NTGPASS Management Reforms
Reforms to the Management and Administration of NTGPASS
Bulletins and information regarding reforms to the management and administration of NTGPASS will be added to this page as they are issued.
The Northern Territory Government and Public Authorities’ Superannuation Scheme (NTGPASS) is a hybrid defined benefit scheme that closed to new members in August 1999. NTGPASS members have an accumulation account (a superannuation savings account) that contains their fortnightly contributions and investment earnings. They also have an entitlement to receive a defined benefit that is paid as a lump sum by the Northern Territory Government (NTG) when they leave the scheme.
To address emerging risks related to the IT system used for NTGPASS and the highly specialised taxation and prudential reporting requirements for superannuation funds, there will be a range of management and administration reforms to the NTGPASS arrangements. This includes, among other things, a successor fund transfer (SFT) of all NTGPASS accumulation accounts to an external superannuation fund to manage and invest members’ savings on their behalf.
Importantly, there is no change to the NTGPASS defined benefits, which will continue to be paid by the NT Government whenever NTG employees cease membership of the scheme.
What is a successor fund transfer?
A SFT is a compulsory transfer of member benefits from one superannuation fund to another superannuation fund. In this case, all NTGPASS accumulation accounts will be transferred at the same time to another superannuation fund at a specified date. That new fund will then become responsible for managing and investing NTGPASS member superannuation contributions and earnings.
The date of the transfer is yet to be determined, although it is likely to be in the first half of 2019.
Commonwealth and Territory legislation require that the transfer must be in the best interests of members and that the new fund confers rights and benefits at least equivalent to the rights and benefits available with NTGPASS accumulation accounts.
In terms of selecting the new fund:
- the NT Superannuation Office will form a panel to choose and recommend the new fund and undertake the necessary due diligence
- the Superannuation Trustee Board (which includes union representation) will review the panel’s recommendation, and will make the final decision to proceed with the transfer
- the Board will ensure members will have (at least) equivalent rights and benefits with the new fund.
The Superannuation Trustee Board has experience in undertaking SFTs, in relation to NTGPASS. In 2015, it undertook a SFT of NTGPASS pension accounts to AustralianSuper and in 2016, it undertook a SFT of the NTGPASS accounts for former NTG employees to Sunsuper. The Board will make sure that the transfer is in members’ best interests.
Members will be provided with further details about the new superannuation fund and what it will offer once it is selected.
What this means for NTGPASS members
The new fund will be able to offer members many additional, contemporary services and products that the NTG cannot provide. Once transferred, members will be able to move their account to any other scheme – something they cannot do now, under the current NTGPASS arrangements.
The Superannuation Office conducted seminars for NTGPASS members and their spouse/de facto partners in the Territory’s major population centres in late June. These seminars explained the changes and benefits that they will provide members. Over 850 members attended these seminars.
You can access the seminar slides here.
During the seminars many members asked questions about a range of issues relevant to the reforms and to NTGPASS more broadly.
These questions, and answers to them, are recorded on this page.
Selection criteria for new fund
In the seminars members were advised that the selection criteria for the new fund would be released at the end of June 2018. We have decided to delay this release for a few weeks to allow the criteria to be reviewed by a Steering Committee within government to ensure that we get them right.
Members will be sent another email when the selection criteria are available for download.
Information for older members
Many members had questions about retirement and moving to part time employment.
OCPE has provided assistance in setting up a dedicated page that provides this information, as well as links to a range of resources.
No action is required from members other than to keep themselves informed of changes as they progress by regularly checking this web page.
There will be further member seminars once the new fund is selected. You will given advance warning of the seminar dates and should try to attend seminars in your town.
More information is available in the bulletin below.
More information on trustee briefings to select the NTG default superannuation fund and new NTGPASS fund.
Last updated: 03 August 2018