Welcome to the 12th edition of CEO Online

This edition, I would like to bring you up to date with:

Attempted fraud on CSS fund custodian detected with no impact on members' benefits

You may have heard that the CSS custodian, JPMorgan, was the subject of an attempted fraud in late 2003. I would like to assure all members that their benefits are not affected. The attempted fraud was detected quickly, and because of action by the CSS Board and its custodian, there is no impact on our return to members, and not a single dollar of members' benefits has been lost.

CSS members were not immediately advised of the attempted fraud, as there was no affect on members' funds. In addition, the Australian Federal Police (AFP) had asked us not to disclose details of the attempted fraud as it might prejudice their investigation.

In fulfilling its responsibility to its members, the CSS Board has stringent security requirements with which our service providers' systems must comply. Despite the rigorous checks already in place, we are focused on strengthening all the security systems involved in the investment of CSS funds. Members should be aware that we are continuing to review our processes and procedures to minimise the risk of fraud.

The attempted fraud remains the subject of an ongoing criminal investigation by the AFP.

Your Fund's investment performance

I am pleased to report investment earnings remain positive and we continue to declare positive exit rates . As at 30 April 2004, the financial year-to-date fund return was 11.1 % (after adjustments for tax & fees), compared to our benchmark of 11.0 %. The Fund's performance has placed us 5th in the Intech Major Funds Survey of 17 major Australian super funds for the 12 months ending 31 March 2004. At 31 January 2004, the CSS had over $5.5 billion in net assets and approximately 49,000 members .

Please remember, if you are planning to retire or claim your deferred benefit in the next 12 months , call an Information Officer on 1300 000 277 for a detailed estimate of your benefit.

FOR MORE INFORMATION ABOUT RETIRING FROM THE CSS: See the CSS Retirement Options Product Disclosure Statement

FOR MORE INFORMATION ON INVESTMENTS: Take a look at our Investment Performance and Investment Strategy

Australian Government Super Co-contribution

Any CSS member who has total income, made up of assessable income and reportable fringe benefits, of less than $40,000 in a financial year may be eligible for the Super Co-contribution. The Super Co-contribution replaced the tax rebate for personal superannuation contributions from 1 July 2003, and is paid by the Australian Government to encourage personal super contributions.

If you are a contributing CSS member, the personal contributions you make (including the compulsory basic contribution of 5 per cent of your superannuation salary, plus any supplementary contributions you have chosen to make) may mean you are eligible for the Super Co-contribution. The Australian Taxation Office (ATO) will determine if you are entitled to receive a Super Co-contribution. If you would like more information about the Super Co-contribution, please visit the ATO website www.ato.gov.au/super where you will also find a handy calculator .

FOR MORE INFORMATION: See The Facts About Co-contribution

Family Law and Your Super

New superannuation legislation came into effect on 18 May 2004 that enables the creation of a separate interest or associate member account for the spouse of a CSS member in the event of divorce or separation. The associate member account is created when a superannuation splitting order or agreement is served on ComSuper as agent for the CSS Board.

FOR MORE INFORMATION: see Family Law and Your Super

Pension increase

As of payday 8 July 2004, CSS pensions will increase by 1.4% in line with a rise in the Consumer Price Index (CPI) for September 2003 to March 2004. Pensioners should get a letter about this increase shortly after 2 July 2004.

If you want to know more about how the CPI rate was determined, please contact the Australian Bureau of Statistics. If you want more information about your pension, please visit Pensioner Services or call 1300 000 277.

I look forward to reporting to you again soon.

Steve Gibbs
June 2004