Governance and disclosure

Consistent with superannuation industry practice, GESB is disclosing specific details relating to its governance, Board of Directors and executive officers, products and performance.

The governing rules relating to GESB are set out in the following:

About the GESB Board

GESB executives' remuneration details

Product Information Booklets

GESB's Product Information Booklets summarise the key features and membership information for each of its products.

Annual Reports

GESB's Annual Reports are a vital tool for ensuring financial, performance and operational accountability to the WA State Government and to our members.

Significant Event Notices

GESB notifies members in writing of any significant events affecting their membership. Read a summary of significant event notices issued to members within the past two financial years.

Changes to Transition to Retirement accounts

Please read the important Transition to Retirement changes notification which explains the Federal Government’s new rules for transition to retirement, and what they mean for you.

Changes to super and retirement accounts

The WA State Government made changes to state super regulations.

In summary, these changes allow us to:

  • Move our communications to all members online in the future
  • Close GESB Super and West State Super accounts from 1 July 2017, if they have a balance of zero and haven't received a contribution or roll-in in the last two years
  • Transfer GESB Super benefits to KiwiSaver accounts from January 2017

Read more.

Insurance changes for GESB Super and West State Super members

On 1 July 2016, changes to premiums and other policy terms and conditions for the Death, Total and Permanent Disablement, and Salary Continuance Insurance Cover offered through GESB Super and West State Super came into effect. Read more.

Introduction of service fees

On 1 July 2016, a 'user-pays' system was introduced for some services. Read more.

Fee changes to GESB Super, West State Super and Retirement Income Pension

For GESB Super members

As a result of a pricing review, changes to the administration fee for GESB Super accounts took effect on 1 July 2015. There was also a change to the indirect costs of GESB Super and this varied for each investment plan. Read more.

For West State Super members

As a result of a pricing review, the administration fee for West State Super accounts was reduced. This change took effect on 1 July 2015. There was also a reduction in the Indirect Cost Ratio (ICR) for West State Super and this varied for each investment plan. Read more.

For Retirement Income Pension members

As a result of a pricing review, the administration fee for Retirement Income Pension accounts was reduced. This change took effect on 1 July 2015. The reduction in administration fee caused a reduction to the Indirect Cost Ratio for Retirement Income Pension and this varied for each investment plan. Read more.

Member protection

Member protection on GESB Super and West State Super accounts was discontinued from 1 July 2015. This was in line with Australian Prudential Regulation Authority regulated funds and Commonwealth provisions. As a result, administration fees that are higher than the investment earnings for accounts with balances under $1,000 are no longer reimbursed.

Changes to insurance premiums

Effective 1 November 2014, Death and Total & Permanent Disablement insurance premiums increased by approximately 39% and Salary Continuance Insurance premiums increased by around 6%. Read more.

Changes to administration

Following the Treasurer's approval, GESB appointed The Link Group as its commercial provider of administration services, effective 1 July 2014. Read more.

GESB's service providers

The table below sets out the name and Australian Business Number of each outsourced service provider engaged by GESB that affects its material business activity:

GESB's service providers

Name

Australian Business Number (ABN)

Australian Administration Services Pty Ltd 62 003 429 114
JANA Investment Advisers Pty Ltd 97 006 717 568
Mercer Consulting (Australia) Pty Ltd 55 153 168 140 
The Northern Trust Company 62 126 279 918

Summary of Conflicts Management Policy

GESB has a Conflicts Management Framework in place to identify conflicts that may arise in the course of business as usual operations. Policies on conflicts of interests have been established to ensure that employees and Board directors are aware of their obligation to disclose all duties or interests they have which may give rise to a conflict of interest. GESB has also established procedures to understand and avoid, disclose, monitor and manage conflicts of interests.

Investment Governance

The Investment Governance Statement outlines the legislative requirements and the Treasurer's Prudential Guidelines for Investments, relating to the GESB Board's responsibilities for the investment of members' superannuation. The statement sets out GESB's investment process, including its approach to Environmental, Social and Governance (ESG) as part of the manager selection process.

Further detail on the process adopted by GESB's Asset Consultant to evaluate and monitor investment managers is available.

Proxy voting

GESB's Proxy Voting Policy is set out below.

GESB Investment Proxy Voting Policy Statement - September 2016

Philosophy

The GESB Board considers it best practice, in the prudent management of its investment portfolio, for the right to vote on securities to be exercised. The Board believes its external fund managers are best placed to exercise proxy votes for the securities they manage on GESB’s behalf and in accordance with GESB’s obligations, objectives and status as a Western Australian State Government statutory authority.

Principles

The GESB Board has adopted the following principles in relation to proxy voting:

  • The party (investment manager) responsible for the management of specific securities is primarily responsible for determining what course of action to take with regard to proxy voting and corporate actions. This should be in accordance with GESB’s mandated objectives and the manager’s documented internal policies.
  • Where any particular issue is considered by the Board or the investment manager to create a perceived conflict of interest or reputation risks for GESB or the Government of Western Australia, GESB reserves the right to determine the course of action taken with respect to proxy voting decisions.
  • In this circumstance, the General Manager Investments will make a recommendation to the Board, supported by internal analysis and external advice, on how to vote on a particular resolution and the Board will make its decision. This will then be implemented via GESB's custodian.
  • Each investment manager will provide reporting on all proxy voting and corporate actions that it undertakes on GESB's behalf.  All documentation relevant to a vote that GESB implements will be maintained.

A summary of whether, during the previous financial year, GESB exercised its voting rights in relation to shares in listed companies.

During the 2015/16 financial year, GESB did not exercise its voting rights in relation to shares in listed companies.

Actuarial reports

Page last updated 28 September 2017