❓ A parliamentary question addresses an investment switching incident within the Government Employees Superannuation Board (GESB), inquiring about an actuarial report and disciplinary actions taken against employees involved. The Minister provides details on the actuarial advice used and the outcomes of disciplinary proceedings.
AnsweredQoN 250Legislative Council
QuestionView source ↗
GOVERNMENT EMPLOYEES SUPERANNUATION BOARD - INVESTMENT SWITCHING INCIDENT
I refer the minister to the Auditor General’s Audit Report 4, dated April 2007, in which the Government Employees Superannuation Board’s investment switching incident is noted. (1) Will the minister table the actuarial report on the disadvantage to members from the investment switching activities of a few members; and, if not, why not? (2) What has been the result thus far of disciplinary proceedings against the 15 GESB employees mentioned in the audit report? Hon JON FORD
I refer the minister to the Auditor General’s Audit Report 4, dated April 2007, in which the Government Employees Superannuation Board’s investment switching incident is noted. (1) Will the minister table the actuarial report on the disadvantage to members from the investment switching activities of a few members; and, if not, why not? (2) What has been the result thus far of disciplinary proceedings against the 15 GESB employees mentioned in the audit report? Hon JON FORD
AnswerView source ↗
I thank the Leader of the Opposition for some notice of the question. The Minister for Government Enterprises has provided the following answer. (1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
(1) Will the minister table the actuarial report on the disadvantage to members from the investment switching activities of a few members; and, if not, why not? (2) What has been the result thus far of disciplinary proceedings against the 15 GESB employees mentioned in the audit report? Hon JON FORD replied: I thank the Leader of the Opposition for some notice of the question. The Minister for Government Enterprises has provided the following answer. (1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
(2) What has been the result thus far of disciplinary proceedings against the 15 GESB employees mentioned in the audit report? Hon JON FORD replied: I thank the Leader of the Opposition for some notice of the question. The Minister for Government Enterprises has provided the following answer. (1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
Hon JON FORD replied: I thank the Leader of the Opposition for some notice of the question. The Minister for Government Enterprises has provided the following answer. (1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
I thank the Leader of the Opposition for some notice of the question. The Minister for Government Enterprises has provided the following answer. (1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
(1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
(2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
[See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042%
(1) Will the minister table the actuarial report on the disadvantage to members from the investment switching activities of a few members; and, if not, why not? (2) What has been the result thus far of disciplinary proceedings against the 15 GESB employees mentioned in the audit report? Hon JON FORD replied: I thank the Leader of the Opposition for some notice of the question. The Minister for Government Enterprises has provided the following answer. (1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
(2) What has been the result thus far of disciplinary proceedings against the 15 GESB employees mentioned in the audit report? Hon JON FORD replied: I thank the Leader of the Opposition for some notice of the question. The Minister for Government Enterprises has provided the following answer. (1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
Hon JON FORD replied: I thank the Leader of the Opposition for some notice of the question. The Minister for Government Enterprises has provided the following answer. (1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
I thank the Leader of the Opposition for some notice of the question. The Minister for Government Enterprises has provided the following answer. (1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
(1) The Auditor General’s Audit Report 4 of April 2007 refers to actuarial advice received by GESB rather than a report. It should be noted that GESB adjusted members’ accounts from its operating risk reserve so that no member was disadvantaged. The actuarial advice that GESB used was in the form of a formula. This formula was provided by the actuary after his actuarial modelling examined the individual impact of switching behaviour on the fund and took into account standard industry practice in relation to unit pricing. (2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
(2) The disciplinary process has concluded for six employees and is continuing for four employees. Five employees resigned or retired prior to the commencement of the finalisation of disciplinary proceedings. Two employees were found not to have committed a breach of discipline and four were found to have committed a minor breach. I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
I seek leave to have that formula incorporated into Hansard . Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
Leave granted. [See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
[See paper 2659.] The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
The following material was incorporated - Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
Formula provided by the actuary to GESB to determine the Member account adjustment: M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
M% * B% * AB * (1+1) * (1+J), where M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
M% represents the percentage of the 2005-06 year that the individual was a member of WSS, RA or RI, calculated in days; B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
B% represents the relevant benefit adjustment % from the following list. The relevant % is that which represents the investment portfolio used by the member. Where the member was invested in more than one portfolio during 2005-06, the highest % is used. Growth 0.115% Balanced 0.092% Conservative 0.046% Cash 0.042% MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042% AB represents the individual member’s average balance during 2005-06 calculated as the average of the balance at 30 June 2005 (or the date of the member’s first contribution, if later) and 30 June 2006 (or the date of exit, if the member left GESB during 2005-06.) I represents the rate earned by the member’s investment portfolio (as at the date of calculation) from 30 June 2006 to 31 October 2006 or the date of exit if the member left GESB between 30 June 2006 and 31 October 2006. J represents the rate of interest that would be charged by the Australian Taxation Office from 31 October 2006, or the date of exit, to the date when the additional earning amount will be credited to the member’s account.
MY PLAN International Shares 0.152% Australian Shares 0.152% Property 0.152% Australian Fixed Interest 0.000% Inflation Linked Bonds 0.000% Cash 0.042%
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