super scoop 2005 - for younger members · 2016-10-28 · that’s something worth celebrating! for...

Super Scoop 2005 | 1QSuper annual report to members

2005 QSUPER ANNUAL REPORT TO MEMBERS 2005 QSUPER ANNUAL REPORT TO MEMBERS

SUPERSCOOP

Tomorrow’s solutions today!

WIN $$$in giveaways!See inside for details

IN THIS ISSUE The benefi ts of regular saving More ways to invest your money Stop the world – get your life back

It’s been another pleasing year of investment performance, with a crediting rate of 15.38% for the Accumulation account Balanced option, but as always the QSuper Board of Trustees remains committed to long-term investment objectives, to provide you with tomorrow’s solutions, today. For more information on investment returns for 2004/2005, see page 22.

On 23 June this year, QSuper

celebrated two special milestones: our 15th birthday, and reaching $15 billion in funds under management. While we’re not in the habit of patting ourselves on the back, we’re proud of what this achievement means for you, our members – 15 years of low fees, real service, better knowledge, and solid returns.

During the year, we handled almost 250,000 of your calls, our new-look website received more than 560,000 visits, and some 16,000 members came in to see us at our Member Service Centre at 81 George Street, Brisbane. We presented

more than 500 seminars around the State to approximately 20,000 members, and around 30,000 members received superannuation and retirement planning advice from QInvest, all as part of their QSuper membership, at no additional cost.

That’s nearly a million contacts with QSuper members, just like you, in the past year alone.

I hope you enjoy reading this year’s issue of Super Scoop, and thank you for helping us reach 15 years and $15 billion.

AcknowledgementsThe Board thanks its major service providers, including the Government Superannuation Offi ce, QIC, QInvest, and the State Actuary. During the year the State Actuary completed his triennial review of QSuper and found the Fund is in a very healthy fi nancial position. The Board also appreciates the support received from the Auditor-General of Queensland. ■

Year in review

Our priorities are to provide

you with professional expertise

and the best superannuation

service, so you can have

greater lifestyle choices.Super Scoop 2005 |

1

QSuper annual report to members

2005 QSUPER ANNUAL REPORT TO MEMBERS

2005 QSUPER ANNUAL REPORT TO MEMBERS

��

Tomorrow’s

solutions today!

WIN $$$in giveaways!

See inside for details

IN THIS ISSUE

The benefi ts of regular saving

More ways to invest your money

Stop the world – get your life back

In 2004/2005 QSuper members continued to enjoy “tomorrow’s

solutions, today” with healthy returns from buoyant stock markets

spurred on by a strong Australian economy, and sound management

of your superannuation investments.

How much does Super Scoop cost?All super funds are required to provide their members with a benefi t statement and a report each year. The QSuper Board of Trustees sees this as an opportunity to also provide useful articles and updates on how you can make the most of your super, to help fi nance your future.

For 3 consecutive years, QSuper has received a communication excellence award for the quality of our annual reporting from the Association of Superannuation Funds of Australia Ltd.

Producing a magazine like Super Scoop is a very effi cient way to communicate with more than 430,000 members – in fact,

this year the cost of printing Super Scoop was just 34 cents per copy.

What’s new?

5 Who is QSuper?

7 How am I doing fi nancially?

8 Generation C

10 Super basics

Articles

Contents

This year, as always, Super Scoop gives you a comprehensive breakdown of how your investments have performed, along with a range of superannuation and lifestyle articles.

But you might notice a few changes as well. You might remember in last year’s Super Scoop, we told you “you’re important to us”. Well, because you are important to us, during the past year, we took a closer look at some of

our publications and the way we deliver them, and we’ve made some changes. We’ve moved away from a “one size fi ts all” approach, and we’re now tailoring our communication to your needs.

This edition of Super Scoop has been written for you: our younger members. Although all members will continue to benefi t from low fees, real service, better knowledge, and solid returns, we recognise

your information needs are very different from the needs of members who are nearing or already in retirement.

And that’s what Super Scoop is all about – providing you with the most relevant information possible, and giving you tomorrow’s solutions, today!

QSuper annual report to membersQSuper annual report to members

4 Tomorrow’s solutions, today! 6 The benefi ts of

regular saving 18 Stop the world4 T morrow’s


2005 QSUPER ANNUAL REPORT TO MEMBERS 2005 QSUPER ANNUAL REPORT TO MEMBERS

��

Tomorrow’s solutions today!

WIN $$$in giveaways!See inside for details

IN THIS ISSUE The benefi ts of regular saving More ways to invest your money Stop the world – get your life back 20More ways to invest

All super funds are required to provide their members with a benefi t statement and a report each year. The QSuper Board of Trustees sees this as an opportunity to also provide useful articles and updates on how you can make the most of your super, to help

For 3 consecutive years, QSuper has received a

is a very effi cient way to communicate with more than 430,000 members – in fact,

12 Here’s Bob

13 Super at your fi ngertips 24/7

14 The best in the business

16 QIC – Best of both worlds

19 QInvest – advice to fi nance your future

22 2004/2005 returns

25 There’s no better choice of fund

26 Legislative changes

This edition of Super Scoop has been written for you: our younger members.

BY GERARD BRADLEYUNDER TREASURER AND CHAIRMAN OF THE BOARD

2 | Super Scoop 2005

PICTURED: Harry Kruse, building security offi cer at 81 George Street, helps celebrate QSuper’s 15th birthday.

In retirement will you be an explorer, a relaxer, a dreamer, or a discontent?

Solutions in your 20s► Be super savvy – Find out which

account type and investment option is best for you. You’ll thank yourself in years to come, as the power of compounding takes off.

► It’s chic to check – Keep abreast of super changes with QSuper’s new Your future newsletter (see page 15 for more information).

► Get the savings habit – Voluntary contributions make a big difference over time. If money seems to slip through your fi ngers, ask your employer about automatic salary deductions.

Tomorrow’s solutions, today!

Solutions in your 30s► Live and learn – QSuper seminars are

held regularly and are a great way to learn more about your super – check out the Investments demystifi ed seminar, new for 2005/2006.

► Weigh up your options – Do you want to make an investment switch? Do you need to catch up on lost contributions?

► Be healthy, wealthy, and wise– Cover for death and total and permanent disability can cost as little as $1 a week per unit. Have a fi nancial plan in place for your dependants if the unexpected happens.

Who is QSuper and what can we do for you?

We celebrated our 15th birthday in 2004/2005 – we’ve grown from around 7,000 members and $7 million dollars in our fi rst year, to more than 430,000 members and over $15 billion in funds under management. That’s something worth celebrating!

For 15 years, QSuper has offered members everything they need to make the most of their super.

Low feesQSuper’s low fees keep more of

your money in your account, working for you. Performance can vary over time, but a low fee represents value, year after year. QSuper’s fees are among

Australia’s lowest. When you also consider QSuper charges

no entry fees, no exit fees, and no commissions, we’re hard to beat.

Real serviceAt QSuper you get real service from people who are QSuper members, just like you. We won’t make you wait in long queues, and we will make sure your questions are answered. And you can now access your account details online, at any time of the day or night – now that’s service!

Better knowledgeBetter knowledge means better decisions. At QSuper we want you to have all the information you need to make the most of your retirement. We’re committed to providing you with a range of high quality information services – from our experienced staff, to the QSuper website, our state-wide seminars, and personalised superannuation and retirement planning from QInvest. And all these services are provided at no extra cost as part of your QSuper membership.

Solid returnsOur investment objectives are about providing solid returns for our members over the long term, and we regularly perform above industry averages. We work with QIC (the Fund’s investment manager) and 30 of the world’s best fund managers to invest your money wisely, reducing risk, expanding diversity, and improving investment returns.

For the period ending 30 June 2005, our Balanced option delivered a crediting rate to members of 15.38% for the Accumulation account, ranking it one of Australia’s best performing balanced superannuation options. Whether you’re just starting your career or already thinking about retirement, QSuper is working with you and for you, to help fi nance your future. ■

QSuper’s low fees keep more of

Low fees

Real service

Better knowledge

Solid returns

At QSuper you get real service from people

Low fees

Real service

Better knowledge

Solid returns

Low fees

Real service

Better knowledge

Solid returns

Better knowledge means better decisions.

Low fees

Real service

Better knowledge

Solid returns

QSuper is one of Australia’s largest and best performing superannuation funds, and we’re here to provide you with tomorrow’s solutions, today!

QSuper provisional investment option MERs 2004/2005

OPTION MER§ OPTION MER§

Balanced 0.58 Cash 0.37Cash Plus 0.48 Fixed Interest 0.50Socially Responsible 1.02 Australian Shares 0.53High Growth 0.58 International Shares 0.68

Did you know?► QSuper’s website attracted over 560,000 visits throughout the fi nancial year. ► Over 75% of visitors to our website use Internet Explorer 6, and over 60% use Microsoft Windows XP.► 84% of Australian adults aged 16 years and over have Internet access.► Over 61% of Australian households have Internet access. Of these, 92% have access

via a home personal computer and 8% via other sources, such as mobile phones.► Internet users access the Internet from multiple locations.63% of adults aged over 16 with Internet

access use the Internet at home, 45% at work, 37% at an educational institution, and 38% elsewhere.

Source: Australia online 3rd quarter 2004 statistics. Department of Communications, Information Technology, and the Arts – Australian Government.

Over 75% of visitors to our website use Internet Explorer 6, and over 60% use Microsoft Windows XP.

access use the Internet at home, 45% at work, 37% at an educational institution, and 38% elsewhere.

As a QSuper member you’re important to us, which is why we’re committed to giving you

tomorrow’s solutions, today!

Solutions in your 40s► Is salary sacrifi ce the answer?

– Discuss contributing extra before-tax salary to your superannuation with your accountant or fi nancial adviser.

► Up the ante – If the kids have left home, you might just fi nd yourself with a little more money each month. Why not consider contributing this extra money into your super?

► Keep your antennae out – Review your fi nancial plans with a QInvest fi nancial adviser. You work hard for your money, so make sure your money is working for you.

In last year’s Super Scoop, we told you “You’re important to us”… and because you’re important to us, we want you to know we’re always looking at developing innovative, cost-effective products and services – tomorrow’s solutions, today.

And fi nding tomorrow’s solutions has never been more important: a recent survey by Harris Interactive* found the current view of retirement is very different from traditional perceptions.

Of people aged 55 and over, 27% were explorers: they saw retirement as an exciting time, ripe for new ideas and new activities. This “new age” retiree is motivated, optimistic, and energetic. Their ability to lead a full life is usually backed by a sound fi nancial plan.

Then came the relaxers. Making up 19% of the over 55s, their idea of retirement is more traditional – they’re looking for comfort, relaxation, and recreation.

The dreamers (22%) would like to go there and do that, but their fi nancial star does not shine as brightly. On average, they’ve saved for retirement for 18 years and they might not be able to fi nance all of their dreams.

The discontents form about one third (32%) of the group. They’ve saved the least.

They are pessimistic about retirement and might have additional problems, such as being in poor health or widowed.

It might seem a long way off now, but it’s worth thinking about where you want to be in retirement.

The good news for QSuper members is superannuation planning has never been so easy. Never have there been so many choices. Never has so much expert help been available.

This edition of Super Scoop is a great place to start: you’ll fi nd articles on super basics, choice of fund, your investment options, how to save, and more. With QSuper, you’re well on your way to the kind of retirement you’re looking forward to, no matter how far away it might be, because we’re committed to giving you tomorrow’s solutions, today! ■

ss

§Management expense ratio (MER) is generally the total expenses of the Fund (e.g. investment, management, trusteeship) as a proportion of the Fund’s net asset value. These fi gures are provisional.*The Harris Poll®, #23, May 15 2002, Harris Interactive.

Super Scoop 2005 | 7

Ever left your Christmas shopping to the last minute? If you have, you will understand the pressure of trying to buy the perfect presents amongst throngs of people all in the same shopping centre as you. “If only I’d started last month,” you mutter as you stand in a checkout queue that seems to move slower than a three-legged tortoise.

The same holds true for reaching your fi nancial goals: the sooner you start, the easier it is to get there. Setting achievable goals means being able to enjoy life today while putting away enough to be prepared for tomorrow.

You may have diverse fi nancial goals – saving for a home or car, providing for your children’s education, taking that holiday of a lifetime, or providing for a comfortable retirement. The sooner you start a regular savings and investment program,

the easier it is to achieve your fi nancial goals. One reason for this is the effect compounding has on your money.

Compounding represents the ability of an asset to generate earnings that are then reinvested to generate their own earnings. So the sooner you start saving, the faster your money will grow.

Saving versus investingMany people invest but only some become wealthy – why? The mistake many people make when investing is that they treat their investment as saving.

So what is the difference between saving and investing? Saving is action you take to build up funds for something, like a holiday. As soon as you’ve saved enough, you withdraw your money and spend it on the holiday. After the holiday you have nothing left, and start the process all over again.

Building wealth is different. People who want to build wealth invest their money for the long term in growth assets such as shares and property. They don’t withdraw the capital, so it stays there growing and producing more and more income each year.

If you do this, it may take you a while longer to reach your investment goal, but in the long run you will fi nd the extra wait has been worth it. If you get it right, as the years go by, you could have an increasing additional income stream from your investments… or more holidays on a regular basis!

So what is the secret to becoming wealthy?It’s very simple: start investing and stay invested.

You don’t have to be wealthy to be an investor, but you have to be an investor to be wealthy! Regular investing programs such as QInvest’s Investment Access Funds – Regular Savings Plan can be kicked off with as little as $500 in your fi rst month and then $100 per month after that.

Wondering what to do with that tax refund? Why not use it to become an investor?

QInvest access for friends and familyDid you know QInvest has opened its doors to your friends and family? You’ve been asking for this for some time and now our fi nancial planners are providing strategies and advice to non-QSuper members at very competitive rates. Please feel free to refer our services! ■

So what is the secret to becoming wealthy?

It’s very simple: start investing

and stay invested.

Our Investment Access Funds

offer a regular savings plan,

making it even easier for you to

reach your life goals.

The Funds give you the opportunity to access cash, fi xed interest, property, or share investments. Best of all, you can

access your money whenever you need to.

For more information, or to obtain a copy of the Product Disclosure Statement,

visit www.qinvest.com.au , email [email protected] ,

or phone 1300 360 750.

You’re a member of QSuper and have your superannuation under control, so what should you do next? You are keen to start building your funds, perhaps to buy that car of your dreams, to pay for the children’s education, or for a much longer-term goal like early retirement. So what’s the next step? Having a fi nancial plan will help you decide what you want to achieve and how you should go about it. What are the issues you should be considering next to help you build those funds?

Set a budgetHow can you know how to reach your goal if you don’t know where you’re starting? Having a budget is you deciding exactly where you want your money to go, including how much you can set aside for building your wealth.

Clear bad debtSome debt can be like a heavy burden, holding you back as you try to get ahead. The type of debt we’re talking about, or the “bad debt”, is that non-deductible debt like credit card payments, personal loans, hire purchase agreements, or any other consumer debt.

With “bad debt” the interest cost is often high and the repayment periods can be long. By clearing “bad debt” you can free

up income that can be used for more fi nancially rewarding purposes such as building assets.

There is some other debt that can be classed as “good debt”, such as investment loans where the lending is used to purchase an asset that will grow in value. Often this debt can also provide some tax deductibility that may

help to lower the actual cost.

Start building your wealthOnce you’ve freed up your surplus income, the key to fi nancial success is capturing that surplus income and making it work for you. If you allow this money to simply slip through your hands, you will not take advantage of the miracle of compounding.

Albert Einstein is said to have called it the most powerful force in the universe. Compounding is where your money earns money and then that money earns you more money, and so the road to fi nancial wealth begins. Think of your surplus income as an employee, working diligently to help build your wealth.

Insure yourselfOne of your greatest assets is your ability to earn an income. This is the foundation of your fi nancial wellbeing and something that should be protected. Life often presents diffi cult and unforeseen hurdles. Insurance can reduce the fi nancial impact of some of these events. Your QSuper benefi t may provide you with some protection. In laying the foundation of a sound plan you should review your existing insurance to identify any shortfalls and implement a plan to bridge any gaps.

The next step is to seek fi nancial advice to learn about the various types of investment opportunities available to you and to build a plan that will help you achieve your fi nancial goal. QInvest will help by working with you to identify the steps and path you need to take to help you reach your desired destination. ■

QInvest is the Responsible Entity of the Investment Access Funds. You should consider the Product Disclosure Statement (PDS), which has the application form attached, in deciding whether to acquire or to continue to hold, the product.

These columns are provided by Q Invest Limited (ABN 35 063 511 580) AFS Licence 238274 (QInvest) for information only and are not intended to constitute personal advice, as they do not take into account your investment objectives, fi nancial situation, or your personal needs. You should therefore assess whether it is appropriate to your own situation before you make an investment decision. You can seek personal advice if you wish.

6 | Super Scoop 2005 QSuper annual report to members QSuper annual report to members

The benefi ts of regular saving

BY BILL DANAHERGENERAL MANAGER QINVEST

How am I doing fi nancially?

BY ROSEMARY VILGANCHIEF EXECUTIVE OFFICER, QSUPER

In our consumer society, young people are pushing credit to the limit.

tempting low introductory credit card rates or long interest-free periods.

For many, the bubble bursts when they fi nd themselves with repayments they can’t meet. A survey of 15 to 24 year olds last year by the NSW Offi ce of Fair Trading found the problem of debt was seen as being on par with drugs, and only just behind excessive drinking.

Mobile phone debts are a signifi cant fi nancial problem. The problem is compounded when phone bills are paid by credit card. Roy Morgan Research found about 10% of 18 and 19 year olds had credit cards, and more than a quarter of these card holders failed to pay off the full amount each month.

More debt equals less disposable income, so users are more likely to use the credit card option again. The impact of this cycle can be felt for many years, with potential fi rst-home buyers putting aside plans so they can pay their credit card debt.

Alarmingly, according to Roy Morgan Research, 10% of Australians who were

declared bankrupt in 2003 were aged between 15 and 24 and the number is rising. Young people can see bankruptcy as the easy way out, ignoring the long-term implications – restricted credit, less favourable employment prospects, mortgage refusal, and inability to rent.

What can parents do?It’s important to teach responsible money management. Early education is the answer, as studies show children develop money habits by the time they are 13.

If children can count, they can learn about money. When they are small, tie in with their interests and help them set short-term goals. As they grow older, long-term goals become more attainable. Keep expectations appropriate and don’t push too hard too soon.

Talk about money and what things cost. If they receive a regular allowance, maybe three piggy banks (one for savings, one for spending, and one for giving) is a solution. As they get older, the savings pig can make a trip to the bank. Through the giving pig, let them learn about those less fortunate,

such as tsunami victims, homeless kids, or an animal shelter. Establish healthy attitudes towards work and help them fi nd paying jobs outside the home.

As they reach mid-teens, support their work efforts and guide them in signifi cant purchases. Teach them about the pitfalls of different forms of credit. Consider paying outright for a mobile phone and prepaid call cards, or ask the service provider to impose call restrictions.

Whatever approach you take, you should keep in mind the best method is for you to set a good example. ■

Until these children turn 18, the pursuit of owning the newest, slickest, coolest fad of the moment usually rides on the fantastic plastic of their parents. When their 18th birthday arrives, the gloves are off and the new adults take full legal responsibility for their fi nances.

Unlike their Baby Boomer and Generation X parents, who faced restrictive lending practices and a limited range of fi nancial products, the door is wide open for the free-spending habits of Generation C.

And spend they do. It’s easy, it’s instant gratifi cation, and they can take advantage of

Children and teenagers – the so-called “Generation C” – are big business. From early childhood they are bombarded by slick marketing campaigns and a “must-have” psychology. Ask any kindergarten kid the names of The Wiggles or who helps Bob the Builder and you’re likely to get an instant reply.

8 | Super Scoop 2005 QSuper annual report to members QSuper annual report to members Super Scoop 2005 | 9

In our consumer society, young people are pushing credit to the limit.

Generation C

5 steps to fi nancial responsibilityPlanning tomorrow’s money management habits today.1. Teach money habits early.2. Stress the importance of saving.3. Help children reach goals

through their own efforts.4. Teach the value of work.5. Be a careful spender yourself.


Standard contributionsIf you are a core Government employee you may make standard member contributions of between 2% and 5% of your salary (3% and 6% for police offi cers). Your employer will pay their contributions at a rate that relates to your contributions, from 9.75% to 12.75%.

In 2004/2005, a whopping 190,000 eligible members made the maximum 5% standard contribution to their QSuper account, making them eligible for the maximum employer contribution. See the product disclosure statement that applies to you for more information.

Voluntary contributions A voluntary contribution is extra money you contribute to your super, on top of any standard contributions. These contributions can be made by BPAY®, payroll deduction, salary sacrifi ce, or a lump sum, and there’s no minimum or maximum.

In the past fi nancial year, QSuper members made voluntary contributions of $457 million – that’s money members could have invested anywhere, but they chose to invest it with QSuper. See QSuper’s Personal contributions guide.

Co-contributionsIf you earn up to $28,000 a year, the Commonwealth Government co-contribution will match every after tax dollar you contribute with $1.50, up to a maximum of $1,500. The amount of co-contribution reduces by 5 cents in the dollar for every $1 earned over $28,000, and cuts out all together at $58,000. The co-contribution does not apply to salary sacrifi ce contributions.

QSuper members are making the most of the co-contribution scheme – in 2004/2005 around 60,000 QSuper members received a co-contribution which means one out of every eight co-contributions Australia-wide was made to a QSuper member! See QSuper’s Super co-contribution fact sheet.

Salary sacrifi ceYour personal superannuation contributions are generally deducted from your net (after tax) pay. Therefore, paying a contribution of $100 actually costs you more if you take into account the tax you’ve already paid on that money. If you salary sacrifi ce, that $100 contribution is made before the deduction of personal income tax, which means it only costs $100 from your total pay package. This means your take home pay could actually increase!

Around 25,500 QSuper members made standard or voluntary contributions through salary sacrifi ce in 2004/2005, and you can seek advice on salary sacrifi ce from QInvest. See QSuper’s Superannuation salary sacrifi ce guide.

Spouse contributionsSometimes it is diffi cult for both members of a couple to accumulate enough superannuation for retirement. Interruptions to working patterns, changes in occupation, and other factors often make this diffi cult.

At QSuper, you can open an account and make contributions for your spouse, as well as contributing to your own account. In fact, many self-employed spouses of QSuper members invest their super with us. The contributions you make to your spouse’s account are called “spouse contributions”. Alternatively, you can consider having your spouse make contributions to your existing QSuper account. There can also be tax benefi ts.

There was around $70 million in spouse contributions paid into QSuper accounts last year. See QSuper’s Spouse contribution guide. ■

If you’re working for a core government department, then you’re probably looking forward to your upcoming pay rise (or maybe you’ve already received it). After all, there are plenty of things you can put your extra cash towards each fortnight. But will any of those things bring you a better lifestyle in retirement?

It’s diffi cult to know how much you’ll need in retirement, and whether you’ll have enough. But one thing is for certain – by making regular fortnightly contributions into superannuation, you can increase your retirement benefi ts over time. The compounding effect of voluntary contributions means a small contribution each fortnight could end up making a big difference to your fi nal retirement savings.

Of course the exact amount of difference voluntary contributions make will depend on factors such as how much is contributed, how long it’s invested for, and the level of investment returns achieved. But by starting now, what have you got to lose?

Each year, QSuper mails you a benefi t statement along with your copy of Super Scoop. Your benefi t statement is an important document and should be kept in a safe place. You can also view your statement through the QSuper website, whenever you want to.

So what does your benefi t statement tell you?Your benefi t statement contains valuable information to use in planning your fi nances. This could include information like:► how much your QSuper benefi t has grown over the year;► a projection of your account balance at retirement, and the level of income

this could provide you in retirement;► the amount that would be paid if you died; and ► the value of your disability benefi ts.

If you have your benefi t statement handy, now is a great time to register to view your super online. See page 13 for more information. ■

Your projected benefi tsThe following information is provided as an illustration only.

Please read the assumptions, outlined in the notes booklet, used in calculating these fi gures.

PROJECTED BENEFITS

It’s your super, so be in control of it 24/7.

Have you registered yet?

Simply call us on 1300 360 740 to register today.

See your account balance. Check your investment preference. View your benefi Request personal quotes. Update your personal details.

RETIREMENT AT AGE XX (note 3)De ned Bene t account

$378,485.00

Accumulation account

$12,938.18

Deferred retirement bene t

$83,400.10

PROJECTED BENEFIT

$474,823.28

These simple projections have been made using the

assumptions on page 3 of the enclosed notes book.

You may wish to visit the QSuper website at

www.qsuper.qld.gov.au and use our on-line

calculators to more accurately project your bene t,

and see how long it might last using QSuper’s

Allocated Pension account.You can also nd out the difference making further

contributions could make, or consider a range of other

options to help reach your retirement goals. Visit our

website at www.qsuper.qld.gov.au , or call us and we’ll

be happy to help.

Members often ask, “What retirement income will my lump sum provide?” Well, if you spread the above bene t over the years shown in the graph, your annual retirement income could be $xxx,xxx in today’s dollars.

This graph shows the annual income your projected QSuper

bene t could provide from your retirement to age 81 for men or

age 85 for women (current life expectancy for a 60 year old)*.

POSSIBLE PROJECTED ANNUAL INCOME

*These projections are provided as an illustration only. Please read the

assumptions, outlined in the notes booklet (note 3), used in calculating these

gures. This information should not be considered as being speci c to your

investment objectives, nancial situation, or particular needs. Before acting on

this information, you should seek professional nancial advice.

Age

Ben

e t

$0

$474,823

57

85

$25,908 p.a.

PAGE x OF y

0987 MBS General Statement OPT 1.indd 2

16/06/2005 11:48:30 AM

Your projected benefi tsYour projected benefi tsYour projected benefiThe following information is provided as an illustration only.



Please read the assumptions, outlined in the notes booklet, used in calculating these fi

PROJECTED BENEFITS




See your account balance. Check your investment preference. View your benefi

RETIREMENT AT AGE XX (note 3)De ned Bene ned Bene t account

$378,485.00

t account

$378,485.00

t account

$378,485.00


$12,938.18

Deferred retirement bene t

$83,400.10

t

$83,400.10

t

$83,400.10

PROJECTED BENEFIT

$474,823.28

PROJECTED BENEFIT

$474,823.28

These simple projections have been made using the

assumptions on page 3 of the enclosed notes book.

You may wish to visit the QSuper website at

www.qsuper.qld.gov.au and use our on-line

calculators to more accurately project your bene t, t,

and see how long it might last using QSuper’s

Allocated Pension account.You can also nd out the difference making further

nd out the difference making further

contributions could make, or consider a range of other

options to help reach your retirement goals. Visit our

website at www.qsuper.qld.gov.au , or call us and we’ll

be happy to help.

Members often ask, “What retirement income will my lump sum provide?” Well, if you spread the above bene t over the years

t over the years shown in the graph, your annual retirement

income could be $xxx,xxx in today’s dollars.This graph shows the annual income your projected QSuper

bene t could provide from your retirement to age 81 for men or

t could provide from your retirement to age 81 for men or

age 85 for women (current life expectancy for a 60 year old)*.

POSSIBLE PROJECTED ANNUAL INCOME

*These projections are provided as an illustration only. Please read the

assumptions, outlined in the notes booklet (note 3), used in calculating these

gures. This information should not be considered as being speci

gures. This information should not be considered as being speci

c to your c to your

investment objectives, nancial situation, or particular needs. Before acting on

nancial situation, or particular needs. Before acting on

this information, you should seek professional nancial advice. nancial advice.

Age

Ben

e t t

$0

$474,823

57

85Age

57

85Age

$25,908 p.a.

PAGE x OF y

Benefi t statement as at 30 June 2005

HELPING HANDIf you need assistance call

1300 360 750for the cost of a local call.

SUMMARY OF ENTITLEMENTSBALANCE OF ACCOUNT (note 1)

DEATH BENEFIT (note 2)

Is your super out of control?

We’ve made it Easy to handle.

Keep track of all your super in one account by rolling over to QSuper.

Visit our website or call us on 1300 360 730 for an Easy transfer form today!

We recommend you obtain and read the product disclosure statement (PDS) prior

to making a decision to invest. The PDS is available from our website or by calling us.

www.qsuper.qld.gov.au

Contacting QSuper81 George Street Brisbane Q 4000

GPO Box 200 Brisbane Q 4001

Phone 1300 360 750Fax 07 3237 1118


Low fees Real service Betterknowledge Solidreturns

DisclaimerWhile care has been taken to ensure the information contained in this statement is accurate,

this statement must in no way be regarded as a guarantee of bene ts. All bene ts payable

will be determined strictly in accordance with relevant statutes at the time the bene t is

paid. The Board of Trustees of the State Public Sector Superannuation Scheme, the

Government Superannuation Of ce, and the State of Queensland disclaim liability for

all claims, losses, damages, costs, or expenses of whatever nature, however occurring,

which arise out of reliance upon the information disclosed on this statement, or for any

use that is made of this information regardless of the form of action whether in contract,

tort (including negligence), breach of statutory duty, or otherwise.STATEMENT CONTINUED OVER PAGE

0987 COMBINED GENERAL STATEMENT OPTION 1

De ned Bene t account

$311,931.00


$11,447.18

TOTAL

$323,378.18

John James CitizenLevel 481 George Street

BRISBANE QLD 4000

De ned Bene t account

$197,084.00


$11,447.18

TOTAL

$208,531.18

Did you know, you can now access your QSuper account

information via the QSuper website?

Have your bene t statement and payroll number handy and

register for online access today at www.qsuper.qld.gov.au .

Your membership at a glance

Client number:

123456789

Date of birth:

01/09/1961

Preservation age:

57

Tax le number held: (note 4) YES

Total undeducted contributions: $23,857.80

Eligible service date: (note 5) 01/07/1980

Registered for internet access: YES

0987 MBS General Statement OPT 1.indd 1

16/06/2005 11:48:11 AM

Your benefi t statement – what’s it all about?

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Super basics

10 | Super Scoop 2005

A sound super plan has many

elements. Combine them in a way

tailored to your needs, and you’ll

build a rich and rewarding life after

work. Here, QSuper gives you the

basics, and points you in the right

direction for further details.

QSuper annual report to members Super Scoop 2005 | 11

BY STEVE RYANPRESIDENTQUEENSLAND TEACHERS’ UNION

® Registered to BPAY Pty Ltd ACN 079 137 518

QSuper has launched “Better knowledge Bob”. He’s a catchy little icon that points you in the right direction when it comes to learning about your fi nances.

When you want to know the facts, Bob will be there. From time to time, you’ll see him happily tucked away between the pages of future editions of Your future, QSuper’s member newsletter (see page 15 for more information).

If you hop onto our website, you’ll fi nd Bob hosting our new Financial education section, Qlearn; it’s a website well worth visiting. “Better knowledge Bob” shows you how to manage your money more effectively. Topics include managing debt, maximising super, investing, and arranging insurance. There’s an abundance of simple, practical information designed to help you with money management now, as well as providing for a sound fi nancial future.

When it comes to informing members about savings, investment, and fi nancial planning, Bob is just the man to help QSuper deliver. He’s there on screen, pointing out the vast range of tools and products available that will tell you just about everything you need to know about your superannuation.

Learn online about products, services, unit prices, and investments. Download fact sheets, forms, and information books. Use our profi ling tools to see what kind of investor you are, and try out our calculators to estimate your benefi t. And you can register to have access to your account details 24/7 – all by visiting www.qsuper.qld.gov.au .

If you prefer people to pixels, come along to one of our seminars. They’re popular, free to QSuper members, held in various places around Queensland – and, yes, Bob will be there. In fact, so will some of the 20,000 QSuper members who turn up to the 500 or so seminars we conduct

every year. They cover a range of topics and the experienced

presenters can answer all your superannuation questions.

If you want more tailored advice, as a

QSuper member you can contact QInvest

to speak to a fi nancial adviser at no additional

cost. And you’re always welcome to call QSuper,

or come in and speak to one of our friendly, trained professionals who answer hundreds of questions every day.

As for “Better knowledge Bob” – he’s looking forward to helping you learn everything you need to know for a super future. ■

… here’s Bob!There’s been an addition to the QSuper family and he seems to be bobbing up all over the place.

SuperSeeker is the Australian Taxation Offi ce’s (ATO) superannuation search tool, and it can help you check if you have any money lying around in lost superannuation accounts. It’s quick and easy to use, and all you’ll need is your tax fi le number. Visit the ATO website at www.ato.gov.au , or call 13 28 65.

And if you fi nd some money you never knew you had, why not roll it into your QSuper account? QSuper charges no entry fees, and it’s a great way to boost your super savings.

Excuse me, have you lost something?The taxman has $7.3 billion in unclaimed super, and some of it could be yours.

► Have you changed jobs in the last 15 years or so?

► Have you changed your name or address?

► Have you lost track of any old super accounts you might have had?

Sounds like a job for SuperSeeker!

12 | Super Scoop 2005 QSuper annual report to members

24/724/7Super at your fi ngertips

QSuper is now there for you online whenever you need us – day or night!

24/7People fi nd themselves needing to know about their super all the time. Applying for a bank loan, a credit card, changing jobs, or making a will, are all times that may send you looking for your last statement.

Now you can forget about tracking down your statement as you can access your QSuper account online.

Members access their accounts for many reasons. While many may just need a copy of their latest statement, others are interested in seeing how their super is travelling from time to time.

Register today!Keeping an eye on your super is as simple as registering for online access. You will be issued a password and have access to your account whenever you like. If you can remember your payroll number, you can register for access online. Alternatively, you can phone QSuper and we’ll help you get started.

You’ll need your statement to register, which is why registering now is a great idea.With your statement handy you are only a few clicks or a phone call away from being able to access your super 24/7.

Once registered, you’ll have the freedom to check your account balance quickly and easily whenever it suits you. You can also update personal details, like your address, as well as review how individual investment options are performing.

The QSuper website is also packed with heaps of handy information about QSuper’s services and products.

New educational toursQSuper continues to expand the range of information available on the website and has recently added a range of fi nancial education tours. Called Qlearn, the range of six tours and 14 tools looks at much more than just your super.

You can use our investment tools to work out how long it will take to save for that holiday or car. Or our debt repayment tools will help you see how different repayments may help you be debt free more quickly. Perhaps you might be interested in information about important documents like your will or an Enduring Power of Attorney.

Award-winning publicationsOf course the web is not the only way to get information. QSuper has a great range of guides and fact sheets you can download or have posted to you. Our seminars, which you can check out on the web, are held throughout Queensland each year and of course you can always phone us for help.

So whether it’s by phone, in person, at a seminar, through our publications, or on the web, QSuper will continue expanding the ways you can get information so you can fi nd exactly what you want, when you need it. Simple! ■




See your account balance. Check your investment preference. View your benefi t statement. Request personal quotes. Update your personal details.

QSuper annual report to members Super Scoop 2005 | 13


14 | Super Scoop 2005 QSuper annual report to members Super Scoop 2005 | 15QSuper annual report to members

Better knowledge by mail!At some point you’ve probably received unexpected mail from QSuper. Maybe the letter told you about the benefi ts of making contributions into an account for your spouse. Or maybe it highlighted how easy it is for you to keep track of all your super in one account. Whatever the message, it was sent to give you better knowledge about the products and services relevant to you, to help you make the most of your super.

Did you know?► QSuper has more than 430,000

members, all current or former Queensland Government employees or their spouses.

► During 2004/2005, QSuper members made one million voluntary contributions, boosting their super by $457 million.

► Members also rolled $275 million into QSuper from other funds, consolidating their super and making it easier to keep track of.

► QSuper held more than 500 seminars throughout Queensland, attended by around 20,000 people.

► As well as holding seminars in major metropolitan centres, QSuper also visited several regional areas including Cunnamulla, Winton, Longreach, Barcaldine, Blackall, Charleville, and Mitchell.

► Around one third of all QSuper seminars were delivered in members’ workplaces, demonstrating the strong support our employers provide.

► Three quarters of QSuper members are aged under 50, and four in ten are aged between 25 and 39.

Hello, this is QSuper calling.The Board of Trustees is committed to making sure QSuper’s products and services continue to meet your needs. But your needs, and the needs of all our 430,000 members, change over time. We want to know what you want, what you need, what you like, and what we could do better. That’s why QSuper undertakes member research. Sometimes our own staff will contact you, and on other occasions this research is contracted out to professional market research organisations. When we do engage external research companies, formal agreements ensure they comply with strict standards of privacy and conduct.

The personal data we supply to researchers is generally limited to your name and contact details, and the results we receive never identify respondents.

If you are ever contacted for QSuper research, your participation is entirely voluntary, and always confi dential. If you are ever in any doubt about a call from a researcher, feel free to contact us to verify the call.

Your privacyQSuper values your privacy and the security of your personal information, and complies with the requirements of both the Queensland Government’s privacy scheme and the Commonwealth Government’s Privacy Act. ■

Want better knowledge about your super and investing generally? QSuper’s new Your future newsletter is a great place to start!

Just like this edition of Super Scoop, Your future has been designed especially for you – our younger members – and is packed with the kind of articles you’ve told us you want:

► investment returns;► educational information about super;► investing in general;► developments in super; and► lifestyle issues.

There’s no better way to keep on top of fi nancing your future!

Your future Subscribe NOW!

Your super fund is managed by a Board of Trustees – ten people who are committed to ensuring QSuper manages your funds with your retirement interests in mind. Half the trustees are appointed by the Queensland Government, and the other half are appointed by various public sector unions. Gerard Bradley, the Under Treasurer of Queensland, is the Chairman of the Board.

Each month, the Board meets to monitor QSuper’s investments, and make decisions on the management of the Fund. They review changes in legislation to determine how they will affect QSuper members, and they identify

new products and services to meet your needs and wants.

The Trustees work hand in hand with the executive management committee of QSuper. As Chief Executive Offi cer, I am supported by a Chief Strategy Offi cer, Chief Operating Offi cer, and Chief Financial Offi cer. Together, they have decades of experience in the fi nancial services industry, and a wealth of expertise in superannuation.

You can rest assured your fi nancial future is in the hands of some of the best in the business. ■

The best in the business

As a QSuper member, you have

some of the best qualifi ed and

most experienced people looking

after your fi nancial future.

Merv BainbridgeOffi cial Queensland Police Union of Employees

Merv BainbridgeOffi cial Queensland Police Union of Employees

Steve RyanPresidentQueensland Teachers’ Union

Steve RyanPresidentQueensland Teachers’ Union

Garry RyanState President and Southern District SecretaryThe Australian Workers’ Union

Garry RyanState President and Southern District SecretaryThe Australian Workers’ Union

Karen PeutCouncil DelegateQueensland Public Sector Union

Karen PeutCouncil DelegateQueensland Public Sector Union

Chris BarrettAssistant General Secretary Queensland Council of Unions

Chris BarrettAssistant General Secretary Queensland Council of Unions

Helen RingroseDirector–GeneralDepartment of Tourism, Fair Trading and Wine Industry Development

Helen RingroseDirector–GeneralDepartment of Tourism, Fair Trading and Wine Industry

Tony HawkinsChief Executive Offi cerWorkCover Queensland

Tony HawkinsChief Executive Offi cerWorkCover Queensland

Terri HamiltonManaging DirectorMAP Funds Management Ltd

Terri HamiltonManaging DirectorMAP Funds Management Ltd

Linda ApeltDirector-General Department of Communities and Disability Services Queensland

Linda ApeltDirector-General Department of Communities and Disability Services Queensland

Gerard BradleyUnder Treasurer and Chairman of the Board

Gerard BradleyUnder Treasurer and Chairman of the Board

▼Employer representatives (nominated by the Queensland Government)

▼Member representatives (nominated by the Combined Public Sector Unions’ Superannuation Committee)

The Trustees of QSuper are known as the Board of Trustees of the State Public Sector Superannuation Scheme (ABN 60 905 115 063).

Meeting attendance 12(Deputy for Gary Wilkinson)

Meeting attendance 10(Deputy – Jeff Backen)

Meeting attendance 11(Deputy – Tom Jeffers)

Meeting attendance 8(Deputy – Alex Scott)

Meeting attendance 10(Deputy – Grace Grace)

Meeting attendance 9(Deputy – Cathi Taylor)

Meeting attendance 12(Deputy – John Carpendale)

Meeting attendance 10(Deputy – John Carpendale)

Meeting attendance 9(Deputy – Wayne Cannon)

Meeting attendance 10(Deputy – Tim Spencer)

Trustee details ►►

BY ROSEMARY VILGANCHIEF EXECUTIVE OFFICERQSUPER

By making standard or voluntary contributions, you could be eligible for extra money from your employer, the Commonwealth Government, or both.

► Your employer – By paying 5% of their salary into QSuper, most members receive a 12.75% contribution from their employer, which means they’re getting 17.75% – almost double the superannuation guarantee amount of 9%. Ask your employer if you’re eligible.

► The government – If you earn up to $28,000 a year, the Commonwealth Government co-contribution will match every after tax dollar contribution you make with $1.50, up to a maximum of $1,500. The amount of co-contribution reduces by 5 cents in the dollar for every $1 earned over $28,000, and cuts out all together at $58,000. The co-contribution does not apply to salary sacrifi ce contributions. See QSuper’s Super co-contribution fact sheet.

If you are not currently receiving Your future, but would like to, you can subscibe by visiting our website at www.qsuper.qld.gov.au/newsletter .

Money for nothing? Well, almost!

16 | Super Scoop 2005 QSuper annual report to members Super Scoop 2005 | 17QSuper annual report to members

Best of both worlds

This list is current as at June 2005. These managers are regularly reviewed and may therefore change. For details on the external managers currently being used, please visit the QSuper website at www.qsuper.qld.gov.au .

The external managers working hard to deliver you solid returns include:

BY DOUG MCTAGGARTCHIEF EXECUTIVEQIC

After another year of solid returns

for members, let’s take a closer

look at QSuper’s investment

manager, QIC, the team of

managers it employs, and how

they manage your super.

An independent survey* has once again ranked QSuper’s Balanced option as one of the best performing balanced funds in Australia. Behind this impressive result is a team of investment specialists working together to achieve the best possible returns for QSuper members.

As QSuper’s investment manager, QIC gives members the best of both worlds. As well as investing funds using our own in-house expertise, QIC uses the investment skills of some of the world’s best fund managers. Around 50% of QSuper funds are managed by fund managers other than QIC in the areas of Australian and international shares, fi xed interest, and currency.

By carefully selecting managers and giving them very specifi c guidelines for investing on your behalf, QIC accesses specialist skills and diversifi cation across a range of portfolios.

This diversifi cation means you don’t have “all your eggs in one basket”.

How does QIC select managers?Selecting strong managers is a challenge – but getting the right combination of managers and managing the team for performance is a science. Delivering performance is about identifying and combining the strengths of each manager. As with team sports, different strengths and capabilities mean players have different roles in delivering success.

QIC aims to develop a team of managers that consistently performs well under varying economic and market conditions. That’s why the fi rst step in building a fund is developing the optimal team structure – the best combination of managers with complementary investment styles.

Each manager is fi rst identifi ed based on their specifi c investment style – the method they employ in managing your fund. QIC then selects teams of managers based on their:► proven track record;► demonstrated skill;► stability;► strong team conviction to their

investment process; and► ability to stick to the chosen

investment style.

Achieving value-for-money service As a large and well respected industry player, QIC can negotiate very competitive fee structures as well as ensure managers are providing the best possible service for QSuper members.

QIC also directly delivers a wide range of investment management services for QSuper, at a fee that is amongst the lowest in the industry.

Ensuring your funds are managed to QSuper guidelinesQIC continuously monitors the QSuper funds to ensure investment decisions are consistent with the guidelines supplied by the QSuper Board of Trustees.

QIC also rigorously monitors external investment managers, maximising individual managers’ performance and minimising risk. Through daily performance monitoring, QIC can view external manager portfolios down to the smallest shareholding, ensuring your funds are managed according to the strategy set by the QSuper Board of Trustees.

QIC also keeps an eye on the bigger picture. By conducting very thorough research, QIC keeps the funds on course to meet QSuper’s long-term objectives. ■*SuperRatings Survey – Balanced Fund June 2005.

18 | Super Scoop 2005 QSuper annual report to members Super Scoop 2005 | 19

More ways to invest your money

QInvest – investment advice to finance your future

Making an investment decision can be difficult at times. You need to consider how long you’ll have your money invested, the level of risk you’d like to take, and the returns you’d expect to receive by taking that level of risk. At QSuper, we understand our members have different needs when it comes to their superannuation investments. That’s why whatever stage of life you’re at, however long your money will be invested, or whatever your personal attitude to investment risk is, QSuper now has even more investment options available – to better suit your needs.

More options to better suit your needs In addition to our Cash, Cash Plus, Balanced, and High Growth options, you can now choose to invest in Fixed Interest, Australian Shares, International Shares, and Socially Responsible options. Our new range of options is divided into two groups: Ready Made and Your Choice.

In last year’s Super Scoop we mentioned the introduction of a property option. The QSuper Board of Trustees has decided to defer the launch of this option, as quality property assets, such as shopping centres, are currently in short supply.

Ready Made With our Ready Made options you can choose from a selection of different combinations of asset classes, with different levels of risk – all premixed by the QSuper Board of Trustees and regularly rebalanced as markets move. The High Growth option invests money in a mixture of Australian and international shares, while the Balanced, Cash Plus, and Socially Responsible options offer more diversity by spreading money across the different asset classes: cash, fixed interest, shares, and property.

Your Choice Or if you prefer, you can make your own choice. If you like the idea of taking responsibility for building your own investment portfolio, then our Your Choice range of options, Cash, Fixed Interest, Australian Shares, and International Shares, may be perfect for you. Alternatively, you may want to blend these with a Ready Made option. With Your Choice options, you choose exactly what proportions of your money you want invested in the different asset classes.

What’s socially responsible investing? Socially responsible investing (SRI) is suited to medium or long-term investors who want an investment approach that considers profit potential and the investment’s impact on society and the environment. With our new Socially Responsible option, you have the opportunity to invest in companies considered industry leaders when it comes to making a positive contribution with their business practices to the community, the workplace, and the environment. With SRI, there is a focus on sustainable development, so your money is invested in industries of the future, such as renewable energy, mass transport, recycling, and water. You can feel comfortable knowing SRI fund managers will fully screen companies before investing in them, to make sure they do not directly profit from industries considered totally at odds with the concept of SRI.

If you haven’t already, we hope you take the time to learn about the new options. To find out more, visit our website or call us to request a copy of the new QSuper investment choice book. ■

QInvest is one of the largest financial planning organisations in Queensland, providing superannuation and retirement advice each year to thousands of QSuper members. And QInvest’s advice is provided at no additional cost, as part of your QSuper membership.

QSuper now offers

eight investment

options for you to

choose from, and 30

investment managers,

to better suit your

individual investment

needs and to give

you more choice over

how, and where, your

money is invested.


QInvest is part of a large family, with QSuper and QIC as the shareholders. QSuper and QIC established QInvest in 1994 to provide relevant, accessible, and affordable financial planning advice. QInvest provides services to clients throughout Queensland with offices in Brisbane and Townsville. They also visit regional centres on a regular basis.

Our business is about providing financial advice and strategies to help you reach your personal goals. This professional advice is not influenced by commissions from fund managers or insurance companies. Our financial advisers are paid by salary. The only factor driving their recommendations is you, and your needs.

Each of our financial advisers holds recognised qualifications in financial planning and has extensive experience. Our advisers undergo regular professional development to keep up to date with the latest legislative changes and industry developments.

QInvest will help you build a financial plan that is efficient and tax effective – steering you around any traps while letting you take advantage of opportunities to help you enjoy the lifestyle you want in retirement. ■

QInvest case study

Paul is 36 and has only $15,000 outstanding on his mortgage. He expects to clear this debt within the next 12 months. He would like to consider investments for his surplus cash flow once the mortgage is cleared. Paul is concerned that he has little investment knowledge and would like to ensure he is fully aware of the pros and cons of the alternatives before he moves to the next stage of investing.

Paul would like to retire when he is 55 and is aware his superannuation assets will not be available to provide an income until he is 60 due to the preservation rules.

He meets with Veronica, a financial adviser at QInvest, and explains his goal. Veronica considers Paul’s situation and provides a strategy for him.

Veronica explains the benefits of salary sacrificing into his QSuper account. She explains the tax effectiveness of using pre-tax dollars to build an asset in a favourably taxed investment such as superannuation. Veronica also explains the restrictions placed on access by the preservation rules and the need for Paul to build assets outside of superannuation if he wants to be able to access his money before age 60.

She explains the benefits of a managed fund. Paul feels the managed fund offers him good diversification across a number of asset classes and likes that he can continue to build the fund using surplus income by starting a savings plan. Paul also feels comfortable with using the managed fund to provide his income in the earlier years of his retirement.

Veronica provides a strategy for Paul to take advantage of the tax effectiveness of salary sacrificing to QSuper, and the accessibility of a managed fund. Paul is comfortable implementing both the salary sacrifice and the managed fund knowing he has taken advantage of the benefits of both investments.

This column is provided by QInvest for information only and is not intended to constitute personal advice, as it does not take into account your investment objectives, financial situation, or your personal needs. You should therefore assess whether it is appropriate to your own situation before you make an investment decision. You can seek personal advice if you wish.

Super Scoop 2005 | 21

Stop the world

Walk your way to health No, don’t stop reading. All it takes is 20 or 30 minutes, 3 days a week. Come on, you can do this. Begin with a brisk walk where you work up a sweat, or plan a set routine. Stretch before and after exercising. Listen to your body – if it is yelling in pain, you’ve probably asked it to do too much. Aerobic exercises, such as walking, running, swimming, rowing, and cycling strengthen the heart and lungs. Pick a routine you can cope with and seek professional advice if you have health issues. Persist with it. You might come to enjoy it.

Give your body the fuel it needs Forget the army diet, the banana diet, and the chocolate diet. A sensible balanced diet might sound obvious, but it’s where a lot of us fall down. Make healthy eating choices, where vegetables, fruits, cereals, and breads make up a large part of your daily intake, balanced with smaller amounts of protein and dairy products, while still indulging in the odd meat pie or glass of wine. It’s never too early to take a long look at your eating habits. Childhood obesity has become a serious issue, with more than four in ten Australians over

the age of 15 being obese or overweight. Without healthy eating plans and exercise programs, they’re unlikely to ever shed those extra kilos, putting a strain on their bodies as well as our health system as they grow older.

Put stress back where it belongs Not all stress is bad. In our caveman days, it prepared our bodies to fi ght or take fl ight when woolly mammoths came calling. With the decline of woolly mammoths, our stresses now take on different forms – deadlines, tight fi nances, the kids, a partner – you name it. Stress comes with worrying – about what has already happened or what might happen. So how to keep it in perspective? Relax. Read a book. Go for a walk. Take a bath. Play soothing music. Go for another walk.

Some stress release techniques are simple and you can do them anywhere. Close your eyes and breathe deeply, slowly, purposefully. Count to ten – slowly. Repeat as necessary. Other stress-reducing techniques are learned. Meditation removes you mentally from your body and you enter a world of peace,

refl ection, and calm. Muscle relaxation unlocks tense muscles and you can learn to relax certain muscles in a particular order. Yoga helps to reduce stress and promote calm. It’s an ancient Hindu practice that’s growing in popularity and a number of different approaches are taught. Tai Chi is also growing in popularity. Practised by old and young alike, its followers claim it moves your life energy and combines meditation with movement to enhance self-healing. Many fi nd the ultimate relaxation in massage. As your body is pummelled and kneaded, the tightness and soreness melt away. If this is for you, check the type of massage provided and the therapist’s credentials.

Maintain a balancing actAs we balance work pressures, commuting, raising a family, and running a household, quality time seems to shrink to nothing. Part of the pressure is fi nancial. More and more, both partners are working to repay the mortgage, equip our homes with consumer items so necessary to our 21st century existence, and provide for our children. If major lifestyle changes intrude (death, divorce, accident, illness, unemployment),

the pressure is turned up to full. Recent studies by Quint Careers* reveal up to 40% of workers are dissatisfi ed with the balance of their working lives. Divorce rates continue to climb, with half of all fi rst marriages in the US ending in divorce, and Australia is heading in the same direction. Poor communication and fi nancial diffi culty are given as signifi cant causes for divorce. If this sounds like you, take stock and examine how you can return to being the person you once were.

So, if you’re unhappy, tired (make that exhausted), and want a fair deal, impose a few rules. Exercise. Eat well. Say no to stress. Be you. Slow down. Make time for important things (like fi nding out who got a star at kindy today). Sometimes, say “no” (and mean it). Focus on what you really need to do. Recognise that you won’t win all the time.

This is IT. You only get one chance. Be there. Grab it with both hands. Look around and reach out to the people in your life. Tell them you love them. Smile. ■

When work is one mad rush and stress is clawing at your personal life, it might be time to do some serious thinking. Here are some positive changes you can make that will give you back your life.

Have you balanced work with lifestyle?Take this quick quiz. True False

I’m facing an increased load at work.

I don’t devote enough time to my family.

I’m seeing less of my friends because of work commitments.

I rarely do anything just for me.

I feel stressed at work.

There’s never enough time to fi nish a work project properly before the next one comes along.

I work as hard as I do because others depend on me.

I regularly fi nish work at home.

I rush from one task to another.

I used to have more time for relaxation than I do now.

You don’t need a results panel. Just look at every “true” you’ve ticked and ask yourself if that’s OK or if you need to try to change it.

Facts and fi gures► Nearly half of all Australians aged

from 15 to 24 participate in an organised sport. By the time they reach 45 to 54, this drops to 18.4%.

► By 2011, it is estimated that about one third of all Queenslanders will be aged over 50.

► Of all Queenslanders aged 15 and over, 43% are overweight or obese.

Figures from Active Ageing Strategy – a Sport and Recreation Queensland Initiative

20 | Super Scoop 2005 QSuper annual report to members QSuper annual report to members

One way to get high blood pressure is to

go mountain climbing over molehills.

Earl Wilson

Need to talk to someone? As a government employee you can take advantage of the employee assistance program offered through your workplace. This service is confi dential and offered to help you manage your work and personal pressures more effectively. Contact your human resources area for more information.

*www.quintcareers.com .

CONTINUED NEXT PAGE

22 | Super Scoop 2005 QSuper annual report to members QSuper annual report to members Super Scoop 2005 | 23

2004/2005 returns

BALANCED CASH PLUS SOCIALLY RESPONSIBLE

HIGH GROWTH

Suited to medium to long-term investors who want exposure to assets with potentially higher returns.

Suited to investors who are seeking short to medium-term stability.

Suited to medium to long-term investors who want an approach that considers the investment’s impact on society and the environment.

Suited to investors wanting to obtain higher returns over the long-term.

ObjectivesTo credit CPI + 5% p.a. after fees before tax over 5 years.

To credit CPI + 4.0% p.a. after fees before tax over 3 years.



Asset allocation Asset allocation Asset allocation Asset allocationSAA Ranges SAA Ranges SAA Ranges SAA Ranges

Cash 5.0% 3%–23% 52.5% 49.0%–64.5% 5.0% 0%–20% 0% -2%–2%Fixed interest 20.0% 5%–35% 10.0% 2.5%–18.5% 25.0% 15%–35% 0% 0%Property 10.0% 5%–15% 5.0% 2.5%–8% 0% 0%–10% 0% 0%Australian shares 35.0% 30%–40% 17.5% 14%–21% 35.0% 25%–45% 35.0% 31%–39%International shares 30.0% 24%–36% 15.0% 11.5%–19% 35.0% 25%–45% 65.0% 61%–69%Growth/defensive 75%:25% 37.5%:62.5% 70%:30% 100%:0%

Actual asset allocations Year ended 30 June




2004 2005 2004 2005 2004 2005 2004 2005Cash 6.2% 9.5% 52.9% 54.7% n/a 8.6% 0.2% 0.3%Fixed interest 17.3% 16.2% 8.7% 8.1% n/a 17.1% 0% 0%Property 9.1% 8.0% 4.6% 4.0% n/a 0% 0% 0%Australian shares 35.3% 34.8% 17.7% 17.4% n/a 37.8% 34.9% 35%International shares 32.1% 31.5% 16.1% 15.8% n/a 36.5% 64.9% 64.7%

100% 100% 100% 100% n/a 100% 100% 100%

Crediting rate§ Crediting rate§ Crediting rate§ Crediting rate§

Accum AP Accum AP Accum AP Accum AP

2004/2005 15.38% 17.34% 9.90% 11.27% 1.55%* 1.78%* 16.34% 18.48%

Net return history Net return history Net return history Net return historyAccum AP Accum AP Accum AP Accum AP

2000/2001 5.12% 5.61% 5.26% 5.90% n/a n/a -7.58% -8.94%2001/2002 -4.15% -4.57% 0.03% -0.01% n/a n/a -11.98% -13.14%2002/2003 -2.37% -2.59% 0.99% 1.26% n/a n/a -3.86% -4.40%2003/2004 16.06% 17.65% 9.93% 11.30% n/a n/a 20.72% 23.60%2004/2005 15.11% 17.04% 9.77% 11.12% 2.10%* 2.40%* 16.00% 18.08%3 yr comp. (p.a.) 9.26% 10.28% 6.81% 7.79% n/a n/a 10.42% 11.75%5 yr comp. (p.a.) 5.62% 6.21% 5.11% 5.81% n/a n/a 1.84% 1.99%* Based on partial year since this option commenced on January 1, 2005. Accum = Accumulation account | AP = Allocated Pension account

CASH FIXED INTEREST

AUSTRALIAN SHARES

INTERNATIONAL SHARES

Suited to very short-term investors who want to protect the value of their investments.

Suited to short to medium-term investors who are seeking a steady income stream.



To credit CPI + 2.5% p.a. after fees before tax over 1 year.



To credit CPI + 5.5% p.a. after fees before tax over 10 years. Objectives

Asset allocation Asset allocation Asset allocation Asset allocationSAA Ranges SAA Ranges SAA Ranges SAA Ranges100% – 0% 0%–5% 0% 0%–5% 0% 0%–5% Cash0% 0% 100% 95%–100% 0% 0% 0% 0% Fixed interest0% 0% 0% 0% 0% 0% 0% 0% Property0% 0% 0% 0% 100% 95%–100% 0% 0% Australian shares0% 0% 0% 0% 0% 0% 100% 95%–100% International shares0%:100% 0%:100% 100%:0% 100%:0% Growth/defensive





2004 2005 2004 2005 2004 2005 2004 2005100% 100% n/a 0% n/a 0% n/a 0% Cash0% 0% n/a 100% n/a 0% n/a 0% Fixed interest0% 0% n/a 0% n/a 0% n/a 0% Property0% 0% n/a 0% n/a 100% n/a 0% Australian shares0% 0% n/a 0% n/a 0% n/a 100% International shares100% 100% n/a 100% n/a 100% n/a 100%

Crediting rate§ Crediting rate§ Crediting rate§ Crediting rate§

Accum AP Accum AP Accum AP Accum AP

4.73% 5.63% 4.30%* 5.12%* 7.25%* 7.52%* 4.27%* 4.95%* 2004/2005

Net return history Net return history Net return history Net return historyAccum AP Accum AP Accum AP Accum AP4.86% 5.89% n/a n/a n/a n/a n/a n/a 2000/20013.65% 4.38% n/a n/a n/a n/a n/a n/a 2001/20023.88% 4.64% n/a n/a n/a n/a n/a n/a 2002/20034.37% 5.20% n/a n/a n/a n/a n/a n/a 2003/20044.73% 5.63% 4.24%* 5.05%* 7.12%* 7.38%* 3.92%* 4.55%* 2004/20054.33% 5.16% n/a n/a n/a n/a n/a n/a 3 yr comp. (p.a.)4.30% 5.15% n/a n/a n/a n/a n/a n/a 5 yr comp. (p.a.)§Crediting rates 2004/2005Note the 2004/2005 crediting rates differ from net returns, due to the two day lag in unit prices on 30 June 2005. The crediting rates quoted apply to members who have remained in the option/s for the entire year and made no transactions.

There’s no better choice of fund!

What is choice of fund?Choice of superannuation fund is a new law that gives around half of Australia’s workforce the right to choose which superannuation fund their employer-sponsored contributions will be paid in to. Choice of fund started on 1 July 2005.

Does it affect you?The short answer is no. Because of its structure, QSuper is afforded a specifi c exemption. QSuper employers are therefore deemed to be already meeting the Choice requirements.

What does QSuper offer?But this doesn’t mean you will miss out, because at QSuper, we’re committed to giving you the low fees, real service, better knowledge, and solid returns you need, to help you achieve a quality lifestyle in retirement.

QSuper has 430,000 members and around $15 billion in funds under management – making us one of the largest superannuation funds in Australia.

As a QSuper member, you can certainly choose how and where your money is invested. We now offer members eight investment options, and access to 30 selected investment managers through our investment manager, QIC.

But we don’t just offer you the fl exibility to choose an investment preference that suits your fi nancial objectives, needs, and attitude to risk. We also give you the option to switch your investment preference as your fi nancial circumstances change. So you can make up to four investment switches each fi nancial year – at any time, and at no charge.

QSuper aims to perform strongly, to beat industry averages, and provide a solid return for members over the long term. In fact, our Balanced option delivered a crediting rate of 15.38% for the Accumulation account in 2004/2005.

This continues the strong performance from the previous fi nancial year, 2003/2004, when it delivered a crediting rate of 15.26% for the Accumulation account – ranking

QSuper’s Balanced option as one of Australia’s best performing balanced super options.*

So, it’s good to know QSuper is working hard to help give you what you need, to enjoy the lifestyle you want in retirement. As always, we will continue to let you know of further developments on the choice of fund issue, and other topics of interest to you. ■*SuperRatings Survey – Balanced Fund June 2005.


With “choice of fund” in the spotlight at the moment, many super funds, employers, and – more importantly – employees are preparing for its introduction. But what impact does the new legislation have on QSuper members?

QSuper has again ranked as one of Australia’s best performing super funds. The Accumulation account Balanced option returned 15.38% for the year ending 30 June 2005 (see page 22). This placed us a close second according to information released by independent researcher SuperRatings, outperforming the average balanced fund by 2.6%.

Achieving results like this is part of what QSuper is all about. We aim to perform strongly, to beat industry averages, and to provide a solid return to members over the long term. Visit our website for more details.Source: SuperRatings Survey – Balanced Fund June 2005.

QSuper annual report to members24 | Super Scoop 2005

Top 5 property investments 30 June 2005 Top 5 international shareholdings 30 June 2005 Top 5 Australian shareholdings 30 June 2005

Castle Towers Shopping Centre, Sydney General Electric Corporation BHP Billiton Limited

Canberra Centre, Canberra UnitedHealth Group ANZ Bank

Westpoint Shopping Centre, Sydney Citigroup Inc. Commonwealth Bank of Australia

Central Plaza Complex, Brisbane Exxon Mobil Corporation Westpac Banking Corporation

Eastland Shopping Centre, Melbourne Pfizer Inc. National Australia Bank

Derivative policyDerivatives are investment products where the value is linked to the value of another investment product, e.g. shares. Derivatives can be bought and sold and may be used to protect an investment portfolio against unfavourable movements, or to switch funds between different investments cost effectively. The QSuper Board of Trustees has obtained and accepted a risk management statement from QIC, which defi nes how QIC can use derivatives. This statement specifi cally prevents the use of derivatives for speculative purposes.

Assets above 5%The following QSuper options had exposures over 5% at the end of the fi nancial year.

Allocated Pension and Accumulation accounts Cash option: 8.03% exposure to National Australia Bank Discount Securities and Floating Rate Notes;Allocated Pension and Accumulation accounts Australian Shares option: 8.57% exposure to BHP Billiton Ltd and 5.15% exposure to ANZ Bank; Allocated Pension and Accumulation accounts Fixed Interest option: 9.24% exposure to US Government Agency Bonds and 5.29% exposure to US Treasury Notes and Bills.

ReservesReserves are held aside to pay for specifi c items as they occur. They cover insurance for death and disability, income tax liabilities, and general administration costs, and operate within an established reserving policy, approved by the QSuper Board of Trustees. The reserves are held in a mixture of cash and balanced investments.

30 June 2005 30 June 2004 30 June 2003$354.52m $268.11m $169.38m

Defi ned Benefi t accountsMost Defi ned Benefi t members are not affected by investment returns, as the fi nal benefi t is determined by a formula based on your salary, contribution rate and length of membership. The details below are provided as information to members as part of our commitment to comprehensive reporting.

QIC, as investment manager, implements the asset allocation within defi ned ranges around the neutral benchmarks. Tactical asset allocation ranges have also been established, enabling QIC to take short term over or under weight positions in certain asset classes, to take advantage of market opportunities.

Investment returns–Defi ned Benefi t accountsYear Defi ned Benefi t State account Police account

Net earning rate

Crediting rate#

Net earning rate

Resignation crediting rate#

Preservation crediting rate#

Net earning rate

Resignation crediting rate#

Preservation crediting rate#

2004/2005 16.57% 15.38% 16.57% 14.98% 15.38% 16.57% 14.98% 15.38%2003/2004 18.76% 15.26% 18.76% 14.86% 15.26% 18.76% 14.86% 15.26%2002/2003 -2.40% 0% -2.40% 0% 0% -2.40% 0% 0%2001/2002 -4.90% 0% -4.90% 0% 0% -4.90% 0% 0%2000/2001 5.27% 5.20% 5.27% 4.80% 5.20% 5.27% 4.80% 5.20%

Compound average5 year (p.a.) 6.23% 6.95% 6.23% 6.72% 6.95% 6.23% 6.72% 6.95%

#A smoothing policy applies to the defi ned benefi t accounts to reduce the volatility of the yearly crediting rates. Therefore, the crediting rates might be lower than the net earning rates when markets perform well, while the opposite may occur when markets under perform. The crediting rates, which have a fee deducted for management, insurance, and tax expenses, apply to your personal contributions for your Defi ned Benefi t account, but do not affect the fi nal benefi t you will receive.

CONTINUED FROM PREVIOUS PAGE

2004/2005 returns

Objective CPI + 5% p.a. after fees and tax over 5 years.

Asset allocation

SAA 2004 Actual allocation 2005 Actual allocation

Cash 0.0% 0.8% 3.2%Fixed interest 10.0% 7.3% 6.2%Property 10.0% 9.5% 9.6%Australian Shares# 37.5% 40.2% 39.6%International Shares 37.5% 42.2% 41.4%Private Equity 5.0% 0.0% 0.0%

Total 100% 100% 100%# The allocation to Australian shares includes an investment in QInvest Limited.

26 | Super Scoop 2005 QSuper annual report to members Super Scoop 2005 | 27QSuper annual report to members Super Scoop 2004 QSuper annual report to members

You should consider the current Product Disclosure Statement (which has the application form attached), in deciding whether to aquire, or continue to hold, the product.

Give yourself a Better knowledge boost and win!QSuper and QInvest would like to give you the chance to increase your QSuper knowledge and your investments by winning a $2,000 Investment Access Funds account in our Better knowledge boost competition.

Read Super Scoop and win $2,000!Find the answers in Super Scoop to the questions on the competition page of our website. Simply complete the online entry and go straight into the draw for a $2,000 Investment Access Funds account. The competition closes 31 December 2005. To enter, go to www.qsuper.qld.gov.au and click on the “Better knowledge boost” competition link.

For more information, including the competition terms and conditions, visit the competition page of the QSuper website at www.qsuper.qld.gov.au .

QInvest’s Investment Access Funds can help you build savings through both lump sum

deposit and regular contribution options.

*QInvest is the Responsible Entity for the Investment Access Funds. You should consider the current Product Disclosure Statement (which has the application form attached), in deciding whether to aquire, or continue to hold, the product.

Give yourself a QSuper and Qand your investments by winning a $2,000 Investment Access Funds account in our

Give yourself a

Legislative changesFor more information

on any of these changes and how they may affect you, please

contact QSuper.

For more information on any of these changes and how they may affect you, please

It’s been another year of dynamic changes in superannuation – QSuper keeps you up to date with all the latest developments.

The Superannuation (State Public Sector) Act 1990 provides for the indemnifi cation of the Board of Trustees. The Board has a level of indemnifi cation that is consistent with Commonwealth superannuation laws and other State legislation.

Enquiries and complaints QSuper has procedures in place to ensure any enquiries or complaints are dealt with fairly and promptly. In most cases we will advise you of an outcome within 14 days. You can download QSuper’s Enquiry and complaints procedure fact sheet from the QSuper website.

If you have a complaint about QSuper, write to the Enquiries and Complaints Offi cer at the address above, and mark your letter “Notice of enquiry or complaint”.If you are not satisfi ed with the outcome of your complaint, you can take the matter to the Superannuation Complaints Tribunal (SCT), an independent body set up by

the Commonwealth Government to assist members only after they have made use of QSuper’s internal complaints procedure.If you wish to fi nd out whether the SCT is able to handle your complaint, you should contact them on 1300 884 114, or visit their website at www.sct.gov.au .

Contacting QSuper81 George Street Brisbane Q 4000GPO Box 200 Brisbane Q 4001Phone 1300 360 750Fax 07 3237 1118 www.qsuper.qld.gov.au

Low fees

Real service

Better knowledge

Solid returns

DisclaimerThe information contained in this publication is not fi nancial advice and has been prepared for general purposes only. It is not specifi c to your individual objectives, fi nancial situation, or particular needs. The information may be selective and may therefore not be complete for your needs. Before acting on any of this information you should seek independent advice. The QSuper Board of Trustees, the Government Superannuation Offi ce, and the State of Queensland do not guarantee or represent the information is up-to-date or complete and disclaim liability for all claims, losses, damages, costs, or expenses of whatever nature, howsoever occurring which arise as a result of reliance upon the information, regardless of the form of action whether in contract, tort (including negligence), breach of statutory duty, or otherwise.SFN: 2610 419 41 ABN: 60 905 115 063

Cashing and contribution rules► Members under age 65 no longer have to satisfy a work test to make personal contributions to superannuation.

► For members aged 65 to 74 there is now a more simplifi ed work test. In order to contribute, members must work at least 40 hours in a period of not more than 30 consecutive days in the fi nancial year the contribution is made.

► Members aged 65 to 74 can now leave their benefi ts as a lump sum in a super fund if they have worked at least 240 hours in the most recent fi nancial year. Previously, after reaching 65, members had to work 10 hours a week to retain their lump sum benefi t in the fund.

► Members over 75 who work at least 30 hours per week can leave their lump sum benefi t in the fund.

Fee disclosureNew regulations issued under the Corporations Law introduced a new fee disclosure regime which will apply to product disclosure statements issued after 1 July 2005, and periodic statements issued after 1 July 2006.

Funds are now required to provide a more detailed breakdown of fees and costs and include a new consumer advice warning. The changes are designed to help consumers more effectively compare different products issued by different product providers.

Although QSuper is exempted from these regulations, we have chosen to abide by them to make it easier for you to compare us with other super funds. You’ll fi nd our low fees are a winner!

Splitting of contributionsFrom 1 July 2006, the Commonwealth Government proposes to allow members to split their superannuation contributions with their spouse. The government has yet to announce how this will be implemented, and at the time of printing this feature is not a mandatory requirement for all super funds.

Transition to retirementOn 1 July 2005, the Commonwealth Government introduced legislation to address its transition to retirement policies. The legislation allows employees who have reached their preservation age, access to accrued superannuation through a complying (also known as non commutable) income stream without requiring they retire from the workforce. Complying income streams include allocated pensions (conditions apply), complying pensions, and term allocated pensions.

It is not compulsory for funds to provide this facility, however it is expected that over time demand for products which cater for transitional retirement will increase.

QSuper is currently considering product options in this area.

Superannuation surchargeIn the May 2005 Budget, the Commonwealth Government announced the superannuation surcharge on high income earners will be removed from contributions and employer eligible termination payments made on or after 1 July 2005.

Surcharge liabilities that have accrued for any period up to and including 30 June 2005 will remain payable.

Generally surcharge debts are required to be paid when the member fi rst withdraws funds from their account.

QSuper Deed changesThere were a number of amendments throughout the course of the year, including:

► Reasonable benefi t limit (RBL) – some members may choose to discontinue making compulsory member contributions and no longer receive employer contributions if their total superannuation entitlements are in excess of the pension RBL. Conditions apply.► Accessing benefi ts on compassionate grounds – the Deed now mirrors Commonwealth provisions.► Widow’s pensions – these pensions will no longer be affected by remarriage. ■

QSuper member and employer funds as at 1 July 2004 = $12,981.12m

TOTAL ASSETS $16,001.00m TOTAL LIABILITIES $133.90mInvestments $15,973.62m Provision for fund tax $57.03mOther assets $27.38m Other liabilities $76.87m

QSuper member funds as at 30 June 2005 $15,095.93mQSuper employer funds as at 30 June 2005 *$771.17mNet assets available to pay benefits at 30 June 2005 $15,867.10m

*Note: This amount represents Defi ned Benefi t advance employer funding.

Fund accountsThis summary of the Fund’s fi nancial position was prepared before the audit of the accounts, using information available at the time of publication. The audited fi nancial statements and auditor’s report will be available from QSuper on request in November 2005.

Financial highlights and summary2004/2005

Total infl ows $4,135.40m

Investment income $2,237.82mEmployer contributions $943.63m Member contributions $673.33mTransfers in $280.00mOther income $0.62m

Total outfl ows $1,249.42m

Benefi ts paid $1,059.45mAdministration expenses $48.68m Income tax expense $125.78mOther expenses $15.51m

28 | Super Scoop 2005 QSuper annual report to members

Is your superout of control?

We’ve made it Easy to handle.Keep track of all your super in one account by rolling over to QSuper.

Complete the enclosed Easy transfer form today, or visit our website,

or call us on 1300 360 750 for additional forms!

www.qsuper.qld.gov.auWe recommend you obtain and read the relevant product disclosure statement (PDS) prior to making a decision to invest.

These PDSs are available from our website or by calling us.

out of control

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