Governance
governance framework
The Authority currently operates as an executive management agency. A comprehensive governance framework has been established by the Commissioner for Superannuation to oversee ComSuper’s operations and to provide fund trustees and the Authority with appropriate assurances in relation to the fulfilment of their obligations.
On 30 October 2008, the Government announced that they would be consolidating the trustee boards that currently manage the main Australian Government superannuation schemes. This decision aims to simplify the administrative and governance arrangements surrounding government superannuation, and deliver more efficient and effective outcomes for Australian Government superannuation scheme members. On 1 July 2010, ARIA (the Trustee of the PSSap, PSS and CSS), the MilitarySuper Board of Trustees and the DFRDB Authority will merge to form a single trustee board.
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 MilitarySuper Board of Trustees, the Authority and ComSuper.
The current service level and pricing agreement in respect of services to DFRDB Scheme Members was agreed to in 2007 and expired on 30 June 2009. Negotiations for a replacement agreement are nearing completion.
ComSuper reports regularly to the Authority against all service standards contained in the agreement. Performance data is collected monthly. ComSuper 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.
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 seven times during the year.
status under the SIS legislation
The DFRDB Scheme is an Exempt Public Sector Superannuation 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.
MSCC’s role is to:
- ensure smooth liaison between each of the Scheme’s stakeholders
- provide advice on communication matters to the Authority'
- monitor the quality and effectiveness of the Authority’s communication products
- review existing communication products and methods
- monitor, review and make recommendations on the implementation of a superannuation communication strategy for the ADF.
The Committee met five 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 2009.