Annual report to members 2009 - QSuper - Queensland Government

Defined benefit accountsQSuper’s Defined Benefitaccounts include memberswith Parliamentary, State orPolice accounts.About these accountsA defined benefit is calculated using aformula of a multiple times your salaryfor superannuation purposes. Each yearyour multiple grows relative to your rateof contributions. Members with DefinedBenefit accounts generally contributebetween 2% and 5% of their salary forsuperannuation purposes. If you workpart‐time, your multiple growth is adjustedto reflect your part-time hours.The way a defined benefit is calculatedis fixed. This means you can be certain ofthe benefit you will receive, dependingon your salary, the contribution rate youchoose, and your length of membership.The employer is required to pay thebalance of all defined benefits that arenot paid from member contributions andinterest earned.Members with Defined Benefit accountsdo not choose their own investmentstrategy for their Defined Benefit account.However, as part of our commitment tocomprehensive reporting, details of thedefined benefit investment strategy andobjectives are reported below.The Queensland Government passedlegislation to close the Defined Benefitaccount to new members, effective12 November 2008. This means that nonew Defined Benefit accounts can beopened. Parliamentary, State or Policeaccounts are also closed to new members.Investment objectiveThe table below shows the investment objective for QSuper’s Defined Benefit accounts.The asset allocation ranges applying from 1 July 2009 are also set out below. The actualamounts invested in different asset types vary from time to time. The management of theseasset allocations occurs within set ranges (as shown below) and gives QIC the flexibility totake advantage of investment opportunities.Investment objectivesObjectivesTo achieve an average returnover rolling 10-year periods ofAWOTE 1 plus 3.0% p.a., after feesand tax.Asset allocationRanges (%)from 1 July 2009Actual allocation (%)as at 30 June 2009Actual allocation (%)as at 30 June 2008Cash 0 – 15 6.8 0.8Fixed interest 15 – 45 34.3 38.9Property 5 – 15 13.1 12.6Australian shares 2 15 – 25 16.9 20.4International shares 15 – 25 16.7 20.4Alternative assets 0 – 25 12.2 6.9Total n/a 100.0 100.01 AWOTE is a measure of wage and salary levels of employees in Australia, as measured by the Australian Bureauof Statistics and published quarterly.2 The allocation to Australian shares includes an investment in Q Invest Limited.2008/2009 returnsThe crediting rates are net of the fees deducted for management, insurance, and taxexpenses, and apply to your compulsory personal contributions for your Defined Benefitaccount. As part of our commitment to comprehensive reporting, the details below areprovided for the information of members.Investment returnsDefined Benefit Parliamentary State PoliceCrediting rate (%)Crediting rate (%)Resignation creditingrate (%)Preservation creditingrate (%)Resignation creditingrate (%)Preservation creditingrate (%)12 months -11.96 -11.96 -12.36 -11.96 -12.36 -11.963 years p.a. -0.44 -1.98 -1.45 -1.04 -1.45 -1.045 years p.a. 5.15 4.40 4.36 4.76 4.36 4.7610 years p.a. 5.86 n/a 5.33 5.65 5.34 5.66QSuper Annual report to members | 13