Scheme's Performance in 2002-3

The last few years have been some of the most difficult in financial markets with poor returns for most superannuation funds.

In an environment where data has shown "…an average decline of about 2.4 percent for the 2002-3 financial year for funds that invested mainly in shares, property and fixed interest…" (The Australian Financial Review 2 July 2003), your Superannuation Scheme has recorded small positive returns for the Balanced, Capital Guarded and Cash Plus strategies, a small negative for High Growth, and a nil return for Diversified. Similar performances are recorded for the Rollover and Allocated Pension products. The Retirement Scheme figures will be available shortly.

Below are the investment returns for each strategy.

Yes! For a number of important reasons:

Taxation Treatment of Superannuation: Firstly, the taxation treatment of money invested in superannuation remains favourable for most investors.

Eggs in many baskets: Secondly, the Scheme strategies invest in many asset classes including cash, equities, property and bonds, ensuring that under-performance in some asset classes may be countered by out-performance in others.

Clever Investing: Thirdly, the Scheme employs many strategies to shield against losses and to support returns. For example the Scheme has at its disposal hedge strategies to protect against currency movement.

Remember it's for the Long-Term: While investment returns have been poor over the last few years, investors recalling the returns of just three to five years ago will have memories of very high returns. Over the long-term, super funds will provide a sound choice for long term savings.

New Office in Wollongong

The Honourable David Campbell MP, the N.S.W Minister for Regional Development, officially opened the new Local Government and Energy Industries Superannuation Scheme's regional office in Wollongong on 13th June 2003. The Wollongong office will service the 10,000 members who live and work in the Illawarra and South Coast of NSW.

The new office will provide members with the opportunity to meet with Scheme representatives in Wollongong to discuss their super. Furthermore, members approaching retirement can now make an appointment with a Financial Planner at the new office. The office is the latest initiative to provide superior service and access to Scheme members following the opening of offices in Sydney, Lismore, Orange, Wagga Wagga, and satelite offices in Goulburn and Albury.

The Scheme's financial planners are able to provide advice tailored to meet the individual needs of each member. Our financial planners are salaried employees whose advice is not driven or influenced by commissions.

Members can discuss retirement planning, salary sacrifice, voluntary insurance, low cost home loans, or any other superannuation matter. To book an appointment, the number to call is 1300 369 901. Our offices are conveniently located at;

Sydney: 28 Margaret Street
Wollongong: Shop 2 & 3/60 Burelli Street
Lismore: 81-83 Molesworth Street
WaggaWagga: 2/209 Baylis Street
Orange: 187 Summer Street
Albury: 429 Swift Street
Goulburn: 148 Auburn Street Goulburn

Scheme Surplus Update

In the last 'Your Future' newsletter to members, we highlighted some of the outcomes of our court case in relation to the surplus. This article is reproduced below.

"As most members would know, your Retirement Scheme is fully funded - containing an actuarial surplus of assets over current liabilities. While this provides significant comfort to members facing retirement, there was a question as to whether your Trustees were able to distribute some of this surplus directly to Retirement Scheme members.

However, for the surplus to be distributed to members the consent of the Treasurer of NSW is required to amend the Trust Deed. Your Trustees met with the Treasurer on many occasions to get his consent on a range of options.

When it became obvious to the Trustee that the NSW Treasurer would not consent to any use of the surplus other than as a means of reducing the contribution liability of employers, judicial advice from the Supreme Court of NSW was sought. Justice Austin handed down his judgement on this case in late 2002 and ruled in favour of the Treasurer.

The Trustees were advised that an appeal was unlikely to lead to a successful outcome for members, and therefore are now left with no ability to deal with the surplus other than what is contemplated in the Trust Deed."

In the meantime, the surplus has meant that the financial strength of the Scheme has safeguarded member benefits against the significant decline in equity markets that have occurred over the past few years.

For further information, go to: LGSS PTY LTD VS MICHAEL EGAN

Retirement & Wealth Creation Seminars

Retirement Seminars

The Scheme regularly holds Retirement and Wealth Creation Seminars.

The Retirement Seminars are targeted at the over 50’s and provide information on the following issues:

• Building Wealth

- Maximising Super Benefits

- Minimising Tax

- Investment Options

• Decision Time

• Centrelink

• Lifestyle

Following are the dates and venues of the upcoming Retirement Seminars:

Seminars start at 8.45am with registration and finish at 2.30pm. Morning tea and lunch is provided

Wealth Creation Seminars

The Wealth Creation seminars are targeted at the under 50’s and provide information on the following issues:

• Creating an easy personal budget
• How much to save
• Reducing your tax bill
• How to get the most out of your savings
• Other important issues you need to consider

Following are the dates and venues of the upcoming Wealth Creation Seminars:

Seminars commence at 6pm and refreshments are provided

Members can reserve a seat at one of these seminars by calling 1300 369 901