you could be paying more fees than you need to. Transferring your entire super to a low cost fund like LGsuper, you could have more for your retirement. Like industry funds and other public sector funds, all profits are for members, and the fees we charge are among some of the lowest in Australia.
Simply complete a Transfer form, available from our website for each super fund and we’ll take care of the rest.
