❓ Hon Giz Watson questions the Treasurer regarding GESB executive remuneration, performance indicators, cost increases, and consultant spending. The Treasurer provides detailed answers, deflecting responsibility for past salary increases to the previous government.
AnsweredQoN 1315Legislative Council
QuestionView source ↗
Referring to additional information provided on 17 October 2009 to my question on notice No. 731, I ask -
(1) What is the current dollar value of the remuneration package for the CEO and for each of the individual members of the executive?
(2) How much of this expense is being paid by GESB members?
(3) What difference is there between the key performance indicators of the GESB management and key performance indicators of other public servants, who manage Government controlled enterprises?
(4) What factors justified the 28 percent salary increase in 2007-2008 as reported in the amended answers?
(5) How does the GESB management remuneration value compare with the broader Western Australian public sector and with SuperSA, RBF Tas, and QSuper public sector funds which provide similar services to members as GESB, but do not operate in a choice of fund environment?
(6) Has the remuneration of the GESB Chairman and other Board directors increased in the past three years?
(7) If yes to (6), what was the percentage increase by year?
(8) Why have GESB's administration costs doubled over the past five years?
(9) How much in total did GESB spend on consultants in 2008-09?
(10) Please identify the consultants and the amounts paid to each of them?
(11) How much in total did GESB staff and Board spend on interstate and overseas travel (including travel expenses) in 2008-09?
(12) Please explain why in June 2009, GESB was unaware of the percentile increase in remuneration paid to its Management in 2007-2008, and two years prior?
(1) What is the current dollar value of the remuneration package for the CEO and for each of the individual members of the executive?
(2) How much of this expense is being paid by GESB members?
(3) What difference is there between the key performance indicators of the GESB management and key performance indicators of other public servants, who manage Government controlled enterprises?
(4) What factors justified the 28 percent salary increase in 2007-2008 as reported in the amended answers?
(5) How does the GESB management remuneration value compare with the broader Western Australian public sector and with SuperSA, RBF Tas, and QSuper public sector funds which provide similar services to members as GESB, but do not operate in a choice of fund environment?
(6) Has the remuneration of the GESB Chairman and other Board directors increased in the past three years?
(7) If yes to (6), what was the percentage increase by year?
(8) Why have GESB's administration costs doubled over the past five years?
(9) How much in total did GESB spend on consultants in 2008-09?
(10) Please identify the consultants and the amounts paid to each of them?
(11) How much in total did GESB staff and Board spend on interstate and overseas travel (including travel expenses) in 2008-09?
(12) Please explain why in June 2009, GESB was unaware of the percentile increase in remuneration paid to its Management in 2007-2008, and two years prior?
AnswerView source ↗
Answered
27 November 2009
Responded by
Parliamentary Secretary representing the Treasurer
Response time
36 days
GESB's answers
-
(1) As at 1 November 2009 -
Chief Executive Officer $521, 076
Chief Investments Officer $295, 097
Chief Financial Officer $284, 672
GM, Marketing and Strategy $258, 793
GM, Services and Technology $256, 400
GM, Distribution (Acting) $251, 505
GM, Risk and Governance $249, 706
These amounts include salary, superannuation and other benefits such as parking.
(2) Approximately 50% of these costs are paid for by members in 2009/10.
(3) GESB's key performance indicators are specific to its primary role of being a superannuation provider and arise as a result of its statutory functions under the
State Superannuation Act 2000
. Unlike other Government agencies GESB provides superannuation and wealth management services to current and former public sector employees and their partners, rather than all Western Australians and as such its performance indicators are not comparable to other government controlled enterprises.
The performance indicators of the management team focus on performance in the best interests of members and include:
· Sustainability
o Funds under Management
o Net Funds Flow
o Member Satisfaction
· Cost Management
o Budget costs
o Cost to income ratio
o Cost to Asset ratio
o Capital expenditure
· Risk Management
o Level of risk reserve
· People Management
o Full time equivalents
o Staff engagement
(4) This salary increase occurred during the term of the previous Labor Government, and as such, it is not for the Treasurer to justify this pay increase.
(5) Data on WA public sector salaries is published in agency annual reports.
GESB advised the Treasurer that specific information on remuneration arrangements for other public sector superannuation funds is not available to it.
(6) Yes.
Not all of GESB's Board Directors are paid.
(7) The Chairman's fee increased from $64,600pa (paid since 27 June 2005) to
$106,400pa on 8 July 2008. This represents a fee increase of 64.70%.
A Director's fee increased from $25,900pa (paid since 27 June 2005) to $53,200pa on 8 July 2008. This represents a fee increase of 105.40%.
The Chair of GESB's Audit and Risk Committee fee decreased to $5,000pa (since 8 July 2008). This fee was previously $13,000pa representing a 61.5% decrease.
Superannuation of 9% is paid in addition to the above Board fees.
(8) GESB's Total Scheme Administration costs have increased from $29.69 million in 2003/2004 to $49.37 million in 2008/09. This represents an increase of 66% over 5 years. The increase in administration costs for the 5 year period is a direct result of the introduction of new products and services for members, enhancing existing products and services and revenue. Examples include:
· GESB's Financial Advice Service
· member and employer retirement seminars
· introduction of phased retirement for public sector employees
· increased web based services - 24/7 access; member on-line, webinars
· new taxed accumulation scheme
· retirement schemes
· an expanded regional WA program.
GESB has also responded to significant industry changes and as a result the complexity of superannuation has increased. Changes in the regulation of the superannuation industry include:
· Corporate Governance and Regulatory changes - 2004
· Super and Family law changes 2004-2006
· Better super reforms - 2006/7
· Tax reforms - ongoing
Costs have also increased as a result of:
· An increase in the number of members over the 5 year period (2003/04) - 254,000 members to over 310,000 in 2009 and an increase in FuM from $4b to $9.5b (2008/09)
· Increase in communications to members as complexity of superannuation increases
· six-monthly statement reporting to members
· Implementation of additional risk management and compliance processes and systems
· Capital expenditure and efficiency improvements for members
· Financial systems upgrade
· Introduction of daily forward unit pricing
· Providing support to Government during a significant period of reform in GESB -2006/7 - present.
(9) $916, 649; In accordance with Premier's Circular No 2005/08 this figure represents the expense on consultants who are considered to be any person engaged on a fee-for-service basis to provide strategic advice for Government to act on. These six-monthly summaries are tabled in Parliament under the title
'Report on consultants engaged by Government'.
Expenditure on consultants is reported to be $3,294,235 in GESB's 2008/09 Annual Report. However this includes expenditure on services such as actuaries, which are specifically excluded from the definition of consultants in Premier's Circular No 2005/08.
(10) Pottinger and Associates $471,092
Mercer Investment Services $286,052
Hay Group $147,130
GEM Consulting $10,098
BarringtonConsulting $2,277
(11) $269,510.40; In accordance with Premier's Circular No 2009/04, quarterly travel returns are submitted to the responsible Minister's Office prior to forwarding to the Director General of the Department of the Premier and Cabinet who then publish these figures in the '
Report of Interstate and overseas travel Undertaken by Ministers, Members of Parliament and officers on official business.'
It should be noted that this amount includes overseas travel for due diligence on significant international investments GESB makes with overseas fund managers and in many cases as part of continuing professional development aligned with Commonwealth regulatory standards.
(12) GESB made a transposition error in reporting percentage increases against the relevant financial years. As soon as GESB was made aware of this, the information was corrected and provided to the WA Parliament.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
-
(1) As at 1 November 2009 -
Chief Executive Officer $521, 076
Chief Investments Officer $295, 097
Chief Financial Officer $284, 672
GM, Marketing and Strategy $258, 793
GM, Services and Technology $256, 400
GM, Distribution (Acting) $251, 505
GM, Risk and Governance $249, 706
These amounts include salary, superannuation and other benefits such as parking.
(2) Approximately 50% of these costs are paid for by members in 2009/10.
(3) GESB's key performance indicators are specific to its primary role of being a superannuation provider and arise as a result of its statutory functions under the
State Superannuation Act 2000
. Unlike other Government agencies GESB provides superannuation and wealth management services to current and former public sector employees and their partners, rather than all Western Australians and as such its performance indicators are not comparable to other government controlled enterprises.
The performance indicators of the management team focus on performance in the best interests of members and include:
· Sustainability
o Funds under Management
o Net Funds Flow
o Member Satisfaction
· Cost Management
o Budget costs
o Cost to income ratio
o Cost to Asset ratio
o Capital expenditure
· Risk Management
o Level of risk reserve
· People Management
o Full time equivalents
o Staff engagement
(4) This salary increase occurred during the term of the previous Labor Government, and as such, it is not for the Treasurer to justify this pay increase.
(5) Data on WA public sector salaries is published in agency annual reports.
GESB advised the Treasurer that specific information on remuneration arrangements for other public sector superannuation funds is not available to it.
(6) Yes.
Not all of GESB's Board Directors are paid.
(7) The Chairman's fee increased from $64,600pa (paid since 27 June 2005) to
$106,400pa on 8 July 2008. This represents a fee increase of 64.70%.
A Director's fee increased from $25,900pa (paid since 27 June 2005) to $53,200pa on 8 July 2008. This represents a fee increase of 105.40%.
The Chair of GESB's Audit and Risk Committee fee decreased to $5,000pa (since 8 July 2008). This fee was previously $13,000pa representing a 61.5% decrease.
Superannuation of 9% is paid in addition to the above Board fees.
(8) GESB's Total Scheme Administration costs have increased from $29.69 million in 2003/2004 to $49.37 million in 2008/09. This represents an increase of 66% over 5 years. The increase in administration costs for the 5 year period is a direct result of the introduction of new products and services for members, enhancing existing products and services and revenue. Examples include:
· GESB's Financial Advice Service
· member and employer retirement seminars
· introduction of phased retirement for public sector employees
· increased web based services - 24/7 access; member on-line, webinars
· new taxed accumulation scheme
· retirement schemes
· an expanded regional WA program.
GESB has also responded to significant industry changes and as a result the complexity of superannuation has increased. Changes in the regulation of the superannuation industry include:
· Corporate Governance and Regulatory changes - 2004
· Super and Family law changes 2004-2006
· Better super reforms - 2006/7
· Tax reforms - ongoing
Costs have also increased as a result of:
· An increase in the number of members over the 5 year period (2003/04) - 254,000 members to over 310,000 in 2009 and an increase in FuM from $4b to $9.5b (2008/09)
· Increase in communications to members as complexity of superannuation increases
· six-monthly statement reporting to members
· Implementation of additional risk management and compliance processes and systems
· Capital expenditure and efficiency improvements for members
· Financial systems upgrade
· Introduction of daily forward unit pricing
· Providing support to Government during a significant period of reform in GESB -2006/7 - present.
(9) $916, 649; In accordance with Premier's Circular No 2005/08 this figure represents the expense on consultants who are considered to be any person engaged on a fee-for-service basis to provide strategic advice for Government to act on. These six-monthly summaries are tabled in Parliament under the title
'Report on consultants engaged by Government'.
Expenditure on consultants is reported to be $3,294,235 in GESB's 2008/09 Annual Report. However this includes expenditure on services such as actuaries, which are specifically excluded from the definition of consultants in Premier's Circular No 2005/08.
(10) Pottinger and Associates $471,092
Mercer Investment Services $286,052
Hay Group $147,130
GEM Consulting $10,098
BarringtonConsulting $2,277
(11) $269,510.40; In accordance with Premier's Circular No 2009/04, quarterly travel returns are submitted to the responsible Minister's Office prior to forwarding to the Director General of the Department of the Premier and Cabinet who then publish these figures in the '
Report of Interstate and overseas travel Undertaken by Ministers, Members of Parliament and officers on official business.'
It should be noted that this amount includes overseas travel for due diligence on significant international investments GESB makes with overseas fund managers and in many cases as part of continuing professional development aligned with Commonwealth regulatory standards.
(12) GESB made a transposition error in reporting percentage increases against the relevant financial years. As soon as GESB was made aware of this, the information was corrected and provided to the WA Parliament.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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