[PDF] Super Scoop 2001 - QSuper - Queensland Government

QSuper 2001 Annual report to members
SUPERSCOOP

Year in review
by Gerard Bradley
A volatile year for investment
This year, members of Australian
superannuation funds will notice the lower
level of investment returns in comparison to
the returns of recent years. The volatility
of markets this year has affected all
funds and QSuper is no exception.
Gerard Bradley is the Under Treasurer
and Under Secretary of Queensland Treasury.
He has been Chairman of the QSuper Board of
Trustees since 1998. Gerard has three children
aged 7, 10 and 13 and enjoys being with his family,
gardening and following sport.
One of our most important duties as
Trustees is to monitor the performance
of QSuper’s investment manager. A
low or even negative return, over 12
months, is not necessarily cause for
alarm. Indeed, it is expected from
time to time.
Superannuation, by its nature,
represents savings built up over
members’ entire working lives. The
long-term view is, therefore, allimportant.
It would be impossible
to devise a strategy to maximise
returns over the long term without a
calculated risk of some lower shortterm
performance. The QSuper Board
of Trustees is, however, continually
monitoring the Fund’s investment
strategy to try and ensure long-term
objectives are met. Of course, individual
members can also choose their own
tailored strategy from QSuper’s range
of investment options.
2
SUPERSCOOP
QSuper 2001 Annual report to members

QSuper Board of Trustees
Standing (left to right):
Merv Bainbridge (Deputy), Michael Goode (Deputy),
Terri Hamilton, Chris Barrett, Mary Montgomery,
Helen Ringrose, Merv Vining.
Sitting (left to right):
Karen Peut, Gerard Bradley,
Steve Ryan.
Despite the rapid swings in
stock market indices, Queensland
Investment Corporation (QIC)
performed well compared to the
managers of other funds similar to
QSuper. The details of this year’s
investment returns, in what has been
a volatile year, are on page 6.
The QSuper Board remains pleased
with QIC’s performance and
understanding of our members’
needs, and also the strong relationship
they have developed with
members during the 10 years they
have managed QSuper’s funds.
A year of choice
One of QSuper’s strengths is its
flexibility and the options it provides
to members. This past year has seen
members able to choose the style of
account and the type of investments
their money is placed in. Many
Accumulation account members have,
for the first time, been able to choose
to contribute their own money into
QSuper in return for a higher payment
from their employer. In fact, almost
15% of these members have chosen
to do just that during the year.
Among the best in the world
During the year, QSuper took
part in a study of 35 very large
international superannuation funds,
including four from Australia.
QSuper ranked extremely well,
being placed in the top quarter for
most cost and service measures,
and was awarded the number one
ranking internationally in the website
category! This was an outstanding
result and one that all members
should take great confidence in.
Solid and secure
I am aware that recent corporate
developments, and the publicity
surrounding them, have concerned
some of our members. Members
should remain confident in the size
and security QSuper offers them.
QSuper’s funds are spread across
an enormous range of investments;
QSuper’s accounts are audited
annually by the Auditor General;
and the State Actuary regularly
reviews QSuper’s funding position.
As one of Australia’s largest funds,
with more than 375,000 current or
former employees of the Queensland
Government as members, you can be
confident your money will be there to
finance your future.
•
Acknowledgements
This year saw the departures of Glenn
Poole and John Thompson from the
QSuper Board. Glenn chaired the Board
for 10 years in his capacity as deputy for
the Under Treasurer and John served as
a member representative and deputy
from 1993.
On behalf of the QSuper Board, I would
like to thank Glenn and John for their
valuable contributions to QSuper and
wish them well for the future.
I would also like to welcome Chris Barrett
to the Board. Chris was appointed on
12 April 2001 as a member representative.
The organisations that supported
the Fund throughout the year also
deserve recognition. In particular,
the Board greatly appreciates the
assistance provided by the Government
Superannuation Office, Queensland
Investment Corporation, QsInvest Limited
and the State Actuary.
•
SUPERSCOOP Contents
Year in review 2
Security, size, flexibility - and a price you can’t beat 4
How have investments shaped up over 6
the last 12 months?
Either way you look at it, you benefit from low fees12
Super answers for super questions 14
Will you be ready for retirement? 16
With over 160 seminars, QSuper is 19
coming to see you more often!
Expertise to keep your super growing 20
QSuper’s range of accounts 22
$4.5 billion in lost super... is some of it yours? 22
Financial highlights 23
QSuper 2001 Annual report to members SUPERSCOOP 3

y Karen Peut
As a Trustee and a union delegate, I speak with QSuper members every day.
I am always pleased to hear how much members value QSuper.
Many members may be unaware
of what a market leader QSuper
is in the superannuation industry,
offering a secure, well respected fund
with flexible products and services to
suit your needs. And, what’s best is
that all of this is offered at such a
low cost.
Investment power for your
retirement income
QSuper has more than $9 billion in
funds under management and is one
of the largest superannuation funds
in Australia. This means your super
contributions join those of many
others to give you more investment
power. Your retirement savings enjoy
a level of diversification that you
would not normally be able to achieve
with smaller funds. This means
greater security and performance for
your retirement income!
Great returns for you
QSuper’s investment manager,
Queensland Investment Corporation
(QIC), invests QSuper’s funds on
behalf of the Board of Trustees. QIC
has consistently performed above the
average of fund managers over the
past 10 years. Very few Australian,
or even international fund managers,
have performed so well, for so long.
With QSuper’s low fees you’re
already in front!
As a QSuper member, you enjoy
one of the lowest fees of any fund
in Australia and that’s good news
for your retirement benefit. While
many funds charge around 2% p.a.,
QSuper has one total fee of up to
0.35% p.a. And, with QSuper, you
pay no entry fees, no exit fees and
no commissions. If you think of
fees as a direct deduction from the
return you earn, you will soon see
what a difference fees make to your
end benefit. So, with QSuper you’re
already in front!
Products and services to suit you
QSuper has more than 375,000
members who live from Bamaga to
Birdsville, Cloncurry to Coolangatta
QSuper at
your fingertips
Find out more on the following topics
24 hours a day, 7 days a week by calling
4
1300 360 750 and selecting option 1.
SUPERSCOOP
Menu (list of all documents) 999
Comparison of Defined Benefit and Accumulation accounts 407
Voluntary contributions 103
Spouse contribution guide 409
Rolling over other super to QSuper 604
Extra death and disability insurance 509
Salary sacrifice – Defined Benefit account 008
Salary sacrifice – Accumulation account 014
Voluntary contributions after leaving work 102
Allocated Pension account 303
Investment choice book 907
Superannuation surcharge guide 404
Reasonable benefit limit workbook 414
QSuper 2001 Annual report to members

and all points in between. The
occupations of our members vary
from Police Officers to Scientists,
Road Workers, Nurses and Teachers.
Our members range in age from 15
to 102 years. What’s really impressive
though, is that QSuper is big enough
and flexible enough to meet the varied
needs of all of these members.
While you remain employed with the
Queensland Government, you may
be able to:
• choose how your super grows,
either in a Defined Benefit or
Accumulation account;
Karen Peut is the Executive
Director (Roads Programs) with
the Department of Main Roads and
a Director of Queensland Motorways
Limited. She has been a QSuper
Trustee since 1985, and is a life
member of the Queensland Public
Sector Union. Karen enjoys reading
and spending time with her family in
her spare time.
• boost your super by making
voluntary contributions;
• open a QSuper account for your
spouse;
• transfer other super you have to
QSuper and save on fees;
• take out extra death and
disability insurance on top of
the standard insurance and
income protection cover you
may have with the Fund; and
• salary sacrifice your personal
super contributions and save on
tax.
“... all of this,
while keeping
costs amongst
the lowest in
the world”.
Once you leave Queensland Government
employment, you may:
• leave your funds invested with
QSuper;
• draw on your available funds;
• add more money to your QSuper
account; and
• use a QSuper Allocated Pension
account for your retirement
income.
QSuper really does have products and
services to suit everyone!
Excellent service for you
If you have ever withdrawn money
from QSuper, you will have
experienced our efficient turnaround
time for paying claims. If you have
ever phoned the QSuper hotline for
information about your account,
or attended one of more than 160
QSuper seminars held each year
around the State, you will be aware
how well informed and helpful
QSuper Information Officers are.
All of this means excellent service
for you!
As a QSuper Trustee, I’m pleased to
be part of a fund that is a market
leader in products, services, fees
and returns. QSuper is a strong,
secure fund with the expertise and
flexibility to help a wide range of
members finance their future. All of
this, while keeping costs amongst the
lowest in the world.
•
Phone 1300 360 750 and
SELECT FROM THE FOLLOWING OPTIONS:
0 Request a transfer book
QSuper 2001 Annual report to members
1 Order information by fax or post
2 Daily unit price and interest rate information
3 Listen to the latest super news
4 Talk to an Information Officer
Monday to Thursday 8.30 a.m. to 5.00 p.m.
Friday 9.00 a.m. to 5.00 p.m. *
* During September and
October QSuper will have
Information Officers available
to help you from 8.00 a.m.
to 8.00 p.m.
QSuper info just a click away!
Visit the QSuper website at www.qsuper.qld.gov.au
for all QSuper publications and much more!
SUPERSCOOP 5

How have investments
shaped up over the last 12
Members with an Accumulation account are able
to choose between five investment options. Of course,
if you have a Defined Benefit account, your benefits
are not affected by investment returns.
In short, it has been a year of subdued returns.
To look at the general picture though, the lower
returns for the 2000/2001 year were largely
caused by lower performance from share markets
around the world. In the long run, share market
investments give good returns, but there can be
some sharp rises and falls along the way. While
the results for this financial year are down on
previous years, this outcome is not
surprising if we look at the history
of investments over the past 100 or
so years. History also suggests that
switching to more conservative
investments after a market fall may
not be the best thing to do. It is
important to consider how long you
intend to have your funds invested
and to stick to your long-term plans
and goals unless your circumstances
suggest a need to change.
months?
by Gary Wilkinson
QSuper Trustee Gary Wilkinson talks
about investment returns over the last
12 months.
Gary Wilkinson is the
General President of the
Queensland Police Union
and has been a QSuper
Trustee since 1997. He is
a member of the Board
of the Police Federation
of Australia. Away from
work, Gary enjoys boating
and fishing.
On the plus side, during the 2000/2001 year, QSuper’s investment
manager, Queensland Investment Corporation (QIC), cushioned
the effect of overseas share market returns by outperforming
these markets. QIC’s goal is to produce consistent, solid
returns and, on a long-term basis, QIC compares very favourably with
competitors.
In summary, the 2000/2001 year has shown us the volatility markets
can be subject to. But, it also reminds us not to over-focus on short-term
results and to stick to our plan to achieve long-term goals. •
OBJECTIVE
NET
RETURNS *
ASSET
CLASSES
Allocation 30/6/2001
Cash 100%
Australian fixed -
interest
International fixed -
interest
Property -
Australian shares -
International -
shares
To credit members’ accounts, over 1 year
periods, with an average return of 0.5% p.a.
below the cash rate after administration fees,
but before tax.
2000/2001 4.86% 5.89%
1999/2000 - -
1998/1999 - -
1997/1998 - -
1996/1997 - -
Compound 4.86% 5.89%
average p.a.
(since introduced)
Cash
Returns 2000/2001:
Accumulation account 4.86%
Allocated Pension account 5.89%
• This option has a 100% allocation
to cash.
• Despite an environment of falling
interest rates, especially over the
latter half of the 2000/2001 year,
returns from cash investments
were solid.
Accumulation
account
Allocated Pension
account
6
SUPERSCOOP
Data on asset allocation and past returns is provided where the option has an investment history.
Net returns are for a member who remained in the option for the entire year and made no transactions, and is net of fees and tax.
QSuper 2001 Annual report to members

Cash Plus
Returns 2000/2001:
Accumulation account 5.26%
Allocated Pension account 5.90%
• This option has a 30% neutral allocation to shares. The
lower returns for 2000/2001 were largely caused by the
lower performance of share markets around the world.
• This option gained from solid returns from the property
and fixed interest asset classes, and the option’s 53%
neutral allocation to cash enabled it to benefit from the
stable investment returns from cash.
Balanced with Reserves
Returns 2000/2001:
Accumulation account 4.84%
Allocated Pension account 4.60%
• This option has a 60% neutral allocation to shares. The
lower returns for 2000/2001 were largely caused by the
lower performance of share markets around the world.
The option benefited from solid returns during the year
from the property, fixed interest and cash asset classes.
• This option was invested in the same way as the Balanced
option, but net returns were affected by transfers to/from
the investment reserve (page 10).
ASSET
CLASSES
Allocation
ranges
Allocation
30/6/2000
Allocation
30/6/2001
ASSET
CLASSES
Allocation
ranges
Allocation
30/6/2000
Allocation
30/6/2001
Cash 48% - 65% 52.2% 50.4%
Australian fixed 6% - 10% 8.0% 7.7%
interest
International 0% - 10% 3.3% 3.9%
fixed interest
Property 2% - 8% 6.2% 6.6%
Australian shares 16% - 22% 19.2% 19.3%
International 5% - 17% 11.1% 12.1%
shares
OBJECTIVE
Cash 1% - 26% 5.9% 1.9%
Australian fixed 13% - 19% 15.7% 15.3%
interest
International fixed 0% - 18% 6.4% 7.6%
interest
Property 5% - 15% 12.2% 13.0%
Australian shares 35% - 41% 37.9% 38.3%
International 12% - 32% 21.9% 23.9%
shares
OBJECTIVE
To credit members’ accounts, over 3 year
periods, with an average return of cash +
0.75% p.a. after administration fees,
but before tax.
To credit members’ accounts, over 5 year
periods, with an average return of cash + 1.5%
p.a. after administration fees and transfers
to/from the reserve, but before tax.
NET
Accumulation Allocated VPP
RETURNS * 2000/2001
account Pension (closed)
account option
5.26% 5.90% 4.91%
1999/2000 8.68% 8.84% 8.33%
1998/1999 6.32% 6.86% 5.97%
1997/1998 7.01% 7.01% 6.64%
1996/1997 13.10% 13.10% 12.75%
5 year 8.04% 8.32% 7.69%
compound
average p.a.
NET
Accumulation Allocated
RETURNS * 2000/2001
account Pension account
4.84% 4.60%
1999/2000 12.00% -
1998/1999 9.75% -
1997/1998 10.00% -
1996/1997 17.20% -
(commenced 17/7/2000)
5 year 10.69% 4.60%
compound
average p.a.
* Net earnings are reflected in the unit price declared for each of the options.
QSuper 2001 Annual report to members
SUPERSCOOP

Balanced
Returns 2000/2001:
Accumulation account 5.12%
Allocated Pension account 5.61%
• This option has a 60% neutral allocation to shares. The
lower returns for 2000/2001 were largely caused by the
lower performance of share markets around the world.
• This option benefited from solid returns during the year
from the property, fixed interest and cash asset classes.
High Growth
Returns 2000/2001:
Accumulation account -7.58%
Allocated Pension account -8.94%
• This option is invested 100% in shares. The lower returns
for 2000/2001 were largely caused by the lower performance
of share markets around the world.
• Over the year, the High Growth option suffered from its
policy of insuring against movements in the Australian dollar
(hedging). Because the Australian dollar fell over the year,
investments held in overseas currency went up, but the High
Growth option did not receive these gains.
ASSET
CLASSES
Allocation
ranges
Allocation
30/6/2000
Allocation
30/6/2001
ASSET
CLASSES
Rebalance
ranges
Allocation
30/6/2001
Cash 1% - 26% 5.9% 1.9%
Australian fixed 13% - 19% 15.7% 15.3%
interest
International 0% - 18% 6.4% 7.6%
fixed interest
Property 5% - 15% 12.2% 13.0%
Australian shares 35% - 41% 37.9% 38.3%
International 12% - 32% 21.9% 23.9%
shares
OBJECTIVE
To credit members’ accounts, over 5 year
periods, with an average return of cash + 2%
p.a. after administration fees, but before tax.
OBJECTIVE
Cash -2% - 2% -0.2%
Australian fixed - -
interest
International - -
fixed interest
Property - -
Australian shares 31% - 39% 34.9%
International 61% - 69% 65.3%
shares
Includes a maximum exposure of 5% to emerging markets.
The High Growth option has a foreign currency exposure
range of –5% to 5%.
To credit members’ accounts, over 10 year
periods, with an average return of cash + 3%
p.a. after administration fees, but before tax.
NET
RETURNS *
Accumulation
account
Allocated Pension
account
NET
RETURNS *
Accumulation
account
Allocated Pension
account
2000/2001 5.12% 5.61%
1999/2000 12.88% 13.03%
1998/1999 8.86% 9.46%
1997/1998 - -
1996/1997 - -
3 year 8.91% 9.32%
compound
average p.a.
2000/2001 -7.58% -8.94%
1999/2000 - -
1998/1999 - -
1997/1998 - -
1996/1997 - -
Compound -7.58% -8.94%
average p.a.
(since introduced)
8
* Net earnings are reflected in the unit price declared for each of the options.
SUPERSCOOP
QSuper 2001 Annual report to members

Every tool you need
to build a secure future
At QSuper we’ve designed a great range of publications and tools for you.
Call us today on 1300 360 750 or visit our award winning website
at www.qsuper.qld.gov.au to get all the information
you need to finance your future.
QSuper 2001 Annual report to members
SUPERSCOOP

Defined Benefit account
How is your money invested?
ASSET
CLASSES
Neutral
asset
allocation
Asset
allocation
ranges
Allocation
30/6/2000
Allocation
30/6/2001
Cash 6% 1–26% 5.9% 1.9%
INVESTMENT OBJECTIVE
To earn CPI + 4.5% p.a. after
tax and fees, over rolling
5 year periods.
Australian 16% 13–19% 15.7% 15.3%
fixed
interest
International 8% 0-18% 6.4% 7.6%
fixed interest
Property 10% 5 - 15% 12.2% 13.0%
Australian 38% 35 - 41% 37.9% 38.3%
shares*
International 22% 12 - 32% 21.9% 23.9%
* The allocation to Australian shares includes an investment of
approximately $1.15 million in QsInvest Limited.
What is a reserve?
In good years, a portion of the
Balanced with Reserves return is kept
in a ‘reserve’, to be distributed in later
years when earnings might be low or
even negative. The QSuper Board of
Trustees has decided the size of the
reserve can vary between 0% to 15%
of the Balanced with Reserves fund.
Other reserves are also kept by QSuper,
for taxation, administration and death
and disability insurance liabilities.
These reserves are invested in a way
that suits their respective liability
profiles.
The balances of the reserves are as
follows:
Reserve 30 June 1999 30 June 2000 30 June 2001
Investment $64.39m (7.20%) * $80.56m (7.29%) * $89.19m (6.84%) *
Taxation $23.87m $30.21m $39.45m
Other $12.85m $18.35m $21.8m
(% of member funds in the Balanced with Reserves option) *
“By paying my own money into QSuper,
my employer pays in more for my
retirement!”
Phil Duncan
Track Section Supervisor
Queensland Rail, Gayndah
10
SUPERSCOOP
QSUPER
MEMBER
SPOTLIGHT
Exempt
fund
status
QSuper is classed
as an exempt public sector
superannuation scheme
under the Commonwealth
Government’s Superannuation
Industry (Supervision) Act
1993 (SIS) and is treated as
QSuper 2001 Annual report to members

“With QSuper I can choose between a Defined
Benefit or an Accumulation account”.
Michele Akers
Teacher
QSUPER
MEMBER
SPOTLIGHT
Investment returns
Cairns State High School
YEAR DEFINED BENEFIT ACCOUNT STATE ACCOUNT POLICE ACCOUNT
Gross
earning
rate
Crediting
rate
Objective
(CPI +
4.5% p.a.)
Gross
earning
rate
Resignation
crediting
rate
Preservation
crediting
rate
Objective
(CPI +
4.5% p.a.)
Gross
earning
rate
Resignation
crediting
rate
Preservation
crediting
rate
Objective
(CPI +
4.5% p.a.)
2000/2001 5.86% 5.20% 10.52% 5.86% 4.80% 5.20% 10.52% 5.86% 4.80% 5.20% 10.52%
1999/2000 14.29% 13.35% 7.69% 14.19% 12.85% 13.25% 7.69% 14.24% 12.90% 13.30% 7.69%
1998/1999 10.54% 10.35% 5.57% 10.51% 9.90% 10.30% 5.57% 10.55% 9.95% 10.35% 5.57%
1997/1998 11.60% 10.85% 5.71% 11.04% 10.45% 10.85% 5.17% 11.04% 10.45% 10.85% 5.17%
1996/1997 19.59% 19.45% 4.83% 19.08% 18.60% 19.00% 4.83% 19.15% 18.60% 19.00% 4.83%
5 year 12.18% 11.74% 6.73% 12.05% 11.23% 11.63% 6.73% 12.08% 11.25% 11.65% 6.73%
compound
average
Your investment manager -
Queensland Investment Corporation
Queensland Investment Corporation
(QIC) is one of the largest wholesale
funds managers in Australia, with
over $27 billion in funds under
management. Based in Brisbane,
QIC manages investments for
a complying superannuation
fund. However, in line with an
agreement between all States
and the Commonwealth, QSuper
complies with the principles of
the Commonwealth’s retirement
incomes policy. In addition,
the Queensland Government
QSuper 2001 Annual report to members
many Queensland public sector
superannuation and insurance
schemes, as well as the Queensland
Government and other approved
investors. For the past 10 years,
QIC has invested QSuper’s funds
and the QSuper Board of Trustees
have determined that, in all ways
possible, QSuper will comply
with SIS.
•
and has consistently achieved excellent
returns for members. QIC manages
the QSuper portfolio and employs
specialist fund managers to assist
in the management of international
shares to ensure your money benefits
from the specialist knowledge and
skills it needs to finance your future.
QIC also supports members through
speaking at QSuper seminars and
assisting with the provision of many
other member services. To learn
more about QIC, visit their website
at www.qic.com.au .
SUPERSCOOP 11

Any way you look at it,
you benefit from low fees
QSuper prides itself on being one of the lowest cost funds in Australia.
By keeping fees low, more of your money is working to finance your future!
What does
this mean for your
money?
Average of QSuper
competitors
Assumed 5% 5%
return
minus 1.69% 0.32%
Management
Expense Ratio
(MER)
Your money 3.31% 4.68%
grows by
The QSuper Board of Trustees
recently commissioned an independent
report, by consultants Towers
Perrin, to investigate how low
QSuper’s fees were compared to other
funds. The report found that QSuper
provides excellent value to members.
In the past, the QSuper Board of
Trustees set the fees to be charged
for administration and investment
up to 0.35% p.a. For the 2000/2001
year, fees for QSuper members were
0.264% p.a. The returns members
receive are determined after this
fee and a taxation provision are
deducted daily. Balanced with
Reserves members also have a
provision deducted from investment
earnings to fund the investment
reserve. A member with funds in
the VPP (closed) option pays an
additional 0.35% p.a. for the capital
guarantee provided.
Defined Benefit accounts (including
State and Police accounts) provide a
benefit based on a multiple of salary
calculation, so fees and investment
returns don’t directly affect your
end benefit. A crediting rate, which
has a fee deducted for management,
insurance and tax expenses, is applied
to the contributions that you pay into
your account.
Another way of looking at fees is to
use a Management Expense Ratio
(MER). You may have seen MERs
referred to in superannuation or
investment fund documents, or seen
an adviser use MERs to compare
funds. An MER is one way to measure
the total cost of your investment, and
includes manage-ment, trustee and
other expenses such as custody fees
and audit fees that are incurred by all
investment managers when investing
funds. These costs are not generally
included in the administration and
investment fees stated, but rather
reflected in the declared return. It
allows you to compare the fees of
different funds using a consistent
formula, which has been developed by
the Investment and Financial Services
Association. In future, QSuper will
also be using MERs to advise fees
charged so you can more easily
compare our fees with other funds.
When Towers Perrin compared
QSuper’s fees calculated on an MER
basis, they found that QSuper’s MERs
are “well below those charged by
retail and master funds”, and
represent “a significant benefit to
members”. This means more of
your money is working to finance
your future.
•
The following table shows just how low QSuper’s fees were over the 2000/2001 year compared to the alternatives.
CASH CASH PLUS BALANCED HIGH GROWTH
WITH RESERVES
AND BALANCED
QSuper MER 0.28% 0.30% 0.32% 0.41%
Average competing funds* 1.22% 1.41% 1.69% 1.71%
Highest competing funds 1.85% 1.85% 2.12% 2.26%
Lowest competing funds 0.75% 1.20% 1.40% 1.20%
* Retail funds; fees charged as a percentage of assets per annum.
12
SUPERSCOOP
QSuper 2001 Annual report to members

QSuper 2001 Annual report to members
SUPERSCOOP

Super answers
for super questions
QsInvest Limited is jointly owned by QSuper and Queensland Investment Corporation (QIC). QsInvest provides
free retirement planning advice to QSuper members. Following are some common super questions answered
by two of QsInvest’s financial planners. Bear in mind these answers are of a general nature only and do not
take into account your personal financial circumstances, so if required, seek advice.
Peter Aiken is QsInvest’s
Manager of Financial
Planning and has been
with QsInvest since 1995.
Peter is a Certified Financial
Planner and began working
in the banking and financial
services industry in 1964.
His qualifications include
a Diploma of Financial
Planning from Deakin
University.
Christine Thompson joined
QsInvest in 2000. She is
also a Certified Financial
Planner and has worked
since 1984 in the banking
and financial services
industry. Christine
completed her Diploma of
Financial Planning from
Deakin University in 1998.
Peter Aiken and Christine Thompson are Proper Authority
Holders of QsInvest Limited (ABN 35 063 511 080)
Licensed Dealer in Securities (74070).
Q
Is there a simple rule of thumb when
making an investment choice?
No. Different investment options carry different investment
risk. Among other things, your investment strategy should
take into account how long you are planning to invest, your
attitude towards risk and your experiences with other
investments.
QSuper offers five investment options ranging from 100% cash
to 100% shares. As a general rule, the longer your investment
period, the greater the percentage of growth assets such as
shares and property you should invest in. Remember, your
money needs to work hard for you long after you’ve finished work!
Once you are comfortable with your investment strategy, it is
important to have the discipline to maintain it through the
good and bad times. Investment values do fluctuate, so
resist the temptation to switch simply because markets have
a bad year.
Q
Can I increase my take home pay by
salary sacrificing my super?
Salary sacrificing your standard contributions to QSuper can
increase your take home pay. However, there are a number of
important considerations:
s The benefits are marginal for those on incomes
of under $20,000.
s Those on incomes of around $75,000 or more may
be subject to surcharge tax.
s Those in excess of their reasonable benefit limit (RBL)
may pay an effective tax rate of up to 64% if appropriate
advice isn’t sought.
Workbooks on salary sacrifice, superannuation surcharge and
RBLs are available from QSuper to help you better understand
these issues.
14
SUPERSCOOP
QSuper 2001 Annual report to members

I’ve decided Qto salary sacrifice,
but I’m not sure what to do with
my additional take home pay.
It’s important to make the most of this money. A
good option is to reduce your home loan, personal
loans or credit card bills. Concentrate on those debts
with the highest interest rates first.
Once you are in control of your finances, consider
superannuation. It is never too early to save for your
retirement. For long-term investors, superannuation
remains a very tax-effective saving strategy,
particularly when compared to other investments.
Remember, you usually can’t access your super
until you retire.
A range of
workbooks are
available to assist
you with these and
other issues.
Q
What should I do about my
superannuation surcharge debt?
The superannuation surcharge takes the form of a
debt levied against superannuation accounts of high
income earners. Generally, it is required to be paid
when the member first withdraws funds from their
account. There are many strategies and issues to
consider when dealing with this debt, including:
s If you intend to pay it off, save interest by repaying it
just prior to 30 June.
s If you intend to maintain it, adopt an investment
strategy that is likely to outperform the interest cost.
s If you intend to make voluntary contributions to
offset it, consider making them via salary sacrifice
instead of after tax contributions.
s If you intend to make after tax contributions,
consider saving separately in an account for your
spouse. If your spouse earns less than $10,800,
you may be entitled to a tax rebate of up to $540.
s If you are likely to be in excess of your reasonable
benefit limit, consider leaving the debt to accrue,
as any surcharge debt will reduce your end benefit
and, therefore, reduce the amount of your benefit
that may be taxed at the highest marginal rate.
Are you staring at tax benefits and don’t know it?
Open a QSuper account for your spouse today.
Call QSuper on 1300 360 750 or visit our award winning website at www.qsuper.qld.gov.au to find out
the taxation and other benefits of contributing as little as $500 for your partner.
QSuper 2001 Annual report to members
SUPERSCOOP
15

Will you
be ready for
retirement?
Often, we are so busy taking care of day-to-day activities,
we don’t get around to planning for the future.
When thinking about financing your future, the questions of
“how much is enough?” and “what is the best way to achieve
a comfortable retirement?” can be difficult to answer.
The earlier you start to save, the
more likely you are to reach your
target.
When we are younger, things like
entertainment, buying cars and then
raising children and paying off loans
are often the major drains on our
earnings, leaving only a little left
over for a ‘rainy day’. As we start to
get on top of these expenses, it is
important to realise that how you live
in retirement will depend mainly on
the savings strategies you have
put in place over your entire
career.
Even a little put away early can mean
a lot if the time horizon allows for
compounding interest to escalate
returns!
Here are some general savings tips
to consider along the way to your
retirement. Of course, everyone’s
personal circumstances are different
and even if these broad descriptions
don’t apply to you, the basic ideas
may still apply at different times in
your life.
16
SUPERSCOOP
QSuper 2001 Annual report to members

SAVING IN
your 20s
SAVING IN
your 30s
Are your
other super
accounts
costing you
money?
Many of us only make basic superannuation
savings at this point and
direct most of our income to immediate
living needs and paying off loans.
Investments such as a managed
fund, which uses a fund manager’s
expertise to invest, can be good
savings tools as they provide ready
access to your funds when you
need them. Two of the important
benefits to remember about super
are that it is taxed concessionally,
meaning that more will be there for
your retirement, and you have the
certainty that your money will remain
in a superannuation fund until your
retirement.
your 20s
• Make a Will.
• Aim to save 15% of
earnings on top of your
super contributions.
• Join your old super
accounts together by
rolling them over.
• When investing, carefully
analyse fees and the
investment risk of
products you consider.
Paying off the mortgage, making
loan repayments and education
expenses are often the main things
we think about at this point and we
often struggle to meet these needs
and build a nest egg for holidays and
emergencies. Many families may also
be relying on a single income.
It is important to maximise the
super benefit you receive from your
employer. To do this, you should look
to pay 5% of your salary into QSuper
and get the benefit of your employer
paying up to 12.75% of your salary.
Although this may mean you have less
disposable income, it’s important to
focus on your retirement savings.
Tips for a secure future
your 30s
• You might wish to reduce
non-deductible debt (such
as car and home loans).
• Aim to save up to 10% of
earnings on top of your
super contributions.
• Make an Enduring Power of
Attorney so your affairs can
be taken care of by someone
you trust, if you become
unable to handle them
yourself.
• Nominate legal guardians
for your children.
continued over page
Recent research has shown that
Australian workers, on average,
have 2.8 different superannuation
accounts, due to having held
multiple jobs. For many people,
this means they are paying
unnecessary fees. QSuper
charges one of the lowest fees
of any superannuation fund in
Australia and, depending on the
amount, by rolling all of your
accounts into QSuper, you could
save yourself thousands of
dollars. Do you realise how much
difference paying higher fees can
actually make to your money? •
Over a 25 year period, just
a 1% p.a.
saving in fees on a
$100,000 account, will
mean an extra
$99,386 for you ...
virtually double the
amount in your account!
QSuper 2001 Annual report to members SUPERSCOOP 17

The earlier
you start to
save, the more
likely you are
to reach your
target.
Earn
$50,000 p.a.
in retirement and
pay NO tax!
SAVING IN
your 40s
At this stage, you might be getting
on top of debts and family expenses.
Now is the time to seriously make
plans for your retirement including
what age you would like to retire
and how much you may need. Look
carefully at what you’ve built up so far
and set a strategy to make sure you can
achieve your retirement goal.
SAVING IN
your 50s
and 60s
Up to this point in your life
you’ve probably had good and bad
experiences with investments.
Now is a good time to sit down and
review the investment choices you
may have made in the past. It is
important not to rule out growth
assets (such as shares and property),
as your super will need to finance
your future for another 20 – 30 years,
or even longer.
•
Have you ever seen this advertising
headline and wondered how this
could be done?
It’s an easy and common strategy
promoted by financial planners. A couple
purchase two allocated pensions to provide
income through a combination of:
• income splitting;
• taxation rebates; and
• deductions for money where tax has
been paid already.
This strategy can be achieved with any
complying allocated pension including
QSuper’s, which charges one of the lowest
fees in Australia. To find out
how your partner can join QSuper and
get an allocated pension, call us on
1300 360 750 and ask for a QSuper
Spouse contribution guide and a Want a
first class retirement? book. •
your 40s
Tips for a secure future
• Review Wills and Enduring
Powers of Attorney.
• Consider whether salary
sacrificing your super is
right for you.
• Consider making voluntary
contributions to your
super.
• Set a target for eliminating
non-deductible debt.
your 50s and 60s
• Continue to review Wills
and Enduring Powers of
Attorney.
• Maximise your savings into
super, but be aware of the
allowable limits.
• Start planning for
retirement activities and
evaluate your financial
position.
• See a Certified Financial
Planner for situation
evaluation.
• Attend QSuper seminars
for education on your
options.
18
SUPERSCOOP
QSuper 2001 Annual report to members

With over 160 seminars,
QSuper is coming to
see you more often!
Our popular seminar programme has been expanded. This year, we will be
running 160 seminars and will now visit all major Queensland regional areas
twice a year! Each time we visit your region we will present:
• Financing your future
seminars that will cover
current superannuation issues
that interest all QSuper
members, both currently
employed and retired.
• A 2 day Retirement planning
seminar designed for members
who are retiring within
12 months.
Brisbane Retirement planning seminars
are held each month and Financing
your future seminars every 3 months.
Investor update seminars are also held
for members with VIP Accumulation
and Allocated Pension accounts. These
seminars are held during our visit to
regional areas and in July/August in
Brisbane.
•
The award winning QSuper website at
www.qsuper.qld.gov.au has details of all
QSuper seminars and on-line forms for
you to book a seat. We also advertise
our seminars in the regional press and
at workplaces to let you know when
we’ll be coming to a town near you!
“With QSuper I get death and disability
insurance to cover my needs”.
QSUPER
MEMBER
SPOTLIGHT
Stephanie Kosmala
Assistant Researcher
Queensland Institute of
Medical Research, Brisbane.
Solid and secure...
with flexibility the key
With more than $9 billion in funds
under management and over 375,000 members,
QSuper is one of the largest superannuation
funds in Australia.
Call us today on 1300 360 750 or visit our award winning website
at www.qsuper.qld.gov.au to find out more about
your QSuper investment.
QSuper 2001 Annual report to members
SUPERSCOOP 19

Lyndal Ferrari is
QSuper’s webmaster
and ensures the Fund’s
website remains
functional, informative
and fun. QSuper’s
website was recently
ranked first in an
independent study of
35 superannuation
funds from around
the world.
Rosemary Vilgan is the QSuper Board’s Executive Officer and the Executive
Director of the Government Superannuation Office. Rosemary is also a former
President of the Association of Superannuation Funds of Australia and was
both the youngest person and first female to hold this position.
EXPERTISE
to keep
your super
Are you
comparing
apples with
apples?
When
comparing
QSuper’s
returns with
those of other
funds, it’s
important to
ensure you
make the right
comparison.
202
SUPERSCOOP
QSuper 2001 Annual report to members

Cathy Head is a
Superannuation
Officer in the
Claims area of the
GSO. More than
38,000 claims
for resignation,
retirement,
drawdowns and
insurance benefits
are processed for
QSuper members
every year.
Charles Harrison
is the State Actuary
and, as such, is
responsible for
forecasting the
future commitments
of the Fund and
the adequacy of
contributions held
within QSuper.
This helps to
ensure the Fund
remains healthy
and can meet its
commitments into
the future.
The QSuper Board of Trustees employs a range of
specialists to ensure you get the highest quality superannuation
fund possible.
Troy Rieck is part of the offshore markets team in QIC’s
Fixed Interest and Currency Division. Troy conducts
strategic analysis of currency matters for QSuper funds
under management and is responsible for day to day
rebalancing of foreign currency exposures.
Experts such as Queensland
Investment Corporation (QIC),
QSuper’s investment manager, keep
returns as strong as possible, and the
State Actuary of Queensland ensures
QSuper continues to remain funded
and secure into the future. The
Board also employs the Government
Superannuation Office (GSO)
as the administrator of QSuper.
The Queensland Government has
provided superannuation for its
employees for almost 100 years, with
some employees of the GSO having
more than 30 years experience in the
industry. More than half of the GSO’s
employees have, or are currently
gaining, tertiary level qualifications.
Besides super professionals, the GSO
also employs experts in fields such as
finance, communication, law and
inform-ation technology to ensure
the smooth running of all areas of
the Fund. All this experience and
knowledge adds up to a team
committed to delivering a top quality
fund to keep your super growing! •
You may have noticed many funds
have investment options with
names like ‘Capital stable’ and
‘Conservative growth’. If you want
to compare their returns with those
achieved by the QSuper investment
options, make sure you select
competing funds with a similar
investment mix, rather than similar
names. That way, you can be sure
you are making the right
comparison. Research from
organisations like ASSIRT show
that QSuper outperforms most
competitors when comparisons
are made with products with
similar asset allocations.
How did we go?
QSuper is pleased to announce that during a difficult year for investments,
majority of our products exceeded the average returns achieved by
competitors:
OPTION VS COMPETI-
TORS
Cash
Cash Plus
Balanced
QSuper 2001 Annual report to members SUPERSCOOP
21

Enquiries
and
omplaints
The Board of Trustees has procedures in
place to ensure requests for information,
and any complaints you may have, are
dealt with fairly and promptly. Enquiries
should be directed to QSuper. If you have
a complaint about your membership, write
to the Director, Trustee Services and
mark your letter “Notice of enquiry or
complaint”.
If you are not satisfied with the outcome
of your complaint, you can take the matter
to the Superannuation Complaints Tribunal
(SCT). This is an independent body set up
by the Commonwealth Government to
assist members only after they have made
use of the QSuper internal procedure. The
SCT will try to resolve your complaint by
conciliation, but if this is not successful they
will make a decision that is binding.
You can contact the Superannuation
Complaints Tribunal on 13 14 34, or visit
their website at www.sct.gov.au .
•
QSuper’s range
of accounts
QSuper provides a range of superannuation accounts to suit your needs.
There are two basic styles of superannuation accounts offered by QSuper
- Defined Benefit and Accumulation accounts.
Defined Benefit account
QSuper’s defined benefit style
accounts are the Defined Benefit,
State and Police accounts. If you
have one of these accounts, your
benefits are based on a multiple of
your salary. This multiple grows with
the length of your service. Members
with a deferred retirement benefit
have an account that grows in line
with Australian average wage and
salary increases.
Accumulation account
QSuper’s accumulation style
accounts are the Accumulation, VIP
Accumulation and Allocated Pension
accounts. These accounts allow you
to choose your own investment
strategy and benefits simply grow
with the investment performance of
your chosen strategy.
•
$4.5 billion in lost super
... is some of it yours?
Thousands of Australians have
money invested in superannuation
and are either not aware of it or
have lost track of it. There is now a
website available to see if you have
some of Australia’s $4.5 billion
worth of lost superannuation money.
By visiting www.findmysuper.com
you can provide the Australian
Taxation Office with your details for
a search of their lost super register,
and you may discover that you have
money you didn’t even know about!
If you do find some lost super, and
wish to pay the $100 fee to Find my
Super, you could roll it into QSuper
to keep all of your accounts growing
together and avoid paying
unnecessary fees.
While you’re on the net you can even
download a QSuper Easy transfer
form from our award winning
website at www.qsuper.qld.gov.au
and we’ll do the rest for you! •
“I can invest my money across a range
of investment options to make a choice
I’m comfortable with”.
Karen McLellan
Registered Midwife
Longreach Hospital
QSUPER
MEMBER
SPOTLIGHT
How much does your Super Scoop cost?
A primary objective of the QSuper
Board of Trustees is to keep
administration costs to a minimum.
This is an area in which QSuper
excels, and our administration
fees are amongst the lowest
of any fund in Australia.
Besides keeping you informed
and educated, producing an annual
report such as Super Scoop is a
requirement that all superannuation
funds must meet. Members should
be pleased to know that the cost of
printing this year’s Super Scoop was
only 38 cents per issue
•
22
SUPERSCOOP
QSuper 2001 Annual report to members

FINANCIAL HIGHLIGHTS
AND SUMMARY
QSuper member funds
as at 1 July 2000
$8,973,605,000
Total inflows
$1,414,080,000
Changes in net market $530,007,000
value of Investments
Employer contributions $205,301,000
Member contributions $507,358,000
Transfers in $168,916,000
Other income $2,498,000
FUND ACCOUNTS
This summary of the Fund’s financial position was prepared before the audit of the
accounts, using information available at the time of publication. The audited financial
statements and auditor’s report will be available from QSuper
on request in November 2001.
Financing your future
subscriber newsletter
Find out all the latest information
by subscribing to our quarterly
newsletter, Financing your future.
In each issue you will find valuable
articles on a range of topics
including:
• financial planning;
• investments;
• taxation;
• developments in
superannuation; and
• retirement and lifestyle
issues.
QSuper 2001 Annual report to members
Total outflows
$868,044,000
Benefits paid $829,199,000
Administration expenses $38,127,000
Income tax expense ($926,000)
Other expenses $1,644,000
QSuper member funds as at 30 June 2001 $8,872,406,000
QSuper employer funds as at 30 June 2001 $647,235,000
Net assets available to pay benefits at 30 June 2001 $9,519,641,000
TOTAL ASSETS $9,541,493,000
Investments $9,531,544,000
Other assets $9,949,000
*Note: This amount represents defined benefit advance employer funding.
TOTAL LIABILITIES $21,852,000
Provision for fund tax ($23,688,000)
Provision for deferred
income tax $41,488,000
Other liabilities $4,052,000
During the year, the Superannuation (State Public Sector) Act was changed to provide
for the indemnification of the Board of Trustees. This amendment protects
the Board, from civil liability arising from their conduct such as
a breach of duty, in a manner consistent with Commonwealth super laws
and with other State legislation.
If you would like a free
subscription to Financing your
future, simply complete the
coupon and either mail or fax
it to the address or number
shown. Or if you prefer,
you can email your details to
qsuper@qsuper.qld.gov.au . •
*
TRUSTEES
meeting attendances
MEMBER REPRESENTATIVES:
(Nominated by Combined Public Sector Unions’
Superannuation Committee)
Merv Vining 12
Australian Workers’ Union
Bill Ludwig (Deputy)
Steve Ryan 12
Queensland Teachers’ Union
Jeff Backen (Deputy)
Gary Wilkinson 11
Queensland Police Union of Employers
Merv Bainbridge (Deputy)
Karen Peut 9
Queensland Public Sector Union
Alex Scott (Deputy)
Chris Barrett * 3
Queensland Council of Unions
Grace Grace (Deputy)
John Thompson # 2
Queensland Council of Unions
Grace Grace (Deputy)
*Appointed 11 April 2001.
#
Served until 28 September 2000.
EMPLOYER REPRESENTATIVES:
(Nominated by the Queensland Government)
Gerard Bradley 12
Under Treasurer and Chairman of the Board
Tim Spencer (Deputy)
Bob Scheuber 8
Queensland Rail
Michael Goode (Deputy)
Mary Montgomery 11
Queensland Health
Terri Hamilton 12
Medical & Associate Professions Funds Management
Rosemary Vilgan (Deputy)
Helen Ringrose
11
Department of Corrections
Cathi Taylor (Deputy)
Please register me as a Financing your future subscriber free of charge.
Name:
Address:
Date of birth:
Telephone: (H ) (W)
Email:
SUPERSCOOP 3
QSuper
GPO Box 200 Brisbane Q 4001
Phone: 1300 360 750 Fax: 3237 1118
Email: qsuper@qsuper.qld.gov

How will you be travelling
in retirement?
Build your first class retirement with QSuper.
Call us today on 1300 360 750 or visit our award winning website at www.qsuper.qld.gov.au
to find out how QSuper can secure you a first class retirement.
SUPERSCOOP
QSuper 2001 Annual report to members