Welcome to the fifteenth edition of CEO Online

This edition, I'll be bringing you up to date with:

Investment performance

It's been another solid investment year for your fund. Although audited figures are not yet finalised, the default Fund is estimated to have earned 13.6% after tax and fees, well above the target return of 7% per annum over the long term. This gives the default Fund a three-year performance rate of 9.9% also above the 7% target.

The Fund's investment performance continues to compare favourably with most other superannuation funds. The asset consulting firm Intech produces a comprehensive survey of Australian superannuation fund returns. The CSS return over the last three years ranks in the top five of the 64 growth funds in the Intech survey. (CEO note: Intech results were updated on 13 September 2005)

In the seven months since it was introduced, the Cash Investment Option has earned 2.8% after tax and fees in line with our target of 3.3% before tax and fees.

The ongoing performance of the default Fund and Cash Investment Option is below.

Please remember that past performance is no indication of future performance - returns are volatile and it is not possible to predict when they will go up or down, or how quickly this will happen.

CSS default Fund

From 1 July 2003 to 9 August 2005, the estimated performance (after adjustments for tax, fees and the reserve) is 27.50%. This translates to a daily compound exit rate of 0.031577% for exits from 11 August 2005.

CSS Cash Investment Option

From 1 December 2004 to 5 August 2005, the estimated performance (after adjustments for tax, fees and the reserve) is 3.17% . This translates to a daily compound exit rate of 0.012568% for exits from 10 August 2005.

Find out more about your Fund's investment performance , investment strategy and Cash Investment Option

If you are planning to retire or claim your deferred benefit in the next 12 months, please call us on 1300 000 277 for a detailed estimate of your benefit; and read ABOUT WITHDRAWING YOUR BENEFIT in the our Retirement Options Product Disclosure Statement

Transition to retirement for deferred members

The Government has announced that deferred benefit members will be able to access the transition to retirement arrangements without any amendments to the CSS legislation. In the past, some deferred members were already able to access their benefit whilst working; the new transition to retirement arrangements extend this option to deferred members continuing employment with the same employer who contributed to their CSS super.

There are some exceptions where legislation specifically provides that a person must cease employment before benefits can be paid (for example, those who are employed under an Executive Contract with the Northern Territory Government).

Also, CSS contributing members are not able to access transition to retirement arrangements. The Government is considering what options may be available in the future but it is a complex issue because of the defined benefit nature of the CSS and its largely unfunded status.

If you are a deferred member, have reached your preservation age and would like to claim your benefit as a pension whilst continuing to work, find out more about transition to retirement.

Keep an eye out for your annual member statement pack

If we have your current personal postal address details by the end of August, your statement will be posted directly to you in October. Otherwise it will be sent to you via your employer.

If you haven't yet provided us with your current personal postal address and you'd like the convenience of having important information about your super sent directly to you in the future, you can provide (or update) your address details by:

Super surcharge

Legislation to abolish the superannuation contributions surcharge was passed in the new Senate on 10 August 2005, and will apply from the 2005/2006 financial year onward.

Members whose adjusted taxable income was more than the lower threshold of $99,710 in 2004/2005 will still be subject to surcharge and the maximum rate for that period is 12.5%.

Find out more at the ATO's surcharge information page online or call them direct on 13 10 21.

New phone and email for information about your CSS super

We will soon be announcing new phone and email contacts dedicated to CSS members. We will send you the new contact details in your annual member statement pack.

I look forward to reporting to you again soon.

Steve Gibbs
August 2005