Governance
governance framework
Consistent with recommendations in the Review of Corporate Governance of Statutory Authorities and Office Holders (the Uhrig Report) the Authority continues to operate as an Executive Management Agency. A comprehensive governance framework has been established by the Commissioner for Superannuation to oversee ComSuper operations and to provide fund trustees and the Authority with appropriate assurances in relation to the fulfilment of ComSuper’s obligations. An important element of this framework is the creation of a number of committees responsible for highlighting issues for determination by ComSuper’s Executive Board. One of the Committees, the Audit Committee, includes an independent chair and member.
A Statement of Intent by the Authority, in response to the Statement of Expectations outlined by the Minister for Defence, is provided at Appendix 6.
administrative agreement
Funding and administration service levels for military superannuation schemes are reviewed every two years. Parties to the discussions are the Department of Defence, the MSB Board, the Authority and ComSuper.
The current service level agreement in respect of services to DFRDB Members was agreed to in September 2005.
ComSuper reports regularly to the Authority against all service standards. Performance data is collected monthly. ComSuper also undertakes an annual effectiveness review which is provided to the Authority. The Administrator Reports presented to the Authority also form the basis of the performance data contained in this publication.
Drafting of a new service level agreement beyond 1 July 2007 was initiated. Such an agreement and additional funding will enable ComSuper to invest in building improved administration systems and in maintaining high service levels to Members.
delegations
The Authority delegates most of its powers to ComSuper staff to enable day-to-day administration. The Authority retains the power to reconsider decisions made by delegates. The Authority met six times during the year.
status under the SIS legislation
The DFRDB is an Exempt Public Sector Scheme for the purposes of the Superannuation Industry (Supervision) Act 1993, the SIS Act, and is therefore deemed to be a complying superannuation fund under the Income Tax Assessment Act 1997 and the Superannuation Guarantee (Administration) Act 1992.
Although the Authority endeavours to comply with the spirit of the SIS legislation, it has not been necessary for it to elect that the Scheme become a Regulated Superannuation Fund subject to the prudential requirements in the SIS Act.
Military Superannuation Communications Committee (MSCC)
The Military Superannuation Communications Committee (MSCC) is a combined communications committee that services both the Authority and the MSB Board.
The MSCC Charter includes:
- policy and planning, setting the strategic direction of communications to Members of the DFRDB Scheme and MilitarySuper
- overseeing the preparation of annual reports
- evaluation and research related to communications activities
- overseeing implementation of communications activities ensuring compliance with all legal requirements
- governance of its own activities.
The Committee met six times during the year.
review of superannuation arrangements for ADF members
In February 2007, the then Minister assisting the former Minister for Defence announced an independent review of the design and delivery of military superannuation arrangements. The Government called for further submissions concerning the review’s findings in early 2008. The outcome is still to be determined as at 30 June 2008.