Successor Fund Transfer-Retained Accounts: NTG-P35-V01
The Northern Territory Government has approved a successor fund transfer (SFT) for NTGPASS retained accounts. This fact sheet outlines information on the impending changes to NTGPASS retained accounts.
What is a successor fund transfer?
In this case, a SFT is when all NTGPASS retained accounts are transferred in bulk to another superannuation fund at a specified date.
Commonwealth and Territory legislation require that the transfer must be in the best interests of members and that the successor fund confers at least equivalent rights and benefits, to those available with NTGPASS. The date of the transfer is yet to be determined.
Why is there a SFT?
In general, retained members are not NT Government employees. The NT Government has made the decision to cease administering these accounts.
Many superannuation funds have accumulation account features similar to NTGPASS retained accounts, however because of their size can offer significantly better products and services.
These include insurance options, pension products, the ability to accept employer contributions and on-line facilities, all of which are unavailable for NTGPASS retained members.
Where will my account be transferred?
The assessment process to select the successor fund is currently underway. NT Superannuation Office is responsible for undertaking the necessary due diligence to ensure the transfer to the new superannuation fund is in the best interests of members.
Members impacted by this transfer will be provided further detail about the new superannuation fund.
What are my options?
You are not required to take any action at this stage, however you may choose to do any of the following:
- transfer your account balance to an alternative superannuation provider of your choice; or
- withdraw lump sums and/or the balance of your NTGPASS account (subject to preservation rules), withdrawal fees may apply.
When will the transfer occur?
The date of transfer has not yet been determined. It is anticipated the transfer will occur in late 2015 or early 2016.
Before the transfer occurs, legislative amendments are required to be made.
You will be notified of each significant development along the way.
A Significant Event Notice will be provided to your postal address closer to the transfer date, with all the critical information and timelines necessary to make an informed decision.
Information on this process will also be available on the NTSO website.
Does this affect active NTGPASS members?
No. There is no change to NTGPASS benefits.
An active member is currently employed and generally makes compulsory contributions (between 2-6%) to the NTGPASS fund. You are still an active member even when on a period of leave without pay where you are not eligible to make contributions.
Who is affected?
NTGPASS retained account members. Existing NTGPASS retained account members can continue to maintain their account for the time being until such time as the transfer takes place.
Current active members of NTGPASS, NTSSS, NTPSBS who are intending to cease defined benefit membership and roll their superannuation benefit to an NTGPASS retained account, can continue to do so, for the time being.
Once the legislation is in place, members will NOT be able to open a new retained account.
You can still add funds to your retained account and switch investment options.
Are there any fees involved in the SFT?
NTGPASS will not charge an exit fee when transferring superannuation to another fund. However, the annual account-keeping fee will be charged until the SFT takes place. It is deducted from your account on 30 June each year. If you exit the scheme during the financial year, the fee is calculated on a pro-rata basis.
Online tools and websites are available for you to research and compare the features and costs of different funds. Some websites charge a fee for use of these tools, while others offer similar resources for free.
Some websites that provide super information:
For general information, and to keep us informed if you change your contact details please contact the NT Superannuation Office
Please be aware that we cannot provide personal financial advice. If you require assistance, you can seek the services of a qualified professional.
The material in this fact sheet is provided for information purposes only. It does not take into account your personal circumstances and should not be relied upon for making financial commitments.
The Commissioner of Superannuation and the Northern Territory of Australia accept no responsibility for any losses arising from any use or reliance upon the information or conclusions reached using the information.
Last updated: 27 March 2018