SLA 11 13 FINAL 2011 06 28.pdf

Service Level
Agreement
Between the Defence Organisation,
the Military Superannuation and Benefits Board,
the Defence Force Retirement and Death Benefits Authority
and Commonwealth Superannuation Administration
(ComSuper)

2011-13
Version 1.0

link to page 50 link to page 66 link to page 67 link to page 68
Schedule 9: DFRDB Statement of Services and Standards ................................................. 50
Schedule 10: ComSuper Overall Performance Measure—Method of Calculation ............... 66
Schedule 11: MSB Board Performance Assessment of ComSuper ..................................... 67
Schedule 12: Funding Arrangements Diagram ..................................................................... 68

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Commencement Date
This Agreement is effective from 1 July 2011.

Preamble
This Agreement covers arrangements between the Defence Organisation (comprising
the Department of Defence and the Australian Defence Force, referred to as Defence
in this Agreement), the Military Superannuation and Benefits Board, the Defence Force
Retirement and Death Benefits Authority, and Commonwealth Superannuation
Administration (ComSuper).
Capitalised words or terms are defined in Attachment 1.

Term
The term of this Agreement commences on the Commencement Date and continues
for an initial term of two (2) years from the Commencement Date.
The merger of the boards of the Australian Reward Investment Alliance (ARIA), the
Military Superannuation and Benefits Scheme and the Defence Force Retirement and
Death Benefits (DFRDB) Authority was announced by Government on
31 October 2008. Originally due to take effect 1 July 2010, the merger is now expected
to take effect on 1 July 2011.
This Agreement may be terminated with effect any time on or after 1 July 2011 subject
to the requirements of the new Board.
The Parties may agree to extend the initial term for a further period of two (2) years by
mutual agreement before the expiry of the initial term.
Where the Parties agree to extend the term of this Agreement, this may be done on the
same terms and conditions or on revised terms and conditions as agreed.

Variations to this Agreement
The Agreement can be varied at any time by the written consent of all the Parties to
this Agreement. The Schedules can be varied by agreement of the particular Parties to
that Schedule. A copy of any amended Schedule is to be forwarded to each of the
Relationship Managers without delay.
Should services, costs or member numbers materially change during the term of this
Agreement, it may be a trigger for the Parties to vary the Service Level Agreement.
This will be agreed by all parties and signed off separately to this Agreement.
This Agreement can be varied to meet the requirements of the new Board from
1 July 2011 by the written consent of all Parties to this Agreement.

Statement of Intent
This Agreement reflects the desire of the Parties to commit to writing a shared
understanding of the commitments that each is providing to the other Parties to the
Agreement. The Agreement provides for matters and services which would otherwise
be reflected in a commercial contract if the Parties were able to contract with each
other freely and on a fully commercial basis.
The Agreement sets out the Services and Standards (where applicable) in the
Schedules.
The form of future Service Level Agreements will, as far as practical at law and
consistent with Government policy, reflect a greater alignment between the
responsibilities, accountabilities and funding arrangements between the Parties.
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Roles and Provision of Services
All Parties will perform the Roles and provide the Services in accordance with the
following guiding principles:
  conduct themselves in a manner consistent with the highest standards of
probity and integrity in accordance with the Public Service Act 1999, and
guidelines on official conduct or standards reflected in the MSB Board’s code of
conduct as applicable to the Parties;
  openly communicate with other Parties to the Agreement, having respect and
regard to each Party's individual responsibilities;
  consult with the other Parties having respect and regard to each Party’s
individual responsibilities; and
  have regard to and consult appropriately about administrative and policy
implications during policy and process development that impact other Parties to
the Agreement.

Compliance with Relevant Law
Each Party will exercise due care and diligence to ensure that the Services it provides
under this Agreement will not prejudice the status of the Fund as a “complying
superannuation fund” for the purposes of the relevant legislation and the status of the
MSB Board as a Registrable Superannuation Entity or Australian Financial Services
Licence Licensee.
Each Party will ensure that it complies with the Relevant Law to the extent that it
directly concerns the functions (including systems and procedures), powers and duties
of each Party, in relation to the performance of their Roles or provision by them of their
Services.
Each Party may act on specific instructions given by another Party to the Agreement
but will not comply with any direction which it is aware will cause a breach of any
obligations referred to in the previous paragraph.
Each Party has an obligation to report breaches by them of the Relevant Law to the
other Parties as per the Schedules.
Should any Party become aware of an incident, breach of the Relevant Law, a
significant adverse event or material circumstance which either affects the
administration of the Fund or else that the MSB Board may be required to report to a
Responsible Authority, that Party is to promptly advise the MSB Board of such event or
circumstance with sufficient particulars so that the MSB Board can appropriately report
to a Responsible Authority.

Relationship Manager
The persons occupying the following positions will manage the overall relationship in
accordance with this Agreement:
  MSB Board: Chief Executive Officer, MSB Board;
  Defence: Director Superannuation Policy;
  ComSuper: Chief Operations Officer, Military Schemes and Pensions; and
  DFRDB: Commissioner for Superannuation and Chairman, DFRDB Authority.

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Service Standards
The standards to be met by the Parties in providing the Services are set out in the
Schedules.

Funding
The Parties acknowledge that funding for the Schemes is provided from various
sources:
  Investment expenses relating to the management and investment of the MSB
Fund can only be levied against the MSB Fund as per the MSB Trust Deed and
Rules;
  Expenses relating to the administration of the Schemes and the MSB Board’s
operational expenditure are met from monies appropriated by Defence;
  Defence will provide for the agreed costs of the administration by ComSuper of
the Schemes including the MSB Board’s own administration costs (as per
Schedule 7);
  Until such time (or if) discrete funding arrangements can be made by Defence
for administration expenses relating to the MSB Board’s non-investment
activities, such funds are to be drawn by ComSuper from the administration
fees paid by Defence (as per Schedule 7), and maintained separately from
ComSuper’s own operating Budget. These funds may only be used to meet the
MSB Board’s administrative expenditure in a manner determined by the MSB
Board.  If no changes to the funding arrangements are made existing
arrangements will remain; and
  Funding for Optional Administration Services will be negotiated between the
Parties and take into account the longer lead time of budget funded agencies.

Policy Protocol
Defence will consult with the MSB Board, the DFRDB Authority and ComSuper before
implementing proposed policy changes to the Schemes which are likely to have
administrative implications for the MSB Board, the DFRDB Authority or ComSuper.
ComSuper, the MSB Board and the DFRDB Authority may put suggestions to the
Department of Defence for policy changes in relation to the Schemes.
ComSuper will consult with Defence, the MSB Board and the DFRDB Authority before
implementing any changes to the way it administers the Schemes which will involve or
impact on Defence or MSBS and DFRDB members.

Operating Protocol
The parties acknowledge and agree that an Operating Protocol will govern the day to
day interaction between the MSB Board and ComSuper.  The protocol will cover, inter
alia, agreed deadlines for routine operating and financial reporting requirements,
including board agenda, minutes, papers, administrator reports and other regular
information and service delivery requirements agreed between the parties.
The Operating Protocol will be reviewed at least every six months or more frequently
by mutual agreement as circumstances require.  The protocol is to be read in
conjunction with this SLA, however, in the event that there is an inconsistency between
the provisions of the protocol and the SLA, the provisions of the SLA prevail.

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Funding Protocol
Any Party considering a decision which, as a consequence, would increase costs
under this Agreement, will consult with Defence prior to that decision being made.

Legal Policy
All Parties may obtain separate legal advice on the administration of a matter relating
to the operation of the Schemes. However, if the matter relates to the application of the
MSB Trust Deed and Rules, policy or new legislation, then all Parties must consult with
the other Parties prior to obtaining such advice. If one Party seeks legal advice it is to
be copied to all Parties.

Liability and Indemnity
Each Party agrees to accept responsibility for their own acts and the acts of their
employees, to the extent required by law. The parties acknowledge that under the MSB
Act, the acts of the Commissioner for Superannuation and his staff done in the name
of, or on behalf of, the MSB Board are deemed to be acts of the MSB Board.
In 2005 the then Minister for Finance and Administration provided authorisation under
Regulation 10 of the Financial Management and Accountability Regulations 1997 for a
guarantee to the MSB Board from the Commonwealth, to cover any losses the MSB
Fund may suffer as a result of liabilities arising from the actions of the Commissioner
for Superannuation, and the staff of ComSuper who assist the Commissioner in
administering the MSB Fund.  This guarantee will be superseded by the indemnity
provisions contained in section 35 of the Governance of Australian Government
Superannuation Schemes Act 2011 which will come into effect on 1 July 2011.

Fraud Control and Disaster Recovery
All Parties will have in place and maintain during the period of this Agreement, a
Business Continuity Plan (including a Disaster Recovery Plan and Pandemic
Contingency Plan) and a Fraud Control Plan and will make them available to the other
Parties upon request. The Business Continuity Plan will at all times address the back
up of data and software.

Ownership of Member Data and Administration Processes
For the avoidance of doubt, each party acknowledges that the ownership of member
data resides with the MSB Board or DFRDB Authority.
Ownership of any intellectual property in the computer systems, procedures and
processes (including any internally developed knowledge base) used by ComSuper to
administer the Schemes resides with ComSuper.

Management and Exchange Information
The Parties shall not disclose to any person any information or material acquired or
produced in connection with this Agreement (including the Agreement itself) without the
prior approval of each of the other Parties. Exceptions are where disclosure is required
by law, information or material is in the public domain, or a Party is required to meet
their Parliamentary reporting obligations.
Information relating to the specific operations of ComSuper, members or other detail
may only be supplied between the Parties that do not override or contradict existing law
and with the expressed permission from the MSB Board, Department of Defence or the
DFRDB Authority.
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Where a party received confidential information it must only use the confidential
information for the purposes of this Agreement and keep such information private and
secure and must not disclose that information to a third party (other than as required by
law to professional advisers, auditors, regulators and the like) without the prior written
consent of the provider of that confidential information.

Access and Audit
ComSuper must, where a request is made by the MSB Board, the DFRDB Authority or
a Regulator, provide documents or information relating to the administration of the
Schemes to the MSB Board, the DFRDB Authority or a Regulator, and provide the
MSB Board, the DFRDB Authority or Regulator with access to ComSuper’s premises to
facilitate a review of such documents or information (this would also pertain to requests
received by a delegate of the MSB Board, the DFRDB Authority or Regulator including
both internal and external auditors). The request must be in writing and specify a time
and place for the provision of information and documents that is reasonable in the
circumstances, and in respect of access, be at a time that is reasonable in the
circumstances.
ComSuper must, when requested by either the MSB Board, the DFRDB Authority or a
Regulator, undergo an independent audit of its administration of the Schemes. The
time within which the audit must be conducted must be specified in the request and
must be reasonable in the circumstances. The costs of any MSB Board or DFRDB
Authority initiated audit will be funded by the initiating party.
The foregoing right of access for the MSB Board, the DFRDB Authority or a Regulator
will be subject at all times to ComSuper’s reasonable security requirements.

Dispute Resolution
The parties must promptly use their best endeavours and reasonable efforts to resolve
any dispute, disagreement or material difference of opinion arising out of, in connection
with, or relating to this Agreement.
Each Party shall continue to perform its obligations under the Agreement
notwithstanding the existence of such a problem.
If the Parties are unable to resolve the dispute by negotiation amongst themselves, the
Parties must refer the dispute to arbitration.  Unless the Parties agree on an arbitrator,
either party may refer the unresolved dispute to the President of the Institute of
Arbitrators and Mediators Australia (ACT) for determination in accordance with that
organisation’s rules for the conduct of commercial arbitrations, and:
  it will be a term of the referral to the Arbitrator that a determination will be
delivered within twenty (20) Days of the matter being referred to the Arbitrator;
  no legal action may be commenced by any Party after referral of any dispute to
the Arbitrator in relation to the matter referred until the Arbitrator has delivered
its determination in writing;
  the Arbitrator’s costs will be shared equally by the Parties who will otherwise
bear their own costs of and incidental to the Arbitration; and
  any determination by the Arbitrator will be binding upon the Parties.

Sub-Contracting
In providing the Services under this Agreement, ComSuper may appoint agents and
sub-contractors to perform specific tasks and services.  ComSuper will not appoint any
agents or sub-contractors to perform specific major tasks or services without the prior
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knowledge and consent of the MSB Board (where such consent is not to be
unreasonably withheld).
ComSuper agrees to make it a term of the engagement of such agents or sub-
contractors that these parties in carrying out their duties will exercise all due care, skill
and diligence and are obliged not to disclose confidential information and are obliged to
comply with the Relevant Law as applicable to that engagement to the same extent as
required of ComSuper.
For the avoidance of doubt, the requirement to obtain the MSB Board’s consent does
not extend to such activities as IT infrastructure, telecommunications, bureaux
services, printing, mailing delivery or similar services or activities.

Monitoring Assessment and Reporting
Service levels, monitoring, assessment procedures and reporting are as documented in
the Schedules to this Agreement.

Conflict
Where ComSuper believes there is a potential or actual conflict between the duties and
obligations ComSuper owes to the MSB Board under this Agreement and the interests
of ComSuper, ComSuper must promptly disclose the particulars of the potential or
actual conflict to the MSB Board in writing as soon as possible.

Termination
Under the current arrangements ComSuper is under a statutory obligation to provide
Administration Services to the MSB Board and DFRDB Authority. If this obligation
should change, the Parties to this Agreement agree that a review of this Agreement
shall take place within a reasonable period to ascertain whether the Parties agree to
maintain the Agreement.
In the event that the Parties determine that the Agreement be terminated or not
renewed, the Parties agree to produce a comprehensive Transition Plan in order to
transfer the Administration Services and obligations of ComSuper to another service
provider in accordance with accepted industry good practice and standards. The
Parties must comply with the Transition Plan so that the new fund administrator can
commence its mandate as soon as possible.
The Transition Plan must include a project plan with an agreed timetable of events and
milestones for deliverables and the provision of sample or test data, data formats and
the final electronic copy of all relevant and required member records and other Scheme
data.
In the event that the Parties agree to the termination or non-renewal of this Agreement
ComSuper’s obligations under this Agreement continue until the MSB Board is satisfied
as to the completion of the transfer of the Services to another administrator pursuant to
the Transition Plan having been properly and accurately effected.
Notwithstanding the date of an agreed transition, ComSuper remain responsible for all
work relating to the period up to the transition date which may include the production
and delivery of member statements, annual or mid-year reports and Fund accounting.

Requests or Instructions
Where requests or instructions are referred to within the document they must be in
writing and may be delivered by prepaid postage, hand, facsimile transmission or email
to the person and address specified by a Party to the other Parties.

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Risk Mitigation Program
ComSuper will continue with its best endeavours for ongoing practical amelioration
activities within its “business as usual” service delivery to the MSB Board.

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Signature Page

Brian Paule
Michael Seton
Director General Personnel Policy
Chief Executive Officer
and Employment Conditions
Department of Defence
Military Superannuation and Benefits
Board

Peter Cormack
Chief Executive Officer, ComSuper,
Commissioner for Superannuation and
Chairman, DFRDB Authority

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Attachment 1 – Definitions

“Actuary”
means the actuarial firms nominated by the MSB Board, the DFRDB
Authority and Defence
“Acts”
means Military Superannuation and Benefits Act 1991, Defence
Forces Retirement Benefits Act 1948, Defence Act 1903, and
Defence Force Retirement and Death Benefits Act 1973
“Administration
means any services ComSuper is required to provide as per
Services”
Schedules 8 and 9 other than Optional Administration Services
“Agreement”
means this agreement, including any Schedules or appendices or
attachments thereto
“AFS”
means Australian Financial Services
“ANAO”
means Australian National Audit Office
“APRA”
means Australian Prudential Regulation Authority
AUSTRAC
means Australian Transaction Reports and Analysis Centre
“Committees”
means the Committee of Alternates, Reconsideration Committee
(RC), Incapacity Classification Committee (ICC), Military
Superannuation Communications Committee (MSCC) and the Audit
and Risk Management Committee established under the Schemes
“Commissioner for  means the Commissioner established under the Superannuation
Superannuation”
Act 1976
“ComSuper”
means Commonwealth Superannuation Administration, an agency
within the Department of Finance and Deregulation portfolio
“Days”
means business days
“Defence”
means the Department of Defence and the Australian Defence
Force
“DFRB Act”
means the Defence Forces Retirement Benefits Act 1948
“DFRDB Act”
means the Defence Force Retirement and Death Benefits Act 1973
and includes regulations
“DFRDB Authority”  means the Authority established under the Defence Force
Retirement and Death Benefits Act 1973 and secretariat
“DFRDB Scheme”
means the superannuation scheme established under the Defence
Force Retirement and Death Benefits Act 1973
“DFRB Scheme”
means the superannuation scheme established under the Defence
Forces Retirement Benefits Act 1948
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“Employer-
means, in relation to a regulated superannuation fund, an employer
sponsor”
who:
a)  contributes to the fund; or
b)  would, apart from a temporary cessation of contributions,
contribute to the fund;
for the benefit of a member of the fund who is an employee of:
i  the employer; or
ii  an associate of the employer; or
iii  the dependants of such a member in the event of the death
of the member.
“Fund”
means the MSB Fund
“Minister”
means the Minister for Defence, Science and Personnel or the
Minister for Finance and Deregulation
“MSB Act”
means the Military Superannuation and Benefits Act 1991 and
includes the Trust Deed, Rules and Determinations
“MSB Board”
means the MSB Board of Trustees responsible for the general
administration of the MSB Act and includes the Management staff
who support the MSB Board
“MSB Fund”
means the fund established under the Military Superannuation and
Benefits Act 1991
“MSB Fund
means the relevant bank account maintained by ComSuper on
Account”
behalf of the MSB Board
“MSB Scheme” or
means the superannuation scheme established under the Military
MSBS
Superannuation and Benefits Act 1991
“MSCC”
means the Military Superannuation Communication Committee
“Operating
means the document agreed between ComSuper and the MSB
Protocol”
Board containing the protocols governing the day to day interaction
between the parties including, but not limited to, the provision of
reporting, service delivery and deadlines for meetings and the
provision of information.
“Optional
means any Administration Services that are described in Schedules
Administration
8 and 9 as Optional Administration Services
Services”
“Party” or “Parties”  means each organisation identified in the preamble to this
Agreement
“Relationship
means the positions identified under the heading of the same name
Manager”
on page 5 of this Agreement
“Relevant Law”
means any relevant requirement of the Superannuation Industry
(Supervision) Act 1993, the Corporations Act 2001, the Australian
Securities and Investments Commission Act 2001, the Financial
Management and Accountability Act 1997, Freedom of Information
Act 1982, Privacy Act 1988 and any other present or future law of
the Commonwealth of Australia or any State or Territory with which
a Party must comply
“Regulator”
means the Australian Prudential Regulation Authority (APRA), the
Australian Investments and Securities Commission (ASIC), the
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Australian Taxation Office (ATO) and the Australian Transaction
Reports and Analysis Centre (AUSTRAC)
“Roles”
means the role of the Parties as set out in Schedule 1
“Schedule”
means a schedule (so named) to this Agreement
“Schemes”
means the MSB Scheme, the DFRDB Scheme and the DFRB
Scheme established under the Acts or any successor schemes
“Services”
means the services and tasks described in Schedules 2, 3, 4, 5, 6, 8
and 9
“SLA”
means this Agreement
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Schedules to the Agreement

Schedule 1: Role of each Party

Schedule 2: Defence and MSB Board

Schedule 3: Defence and DFRDB Authority

Schedule 4: Defence and ComSuper

Schedule 5: ComSuper and MSB Board

Schedule 6: ComSuper and DFRDB Authority

Schedule 7: Agreed Funding Arrangements

Schedule 8: MSB Statement of Services and Standards

Schedule 9: DFRDB Statement of Services and Standards

Schedule 10: ComSuper Overall Performance Measure—Method of Calculation

Schedule 11: MSB Board Performance Assessment of ComSuper

Schedule 12: Funding Arrangements Diagram

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Schedule 1: Role of each Party

This Schedule describes the Role of each Party.

Minister
  Is ultimately responsible for policy development for the Schemes.
  Can be approached directly by any of the Parties, but each Party must provide
notice to Defence of any proposed discussion.

Defence
  Is the employer-sponsor for the Schemes.
  Will provide superannuation policy advice to all Parties and to the Minister, in
respect of the Schemes.
  Will develop superannuation policy in consultation with the Parties and arrange for
amendments to the Acts.
  Is responsible for rule changes relating to the MSB Scheme but must seek the MSB
Board’s agreement (except in limited circumstances set out in the MSB Act) and
consult with ComSuper on impacts to administration.
  Is responsible for Orders and Regulations for the DFRDB and DFRB Schemes.
  Is responsible for productivity determinations under the Defence Act 1903.
  Will fund the agreed administration costs of the Schemes as per Schedule 7.
  Will work with the MSB Board and DFRDB Authority in consultation with ComSuper
to quantify Services to be delivered and funding to be provided.
  Will recommend and manage appointments to the MSB Board and DFRDB
Authority and advise the MSB Board and DFRDB Authority on appointments to
Committees.
  Will pursue policy outcomes aimed at ensuring member entitlements remain
relevant in the context of the Government’s retirement incomes policy.
  Will provide Services as documented in the Schedules.

MSB Board
  Is responsible for the administration of the MSB Scheme, which is a regulated
superannuation scheme, and the management and investment of the MSB Fund.
  Is responsible for the administration of the MSB Act, accountability and governance
of the MSB Scheme and Fund.
  May provide advice to the Minister on superannuation policy issues impacting
administration of the MSB Scheme.
  Will sign off any MSB Act changes and as appropriate provide advice on those
changes to the Minister.
  Will provide Services as documented in the Schedules to this Agreement.
  Will report on compliance and governance issues impacting on the scheme.
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DFRDB Authority
  Is responsible for administering the DFRDB Scheme which is an exempt public
sector superannuation scheme.
  May provide advice to the Minister on superannuation policy issues impacting
administration of the DFRDB Scheme.
  Will provide Services as documented in the Schedules to this Agreement.
  Will sign off any DFRDB Act changes and provide appropriate advice on those
changes to the Department of Defence.

ComSuper
  Is responsible for the provision of Administration Services to the MSB Board and
DFRDB Authority in the performance of their functions.
  Will invoice Defence for the cost of the Administration Services provided to the
Schemes as per Schedule 7.
  Will act in accordance with any administrative policies determined and any lawful
directions given by the MSB Board or DFRDB Authority.
  Will maintain its administration and computer systems for the most effective
operation of the Scheme, to ensure compliance with the relevant laws.
  Will keep and maintain all required and necessary records in a form that is readily
capable of being audited in an efficient and effective manner.
  Will advise the Parties if any matters arise which may hinder the effectiveness of
the administration of its duties to the Schemes.
  Will report in a timely and informative manner to the Parties on compliance and
governance issues impacting on the administration of the MSB and DFRDB
Schemes.
  Will provide Services as documented in the Schedules to this Agreement.
  Will perform services in accordance with maintaining the licensing obligations of the
MSB Board.
  Will perform its services in a way that supports and preserves Defence’s reputation
as the employer.
  Will provide advice to the Minister in respect of the administration of the Schemes.
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Schedule 2: Defence and MSB Board

Funding
Defence agrees to:
  provide for the agreed costs for the administration of the MSB Scheme to
ComSuper in consultation with the MSB Board, the Defence Budget and
Forward Estimates as indicated in Schedule 7; and
  work with the MSB Board to explore options available for a greater degree of
financial autonomy and accountability for MSB Board costs (other than those
which might reasonably be seen to be directly related to or incidental to the
management and investment of the Fund).
The MSB Board agrees to provide Defence with details of expenditure of funds
provided under the Service Level Agreement, if required.

Reporting Responsibilities to the Minister
Defence agrees to prepare briefing material and advice on superannuation policy
matters, responses to questions on notice and public statements concerning the MSB
Scheme and provide such material to the Minister after any necessary consultation
where appropriate.

MSB Board Appointments and Committees
Defence agrees to:
  make recommendations to the Minister in relation to proposed MSB Board
appointments in consultation with the MSB Board and the MSB Board’s criteria;
  prepare the instruments of appointment in relation to MSB Board members for
the Minister’s approval; and
  provide appropriate staff to be members of any Committee attached to the MSB
Board.

Policy
Defence may make recommendations on changes to the MSB Act and Trust Deed, in
consultation with the MSB Board and ComSuper, where appropriate.
Defence agrees to co-ordinate, with responsible drafting agencies, the preparation of
the instruments on the agreed recommendations of changes to the MSB Act and Trust
Deed for the Minister’s approval.
Defence is to be advised of any complaints handled under Schedule 5 that may require
policy action as soon as this is apparent.
The MSB Board may make recommendations and give advice on policy developments.
The MSB Board agrees to facilitate meetings with Defence and ComSuper on policy,
legislative and rule changes, as and when these are required.

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Disaster Recovery
In the event that the premises rented by the MSB Board for its secretariat operations
are unexpectedly unavailable for the conduct of its normal operations for a prolonged
period, Defence will use its best endeavours to identify suitable temporary office
accommodation within a Defence site in the ACT.
Occupancy of such temporary accommodation by the MSB Board will be subject to
Defence's usual security procedures, protocols and requirements.

Communications
Defence agrees to:
  support the Military Superannuation Communications Committee and the MSB
Board in the development of the Board’s communications strategy and any
relevant communications plans;
  provide input and clearance for drafts of communication material and
documents, such as the Annual Report to Members and the Annual Report to
Parliament, at the request of the MSB Board; and
  distribute to new MSB Scheme members a New Starter Kit as soon as
practically possible after the new member has commenced employment with
the ADF, communicate with members by facilitating and supporting access to
members for the purposes of resettlement seminars for discharging members,
help members to understand their superannuation obligations and entitlements
by communicating with them through service newspapers, Departmental
circulars and the Defence intranet or other equivalent media.
The MSB Board agrees to:
  distribute papers prepared by Defence for consideration of the MSB Board;
  guide developments of the communications strategy and related material;
  with the assistance of ComSuper, ensure that there are adequate supplies of
the New Starter Kits available for timely distribution by Defence to new ADF
employees; and
  use its communication channels to advise members of any material matters,
developments or issues affecting their superannuation benefits, such as policy
or rule changes or new, suspended or withdrawn services or products.

Membership Information
The MSB Board agrees to supply membership data to Defence, and/or the Actuary and
external auditors via ComSuper to facilitate the calculation of the unfunded liability of
the MSB Scheme and to allow for an annual financial statement audit.

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Schedule 3: Defence and DFRDB
Authority

Funding
Defence agrees to provide for the agreed costs for the administration of the DFRDB
Scheme to ComSuper in the Defence Budget and Forward Estimates as indicated in
Schedule 7. Agreed funding for the administration of the DFRDB Authority will be
provided by Defence to ComSuper.

Reporting Responsibilities
Defence agrees to prepare briefing material and advice on superannuation policy
matters, responses to questions on notice and public statements concerning the
DFRDB Scheme and provide such material to the Minister after consultation with the
DFRDB Authority where appropriate.

DFRDB Authority appointments and committees
Defence agrees to:
  make recommendations to the Minister in relation to proposed DFRDB Authority
appointments in consultation with the DFRDB Authority;
  prepare the instruments of appointment in relation to DFRDB Authority
members for the Minister’s approval; and
  provide appropriate staff to be members of any Committee attached to the
DFRDB Authority.

Policy
Defence may make recommendations on changes to the DFRB and DFRDB Acts, in
consultation with the DFRDB Authority and ComSuper.
Defence agrees to co-ordinate with responsible drafting agencies the preparation of the
instruments on the agreed recommendations of changes to the DFRB and DFRDB
Acts for the Minister’s approval.
The DFRDB Authority may make recommendations and give advice on policy
developments.

Communications
Defence agrees to:
  support the Military Superannuation Communications Committee (a
subcommittee of the MSB Board) in the development of a communications
strategy, in consultation with the DFRDB Authority;
  provide input and clearance for drafts of communication material and
documents such as the Annual Report to Members and the Annual Report to
Parliament on the request of the DFRDB Authority or ComSuper; and
  communicate with DFRDB Scheme members by facilitating and supporting
access to members for the purposes of transition seminars, help members to
understand their superannuation obligations and entitlements by
June 2011
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communicating with them through service newspapers, Departmental Circulars
and the Defence Intranet or other equivalent media.

Membership Information
The DFRDB Authority agrees to supply membership data to Defence and/or the
Actuary via ComSuper to facilitate the calculation of the unfunded liability of the
DFRDB Scheme.
The DFRDB Authority agrees to meet the Statement of Expectations (issued by the
Department of Defence) in line with its Statement of Intent.
June 2011
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Schedule 4: Defence and ComSuper

Funding
Defence agrees to:
  meet the agreed costs for the administration of the MSB and the DFRDB
Schemes from its Budget as indicated in Schedule 7;
  provide reasonable notice to assist ComSuper to accommodate the abnormal
demands of Defence initiatives (such as redundancy programs and
retrospective pay rises); and
  negotiate with ComSuper on any additional funding required by ComSuper to
meet the additional costs of major Defence initiatives leading to changes or
enhancements to the MSB Scheme or the DFRDB Scheme.
ComSuper agrees to:
  use its best endeavours to administer the Schemes in an efficient and cost-
effective manner;
  ensure the efficient and accountable management and control of funds acquired
by access to Defence’s appropriation;
  provide the superannuation information necessary for Defence to meet its
financial reporting obligations including for:
o  any requirements identified by Defence’s internal audit or ANAO; and
o  Defence’s monthly financial statements;
  provide Defence within ten (10) Days following the end of each calendar month
a reconciliation of the relevant administered payments bank accounts to the
monthly data provided to Defence in accordance with this Schedule;
  provide Defence with end of financial year data as at 30 June of the relevant
year together with certifications completed by ComSuper’s Chief Finance
Officer as to the integrity and accuracy of financial data provided to Defence
throughout the year; and
  assess and notify costs of implementation of planned policy, legislative and
administrative changes.

Managing Funding Appropriation
Defence agrees to:
  provide ComSuper with third party access to draw-down monies from Defence’s
appropriations through the Appropriations & Cash Management Module (ACM)
in the Central Budget Management System; and
  ensure that funds are available so that ComSuper can draw-down funds as
necessary for the purpose of processing administered payments under the
Acts.
ComSuper agrees to:
  provide the superannuation information as required by Defence's internal audit
or ANAO; and
  provide the superannuation information necessary for Defence to meet its
financial reporting obligations including providing, within two (2) Days following
June 2011
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the end of each calendar month, a cash sheet reconciled to the Appropriations
& Cash Management Module.

Employer Issues
Defence and ComSuper agree to progress work on understanding and prioritising
issues in order for Defence to:
  report new enlistments required to contribute to the MSB Scheme to ComSuper
via the Defence Pay Systems on the first available payday, but no later than the
second payday following enlistment;
  obtain and report Tax File Numbers (TFN) for all members of the Schemes;
  deduct member contributions from the fortnightly salary of MSB Scheme and
DFRDB members and remit them, along with the 3% productivity contributions,
to the nominated bank accounts on the payday to which they relate;
  remit employer contributions, under the accrual based superannuation
arrangements, to the nominated bank accounts on the payday to which they
relate;
  provide ComSuper with data files showing details of all MSB Scheme and
DFRDB Scheme contributor variations and other member data on or before the
payday to which they relate;
  investigate and respond within ten (10) Days to any data enquiries from
ComSuper concerning members, 3% productivity contributions and other
superannuation data;
  provide the necessary benefit claim documentation to all members who intend
to separate from Defence and report the separation and cessation of
contributions via the Defence Pay Systems to ComSuper on the first available
payday following the separation date;
  provide service details required by ComSuper to calculate and complete the
processing of benefits;
  respond to requests for information to enable ComSuper to resolve issues
raised by members or members’ representatives within (ten) 10 Days of receipt
of the request from ComSuper;
  minimise data or monetary adjustments for separated members reported after
the date of exit;
  execute the timely and accurate processing of Invalidity Retirement from the
Defence Force Medical Information Forms (DM42s) with accompanying legible
supporting documentation;
  undertake to correctly commence members in their proper Scheme. If however,
ComSuper identifies that a member is incorrectly contributing to either Scheme,
ComSuper will advise Defence and Defence will make an adjustment through
their payroll. If the member is no longer employed the contributions will be
refunded directly to the member;
  undertake to inform recipient members of ramifications of re-entry into either
scheme;
  undertake to provide data to ComSuper in an acceptable format and of a
reasonable quality to enable ComSuper to process the information provided in
an efficient and timely manner; and
June 2011
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  make payment of employer Superannuation Guarantee top up contributions for
allowances considered to be ordinary time earnings (but not included in salary
for superannuation purposes).

Communications
To facilitate the distribution of Annual Member Statements and other member
communications:
  Defence and ComSuper agree to co-operate in the timely distribution of Annual
Member Information Statements and other publications prepared by the MSB
Board/DFRDB Authority for the information of members (including the initial and
ongoing distribution of the member information booklet);
  Defence agrees to the provision of accurate member address data to the extent
permitted by its existing systems for the purposes of member communication
for all contributing members;
  ComSuper agrees to maintain accurate preserved member address data
provided by those members; and
  Defence agrees to facilitate access to bases and military establishments to
ComSuper to provide educational services as agreed by the MSCC.

Member Information
Defence agrees to provide ComSuper with the following information and endeavour to
meet the timescales indicated:
  provide medical reports and other relevant personnel details to assist in the
invalidity classification processes within thirty (30) Days prior to the member’s
discharge or within ten (10) Days after the member’s discharge if the first
requirement cannot be met;
  respond to any enquiries from ComSuper concerning clarification of
employment and medical information within thirty (30) Days;
  provide up-to-date address data for member statements prior to 31 July;
  respond within ten (10) Days to ad hoc requests for information and calculations
by ComSuper within the agreed upon timeframe and standard; and
  provide assistance to ComSuper in the form of a regular meeting with a
Defence staff member in developing and pursuing resolutions to identified
deficiencies in Scheme legislation.
ComSuper agrees to provide the membership data to the Actuary for the calculation of
the unfunded liability estimates for the MSB and DFRDB Schemes and for the financial
statement audit.  Any other requests by third parties for membership data must be
approved by the MSB Board and the DFRDB Authority and not contravene any law.
June 2011
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Ministerial Issues
ComSuper agrees (when requested by Defence) to provide information to assist
Defence in the preparation of responses to Ministerial representations and other
Ministerial/Parliamentary requirements, within the deadline set by the relevant Defence
Minister’s Office. ComSuper agrees to draft the ministerial responses where
appropriate to do so.

Reporting Responsibilities to the Ministers
Defence agrees to prepare briefing material and advice on superannuation policy
matters, responses to questions on notice and public statements concerning the
military superannuation schemes, and provide such material to the Minister, after
consulting with the MSB Board, the DFRDB Authority and ComSuper where
appropriate.
ComSuper agrees to prepare briefing material and advice on superannuation
administration matters, responses to questions on notice and public statements
concerning the administration of the military superannuation schemes, and provide
such material to the Minister, after consulting with the MSB Board, the DFRDB
Authority and Defence where appropriate.
June 2011
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Schedule 5: ComSuper and MSB Board

Services and Standards
The relationship between ComSuper and the MSB Board is pivotal to the provision of
Services to MSB Scheme members and in meeting the legislative and reporting
requirements of the MSB Scheme.
The Services and the standards to which ComSuper agrees to provide and perform
these are as per Schedule 8 of this Agreement.

Fees for Administration Services provided to the MSB
Board
ComSuper agrees to:
  pay directly to the bank account operated by ComSuper in the name of the
MSB Board an amount as per Schedule 7 for MSB Board activities; and
  charge the MSB Board a separate fee for the provision of Optional
Administration Services as agreed from time to time.
The MSB Board agrees to:
  provide management assurance on expenditure of public monies and will
comply with the FMA Act for the purposes of funds drawn through ComSuper;
and
  will complete regular compliance reporting in relation to ComSuper’s FMA
responsibilities

Board Policies
Where relevant, the MSB Board may issue specific policy direction to ComSuper in
relation to particular aspects of administration that ComSuper complete on behalf of the
MSB Board (e.g. unit pricing). The MSB Board will advise Defence when issuing any
major policy direction to ComSuper. This will be done at the time of the direction being
issued.
The MSB Board will advise on material compliance and policy issues impacting on the
administration of the MSB Scheme to both ComSuper and the Department of Defence.

Complaints handling process
All complaints will be finalised in accordance with procedures and timelines agreed
between ComSuper and the MSB Board.
ComSuper agrees to provide to the MSB Board sufficient detail regarding a complaint
to enable it to make an informed determination of the matter.

Claims Handling Process
All claims against the MSB Board will be finalised in accordance with documented
procedures and in accordance with administrative procedures agreed between
ComSuper and the MSB Board.

June 2011
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Communications
The MSB Board agrees to:
  the participation of ComSuper in the MSCC; and
  assist ComSuper in the supply of new starter kits to new MSB Scheme
members through Defence.

Reporting
The MSB Board agrees to provide:
  ComSuper with all necessary financial information to allow preparation of the
Fund financial statements; and
  an annual advice to the Minister for Finance and Deregulation on ComSuper’s
performance.

Approval Process
The MSB Board agrees under normal circumstances to approve general requests
within ten (10) Days.  Where exceptional or urgent circumstances warrant, the MSB
Board will endeavour to complete these requests as a matter of priority.
For this purpose general requests include, but are not limited to:
  general product sign off;
  clearance of complaints; and
  the appointment of Authorised Representatives.
June 2011
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Schedule 6: ComSuper and DFRDB
Authority

Services and Standards
The relationship between ComSuper and the DFRDB Authority is central to the
provision of Services to the DFRDB members and in meeting the legislative and
reporting requirements of the DFRDB Scheme.
The Services and the standards to which they are performed are as per Schedule 9.

Secretariat Service
ComSuper will provide a secretariat service for the DFRDB Authority.

Complaints handling process
ComSuper agrees to finalise all complaints in line with procedures and timelines
agreed between ComSuper and the DFRDB Authority.

Policy
ComSuper agrees to distribute papers prepared by Defence for consideration of the
DFRDB Authority.

Claims Handling Process
All claims against the DFRDB Authority will be finalised in accordance with
documented procedures and in accordance with administrative procedures agreed
between ComSuper and the DFRDB Authority.

Communications
ComSuper agrees to participate in the development of the communications strategy
and material in conjunction with the MSCC.
June 2011
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Schedule 7: Agreed Funding
Arrangements
Subject to the allowances and assumptions detailed below, the agreed Total
Administration Fee to be paid by Defence to ComSuper for providing the Administration
Services (excluding Optional Administration Services) outlined in this Agreement is:

Total

Fee Components
Administration
Fee
ComSuper annual administration fee
$23,600,000
2011–12
$25,232,816
 Add Wage Cost Index (1.9%)
$448,400
 Less Efficiency Dividend (1.0%)
($240,484)

Subtotal
$23,807,916
MSB Board annual administration fee
$1,424,900
Total Fee Payable
$25,232,816
2012–13
$25,514,763
ComSuper annual administration Fee
$23,807,916
 Add Wage Cost Index (1.9%)
$452,350
 Less Efficiency Dividend (1.0%)
($242,603)
Subtotal
$24,017,663
MSB Board annual administration fee
$1,497,100
Total Fee Payable
$25,514,763

MSB Board Administration Fee
ComSuper will receive in the Total Administration Fee an amount for the MSB Board’s
administration activities. This amount (as specified in the Fee Components in the
above table) will be paid quarterly, in advance, to the notional bank account maintained
by ComSuper in the name of the MSB Board.

Allowances
As part of the ComSuper Annual Administration Fee a number of Administration
Services have an allowance associated with them (see table below). If an allowance
specified in the following table for a particular Administration Service is exceeded, all
Parties agree to negotiate a requisite adjustment to the agreed Annual Administration
Fee. Alternatively, Defence, the MSB Board or the DFRDB Authority may direct
ComSuper not to provide the particular Administration Service or any part of the
Administration Service.
ComSuper will provide advance notice of the potential for any allowance to be
approached or exceeded.
June 2011
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Administration Service
An annual allowance provided for MSB Board and DFRDB
Authority
Invalidity Services
90 DFRDB and 770 MSBS initial invalidity assessments;
0 DFRDB and 250 MSBS invalidity review assessments;
15 DFRDB and 53 MSBS requested review assessments; and
10 DFRDB and 10 MSBS retrospective invalidity classification
investigations.
Reconsideration Services
93 DFRDB and 304 MSBS reconsideration assessments
Other Board/Authority
Application may be made to Defence for additional funding
Initiatives and
for:
Legislative
  the implementation of administrative systems and
Requirements
processes to support new and unplanned MSB Board
or DFRDB Authority initiatives and legislative changes:
and
  the correction of administrative errors.
Such applications for funding will be assessed for funding
on the merits and strengths of the business case.  There is
no guarantee that additional funding will be available.
ComSuper may agree to commence work before funding
is sought.
Seminars
An allowance of up to 180 seminars per financial year has
been provided. The seminar program is to be scheduled
by Defence.
One-on-one information  An allowance of the equivalent of one full time equivalent
sessions
staff member to conduct personal information sessions
has been provided.
Printing
An allowance of $45,000 for DFRDB and $120,000 for
MSBS has been provided for all printing of brochures,
facts sheets and publications. This includes a maximum of
$25,000 for MSBS Product Disclosure Statement (PDS).
Secretariat Services for
An allowance of $30,000 has been provided for the
the DFRDB Authority
provision of secretariat services for the DFRDB Authority.
Secretariat Services for
An allowance of $30,000 has been provided for the
the MSB
provision of secretariat services for the Reconsideration
Reconsideration
Committee.
Committee

June 2011
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Assumptions
The following assumptions have been made in order to agree to the fixed Annual
Administration Fee set out above for the provision of the Administration Services.
If at any time during the period of this Agreement these assumptions prove to be
incorrect, then the narrative below the particular assumption details the impact on the
Annual Administration Fee.

Service
Assumption
Membership Growth
It is assumed that per annum MSBS membership growth
will be 7,063 members.
If membership increases exceed 7,063 members then
ComSuper and Defence will agree the additional fee to
support Services for these members.
Costs for the services performed within the membership
growth eg telephone calls, benefit estimates etc are based
on a two year average factoring in seasonality.  Should
transaction volume rise by greater than 5% on the two year
average (2009-11) over a period of four months,
ComSuper will initiate a formal review of service levels and
options for meeting the service level requirements.
ComSuper Insurance
It is assumed the existing indemnity arrangements as at
for Administration
the date of this agreement remain in place.
Services
If these arrangements change causing additional insurance
costs to ComSuper, then ComSuper and Defence will
agree the additional fee to fund the increased insurance
costs.
Distribution of member
It is assumed that ComSuper will continue to distribute
statements
material (including annual member statements and annual
member mail outs) to members.
If the distribution arrangements change causing additional
costs, then ComSuper and Defence will agree the
additional fee to fund the increased costs.
Military Super Review
For the purposes of this SLA no consideration has been
given to the possible outcomes of the Department of
Defence review of Military Superannuation arrangements.
Any impact to services and costs will be assessed
separately.
Board Mergers
For the purposes of this SLA no consideration has been
given to the possible outcomes and attendant cost
implications for the merger of the MSB and ARIA boards
and the DFRDB Authority from 1 July 2011. Any impact to
services and costs as a result of this project will be
assessed separately.

June 2011
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Reduction in Total Administration Fee
Where a change is requested by Defence, the DRFDB Authority or the MSB Board,
and that change materially reduces the amount of resourcing, effort and/or costs
required to administer the Schemes, the Parties agree to negotiate an adjustment to
the Total Administration Fee.
For the purposes of this clause, a material reduction in resourcing, effort and/or costs
would amount to a change which reduces the amount of the relevant measure or KPI
by at least 5%.

Payment Terms
Defence agrees to pay the Total Administration Fee on a quarterly basis within thirty
(30) Days of receipt of invoice.

Funding sources
The following table summarises the source of funding for the Administration Services
provided by ComSuper.

Fee or Payment Type
Funding Source
Annual Administration Fee
A fee levied on the Department of Defence
Payment of Benefits (Funded and
Draw down from Defence Special Appropriation
Unfunded) – including delayed
benefit interest (if any)
Payment of Benefits (Funded)
Reimbursed from the Consolidated Revenue
Fund
Payment of additional amount
Draw down from Defence Special Appropriation
where Benefit initially calculated
incorrectly
Write-off of amounts where excess  Draw down from Defence Special Appropriation
Benefit initially paid
Payment of Compensation
Draw down from Defence Special Appropriation
Payment of Legal Fees
Draw down from Defence Special Appropriation
Payment of Medical Costs—MSBS  Sourced from ComSuper’s Annual
Administration Fee
Payment of Medical Costs—
Draw down from Defence Special Appropriation
DFRDB

Notes:
1.
A draw down from Defence Special Appropriation is processed by ComSuper through the
Appropriations & Cash Management Module (ACM) and is classified as “COMSUPER”. Amounts
drawn down are then reported to Defence monthly.
June 2011
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Schedule 8: MSB Statement of
Services and Standards

Services to be provided
This Schedule sets out the Services to be provided by ComSuper to MSB Scheme
members, including pensioners, on behalf of the MSB Board and the standards that are
to be applied to those Services.  In delivering the Services, ComSuper will ensure it
remains compliant with all relevant legislation and MSB Board Licensing requirements.
Where a standard is not met, ComSuper will provide commentary on the reason the
standard was not met within the monthly Administrator’s report.  Separately, where
there is a systemic reason why 100% achievement is not possible ComSuper is to
raise this as part of its regular Issues meeting with the MSB Management.

Definitions
For the purposes of this Schedule:
  ‘Administrator’ means ComSuper (the business name for Commonwealth
Superannuation Administration);
  ‘Board’ means the MSB Board;
  ‘Days’ means business days;
  ’MSB Management’ means senior management employed by the MSB Board,
reporting to the MilitarySuper Chief Executive Officer; and
  ‘Member’ (where relevant) includes associate members and ancillary benefit
members of the MSB Scheme.

Funding
Subject to Schedule 7 of this Agreement, the source of funding for each of the Services
provided is indicated by the following notes (next to each service):
(1)  Fully funded by an administration charge to Defence;
(2)  Funded by an administration charge to Defence, except the Annual Report to
Members, which is funded by the MSB Fund;
(3)  Funded by an administration charge to Defence, except the Member Investment
Choice Guide, which is funded by the MSB Fund;
(4)  Funded by administration charge to Defence, except Legal and Compensation
which are funded by Defence Appropriation;
(5)  Funded by an administration charge to Defence, subject to limits in Schedule 7;
and
(6)  Funding as otherwise agreed by the Parties.
June 2011
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SERVICE
STANDARD
REPORTING
1. Account Maintenance

1.1 Collection, recording and

maintenance of member information (1)
Receipt of assurance (in a format agreed by
Annual

the MSB Board) in the annual management
management
ComSuper will:
representation letter in respect of the
representation letter
•
maintain accurate records of
systems used to maintain member records.
contributing members, preserved
benefit members, associates and
pensioners to facilitate, among other
At the direction and requirement of the Audit
Quarterly
things, accurate and timely
and Risk Management Committee of the
communications, the accurate and
MSB Board, arrange for an independent
timely payment of benefits, various
audit of these systems and controls to be
reporting requirements and
undertaken in accordance with appropriate
reconciliation against the MSB Scheme
standards, including GS 007.
accounts; and
•
ensure that adequate systems,
Number of complaints relating to
Report in the
procedures and controls are in place to
maintenance of member information.
monthly Complaints
meet the administration and reporting
Report
requirements of Taxation, Corporations
Law, Superannuation Industry
Supervision (SIS) and Privacy
legislation and the Scheme Rules.
1.2 Contributions/remittances (including
Contributions (including roll-ins) are to be
Monthly
ancillary contributions)—collection,
allocated to members accounts:
banking, recording and maintaining of

accounts (1)

95% within four (4) Days of

acceptance.
ComSuper will:
Additional information required by ComSuper
Monthly

in order to process the contribution is to be

maintain appropriate banking
sought:
arrangements for the payment of

contributions/remittances into the MSB
  98% within 10 Days of receipt of the
Fund Account;
contributions

lodge monies with the MSB Board’s
Contributions received where the individual
Monthly
investment custodian for investment by
is no longer a member or the member is not
investment managers to the extent that
eligible to receive the contributions are to be
monies held in the MSB Fund Account
refunded or transferred from the Fund:
are not required for the purpose of the
  No Tax File Number (TFN) - 100%
payment of benefits and other
within thirty (30) Days of receipt.
expenses;
  Exited members - 98% within thirty

maintain appropriate accounting
(30) Days of receipt.
systems for the recording of
contributions/remittances received;
ComSuper will provide commentary on the
reasons the standard was not met.

monitor the collection of contributions/
and pursue any late remittance of
Contribution/remittances to be deposited in
Monthly
contributions with Defence; and
the MSB Fund Account on the same day

as received.

review contribution allocation SLA by 31
October 2011 and advise Board of
impact of ePASS on standard able to be
Daily reconciliations will be undertaken to
Monthly
achieved.
ensure that all monies received are
banked.
Balance of funds held in the MSB Fund
Monthly
Account to be monitored daily and any
funds not required for the purpose of
paying benefits and other expenses paid
to the MSB Board’s investment custodian.
June 2011
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SERVICE
STANDARD
REPORTING

Contributions/ remittances to be recorded
Monthly
in the MSB accounting systems within one
week of receipt.
All known contributions not received within
Monthly
3 Days of the due date will be pursued
with the Defence.
ComSuper will process all surcharge monies
Monthly
and report debit reduction or clearance of
debt to the member within 5 Days of receipt
of monies.
1.3 Member Investment Choice (MIC) (1)
In accordance with the MSB rules,
Monthly

ComSuper will process all correctly
ComSuper will process investment switch
completed MIC investment switch
applications and provide members with
applications.
written confirmation of changes made.

ComSuper will provide members with written
Monthly
confirmation of the processing of all switch
applications within five (5) Days of
processing the switch.

June 2011
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SERVICE
STANDARD
REPORTING
2. Member Communications

2.1 Member Communications (1)
ComSuper will process or respond to:
Monthly including

average and worst
ComSuper will, at the direction of the MSB
Written enquiries (letters, fax, e-mails):
experience
Board, undertake a communications program
  90% in five (5) Days;
aimed at improving members’, preserved
  98% in ten (10) Days
benefit members’ and pensioners’ knowledge
and understanding of the Scheme so that they
ComSuper will provide commentary on the
are in a position to make informed decisions at
reasons the standard was not met.
times when these need to be made. This will
include the range of communications required
by SIS and Corporations Law (FSR) and
recognise the particular needs of members.
Manual calculations:
Monthly in the


Administrator’s

95% in twenty (20) Days; and
Specifically, ComSuper undertakes to provide
Report or at the

a range of communications to members on

98% in thirty (30) Days
fortnightly issues
benefit entitlements and queries relating to the
ComSuper will provide commentary on the
meeting.
general administration of the Scheme in
reasons the standard was not met.
writing, over the phone (using Interactive
Voice Recognition (IVR) technology) and by
electronic means. ComSuper will continuously
One-On-One Information Sessions:
Monthly
seek ways to improve these communications.

To be delivered to members both in-house
ComSuper will also provide a range of
as required, and interstate in conjunction
seminars broadly in accordance with demand,
with the seminar program schedule.
including with respect to associate benefits
The seminar program is set by the ADF
and to make available various Scheme
Financial Services and Consumer Council
publications both in hard copy and electronic
and the ADF Transition Centre.
format.

ComSuper will deliver the abovementioned
member communication services in
Answer Telephones:
Monthly including
accordance with the MSB Board’s licensing
  75% answered in 60 seconds; and
average speed of
obligations. The specific details will be the
answer, abandoned
subject of agreement between the MSB Board
  less than 5% abandoned calls.
calls  and worst
and ComSuper.
experience

ComSuper will apply Scheme branding for all
member communication. This branding will
remain as agreed for the term of the SLA.

June 2011
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SERVICE
STANDARD
REPORTING
2.2 Bulk Member Communication (2)
Annual Reports for Members and Preserved
Annually

Benefit Members will be available for
ComSuper will undertake two major mail outs
distribution by 30 September.
to relevant members each year :

an annual member statement and
Annual Report to Parliament will be  prepared
Annually
explanatory material (including annual
in accordance with the legislated
report to members and preservers)
requirements for content and timings.

an annual mid-year member mail out to
relevant members.
Annual Member Statements:
Annually
Annual reports to members in electronic
  system produced:  by 31 October
format (and hard copy on request)
  Manual statements: by 1 December

  Replacements:  90% within ten (10)
Bulk member communication will be
Days
distributed either through Defence or
ComSuper, as appropriate, and agreed
  100% of all member statements are to
between the parties.
have been produced and distributed
by 31 December to meet the
Corporations Law requirement that
statements be distributed by this date
annually.
Annual Mid-Year Member Mail out:
Annually
  As agreed annually between the MSB
Board’s MSCC and ComSuper
2.3 Maintain Publications (3)
Annual review and compliance signoff
Annual review of

provided to Board.
listed publications
ComSuper will review, update, maintain and
supply a standard suite of agreed products.

ComSuper will provide layout, print and
distribution for primary documents – Financial
Services Guide (FSG), Product Disclosure
Statement (PDS), Military Super Book and
Member Investment Choice Guide.

Where legislative or regulatory change
requires the production of new or additional
publications ComSuper will negotiate
additional funding with Defence.

June 2011
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SERVICE
STANDARD
REPORTING
2.4 Maintain Website (1)
Website changes:
Next Day
ComSuper will maintain existing website
  Critical updates:  2 hours (where
content to ensure accuracy and currency.
update is provided within same day
ComSuper will conduct an annual compliance
business hours)
review of the web site content.
Maintenance of Website includes:
  Routine updates: 100% in two (2)
Monthly

I Estimator
Days

Content review
  Unit prices: The latest unit price for all
Monthly
options is to be posted to the website

Page linking
by 12.00pm each working day (except

Minor amendments
where the unit price is provided after
that time by the custodian).

Minor creation/editing of new pages

Maintenance and update reports
  Other: A monthly review of the
Monthly
website for ‘dead links’ out of date
Agreement to be gained between ComSuper’s
information, etc
Executive Manager of Communications and
MSB Management regarding any
discrepancies.
ComSuper will ensure current Management
Expense Ratio (MER) and Indirect Cost Ratio
(ICR) are displayed on MSB Board’s website
as mentioned in MSB Board’s PDS.
2.5 Ensuring the availability of website and
ComSuper to report any anticipated or
As required &
website services (1)
experienced changes in availability of the
Twice Annually
ComSuper will ensure that the website is
website to the MSB Board as soon as
(routine)
readily available to members at any hour.
practically possible.
2.6 Maintaining White Pages telephone
Annual updates of any telephone number
Annually
book listings for capital cities (1)
changes and toll free numbers for capital
cities.
2.7 Hours for member service delivery (1)
ComSuper’s hours of service delivery are
Twice Annually

9am to 5pm Monday to Friday with the
exception of all National and Canberra Public
holidays and the Christmas closedown
period.
2.8 Responses to Queries from other
Written correspondence:
Monthly including
Government Agencies (1)
  90% in ten (10) Days
worst average
The Contact Centre will respond to ad hoc
experience
queries from other agencies on behalf of a
ComSuper will provide commentary on the
member.
reasons the standard was not met.

June 2011
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SERVICE
STANDARD
REPORTING
3. Benefit Payments

3.1 Benefit payments (1)
Benefit application processing (providing all
Monthly, including

necessary information is received):
average and worst
ComSuper will process all applications for

experience
benefits (lump sum or pension) from

90% in five (5) Days
contributors and preserved benefit members
  98% in ten (10) Days
in a timely manner and in accordance with
ComSuper will report on those cases outside
relevant legislation.
service standard

Where ComSuper requires additional
information in order to process a benefit
Average processing time of 4 Days over a
Quarterly
payment this is to be sought within five (5)
month.
Days of ComSuper’s receipt of the benefit
payment request.
100% of death benefit claims not paid within
Quarterly

ninety (90) Days of the claim being lodged
For members whose applications are
are to be reported to the MSB Board
processed outside thirty (30) Days late
payment interest will be added in accordance
100% of death and invalidity benefit claims
Monthly
with the MSB Board’s Interest Determination.
not paid within six (6) months of the claim

being lodged are to be reported to the MSB
ComSuper will create separate interests as
Board.
required under Family Law and issue payment
split notices.
Manual calculations:
Monthly
  95% in twenty (20) Days; and
  98% in thirty (30) Days
3.2 Early Release Claims (1)
Early release claims are to be assessed and
Monthly
ComSuper will assess and process early
determined within five (5) Days of receipt of a
release claims from preserved benefit
complete and accurate form, unless further
members.
investigation of claims on the form are
necessary.
Once investigation has concluded with an
Monthly
assessment to release funds to the
member, payment of releasable funds are
to be processed within five (5) Days.
3.3 Applications involving questions of
ComSuper will acknowledge and send an
Monthly
dependency (1)
application form to the relevant parties in
95% of cases, within two (2) Days of advice
of a deceased member’s funeral.
ComSuper will provide a benefit estimate to
Monthly
eligible persons within five (5) Days of the
delegate’s determination.
Applications from eligible dependents on the
Monthly
death of a member are to be approved within
ten (10) Days of all relevant material being
submitted to process the benefit or pension.
ComSuper will report to the MSB Board any
Monthly
dependency applications greater than ninety
(90) Days old.
Subject to there being no counter claims,
Monthly
benefit applications will be processed for the
next available payday by ComSuper once all
necessary information has been received to
process the benefit.
June 2011
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SERVICE
STANDARD
REPORTING
3.4 Processing invalidity claims (1)
Cases for consideration by delegate:
Monthly

  To be determined within ten (10) Days
In determining invalidity benefits ComSuper
of receipt of all required supporting
will ensure that due process is followed, that
documentation and any additional
claims are processed expeditiously, that
information that may be required.
legislative requirements are met and that
guidelines issued by the MSB Board are
  A determination will not be made more  Monthly
followed.
than ten (10) Days prior to the date of
discharge.
Cases for submission to the Incapacity
Monthly
Classification Committee (ICC):
  To be submitted to the next available
meeting of the Committee after receipt
of supporting documentation* and any
additional information that may be
required.
*supporting documentation includes
medical documentation, the member’s
employment experience, advice of
conditions causing retirement and
confirmation of date and mode of exit.

  Cases will not be submitted to the
Monthly
Committee more than ten (10) Days
prior to the date of discharge.
  Members are to be formally advised of  Monthly
decisions taken by either a delegate
or the Committee within five (5) Days.
  Decisions of the ICC to be tabled at
Monthly
the first available MSB Board meeting.

3.5 Pension variations (1)
ComSuper will run regular death matching
Monthly
processes to identify and cease pensions
Monthly death matching
where notification of death of a pensioner
has not occurred.
Changes to pensioner records
Changes to pensioner records will be made
Monthly
within the first available fortnightly pay cycle
following receipt of a request e.g. bank
account details, address, termination date or
change to payment arrangements.
3.6 Pension increase / advice (1)
The July increase will be processed for
Annually
ComSuper will process pension increases in
payment on the first payday in July.
accordance with relevant legislation and within
any guidelines issued by the MSB Board in
The January increase will be processed for
Annually
relation to such transactions.
payment on the first payday in January.
A letter and/or newsletter, approved by the
Twice Annually
MSB Board, will be sent to pensioners
advising of the increase before the increase
applies.
June 2011
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SERVICE
STANDARD
REPORTING
3.7 Review of invalidity classifications (1)
Medical and requested reviews will be
Quarterly
ComSuper will periodically review the
completed within twenty (20) Days of receipt
classification of invalidity pensioners, either of
of all relevant information.
its own volition or at the request of the MSB
Board or pensioners.
Two hundred and fifty (250) medical reviews
Quarterly
will be conducted for pensioners using the
selection criteria agreed to by the MSB
Board, Department of Defence and
ComSuper. This excludes cases set for
indefinite review, the criteria for which are set
by the MSB Board in consultation with the
Department of Defence.
Cases for submission to the ICC will be
Monthly
submitted to next available meeting of the
Committee after receipt of all relevant
documentation and any additional
information that may be required.
Members will be formally advised of invalidity
As required
review decisions within five (5) Days.
Decisions of the ICC are to be tabled at the
As required
first available MSB Board meeting following
the ICC’s decision.
3.8 Accounts and records and funding of

benefit payments (1)
ComSuper will:
Immediate availability of funds from MSB
End of Financial

liaise with the MSB Board’s Custodian to
Fund bank account to meet all anticipated
Year statements
ensure that funds are available to meet
and known benefit payments.
benefits and other payments from the

Fund for MSB payments as they fall due;

Receipt of assurance (in a format agreed by
Annual

consult with the MSB Management,
the MSB Board) in the annual management
management
where contribution flows are insufficient to
representation letter that proper accounts
representation letter
meet benefit payments due without
and records have been kept.
redeeming assets; and

maintain proper accounts and records in
respect of all benefits paid.
3.9 Annual student pension review (1)
This review will be conducted by the first
Annually
The student pension review will be conducted
payday in March each year and the result
annually by ComSuper to ensure the students
advised to the MSB Board.
over the age of 16 remain eligible for the
student pension.
3.10 Pension Payments (1)
Pension payment will be made by
Monthly
ComSuper will process and make pension
fortnightly payments in line with the
payments in accordance with relevant
legislation.
legislation and Scheme Rules and within any
Exceptions to this are closedown and
guidelines issued by the MSB Board in
public holidays. In these cases payment
relation to such transactions.
will be made on the preceding day.
June 2011
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SERVICE
STANDARD
REPORTING
4. Dispute Resolution

4.1 Internal Review (1)
ComSuper will process reconsideration
Monthly
ComSuper will investigate requests for
requests:
reconsideration in a thorough, objective, and
  60% in eight (8) months;
effective manner in accordance with any
  90% in twelve (12) months;
guidelines issued by the MSB Board.
  With an average of less than six (6)
ComSuper will provide a secretariat service
months for all reconsideration
for the MSB Board’s Reconsideration
requests; and
Committee.
  ComSuper will ensure that no case
has an outstanding action by
ComSuper for more than thirty (30)
Days unless, a medical examination is
pending, or the case has been
submitted to the Board/Committee for
consideration.
Submissions to the MSB Reconsideration
Monthly
Committee will be prepared and issued
within thirty (30) Days of receipt of all
necessary documentation.
Decisions of the Reconsideration Committee
As required
are to be tabled at the first available MSB
Board meeting.
Recommendations to the MSB Board for a
As required
review of a Reconsideration Committee
decision will be submitted to the next
available MSB Board meeting.
4.2 External Review (4)
Process all external review cases objectively
Monthly

and meet all required statutory timeframes.
ComSuper will do all things necessary to meet
timeframes imposed by the Superannuation
Complaints Tribunal, the Federal Court and
ComSuper will provide advance copies of
Monthly
other jurisdictions such as the Human Rights
submissions to the Superannuation
and Equal Opportunity Commission.
Complaints Tribunal to the MSB
ComSuper will also inform the MSB Board of
Management for comment not less than five
the outcome of all external appeals and any
(5) Days prior to submission to the SCT.  All
implications stemming from these.
submissions to the SCT require clearance by
a Responsible Officer of the Board prior to
submission to the SCT.
A report outlining the outcome of all external
As required
reviews is to be provided to the first MSB
Board meeting after decision is handed
down.
4.3 Complaints (1)
ComSuper will provide substantive
Monthly
ComSuper will maintain all necessary systems
responses to all complaints (excluding 4.1
for dealing with SIS registered complaints and
internal reviews) including complaints
representations made by the Minister’s office,
forwarded by the MSB Management where a
Parliamentarians and the Commonwealth
draft response is sent to the MSB
Ombudsman.
Management within twenty (20) Days.
ComSuper will seek guidance from the MSB
For cases requiring external (advice or
Monthly
Management on complaints or enquiries
clarification) ComSuper will provide an
where there is some uncertainty about
interim response to the member within
whether the complaint can be considered by
twenty (20) Days and with resolution within
the Superannuation Complaints Tribunal.
ninety (90) Days and as agreed with the
MSB Management.
June 2011
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SERVICE
STANDARD
REPORTING
Monthly
ComSuper will provide the MSB Management
Parliamentary/ Ombudsman requests:
with a draft of the final response from matters
  resolve 100% within 20 Days.
that can be considered by the Superannuation
Complaints Tribunal. The information provided
will have undergone checks to ensure
technical accuracy.
Freedom of Information (FOI) requests:
Monthly

  resolve 100% within the statutory
ComSuper will provide sufficient background
timeframe
information to the MSB Management to
enable them to make an informed decision
FOI standards:
Monthly
and draft a response if required.
  100% of FOI requests are to be

acknowledged within ten (10) Days of
ComSuper will maintain systems for dealing
receipt
with requests under the Freedom of
Information Act and Scheme Rules.
  100% of FOI requests are to be
formally responded to within thirty (30)

Days.
ComSuper will provide information to the
Annually
Office of the Privacy Commissioner for
inclusion in the Personal Information Digest
by the required reporting due date.
ComSuper will provide a report to the MSB
Monthly
Management of all complaints received and
which have received responses.
4.4 Claims (4)
After discussing with ComSuper, the MSB
Report as arises
ComSuper undertakes to do all things
Board must communicate in writing to
necessary to facilitate the expeditious
ComSuper as to when a matter is
processing of negligence claims against the
proceeding as a claim.
MSB Board in accordance with procedures
agreed between the MSB Board, ComSuper
and the Department of Defence.

June 2011
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SERVICE
STANDARD
REPORTING
5. General Employer Support

5.1 General Support (1)
Agreement on the timeframe for the
As required
provision of information will be made at the
ComSuper will provide:
point of the request being made by the

input to Ministerials, complaints and
employer.
Ombudsman requests where required
from the employer;

assistance with death in service matters;
Where an agreed timeframe cannot be met
As required
and
all relevant parties will need to be informed

responses to ad-hoc requests for
of the delay within a period agreed between
membership data and assistance to ADF
ComSuper and the Employer.
Pay and Accounting when required.
June 2011
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SERVICE
STANDARD
REPORTING
6. Family Law Services

6.1 Form 6 requests (1)
Provision of information to be provided within
Monthly
ComSuper will provide information to enable
twenty-eight (28) calendar days (non-
the correct completion of Form 6 requests.
legislative).
6.2 Responses to draft court orders and
Legislative standard:
Monthly
superannuation agreements. (1)
  review and respond to 100% within
ComSuper will review and provide responses
twenty-eight (28) Days of receipt of all
to draft court orders/superannuation
necessary documentation.
agreements in a timely manner.
6.3 Complex family law enquiries (1)
  100% to be issued with at least an
Monthly
ComSuper will provide responses to complex
interim response within twenty-eight
family law enquiries by members including
(28) Days.
manual calculations, payment and estimates.
6.4 Payments Split notices (1)
  100% to be issued within twenty-eight
Monthly
ComSuper will process payments split notices.
(28) Days.
ComSuper will create separate interests as
directed by the Court.
6.5 Family Law ad hoc work (1)
Ad-hoc requests by the MSB Board to be
As required
responded to within agreed timeframes.
ComSuper’s Family Law Unit will perform ad
hoc work for the MSB Board in relation to
member benefits and Family Law
interpretation.

June 2011
Page 45 of 68

SERVICE
STANDARD
REPORTING
7. Other Services

7.1. Compliance (1)

ComSuper will ensure, demonstrate and
ComSuper will maintain compliance manuals
Quarterly - within 15
formally attest that it remains compliant with
and provide quarterly compliance reports
Days of the end of
all relevant legislation, such as taxation law,
(compliance schedules).
each quarter
Corporations law, the Superannuation Industry
Supervision (SIS) Act and Regulations, the
Reporting by ComSuper CEO detailing the
Every 6 months (30
Privacy legislation and all other relevant law
monitoring and supervision of staff.
June and 31
and Scheme Rules.
December)
ComSuper will ensure the compliance
schedules and compliance manuals are
Provide input to the annual and quarterly
Within two (2)
maintained and updated.
returns to APRA.
business days,
unless otherwise
MBS Management to notify ComSuper, in
agreed.
writing, of any breaches (as determined by
APRA or ASIC)
7.2. Auditing Assurance (1)

ComSuper will maintain an internal audit
The Controls Report will be delivered,
The GS007 Controls
function substantially in accordance with the
complete with an audit opinion, no later than
Report is the primary
relevant Better Practice Guide issued by the
16 August for the preceding financial year,
report on auditing
Australian National Audit Office.
and will provide reasonable assurance that
assurance.
ComSuper has achieved the agreed set of
ComSuper will also
ComSuper will provide to the MSB Board an
Control Objectives.  "Reasonable assurance"
provide periodic
annual audited Controls Report (Type B) as
will be interpreted with regard to the
updates on progress
defined in Guidance Statement 007 Guidance
performance expectations established by this
toward future GS007
Statement GS 007 "Audit Implications of the
Service Level Agreement and by particular
Controls Reports, and
Use of Service Organisations for Investment
arrangements between ComSuper and the
on other internal and
Management Services", issued by the Auditing
MSB Board.
external audit activity.
and Assurance Standards Board [GS007].The
"service auditor" (defined in GS007) may be
ComSuper's internal auditor. The Controls
Report will be provided annually in respect of
the services provided during the prior financial
year (1 July to 30 June).
The Controls Report will address Control
Objectives relevant to the superannuation
member services ComSuper provides to the
MSB Board, and essential information
technology controls involved in delivering
those services. Variations to the exact scope
of the Controls Report may be made by
informal agreement between the MSB Board
and ComSuper. ComSuper will attempt to
include in the Controls Report all those
controls on which the Fund external auditors
seek to rely.

June 2011
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SERVICE
STANDARD
REPORTING
7.3 Fund Reporting (1)
ComSuper will ensure Fund reporting occurs
As required
ComSuper will ensure that mandatory fund
as follows:
reporting requirements are met in regard to
Lost Member Reporting to ATO:
the reports listed under the standard.
  By 30 April and 31 October annually
Agreement around the Actuarial Services –
information to be reported for MSB Board
Financials and other requirements e.g. PCF’s
Unclaimed Monies Reporting to ATO:
and long term cost report.
  By 30 April and 31 October annually
Eligible Termination Payment (ETP)
Reporting
  By 14 August annually
Pay As You Go Withholding (PAYGW)
Reporting
  By 14 August annually
Surcharge reporting including the ATO MCS
and AVA reports
  Quarterly by 15 March, 15 June, 15
September and 15 December
annually
Co-contribution reporting
  Within twenty-eight (28) Days of the
creation of the file by the ATO
Actuary reporting
  As per timeframe agreed with the
Australian Government Actuary
Centrelink—pension amounts
  Within two (2) Days of completion of
each pension increase each June and
December annually
Financial statements
  As agreed with MSB Management
DVA—increases to invalidity pensions
  within two (2) days of completion of
each pension increase each June and
December annually.
7.4 Implementing Change or New Features
Incidental and incremental changes, required
As per agreed
(1)
as a result of superannuation system
project plan
ComSuper undertakes to ensure that it is able
legislative changes, are included as part of
to administer the Scheme in accordance with
this Agreement.  Any other funding
all relevant requirements and standards as
requirements will be negotiated separately if
well as any ongoing changes to the
such changes are required.
superannuation system.
Defence may require ComSuper to make
changes as a result of changes to Policy.
The Board may require ComSuper to
undertake changes from time to time.
June 2011
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SERVICE
STANDARD
REPORTING
7.5 Drafting of Ministerial Responses (1)
100% of draft Ministerial responses are to be
Monthly
ComSuper will draft Ministerial responses
produced in accordance with the
where it is appropriate for it to do so for and
requirements of the relevant parliamentary
on behalf of the parties.  ComSuper will liaise
unit.
with the relevant parties where such
correspondence relates to the operations
and/or business of either of these parties.
7.6 Secretariat Services to the MSB
ComSuper will provide a suitably
Annually
Reconsideration Committee (1)
experienced staff member to the
ComSuper are to provide a full secretariat
Reconsideration Committee meeting.
support service and a committee member for
the Reconsideration Committee.
ComSuper will provide appropriate
Annually
secretariat and related administrative
The cost of providing these secretariat
services are detailed a schedule 7 of this SLA.
services to the Reconsideration Committee.
7.7 Committee Services for the Invalidity
ComSuper will nominate/provide a suitably
Annually
Classification Committee (1)
experienced senior member of staff to chair
ComSuper are to provide a full secretariat
the ICC meeting.
support service and related support and a
Chairperson for the ICC
ComSuper will provide appropriate
Annually
secretariat and related administrative
services to the ICC.
7.8 Creation of Delegations and
Review and updates will be completed six (6)
Quarterly
Authorisations (1)
monthly and reported through the Quarterly
ComSuper will ensure that delegations and
Compliance Report.
authorisations are promulgated, understood,
adhered to and updated on a regular basis.
Changes to delegations will be submitted to
Quarterly
the MSB Board for approval in a timely
manner.
7.9 Instructions to Custodian (1)
Daily
ComSuper will email or fax  the following
ComSuper will provide proper, duly
information to the MSB Board’s Custodian by
authorised, instructions to the MSB Board’s
2.00 pm each business day:
Custodian with regard to the movement of
  contributions received for the day; and
member monies.
  benefit amounts required to be
transferred to the CRF account
ComSuper will transfer the net cash amount
Daily
to the MSB Board’s Custodian on the same
day.
ComSuper will provide the MSB Board’s
Daily
Custodian with cash flow allocation sheets
showing daily movement for:
  contributions received;
  benefits paid,
  investment option switches made.
ComSuper will provide the MSB Board’s
Daily
Custodian with a ‘Units on Issue’ summary
for each investment option.
June 2011
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SERVICE
STANDARD
REPORTING
7.10 Additional QA Activities (1)
ComSuper will provide a report to the MSB
Annually
ComSuper will perform quality assurance
Management illustrating the number of
activities to monitor the integrity and efficiency
quality audits performed and area of
of its administration processes.
business reviewed.
ComSuper will undertake the following:
ComSuper will provide a summary report to
Annually

Random sampling and quality checking of
the MSB Board outlining results of internal
administrative functions (for example,
audits.
telephone calls, benefits, contributions,
etc)

Produce internal quality reports

Identify and report on system process,
procedure and data errors

Data quality activities

Provide reports to Business managers.
ComSuper will produce reports, including
reconciliations for appropriate services such
as statements.
ComSuper will perform two (2) quality audits
on selected business areas every six months
as agreed to by ComSuper management.
7.11  Disaster Recovery and Business
ComSuper will ensure the following:
Tested and reported
Continuity Planning (1)
  In the event of a disruptive incident
Annually via
All parties will at all times maintain a BCP and
ComSuper commits to ensuring that
exchange of letters.
DRP testing strategy and complete testing on
no more than 48 hours of relevant
a regular basis.
data will need to be re-entered.
All parties are to maintain a suitable back-up
  ComSuper to maintain payments to
site for business operations in the event that
current Pensioners with payments
its main site is ever unavailable.
delayed no more than 5 days.
  ComSuper and Defence to ensure
that complete and up to date member
records can be re-established after a
disruptive event without compromise
to member entitlements.
All parties to complete Disaster Recovery
Testing (as per their DR Test Strategy) on
an annual basis.
7.12 Optional Administration Services (6)
Implemented as agreed.
Standards will be as
For an additional fee ComSuper will negotiate
agreed between
with all parties on any optional services.
parties
June 2011
Page 49 of 68

Schedule 9: DFRDB Statement of
Services and Standards

Services to be provided
The attached Schedule sets out the Services to be provided by ComSuper to DFRDB
Scheme members, including pensioners, on behalf of the DFRDB Authority and the
standards that are to be applied to those Services.  In delivering the Services,
ComSuper will ensure it remains compliant with all relevant legislation.
ComSuper will also undertake an Annual Effectiveness Review (AER) to review
achievements against service standards and the DFRDB Authority’s goals and
objectives for administration. The results of the review will be presented to the DFRDB
Authority no later than 30 September each year.
ComSuper will provide Defence with a copy of the AER and the Administrator’s report.
Where a standard is not met, ComSuper will provide commentary on the reason the
standard was not met.

Definitions
For the purposes of this Schedule:
  'Administrator' means ComSuper (the business name for Commonwealth
Superannuation Administration);
  'Authority' means DFRDB Authority;
  'Days' means business days; and
  'Member' (where relevant) mean members of the DFRDB Scheme.

Funding
Subject to Schedule 7 of this Agreement, the source of funding for each of the Services
provided is indicated by the following notes (next to each service):
(1)  Fully funded by an administration charge to Defence;
(2)  Funded by an administration charge to Defence, except the Annual Report to
Members, which is funded by the DFRDB Authority;
(3)  Funded by administration charge to Defence, except Legal and Compensation
which are funded by Defence Appropriation;
(4)  Funded by an administration charge to Defence, subject to limits in Schedule 7;
and
(5)  Funding as otherwise agreed by the Parties.

June 2011
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SERVICE
STANDARD
REPORTING
1. Account Maintenance

1.1 Collection, recording and maintenance
Receipt of assurance in the annual
Annual management
of member information (1)
management representation letter in respect
representation letter
ComSuper will:
of the systems used to maintain member
records.

maintain accurate records of contributing
members, deferred benefit members and
pensioners to facilitate, among other
At the direction and requirement of the
Quarterly
things, accurate and timely
DFRDB Authority, arrange for an
communications, the accurate and timely
independent audit of these systems and
payment of benefits, various reporting
controls to be undertaken in accordance with
requirements and reconciliation against
appropriate standards.
the DFRDB Scheme accounts; and

ensure that adequate systems,
Number of complaints relating to
Report in the
procedures and controls are in place to
maintenance of member information.
monthly Complaints
meet the administration and reporting
Report
requirements of Privacy legislation.

1.2 Contributions—collection, recording
Contributions (including roll-ins) are to be
Monthly
and maintaining of accounts (1)
allocated to members accounts:


ComSuper will:

95% within four (4) Days of
acceptance.

maintain appropriate banking
Additional information required by ComSuper
arrangements for the payment of DFRDB
Monthly
in order to process the contribution is to be
contributions and remittances
sought:

maintain appropriate accounting systems
  98% within 10 Days of receipt of the
for the recording of contributions received;
contributions

monitor the collection of contributions and
pursue any late remittance of
Contributions received where the individual
Monthly
contributions with Defence; and
is no longer a member or the member is not
eligible to receive the contributions are to be

review contribution allocation SLA by 31
refunded or transferred from the suspense
October 2011 and advise the DFRDB
account:
Authority of impact of ePASS on standard

able to be achieved.

No Tax File Number (TFN) - 100%
within thirty (30) Days of receipt.
  Exited members - 98% within thirty
(30) Days of receipt.

ComSuper will process all surcharge monies
Fortnightly
and report debit reduction or clearance of
debt to the member within 5 Days of receipt
of monies.
June 2011
Page 51 of 68

SERVICE
STANDARD
REPORTING
2. Member Communications

2.1 Member Communications(1)
ComSuper will process or respond to:
Monthly including
ComSuper will, at the direction of the DFRDB
average and worst
Written enquiries (letters, fax, e-mails):
Authority, undertake a communications
experience

program aimed at improving members’,

90% in five (5) Days;
preserved benefit members’ and pensioners’
  98% in ten (10) Days
knowledge and understanding of the Scheme
Where a standard is not met, ComSuper will
so that they are in a position to make informed
provide commentary on the reason the
decisions at times when these need to be
standard was not met.
made. This will include recognition of the
particular needs of members.
Manual calculations:
Monthly
Specifically, ComSuper undertakes to provide
a range of communications to members on
  95% in twenty (20) Days; and
benefit entitlements and queries relating to the
  98% in thirty (30) Days
general administration of the Scheme in
writing, over the phone (using Interactive Voice
Where a standard is not met, ComSuper will
Recognition (IVR) technology) and by
provide commentary on the reason the
electronic means. ComSuper will continuously
standard was not met.
seek ways to improve these communications.
One-On-One Information Sessions
Monthly
ComSuper will also provide a range of
seminars broadly in accordance with demand,
To be delivered to members both in-house
including with respect to associate benefits and
when required, and interstate as per the
to make available various Scheme publications
seminar program schedule.
both in hard copy and electronic format.
The seminar program is as agreed with the
ComSuper will apply Scheme branding for all
ADF Financial Services and Consumer
member communication. This branding will
Council and ADF Transition Centre.
remain as agreed for the term of the SLA.
Answer Telephones:
Monthly including
  75% answered in 60 seconds; and
average speed of
answer,
  less than 5% abandoned calls
abandoned calls

and worst
experience
2.2 Bulk Member Communication (2)
Annual Reports for Members and Deferred
Annually
ComSuper will undertake two major mail outs
Benefit Members will be available for
to relevant members each year including, but
distribution by 30 September.
not limited to,:

an annual member statement and
explanatory material (including annual
report to members and preservers)
Annual Reports to members in electronic
format  (and hard copies on request)
Bulk member communication will be distributed
Annual Report to Parliament will be  prepared
Annually
either through Defence or ComSuper as
in accordance with the legislated
appropriate and agreed between parties.
requirements for content and timings.
June 2011
Page 52 of 68

SERVICE
STANDARD
REPORTING

Annual Member Statements
Annually
  system produced:  by 31 October
  Manual statements: by 1 December
  Replacements: 90% within ten (10)
Days

  100% of all member statements are to
have been produced and distributed by
31 December to meet the Corporations
Act requirement that Statements be
distributed by this date annually.
2.3 Maintain Publications (1)
Annual review and compliance signoff
Annual review of
ComSuper will review, update, maintain and
provided to DFRDB Authority.
listed publications
supply a standard suite of agreed products.
Where legislative or regulatory change requires
the production of new or additional publications
ComSuper will negotiate additional funding
with Defence.
2.4 Maintain Website (1)
Website changes:
Next Day
  Critical updates: 2 hours (where
ComSuper will maintain existing website
update is provided within same day
content to ensure accuracy and currency.
business hours)
ComSuper will conduct an annual compliance
review of the web site content.
  Routine updates: 100% in two (2) Days  Monthly
Maintenance of Website includes:
  Other: a review of the website for
Monthly

I Estimator
‘dead links’ out of date information, etc

Content review

Page linking

Minor amendments

Minor creation/editing of new pages

Maintenance and update reports
Agreement to be gained between the
Executive Manager of Communications,
ComSuper and the DFRDB Authority regarding
any discrepancies.
2.5 Ensuring the availability of website and
ComSuper to report any anticipated or
As required &
website services (1)
experienced changes in availability of the
Twice Annually
ComSuper will ensure that the website is
website to the DFRDB Authority as soon as
(routine)
readily available to members at any hour.
practically possible.
2.6 Maintaining White Pages telephone
Annual updates of any telephone number
Annually
book listings for capital cities (1)
changes and toll free numbers for capital
cities.
June 2011
Page 53 of 68

SERVICE
STANDARD
REPORTING
2.7 Hours for member service delivery (1)
ComSuper’s hours of service delivery are
Twice Annually

9am to 5pm Monday to Friday with the
exception of all National and Canberra Public
holidays and the Christmas closedown
period.
2.8 Responses to Queries from other
Written correspondence:
Monthly, including
Government Agencies (1)
  90% in ten (10) days
average and worst
experience.
ComSuper will provide commentary on the
reason the standard was not met.
June 2011
Page 54 of 68

SERVICE
STANDARD
REPORTING
3. Benefit Payments

3.1 Benefit payments (1)
Benefit application processing (providing all
Monthly, including
ComSuper will process all applications for
necessary information is received):
average and worst
benefits (lump sum or pension) from
  90% in five (5) Days
experience
contributors and deferred benefit members in
  98% in ten (10) Days
a timely manner and in accordance with
relevant legislation.
ComSuper will provide commentary on the
reason the standard was not met.
Where ComSuper requires additional
information in order to process a benefit
Average processing time of 4 Days over a
Quarterly
payment this is to be sought within five (5)
month
Days of ComSuper’s receipt of the benefit
payment request.
100% of death benefit claims not paid within
Quarterly
ninety (90) Days of the claim being lodged
ComSuper will create separate interests as
are to be reported to the DFRDB Authority
required under Family Law and issue payment
split notices.
Quarterly
100% of death and invalidity benefit claims
not paid within six (6) months of the claim
being lodged are to be reported to the
DFRDB Authority monthly until paid
(excludes those cases where ComSuper is
awaiting action from other parties).

Manual calculations:
Monthly
  95% in twenty (20) Days; and
  98% in thirty (30) Days

3.2 Applications involving questions of
ComSuper will acknowledge and send an
Monthly
dependency (1)
application form to the relevant parties in
95% of cases, within two (2) Days of advice
of a member’s death.
ComSuper will provide a benefit estimate to
Monthly
eligible persons within five (5) Days of the
delegate’s determination.
Applications from eligible dependents on the
Monthly
death of a member are to be approved within
ten (10) Days of all relevant material being
submitted to process the benefit or pension.
ComSuper will report to the DFRDB
Monthly
Authority any applications greater than ninety
(90) Days old.
Subject to there being no counter claims,
Monthly
benefit applications will be processed for the
next available payday by ComSuper once all
necessary information has been received to
process the benefit.
June 2011
Page 55 of 68

SERVICE
STANDARD
REPORTING
3.3 Processing invalidity claims (1)
Cases for consideration by delegate:
Monthly
In determining invalidity benefits ComSuper
  To be determined within ten (10) Days of
will ensure that due process is followed, that
receipt of all required supporting
claims are processed expeditiously, that
documentation and any additional
legislative requirements are met and that
information that may be required.
guidelines issued by the Authority are
followed.
  A determination will not be made more
Monthly
than ten (10) Days prior to the date of
discharge.
Cases for submission to the Committee of
Monthly
Alternates (CoA):
  To be submitted to the next available
meeting of the Committee after receipt of
supporting documentation* and any
additional information that may be
required.
  Cases will not be submitted to the
Monthly
Committee more than ten (10) Days prior
to the date of discharge.
* supporting documentation includes medical

documentation, the member’s employment
experience, advice of conditions causing retirement
and confirmation of date and mode of exit.
  Members are to be formally advised of
Monthly
decisions taken by either a delegate or
the Committee within five (5) Days.
  Decisions of the Committee of Alternates
Monthly
to be tabled at the first available DFRDB
Authority meeting.
3.4 Pension variations (1)
ComSuper will run regular death matching
Monthly
Monthly death matching
processes to identify and cease pensions

where notification of death of a pensioner has
not occurred.
Changes to pensioner records
Changes to pensioner records will be made
Monthly
within the first available fortnightly pay cycle
following receipt of a request e.g. bank
account details, address, termination date or
change to payment arrangements.
3.5 Pension increase / advice (1)
Annually
The July increase will be processed for payment
ComSuper will process pension increases in
on the first payday in July.
accordance with relevant legislation and within
any guidelines issued by the DFRDB Authority
The January increase will be processed for
Annually
in relation to such transactions.
payment on the first payday in January.
A letter and/or newsletter, approved by the
Twice Annually
DFRDB Authority, will be sent to pensioners
advising of the increase before the increase
applies.
June 2011
Page 56 of 68

SERVICE
STANDARD
REPORTING
3.6 Review of invalidity classifications (1)
Medical and requested reviews will be
Quarterly
ComSuper will periodically review the
completed within twenty (20) Days of receipt of
classification of invalidity pensioners, either of
all relevant information.
its own volition or at the request of the DFRDB
Authority or pensioners.
Cases for submission to the Committee of
Quarterly
Alternates will be submitted to next available
meeting of the Committee after receipt of all
relevant documentation and any additional
information that may be required.
Members will be formally advised of invalidity
Monthly
review decisions within five (5) Days.
Decisions of the Committee of Alternates are to
As required
be tabled at the first available DFRDB Authority
meeting following the Committee of Alternates
meeting.
3.7 Annual student pension review (1)
This review will be conducted be the first payday
Annually
The Student pension review will be conducted
in March each year and the result advised to the
annually by ComSuper to ensure the students
DFRDB Authority.
over the age of 16 remain eligible for the
student pension
3.8 Pension Payments (1)
Pension payment will be made by fortnightly
Monthly
ComSuper will process and make pension
payments in line with the legislation.
payments in accordance with relevant
Exceptions to this are closedown and public
legislation and within any guidelines issued by
holidays. In these cases payment will be made
the DFRDB Authority in relation to such
on the preceding day.
transactions.

June 2011
Page 57 of 68

SERVICE
STANDARD
REPORTING
4. Dispute Resolution

4.1 Internal Review (1)
ComSuper will process reconsideration
Monthly
requests:
ComSuper will investigate requests for
  60% in eight (8) months;
reconsideration in a thorough, objective, and
effective manner in accordance with any
  90% in twelve (12) months;
guidelines issued by the DFRDB Authority.
  With an average of less than six (6)
months for all reconsideration requests;
ComSuper will provide a secretariat service
and
for the Authority.
  ComSuper will ensure that no case has
ComSuper will do all things necessary to
an outstanding action for more than thirty
facilitate the expeditious processing of
(30) Days unless, a medical examination
negligence claims against the Authority.
is pending, or the case has been
submitted to the DFRDB Authority for
consideration.
Submissions to the DFRDB Authority will be
Monthly
prepared and issued within thirty (30) Days of
receipt of all necessary documentation.
4.2 External Review (3)
Process all external review cases objectively
Monthly
ComSuper will do all things necessary to meet
and expeditiously and meet all required statutory
timeframes imposed by the Administrative
timeframes.
Appeals Tribunal, the Federal Court and other
jurisdictions such as the Human Rights and
ComSuper will provide advance copies of
Monthly
Equal Opportunity Commission.
submissions to the Administrative Appeals
Tribunal to the DFRDB Authority for comment no
less than five (5) Days prior to submission to the
AAT.  All submissions to the AAT require
clearance by a Responsible Officer of the
DFRDB Authority prior to submission to the AAT.
ComSuper will also inform the DFRDB
A report outlining the outcome of all external
As required
Authority of the outcome of all external
reviews is to be provided to the first DFRDB
appeals and any implications stemming from
Authority meeting after decision is handed down.
these.
4.3 Complaints (1)
Monthly
ComSuper will provide substantive responses to
ComSuper will maintain all necessary systems
all complaints (excluding 4.1 internal reviews)
for dealing with SIS registered complaints and
including complaints where a draft final response
representations made by a Minister’s office,
is sent to the DFRDB Authority within twenty
Parliamentarians and the Commonwealth
(20) Days.
Ombudsman.
For cases requiring external advice or
Monthly
ComSuper will seek guidance from the
clarification ComSuper will provide an interim
DFRDB Authority on complaints or enquiries
response to the member within twenty (20) Days
where there is some uncertainty about
and with resolution within ninety (90) Days and
whether the complaint can be considered by
as agreed with the DFRDB Authority.
the Administrative Appeals Tribunal.
Parliamentary/ Ombudsman requests:
Monthly
ComSuper will provide the DFRDB Authority
with a draft of the final response from matters
  resolve 100% within 20 Days.
that can be considered by the AAT. The
information provided will have undergone
checks to ensure technical accuracy.
Freedom of Information (FOI) requests:
Monthly

ComSuper will provide sufficient background

100% within the statutory timeframe
information to the DFRDB Authority to enable
them to make an informed decision and draft a
FOI standards:
Monthly
response if required.
  100% of FOI requests are to be
ComSuper will maintain systems for dealing
acknowledged within ten (10) Days of
with requests under the Freedom of
receipt.
Information Act.
  100% of FOI requests to be formally
responded to within thirty (30) Days.
June 2011
Page 58 of 68

SERVICE
STANDARD
REPORTING

ComSuper will provide information to the Office
Annually
of the Privacy Commissioner for inclusion in the
Personal Information Digest by the required
reporting due date.
ComSuper will provide a monthly report to the
Monthly
DFRDB Authority of all complaints received and
which have received responses.
June 2011
Page 59 of 68

SERVICE
STANDARD
REPORTING
5. General Employer Support

5.1 General Support (1)
Agreement on the timeframe for the provision of
As required
ComSuper will provide:
information will be made at the point of the

input to Ministerials, complaints and
request being made by the employer.
Ombudsman requests where required
from the employer;

assistance with death in service matters;
and
Where an agreed timeframe cannot be met all
As required

responses to ad-hoc requests for
relevant parties will need to be informed of the
membership data and assistance to ADF
delay within a period agreed between ComSuper
Pay and Accounting when required.
and the Employer.

June 2011
Page 60 of 68

SERVICE
STANDARD
REPORTING
6. Family Law Services

6.1 Form 6 requests (1)
Provision of information to be provided within
Monthly
ComSuper will provide information to enable
twenty–eight (28) Days (non-legislative).
the correct completion of Form 6 requests.
6.2 Responses to draft court orders and
Legislative standard:
Monthly
superannuation agreements (1)
  review and respond to 100% within
ComSuper will review and provide responses
twenty-eight (28) Days of receipt of all
to draft court orders/superannuation
necessary documentation.
agreements in a timely manner.
6.3 Complex family law enquiries (1)
  100% to be issued with at least an interim  Monthly
ComSuper will provide responses to complex
response within twenty-eight (28) Days.
family law enquiries by members including
manual calculations, payment and estimates.
6.4 Payments Split notices (1)
  100% to be issued within twenty-eight
Monthly
ComSuper will process payments split notices.
(28) Days.
ComSuper will create separate interests as
directed by the Court.
6.5 Family Law ad hoc work (1)
Ad-hoc requests by the DFRDB Authority to be
As required
ComSuper’s Family Law Unit will perform ad
responded to within agreed timeframes.
hoc work for the DFRDB Authority in relation
to member benefits and Family Law
interpretation.
June 2011
Page 61 of 68

SERVICE
STANDARD
REPORTING
7. Other Services

7.1. Auditing Assurance (1)
The Controls Report will be delivered, complete
The GS007
ComSuper will maintain an internal audit
with an audit opinion, no later than 16 August for
Controls Report is
function substantially in accordance with the
the preceding financial year, and will provide
the primary report
relevant Better Practice Guide issued by the
reasonable assurance that ComSuper has
on auditing
Australian National Audit Office.
achieved the agreed set of Control Objectives.
assurance.
ComSuper will
ComSuper will provide to the DFRDB
"Reasonable assurance" will be interpreted with
also provide
Authority an annual audited Controls Report
regard to the performance expectations
periodic updates
(Type B) as defined in Guidance Statement
established by this Service Level Agreement and
on progress
007 Guidance Statement GS 007 "Audit
by particular arrangements between ComSuper
toward future
Implications of the Use of Service
and the DFRDB Authority.
GS007 Controls
Organisations for Investment Management
Reports, and on
Services", issued by the Auditing and
other internal and
Assurance Standards Board [GS007].  The
external audit
"service auditor" (defined in GS007) may be
activity.
ComSuper's internal auditor.  The Controls
Report will be provided annually in respect of
the services provided during the prior financial
year (1 July to 30 June).
The Controls Report will address Control
Objectives relevant to the superannuation
member services ComSuper provides to the
DFRDB Authority, and essential information
technology controls involved in delivering
those services.  Variations to the exact scope
of the Controls Report may be made by
informal agreement between the DFRDB
Authority and ComSuper.  ComSuper will
attempt to include in the Controls Report all
those controls on which the Fund external
auditors seek to rely.

June 2011
Page 62 of 68

SERVICE
STANDARD
REPORTING
7.2 Scheme Reporting (1)
ComSuper will ensure scheme reporting occurs
As required
ComSuper will ensure that mandatory scheme
as follows:
reporting requirements are met in regards to
First reporting
the reports listed under the standard.
Lost Member Reporting:
period after due
date
Agreement around the Actuarial Services –
  By 30 April and 31 October annually
information to be reported for DFRDB
Authority Financials and other requirements
Unclaimed Monies Reporting

e.g. PCF’s and long term cost report.
  By 30 April and 31 October annually
Eligible Termination Payment (ETP) Reporting
  By 14 August annually
Pay As You Go Withholding (PAYGW) Reporting
  By 14 August annually
Surcharge reporting including the ATO MCS and
AVA reports
  Quarterly by 15 March, 15 June, 15
September and 15 December annually
Co-contribution reporting
  Within twenty-eight (28) Days of the
creation of the file by the ATO
Actuary reporting
  As per timeframe agreed with the
Australian Government Actuary.
Centrelink—pension amounts
  within two (2) Days of completion of each
pension increase each June and
December annually
Financial statements
  As agreed with the DFRDB Authority
DVA—increases to invalidity pensions
  within two (2) days of completion of each
pension increase each June and July
annually.
7.3 DFRDB Authority Reporting (1)
ComSuper will provide:
Quarterly
  detailed Administrator’s report as
ComSuper will provide detailed reporting on
required,
the function it performs on behalf of the
DFRDB Authority. This will include, but not be
  a report on quality of service delivery
limited to, attending relevant meetings (as
provided by ComSuper
requested) and providing regular reporting.
Reporting will cover performance to standard
and issues arising in the course of
administering the Scheme.
ComSuper will attend, brief and provide
papers/reports to DFRDB Authority meetings
and the MSCC as agreed with the Authority.
June 2011
Page 63 of 68

SERVICE
STANDARD
REPORTING
7.4 Implementing Change or New Features
Incidental and incremental changes, required as
As per agreed
(1)
a result of superannuation system legislative
project plan
ComSuper undertakes to ensure that it is able
changes, are included as part of this Agreement.
to administer the Scheme in accordance with
Any other funding requirements will be
all relevant requirements and standards as
negotiated separately if such changes are
well as any ongoing changes to the
required.
superannuation system.
Defence may require ComSuper to make
changes as a result of changes to Policy.
The DFRDB Authority may require ComSuper
to undertake changes from time to time.
7.5 Drafting of Ministerial Responses (1)
100% of draft Ministerial responses are to be
Monthly
ComSuper will draft Ministerial responses
produced in accordance with the requirements of
where it is appropriate and apt for it to do so
the relevant parliamentary unit.
for and on behalf of the Parties.  ComSuper
will liaise with the relevant Parties where such
correspondence relates to the operations
and/or business of either of these parties.
7.6 Committee Services for the Committee

ComSuper will provide staff to chair the
of Alternates (CoA) (1)
Committee of Alternates (CoA) meetings where
ComSuper will provide secretariat support and
required.
a Chair person for the CoA
7.7 Secretariat Services (1)

ComSuper will provide appropriate secretariat
ComSuper are to provide a full secretariat
and related administrative services for DFRDB
support service for the DFRDB Authority.
Authority meetings.
The cost of providing these secretariat
services are detailed a schedule 7 of this SLA.
7.8 Creation of Delegations and
Review and updates will be completed six (6)
Quarterly
Authorisations (1)
monthly..
ComSuper will ensure that delegations and
Changes to delegations will be submitted to the
authorisations are promulgated, understood,
DFRDB Authority for approval in a timely
adhered to and updated on a regular basis.
manner.
7.9 Additional QA Activities (1)
ComSuper will provide a report to the DFRDB
Quarterly
ComSuper will perform quality assurance
Authority illustrating the number of quality audits
activities to monitor the integrity and efficiency
performed and area of business reviewed.
of its administration processes.
ComSuper will undertake the following: :
ComSuper will provide a summary report to the
Twice Annually
DFRDB Authority outlining results of internal

Random sampling and quality checking of
audits.
administrative functions (for example,
telephone calls, benefits, contributions,
etc)

Produce internal quality reports

Identify and report on system process,
procedure and data errors

Data quality activities

Provide reports to Business managers.
ComSuper will produce reports, including
reconciliations for appropriate services such
as statements.
ComSuper will perform two (2) quality audits
on selected business areas every six months
as agreed to by ComSuper management.
June 2011
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SERVICE
STANDARD
REPORTING
7.10 Disaster Recovery and Business
ComSuper will ensure the following;
Tested and
Continuity Planning (1)
reported
  In the event of a disruptive incident
All parties will at all times maintain a BCP and
annually via
ComSuper commits to ensuring that no
DRP testing strategy and complete testing on
exchange of
more than 48 hours of relevant data will
a regular basis.
letters
need to be re-entered.
All parties will at all times maintain a suitable
  ComSuper to maintain payments to
back-up site for ComSuper’s business
current Pensioners with payments
operations in the event that its main site is
delayed no more than 5 days.
ever unavailable.
  ComSuper and Defence to ensure that
complete and up to date member records
can be re-established after a disruptive
event without compromise to member
entitlements.
All parties to complete Disaster Recovery
Testing (as per their DR Test Strategy) on an
annual basis.
7.11 Optional Administration Services (5)
Implemented as requested.
Standards will be
For an additional fee ComSuper will negotiate
as agreed
will all parties on any optional services.
between parties
June 2011
Page 65 of 68

Schedule 10: ComSuper Overall
Performance Measure—Method of
Calculation

On a monthly basis ComSuper will calculate an overall measure of its performance
against the standards contained in this Agreement.
The performance measure will be a percentage figure where:
  100% represents that all service standards have been met within the month
   0% corresponds to no service standards being met within the month.
Where some service standards are not met during a month the overall period
performance will be calculated as:
  100% less
  A deduction for each service standard not met during the month equal to the
weighting agreed by the MSB Board and ComSuper to that particular standard.
For this purpose the MSB Board and DFRDB Authority will assign a weighting for each
of the service standards contained in this agreement such that the total of all
weightings assigned equals 100.
When a standard has not been met for a particular month the deduction from a
performance measure of 100% to be made for that month will be exactly equal to the
weighting assigned for that standard.  No adjustment will be made for the degree to
which actual performance exceeds or falls short of the requirement for any standard.
When a standard is not required to be measured during a month, for example in the
case of a standard that is measured by way of a six-monthly audit requirement, that
standard will be ignored for the purposes of the overall performance calculation for that
month.

June 2011
Page 66 of 68

Schedule 11: MSB Board Performance
Assessment of ComSuper

In undertaking its review of ComSuper's overall performance the MSB Board will have
regard to ComSuper's reporting against both the quantitative performance measures
contained in this agreement (as per Schedule 10) and a qualitative assessment based
on the following criteria:
  Absence of significant repeat errors in relation to complaints of services
performed within Schedules 8;
  Absence of repeat, reportable breaches;
  Absence of sustained claims against the MSB Board due to administrative error
of ComSuper that give rise to loses to the Fund;
  Unqualified Audit opinions on the Scheme Financial Statements (where within
the control of ComSuper);
  Accuracy of reporting to the MSB Board on SIS and Corporations Law issues;
and
  Provision of well researched Board Papers.
The qualitative assessment will represent the Board's overall assessment of
ComSuper's performance during the year. It will have regard to, but not be limited to
the extent to which:
  the current state of ComSuper's IT systems, including these system’s capacities
and ability to effectively and efficiently manage the core requirements of the
MSB Board in respect of Administration Services as outlined in this Agreement,
are effective;
  ComSuper’s culture is one of actively identifying, rectifying and  reducing
existing or anticipated systems and operational deficiencies and practices;
  its staff display a ‘can do’ attitude and approach to its work and its relationship
with the MSB Board; and
  ComSuper espouses and promotes within its organisation a “no surprises”
ethos towards its relationship with the MSB Board.
This assessment will be provided independently to the Minister for Finance and
Deregulation and the Department of Defence on an annual basis.

June 2011
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Schedule 12: Funding Arrangements Diagram
MSB Board Expenditure—Flowchart
BAS
MSB FUND
MSB FUND
DEPARTMENT
BANK
OF DEFENCE
ACCOUNT
Costs of
GST
Administration
MSB Fund
Financial
Statements
BAS
MSB BOARDS
COMSUPER
BAS
BANK
(Board’s Notional
ACCOUNT
Budget)
GST
GST
ComSuper Financial
Statements
(Incorporating Board
Admin Expenditure)
Direct Investment
Payment of all
Expenses
Board Expenses

MSB Board Expenses:

Fund Only:
Scheme Accounting, Chairman’s costs, Annual Reports, Investment related costs
Fund/Admin:
Trustee costs, Board Exec Salaries, Travel, TA, operating costs, stores and stationery
Admin Only:
Non fund related expenditure
June 2011
Page 68 of 68