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RESERVE BANK OF AUSTRALIA
OSF Board of Trustees
Officers’ Superannuation Fund
RSE Licence No. L0002462
ABN 82 534 724 258
RSE Registration No. R1056518
ABN 25 303 030 489
19 July 2016
Dear Member
UPDATE ON THE PROPOSED SUCCESSOR FUND TRANSFER OF THE RBA OSF—
DEFINED BENEFIT AND ACCUMULATION MEMBERS
As you are aware, the Trustees of the Reserve Bank of Australia Officers’ Superannuation Fund (OSF)
have been working with the Reserve Bank of Australia (RBA) on a proposal to transfer the OSF on a
'successor fund transfer' (SFT) basis to a new sub-plan within a larger multi-employer superannuation
fund (see question 2 in the enclosed Fact Sheet for more information about 'successor fund transfers').
The OSF Trustees’ strategic objective is to provide members with low cost, quality superannuation, with
a high level of member service. The Trustees have determined that these objectives would best be
achieved over the medium to long term by transferring the OSF to a larger fund with greater economies
of scale, better member services, and strong compliance and operational risk management.
Appointment of Sunsuper
Following a comprehensive market tender, the OSF Trustees and RBA are pleased to inform you that the
Sunsuper Superannuation Fund (ABN 98 503 137 921) (Sunsuper) has been appointed as the successor
fund to the OSF. Sunsuper is a large, profit-for-members superannuation fund which has over 1 million
members and $34 billion of assets. The trustee of Sunsuper is Sunsuper Pty Ltd (ABN 88 010 720 840,
AFSL 228975).
The new RBA sub-plan within Sunsuper will be called RB Super. It is expected to replace the OSF early in
the June quarter of 2017. A final transfer date will be advised closer to that time.
Key Facts
The OSF will transfer to a new plan called RB Insurance cover will continue with no increase
Super, which is part of Sunsuper, likely to be
in premiums
early in the June quarter of 2017
If you have previously authorised another
The current OSF benefit design and key
person to act on your behalf, it is important
aspects of the OSF will continue in RB Super
that you read question 15 in the attached Fact
Sheet
Defined benefits will continue to be backed by
the employer-sponsors
You will be given more information during the
transition period. Please call the Bank’s SFT
Members will still pay no administration fees
Query Line on
or email
Members will have access to enhanced
if you have any
services and greater investment flexibility for
questions about the transfer to RB Super
their accumulation balances
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RB Super is being tailored to meet the needs of OSF members. In addition to current OSF members and
pensioners and their beneficiaries, the only new members of RB Super will be staff of the RBA and Note
Printing Australia (NPA).
The current OSF benefit design and key aspects of the OSF will continue in RB Super.
Members’ defined benefit entitlements, including lifetime pensions, will be transferred to RB Super and
will continue to be supported by a separate pool of assets and backed by the employer sponsors (the
RBA, NPA and the Australian Prudential Regulation Authority).
Members’ accumulation entitlements will also be transferred to the new sub-plan.
Members will also receive improved services and benefits in RB Super, while it is expected that fees and
costs will be the same or lower in RB Super. The RBA will monitor RB Super and the performance of
Sunsuper via a Policy Committee (which will have both member-elected and employer-appointed
committee members).
The OSF will be wound up once the OSF’s assets, member benefits (including defined benefit accruals)
and pensions are transferred securely under an SFT arrangement to Sunsuper. We anticipate that the
transfer will occur early in the June quarter of 2017. A final transfer date will be advised closer to that
time. Until the transfer occurs, you will continue as a member of the OSF.
Benefits for Members
Members will benefit from enhanced services in RB Super
within Sunsuper including:
lower estimated investment fees and costs;
a greater range of investment options;
daily unit prices and the ability to make investment switches at any time;
longer membership call centre hours;
a member website with more functionality than the OSF’s website, and a wider range of calculators;
member financial education programs, including onsite seminars and presentations;
access to financial planning services; and
access to account-based pensions.
Fees and Costs
The employer sponsors will continue to pay administration fees in RB Super.1
Investment fees and costs, which are currently charged on members’ accumulation balances, are
expected to be lower in RB Super than in the OSF (Table 1).
Insurance premiums will continue to apply to any insurance you hold through an accumulation account
in the new sub-plan, other than premiums for SG Minimum Death cover which will continue to be paid
by the employer sponsors (see the OSF Accumulation Member Information Booklet, available at
for details of the insurance cover available in the OSF).
Insurance premiums for death and disability cover provided to defined benefit members will continue to
be paid by the employer sponsors.
1 This includes exit fees. If you are paid a benefit in cash, or roll over your benefit entitlements from RB Super
to another superannuation fund, the employer sponsors will meet the cost of any exit fee charged by
Sunsuper. No exit fee is charged when you roll over your benefit to another part of Sunsuper, however, if your
benefits are transferred to another part of Sunsuper, you will pay Sunsuper’s standard fees for that product,
including any exit fees should you later be paid a benefit in cash or roll over your benefit to another fund.
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RESERVE BANK OF AUSTRALIA
Officers’ Superannuation Fund
FACT SHEET—TRANSFER OF THE RBA OSF TO SUNSUPER (ACCUMULATION AND
DEFINED BENEFIT MEMBERS)
This fact sheet contains important information about forthcoming changes to superannuation arrangements for
members of the OSF. A separate fact sheet is available for OSF pensioners.
1. What are the new superannuation arrangements?
The OSF Trustees have decided to transfer all of the OSF’s members (including pensioners), member
entitlements and assets to a new sub-plan within the Sunsuper Superannuation Fund (ABN 98 503 137 921)
(Sunsuper). This sub-plan will be called RB Super. The trustee of Sunsuper is Sunsuper Pty Ltd (ABN 88 010 720
840, AFSL 228975).
By moving to a larger superannuation provider, members should receive a broader range of services than they
would in the OSF. The larger provider should also be better placed to meet the rising administration, regulatory
and governance requirements faced by superannuation funds. The RBA OSF will be wound up after the transfer
is complete.
The transfer will be done as a ‘successor fund transfer’(SFT).
2. What is a ‘Successor Fund Transfer’?
Superannuation legislation allows the OSF Trustees to transfer members’ benefits to another superannuation
fund without obtaining each member’s consent if the new fund (in this case the RB Super sub-plan within
Sunsuper) is a ‘successor fund’. In order for RB Super to qualify as a successor fund within Sunsuper:
• before the transfer, the OSF Trustees and the trustee of Sunsuper must have agreed that Sunsuper will
confer on each transferring OSF member equivalent rights to the rights that the member had under the OSF
in respect of their benefits; and
• Sunsuper must actually confer on each transferring OSF member equivalent rights to the rights that the
member had under the OSF in respect of their benefits.
The legislative provisions that allow SFTs are designed to allow transfers without individual member consent,
while protecting the rights and benefits of transferring members.
The successor fund provisions are in addition to the general requirement for the OSF Trustees to perform
their duties and exercise their powers in the best interests of members and other OSF beneficiaries. The
OSF Trustees must be satisfied that the transfer is in the best interests of OSF beneficiaries before they can
proceed with the transfer.
3. Who has approved the new fund?
The Reserve Bank of Australia (RBA) has selected Sunsuper after an extensive tender process. Sunsuper
was assessed as offering the best value for money, based on the all-round strength of their offering.
The OSF Trustees have approved the OSF’s transfer to Sunsuper under the SFT provisions in superannuation
legislation. The OSF Trustees and the Sunsuper trustee have formally agreed that the new fund
This document and the Reserve Bank of Australia Officers' Superannuation Fund (ABN 25 303 030 489, RSE Registration No. R1056518) is
issued by the Board of Trustees (ABN 82 534 724 258, RSE Licence No. L0002462). This Fact Sheet contains general information only and
does not take into account your individual objectives, financial situation or needs. Before acting on the information in this update, you
should consider its appropriateness, having regard to your objectives, financial situation and needs.
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arrangement will confer each transferring member with ‘equivalent rights’, and the OSF Trustees are
satisfied that the transfer is in the best interests of OSF beneficiaries.
4. How will I be better off in the new superannuation arrangements?
Sunsuper is one of the largest superannuation funds in Australia, and has the scale to provide members
with additional services and facilities which are not available in the OSF, including:
lower estimated investment fees and costs for members;
a greater range of investment options;
daily unit prices and the ability to make investment switches at any time (currently in the OSF, investment
switches may only be made at the end of each calendar quarter i.e. March, June, September and
December);
longer membership call centre hours;
a website with more functionality than the OSF’s website, and a wider range of calculators;
member financial education programs, including onsite seminars and presentations;
access to financial planning services; and
access to account-based pensions.
The sponsoring employers (the RBA, Note Printing Australia (NPA) and the Australian Prudential Regulation
Authority (APRA)) will continue to pay the same level of contributions for members and meet administration
fees for all members. Members’ defined benefit entitlements and pensions will be protected in RB Super as
they are in the OSF.
5. Why are the superannuation arrangements being changed?
The OSF Trustees’ strategic objective is to provide members with low cost, quality superannuation, with a high
level of member service. The Trustees have determined that these objectives would best be achieved over the
medium to long term by transferring the OSF to a larger fund with greater economies of scale, better member
services, and strong compliance and operational risk management.
6. When will the new superannuation arrangements start?
Until the transfer occurs, you will continue as a member of the OSF and receive all of the benefits and services
that you are currently receiving.
We anticipate that the transfer to the new superannuation arrangements will occur early in the June quarter of
2017. A final transfer date will be advised closer to that time. Due to the scale and complexity of the transfer,
preparation by the Trustees, Sunsuper and the RBA will commence in mid-July 2016.
The OSF Trustees will provide members with more detailed information during the transition period. In
addition, closer to the transfer time, Sunsuper will send you a Product Disclosure Statement (PDS) and more
information on RB Super, including information on how to change your investment options from the transfer
date and utilise the optional new facilities available in RB Super.
7. As a member of the RBA OSF, how are my rights represented?
The OSF Trustees represent and protect the interests of all OSF members. OSF Trustees are represented on the
project steering committee and the full OSF Board of Trustees receives regular reporting on the transition
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project. Critically, the OSF Trustees must be satisfied that the new fund arrangement will be in members’ best
interests and provide each transferring member with at least ‘equivalent rights’ before they can approve the
transfer from the OSF.
After the transfer is complete the trustee of Sunsuper will act in the interests of all members. Sunsuper will
keep the RB Super Policy Committee (which will have both member-elected and employer-appointed
committee members) informed of developments at the Fund.
8. Will there be a cost to members for the transition of the OSF to a new fund?
The sponsoring employers will meet all of the direct costs associated with the transfer of the OSF to Sunsuper.
Ongoing management of fund assets may include some small incidental costs of buying and selling assets. After the
transfer date, this will occur in Sunsuper instead of in the OSF. These costs will be incurred and taken into account
when setting the unit price in RB Super in the same way as in the OSF.
9. I am an accumulation member. Will my benefits change?
Your opening accumulation balance in RB Super will be exactly the same as your closing balance in the OSF.
The current OSF benefit design will continue in RB Super. RB Super will have unique plan rules which replicate
the current OSF’s governing rules and cannot be amended by the Sunsuper trustee without RBA consent,
except if required by law.
Your employer will pay contributions to your accounts in RB Super at the same level as in the OSF.3
Your accumulation accounts will automatically be transferred to the Sunsuper investment options (or
combination of options) which most closely match your selected OSF investment options (Table 1). After the
transfer date, you will be able to change your investment options in RB Super at any time.
You will be given further information about the transition, available investment options and the historical
investment performance of those investment options before the transfer takes effect.
Your current insurance arrangements in the OSF will continue unchanged in RB Super and premium rates will
not increase as a result of the transfer. Insurance arrangements are reviewed regularly. We are investigating
improvements in insurance as part of the SFT and will give members advance notice of any proposed
improvements or other changes to insurance arrangements.
3 This applies to current employees of RBA, APRA and NPA only.
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information about the transition, available investment options and the historical investment performance of
those investment options before the transfer takes effect.
The OSF provides death and invalidity insurance cover for its defined benefit members at no cost to members.
The current insurance arrangements in the OSF will continue unchanged in RB Super and insurance premiums
will continue to be paid by employers. We are investigating improvements in insurance as part of the SFT and
will give members advance notice of any proposed improvements or other changes to insurance arrangements.
11. Will my defined benefits be protected?
Yes. As with the OSF, under the new arrangements the RBA will be contractually required to pay contributions
or make financial resources available to RB Super to ensure that defined benefits (including pensions) can
continue to be paid. Sunsuper is also required to report periodically to the RB Super Policy Committee and to
the RBA on the financial position of RB Super.
12. What are the RBA and other employers’ roles in the new arrangements?
The RBA and other nominated employers will continue to pay contributions to fund members’ superannuation
entitlements, including lifetime pensions, and meet the cost of administration fees.
After the transfer, the RBA will:
agree with Sunsuper on the required employer contribution rates (for defined benefit members) for all
three employers, after considering actuarial advice;
monitor Sunsuper’s performance via the Policy Committee (which will have both member-elected and
employer-appointed committee members); and
agree with Sunsuper on any future changes to the RB Super sub-plan governing rules.
13. What happens to my member data and information?
Your RBA OSF membership details including your contact details, date of birth, tax file number (TFN) and other
personal information the OSF holds about you and your nominated beneficiaries (if any) will be transferred
securely to Sunsuper during the transition.
14. Will there be increased fees with the new fund?
The RBA and other employers (NPA and APRA) will continue to meet the cost of administration fees.
Investment fees and costs, which are currently met from members’ accumulation accounts, are expected to be
lower in Sunsuper than the equivalent OSF options (Table 2). As in the OSF, investment fees in RB Super will
vary from time to time.
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However, at any time prior to the transfer, you can elect to direct your new contributions to an alternative
superannuation fund or transfer your accumulation balances (but not your defined benefit in relation to past
service) to another superannuation fund. However, if you do this your remaining defined benefit entitlements
will be impacted. Generally, where you have decided to contribute to another superannuation fund, you may
not be able to re-join the defined benefit section of the OSF, depending on the terms of your employment.
Please see the OSF
Product Disclosure Statement – OSF Defined Benefits for more information.
As with all significant financial matters, you should seek advice from a licensed financial adviser before making
any decision.
18. I am no longer employed by the RBA, NPA or APRA but still have benefits in the OSF
(preserved or retired retained categories). Can I opt out of the successor fund transfer?
The OSF will be wound up after completion of the transfer to Sunsuper so individual members will not be able
to remain in the OSF.
At any time, you can choose to transfer your accumulation account balance and, if you are a preserved
member, your defined benefit, from the OSF to another superannuation fund of your choice.
Your category (preserved or retired retained) is stated on your annual OSF benefit statement.
As with all significant financial matters, you should seek advice from a licensed financial adviser before making
any decision.
19. Do I have to do anything?
If you would like to remain in the OSF until the transfer date, and then move to RB Super at the transfer date,
you do not need to take any action at any stage during the transfer. You will be transferred automatically on
the transfer date, unless you advise us of alternative arrangements. Until then, you can continue to use existing
OSF features available to you (e.g. changing your investment options or accessing the OSF website
). More information will be provided as the transition progresses.
Members should be aware there will be modified arrangements for investment switches and any benefit
payment requests that you wish to make on or around the transfer date. You will receive full details about
these arrangements closer to the transfer time.
In addition, closer to the transfer time, Sunsuper will send you a PDS and more information on RB Super,
including information on how to change your investment options from the transfer date and utilise the optional
new facilities available in RB Super. You should consider that PDS and further information provided on RB
Super before deciding what to do with your superannuation.
20. Where can I find more information?
It is expected that the new arrangements will commence early in the June quarter of 2017. Until the transfer
occurs, you will continue as a member of the OSF. The OSF Trustees will provide members with more detailed
information regarding the transfer during the transition period.
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The PDS for RB Super will be prepared during the transition period and provided to all OSF members by
Sunsuper when it is available.
If you have any further questions about the transfer to RB Super, please email
or
call
Please note that if you have any enquiries about your existing OSF membership, you should continue to contact
the OSF Membership Team at
or call
July 2016
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2
Note 12 Related Parties
(a) Trustee and Key Management Personnel
The names of persons who were Trustees of the OSF at any time during the 2016/17 financial year are:
RBA Representatives
1
(Chairperson)
2
(Deputy Chairperson)
3
4
Member Representatives
1
2
3
4
Reserve Bank of Australia Officers' Superannuation Fund Annual Report 2016/17 I Notes to the Financial Statements
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Document Outline
