ARIA starts, to serve your interests better
Your new Trustee, Australian Reward Investment Alliance (ARIA), starts its work for you on 1July 2006.
The superannuation environment in Australia has undergone significant change over the past few years, with financial services reform, increased regulation and Choice of Fund.
The previous structure, of one Board managing the Commonwealth Super Scheme (CSS) and another Board managing the Public Sector Super Scheme (PSS) and PSS Accumulation Plan (PSSap), created duplications. Under that structure in the new environment, super arrangements for Australian Government employees would not have been sustainable or cost-effective in the long term.
It was obvious that the CSS Board and PSS Board had to adapt in order to continue to meet members' needs into the future. So we have merged to create ARIA, a simplified, sustainable and more effective governance structure which will greatly enhance our ability to serve the interests of members.
We (the Trustees of ARIA) were previously members of the CSS Board, the PSS Board or both. Our principal responsibility remains the same: to manage and invest the Fund to maximise benefits to members, with profits going to members.
Our new structure will enable us to introduce a range of improvements for your Scheme. We will be able to:
• achieve new cost efficiencies through the elimination of outdated complexities and duplications in administration, investment, liability management, risk management and regulatory compliance, which will have a positive effect on investment returns over time
• ensure sustainability for the future with the use of a single investment Trust which will provide greater economies of scale in managing the closed CSS Fund and assist us to maintain competitive cost structures
• maintain a strong governance structure in line with the Australian Government's new best-practice corporate governance principles, to maintain our high levels of accountability and transparency
• improve communication and education services with the delivery of seminars and individual consultations to members at their place of work
The end result will be an improved business structure to further maximise your benefit and an active communications framework to make it easier for you to gain the knowledge and skills you want to manage your super confidently.
The single Trustee structure is another step in the process of modernising the CSS with best-practice corporate governance principles and more equitable distribution of earnings between departing and remaining members.
Your benefit and entitlements remain the same
It's obvious there is no need to change the strengths of the CSS benefit structure, and your benefits and entitlements will remain the same. The CSS and its corresponding Fund will continue to be managed in accordance with its legislation, the Superannuation Act 1976.
But, over time, you will notice improved service and communications and your Scheme will benefit through cost-efficiencies. For example, the single investment Trust will allow us to manage better the needs of members in the CSS which is closed to new members, with payments being offset through inflows from the growing fund (the PSS Accumulation Plan). This reduces transaction costs.
Our responsibilities to you remain the same
ARIA's principal responsibility will remain the same as the previous CSS Board's: to manage and invest the Fund to maximise the benefits to members, with profits going to members. Its fiduciary obligations, to act in members' best interests, will also remain the same as set out under the Supervision Industry (Supervision) Act 1993 and other relevant laws.
Our purpose remains the same
OUR PURPOSE IS: To help past, present and future Australian Government employees and their families make the most of their financial future. We do this by aiming for consistently good returns at a low cost through disciplined investment frameworks. We also provide information and general advice to help you develop the knowledge and skills you want to manage your super confidently.
We value our legislated responsibilities to manage and invest the Fund to maximise the benefits to members and to act in members' best interests.
More information
PSS and CSS Boards support Australian Government super merger
