Insurance changes for GESB Super and West State Super members
On 1 July 2016, changes to premiums and other policy terms and conditions for the Death, Total and Permanent Disablement, and Salary Continuance Insurance Cover offered through GESB Super and West State Super came into effect. Read more.
Introduction of service fees
On 1 July 2016, a 'user-pays' system was introduced for some services. Read more.
Fee changes to GESB Super, West State Super and Retirement Income Allocated Pension
For GESB Super members
As a result of a pricing review, changes to the administration fee for GESB Super accounts took effect on 1 July 2015. There was also a change to the indirect costs of GESB Super and this varied for each investment plan. Read more.
For West State Super members
As a result of a pricing review, the administration fee for West State Super accounts was reduced. This change took effect on 1 July 2015. There was also a reduction in the Indirect Cost Ratio (ICR) for West State Super and this varied for each investment plan. Read more.
For Retirement Income Allocated Pension members
As a result of a pricing review, the administration fee for Retirement Income Allocated Pension accounts was reduced. This change took effect on 1 July 2015. The reduction in administration fee caused a reduction to the Indirect Cost Ratio for Retirement Income Allocated Pension and this varied for each investment plan. Read more.
Member protection on GESB Super and West State Super accounts was discontinued from 1 July 2015. This was in line with Australian Prudential Regulation Authority regulated funds and Commonwealth provisions. As a result, administration fees that are higher than the investment earnings for accounts with balances under $1,000 are no longer reimbursed.
Changes to insurance premiums
Effective 1 November 2014, Death and Total & Permanent Disablement insurance premiums increased by approximately 39% and Salary Continuance Insurance premiums increased by around 6%. Read more.
Changes to administration
Following the Treasurer's approval, GESB appointed The Link Group as its commercial provider of administration services, effective 1 July 2014. Read more.
GESB's service providers
The table below sets out the name and Australian Business Number of each outsourced service provider engaged by GESB that affects its material business activity:
Australian Business Number (ABN)
Australian Administration Services Pty Ltd
62 003 429 114
JANA Investment Advisers Pty Ltd
97 006 717 568
Mercer Consulting (Australia) Pty Ltd
55 153 168 140
The Northern Trust Company
62 126 279 918
Summary of Conflicts Management Policy
GESB has a Conflicts Management Framework in place to identify conflicts that may arise in the course of business as usual operations. Policies on conflicts of interests have been established to ensure that employees and Board directors are aware of their obligation to disclose all duties or interests they have which may give rise to a conflict of interest. GESB has also established procedures to understand and avoid, disclose, monitor and manage conflicts of interests.
The Investment Governance Statement outlines the legislative requirements and the Treasurer's Prudential Guidelines for Investments, relating to the GESB Board's responsibilities for the investment of members' superannuation. The statement sets out GESB's investment process, including its approach to Environmental, Social and Governance (ESG) as part of the manager selection process.
Further detail on the process adopted by GESB's Asset Consultant to evaluate and monitor investment managers is available here.
GESB's Proxy Voting Policy is set out below.
GESB Investment Policy Statement - February 2014
Proxy Voting Policy
The Board has adopted the following policy regarding proxy voting:
The party (fund manager) responsible for the management of the specific portfolio is primarily responsible for determining what course of action to take with regard to proxy voting and corporate actions. This should be in accordance with their documented internal policies.
Where any particular issue is considered by the fund manager or the Board to create a perceived conflict of interest or reputation risks for GESB or the Government of Western Australia, GESB reserves the right to exercise its own proxy voting decision.
In this circumstance, the Chief Investment Officer will make a recommendation to the Board, supported by internal analysis and external advice, on how to vote on a particular resolution and the Board will make its decision. This will then be implemented via GESB's custodian.
The fund manager will provide reporting on all proxy voting and corporate actions that it undertakes on GESB's behalf. All documentation relevant to a vote that GESB implements will be maintained.
A summary of whether, during the previous financial year, GESB exercised its voting rights in relation to shares in listed companies.
During the 2015/16 financial year, GESB did not exercise its voting rights in relation to shares in listed companies.