Answers to Member Questions
Answers to Member Questions
What do I need to do?
You do not need to do anything. Your NTGPASS savings account will be transferred to a different fund (called a successor fund) within the next 12 months.
When will I find out who the new fund is?
The Superannuation Trustee Board (trustees of NTGPASS) will choose the new fund later this year. We will email all members details of the new fund once they are chosen.
How will I know that the new fund is offering?
Once it is chosen, the Northern Territory Superannuation Office will write to you and give you details of what the new fund is offering. There will also be more seminars, where you can ask Superannuation Office staff about the new fund.
What can I do if I do not like the new fund?
Once the initial transfer to the new fund has been completed you will be able to roll over your superannuation to a different superannuation fund. That is, your superannuation savings will not be stuck in the successor fund.
Will the transfer of my NTGPASS savings account change the age at which I can access my superannuation?
No. You will still be able to access your superannuation once you cease employment with the Northern Territory Government and reach your preservation age, which varies depending on when you were born. Preservation ages are in the table below.
|Date of birth||Preservation age|
|Before 1 July 1960||55|
|1 July 1960 – 30 June 1961||56|
|1 July 1961 – 30 June 1962||57|
|1 July 1962 – 30 June 1963||58|
|1 July 1963 – 30 June 1964||59|
|From 1 July 1964||60|
I am over age 65. What do the changes mean for me?
If you are over age 65, once your NTGPASS savings account is transferred to the new fund you will be able to withdraw money from your superannuation savings account while remaining employed and still being a member of NTGPASS. That means that you will be able to get access to your NTGPASS contributions, and earnings on them, while your NTGPASS defined benefit continues to grow. This option is not currently available to NTGPASS members, who have to leave the NTGPASS scheme altogether before they can access any of their NTGPASS superannuation.
How do NTGPASS investment returns compare to the returns of other superannuation funds?
The table below compares historical investment returns for the NTGPASS Growth option (the default option for NTGPASS members) against those of equivalent investment options in AustralianSuper and Sunsuper (these are used as the examples because both are funds that NTGPASS members have transferred to in the past).
|Fund||2013-14||2014-15||2015-16||2016 - 17||2017 - 18|
|Sunsuper Balanced Pool||13.3%||10.2%||3.1%||12.2%||10.7%|
How does NTGPASS compare after administration fees are deducted?
NTGPASS does not charge any administration fees. Almost all other funds do.
Again using AustralianSuper and Sunsuper as examples:
- AustralianSuper’s current administration fee is $1.50 per week, or about $78 per annum, irrespective of a member’s account balance.
An AustralianSuper member with a balance of $100 000 will pay administration fees of $78 per annum and a member with a balance of $200 000 will also pay administration fees of $78 per annum.
- Sunsuper’s current administration fee is $1.50 per week plus 0.1 per cent of the member’s account balance (for account balances up to $800 000).
A Sunsuper member with a balance of $100 000 will pay administration fees of $178 per annum and a member with a balance of $200 000 will pay administration fees of $278 per annum.
What are the exit fees for NTGPASS and other funds?
NTGPASS does not charge members any exit fees. However, exit fees are charged by most other funds. For example, AustralianSuper charges an exit fee of $35 and Sunsuper charges $40.
Of note is that the Commonwealth Government announced as part of its 2018-19 Budget that exit fees will be abolished for all funds. This change is proposed to commence from 1 July 2019.
Can the Superannuation Office recommend a financial planner?
Unfortunately, no. However, there are many resources available that can help you to plan for your future and help you to select a planner. Below are a few helpful links, however it is not an exhaustive list.
- National Seniors Australia is a body that the NTPS has joined as a corporate member. It provides access to a number of resources, such as a Financial Information Desk, where you can call and speak to someone who will not give you advice, but will translate the advice being given to you, so you understand the impact of your decisions. They have lots of information, fact sheets and a retirement readiness quiz available which would be a great place to start
- Money Smart is a helpful Commonwealth site which has all types of calculators (superannuation, mortgage etc)
- Human Services Financial Information Services
- Department of Social Services
- My Aged Care
- Financial Planning Association of Australia. There is a list of independent advisors, however, you will need to do your own due diligence regarding the one that fits best. A chat with the National Seniors Australia helpdesk may give you greater confidence
What is the cost to transfer my NTGPASS savings account to the new fund?
The transfer of NTGPASS savings accounts to the new fund will be at no cost to members.
When the successor fund transfer is completed, will I cease NTGPASS membership?
No. The successor fund transfer is transferring your NTGPASS accumulation account (comprising your member contributions and earnings on them) to the new fund. You will continue to be a NTGPASS member, and earn benefit points, after the successor fund transfer.
Will I still need to make NTGPASS contributions after the successor fund transfer?
Yes. Under the NTGPASS Rules you will still need to make contributions each fortnight (between 2 and 6 per cent of your salary). Initially these will be made to the new fund, but you can choose to pay them into a different superannuation fund if you wish.
Your NTGPASS contribution salary will continue to be reviewed on the Annual Review date (1 October) each year, and you will continue to choose your NTGPASS contribution rate.
What will happen with my annual statements?
After the transfer, the new fund will provide you with an annual member statement. That statement will show you how much is in your account with the new fund, your contributions into that fund, and the amount of your investment earnings.
You will also receive an annual member statement from the Northern Territory Superannuation Office that shows you the value of your NTGPASS and NTSSS benefits each year.
Can I continue to salary sacrifice into superannuation?
Yes, you can continue to salary sacrifice into the new fund, or into a different superannuation fund if you wish.
How are NTGPASS defined benefits calculated?
The formula for calculating NTGPASS defined benefits is:
Benefit points * 2.5% * Benefit salary * Vesting factor
Benefit points are the total points you have earned in return for making your NTGPASS member contributions. These contributions are between 2 and 6 per cent of your salary. You earn one benefit point each year in return for each one per cent of contribution. For example, if you contribute at 6 per cent you will earn 6 benefit points each year. If you contribute at 6 per cent for 20 years, this will earn you 120 benefit points.
Part time employees accrue benefit points in proportion to the full time equivalent work being undertaken at each Annual Review date. For example, if you work 50 per cent of a full time position and contribute at 6 per cent of your part time salary for a review year, you will accrue 3 benefit points (50 per cent of 6 benefit points). Moving to part time employment will not affect the benefit points already accumulated.
Benefit salary is the average of your last three contribution salaries, after that have been adjusted to current values using Average Weekly Ordinary Time Earnings. This means that your benefit salary will not be the same as the average of your actual contribution salaries. Your benefit salary may increase or decrease depending on changes to your contribution salaries and on changes to Average Weekly Ordinary Time Earnings.
Vesting factor is a number between 0 and 1 that reflects how long you have been making NTGPASS contributions. The vesting factor is 0 for members who have contributed for less than 5 years, and increases to 1 for members who have contributed for 10 or more years. There is currently only one NTGPASS member with a vesting factor below 1.
Mary is an NTGPASS member who has contributed at the rate of 6 per cent for 20 years. Her benefit salary is $100 000. As Mary has contributed for more than 10 years her vesting factor is 1. That means her NTGPASS defined benefit is:
120 * 2.5% * $100 000 * 1 = $300 000
How are NTSSS defined benefits calculated?
The formula for calculating NTSSS defined benefits is:
3% * Years of eligible service since 1 October 1988 * Final salary
Years of eligible service since 1 October 1988 are the number of years that you have been employed by the Northern Territory Government since 1 October 1988 (when NTSSS commenced). Your eligible service is based on full time employment. Accordingly, working part time has an effect on your eligible service for NTSSS purposes, and reduces the rate at which you accrue eligible service.
For example, if you are working 50 per cent of full time hours, you will accumulate one year of eligible service for every two years of actual employment.
Final salary is your salary and approved allowances on the final day that you are paid (that is, if you are on leave without pay on your last day, your final salary will be the last salary and approved allowances that were actually paid to you). If you are working part time on this day, the full time equivalent salary will be used.
Mary has been an NTSSS member for 20 years and has no periods of part time service. Her final salary is $100 000. That means her NTSSS defined benefit is:
3% * 20 * $100 000 = $60 000
How will I know how much was transferred to the new fund?
Shortly after the successor fund transfer happens, the Northern Territory Superannuation Office will send you an exit statement which show you the value of your NTGPASS accumulation account at the time of the transfer, and the amount that was rolled over to the new fund.
Why will I need to “opt in” if I want insurance in the new fund?
As an NTGPASS member you are provided with free death and invalidity retirement benefits, up to age 60, as part of your NTGPASS defined benefit. Accordingly, for many members, death and invalidity retirement insurance may be an unnecessary cost. As this insurance can be expensive, it is appropriate that members can choose to opt in for having this insurance, rather than being required to take it out.
I belong to NTGPASS, am I also an NTGDIS member?
No. NTGDIS (the Northern Territory Government Death and Invalidity Scheme) provides free death and invalidity retirement benefits to Territory Government employees, up to age 60, where they do not belong to NTGPASS or the Commonwealth Superannuation Scheme (CSS).
As an NTGPASS member you are entitled to be paid death and invalidity retirement benefits that are equivalent to NTGDIS through your NTGPASS defined benefit.
Where can I access my NTGPASS statements?
You can access NTGPASS member information statements, back to 2003-04.
This link only works within the Northern Territory Government computer network. It does not work in external networks, like ntschools.net or the Charles Darwin University network.
Please contact the Northern Territory Superannuation Office on 8901 4200 or 1800 631 630, or via email if you cannot access your statements, so we can provide them to you.
Will the new fund offer me a pension?
Yes. Offering an account based pension is one of the criteria that the new fund will need to meet.
When can I start an account based pension?
If you are over age 60 you can start an account based pension once your NTGPASS savings account has transferred to the new fund. You can start an account based pension even if you are working.
Should I delay my retirement until after the successor fund transfer occurs?
This will be a decision for individual members. The Northern Territory Superannuation Office will provide details of the new fund, and what it will offer NTGPASS members, once it has been selected. You can then decide whether you want to delay your retirement until after transfer.
What investment fees am I charged by NTGPASS?
NTGPASS does not have any administration fees. Your investment fees depend on which NTGPASS investment option that you have chosen. If you have not chosen an investment option you will be in Growth, which is the default option.
The total investment fees charged by the advisors for NTGPASS on each investment option are:
You have mentioned that the new fund needs to give NTGPASS members “equivalent rights”. What does this mean?
It is a legal requirement that the new fund confers at least “equivalent rights” in respect of benefits to those currently offered within your NTGPASS savings account. This is not the same as guaranteeing the same investment returns as have been historically received by NTGPASS members or that there will be no change to the fees paid by members.
In terms of equivalent rights, Commonwealth and Territory legislation require that in order for a successor fund transfer of an NTGPASS member’s savings account to occur:
- before the transfer, the trustees for NTGPASS and of the new fund must agree that the trustee of the new fund will confer on the member equivalent rights to the rights that the member had under NTGPASS in respect of benefits
- the trustee of the new fund must actually confer equivalent rights to the rights that the member had under NTGPASS in respect of the benefits.
In the two previous successor fund transfers involving NTGPASS accounts (pension in 2015 and former employees in 2016), legal advisors for both NTGPASS and the new funds undertook meticulous and detailed comparisons of the rights in respect of benefits that members had in NTGPASS and the new funds. This was done by examining legislation and scheme documents (such as trust deeds etc). These comparisons confirmed that in moving from NTGPASS to the new funds, the members would have the required equivalent rights.
Conferring equivalent rights in respect of benefits is a legal requirement. If it is not met or cannot be met, then the transfer cannot proceed, and a different fund would need to be chosen.
The Australian Prudential Regulation Authority (APRA), which is responsible for regulating and monitoring registrable superannuation entities (RSEs), has published a guide for superannuation funds on the legislative requirement for trustees to confer equivalent rights as part of a transfer. Of note are the following excerpts from that guide:
- APRA’s view is that rights can be distinguished from features of an RSE. Features which are determined, and can be changed, at the discretion of an RSE licensee provide no ongoing entitlement to a member, and are therefore not rights. Ultimately, what are features and what are rights will be determinable by an RSE’s governing rules. Generally, features may include the amount of fees that will be charged to a member, product features and particular investment options. (Paragraph 17)
That is, the current NTGPASS fee arrangement is not a right. If the Northern Territory Government decided to pass on to members the full costs of administering NTGPASS accounts this will be in the order of $700 per annum per member. As more members leave, the administration cost per member continues to increase. We expect that the selected fund will have administration fees considerably less than this.
- APRA considers that the assessment of "equivalent rights" means that the members’ rights in the receiving RSE are required to be equivalent, but not equal, to their rights in the transferring RSE. Accordingly, APRA expects a transferring RSE licensee and a receiving RSE licensee would undertake the assessment of equivalent rights on a "bundle of rights" basis. In determining which rights are to be bundled and considered together, APRA expects an RSE licensee would give appropriate weighting to significant rights and the materiality of any changes to individual rights. APRA considers that a ‘line by line’ comparison of every right is unlikely to be required. (Paragraph 21)
In determining whether equivalent rights are provided, it is appropriate to weigh up all the rights provided in respect of NTGPASS accumulation accounts against those of other funds. Of particular relevance to NTGPASS members over age 60 is that if their accumulation account is with another fund they will be able to commence an account based pension while still working and while accruing further defined benefits. This is a very significant improvement over what is currently possible, particularly as earnings on the investments supporting those pensions are tax free (at the moment earnings in your NTGPASS account are taxed at the rate of 15 per cent) and because NTGPASS members currently need to leave the scheme altogether if they want to use their accumulation account to fund an account based pension.
In addition, once members reach age 65, they will be able to immediately withdraw money from their accumulation accounts while remaining NTGPASS members (and continuing to accrue their defined benefit). This is not currently an option for NTGPASS members under the existing arrangements. Again, to access any of their superannuation they are currently required to cease NTGPASS membership.
Last updated: 12 July 2018