Statement of Corporate Intent 2026/27

2. GESB profile

For more than 85 years, GESB has been the default fund for most of the WA public sector and has helped members achieve a quality retirement by looking after their superannuation, providing insurance they can rely on, and delivering an exceptional member experience.

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3.2. Legislation/policy changes

Our purpose, vision, mission and strategic objectives are determined within the context of our enabling legislation and the HoGA between the State of WA and the Australian Government. They reflect State and Australian Government policy objectives and GESB’s statutory obligation to act, as far as practicable, in the best interests of members.

State

Our strategy is aligned with the WA Government’s Outcomes Based Management framework and priorities.¹

Australian Government

GESB is not APRA regulated, however, under the HoGA, the State of WA has committed to conform with the principles of the Australian Government’s retirement income policy to the best of its endeavours. Therefore, we review all Australian Government reforms and the prudential standards applicable to APRA regulated funds to determine how GESB can align with them as far as is practicable.

Relevant current retirement income reforms and policy include:

• The Treasury Laws Amendment (Your Future, Your Super) Act 2021
• Retirement Income Covenant introduced to the SIS Act (2022)
• Improving the Retirement Phase of Superannuation (2024) including consultation papers: ‘Best practice principles for superannuation retirement income solutions’ and ‘The retirement reporting framework’ (2025)
• Treasury Law Amendments (Payday Superannuation) Act (2025) and Superannuation Guarantee Charge Amendment Act (2025)
• Prudential Standard SPS515 Strategic Planning and Member Outcomes (effective 1 July 2025) and CPS 190 Recovery and Exit Planning (2025)
• Treasury Laws Amendment (Delivering Better Financial Outcomes and Other Measures) Act 2024 (Tranche 1) and Draft Tranche 2
• The Treasury Laws Amendment (Supporting Choice in Superannuation and Other Measures) Bill (2025)
• Mandatory and enforceable service standards for the superannuation industry (consultation 2025 and projected start date July 2028)
• Treasury Law Amendment (Building a Stronger and Fairer Superannuation System Act

3.3 The superannuation environment

The Australian superannuation industry is worth over $4.5 trillion (30 September 2025) and the environment continues to evolve at a rapid pace with the following trends:

• Increasing competitive intensity as the industry focuses on attracting new and retaining existing members
• Focus on retirement outcomes as a large proportion of the Australian workforce becomes eligible to drawdown their superannuation
• Rapid technology change and ability to provide services at scale
• Increased cyber threats as criminals seek to obtain funds from an industry growing faster than the Australian banking system
• Continuing regulatory reforms and expectations driven by the Australian Government and regulators
• Rising member expectations
• Changes to the investment landscape including funds:
  • Leveraging their size to access global-scale investment opportunities and improve operational efficiency
  • Focusing on impact investing through ESG and net zero targets expected by members and broader stakeholder groups
  • Changing their investment approach to utilise passive investment options, increase investment in private markets as well as digital infrastructure and renewable energy in response to the rise of AI creating a demand for power

• Ongoing merger activity as funds seek to gain scale to meet members’ best interests

In this environment the trends that impact GESB’s strategy are:

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Strategic objective 1: Strong financial outcomes for members

1.1 Returns meet long-term objectives and are competitive against other comparable superannuation funds

• Annual investment ‘health check’ review of Strategic Asset Allocation and investment objectives and regular program of investment asset class reviews
• Review of Treasurer’s Prudential Guidelines for Investments to support better practice investment governance
• Maintain a comprehensive performance monitoring and reporting regime to assess the extent to which the Board’s investment objectives are being achieved, including performance against comparable superannuation funds

1.2 Fees are in the lowest quartile of APRA funds

• Annual scheme pricing review to ensure GESB fees remain well positioned against peers
• Comprehensive review of our Reserving Strategy

1.3 Insurance cover that does not inappropriately erode their superannuation balances

• Providing appropriate insurance cover with suitable pricing that does not inappropriately erode members’ superannuation balances, including assessing claims experience and product offering in preparation for end of rate guarantee

Strategic objective 2: Positive member experience

2.1 Members have a high level of satisfaction with their interactions and communication with GESB

• Member engagement initiatives that provide consistent high-quality support across all touch points
• Using member journey mapping to develop key encounters and pinpoint where help matters most for different personas
• Ongoing enhancements to member service and engagement through our Member Services Centre, Insurance Claims Consultants, live online chat, Retirement Options Service, seminars and webinars
• Continuous improvement of digital tools, services, content and engagement channels
• Reviewing member feedback and complaints to ensure appropriate outcomes and identify process or product improvements
• Continued focus on improving support and services for members when they are in a vulnerable position and ensuring our information and content is accessible to all members
• Further progressing our Reconciliation Action Plan to create tangible outcomes for Aboriginal and Torres Strait Islander stakeholders in our workplace, membership and community

2.2 Members have access to quality products and services that support them in accumulation and retirement

• Regular assessment of product and service settings, and business performance, to remain competitive and support member outcomes
• Providing appropriate insurance cover with flexible, easy to use, value-for-money insurance products that members can rely on including implementing digital enhancements to insurance underwriting processes
• Working closely with MUFG (fund administrator) and AIA Australia (group insurance provider) to ensure that insurance claims are processed in a timely, efficient and respectful manner, with appropriate outcomes

2.3 Members in pre-retirement and retirement feel confident in their retirement planning and can make informed choices

• Ongoing implementation of initiatives that support members who are retiring or in retirement to make informed choices. This includes provision of Retirement Options Service and advice services, seminars and webinars, progressively building a self-service learning hub with online information and tools (e.g. additional calculators) and partnering with other agencies for retirement-related support

Strategic objective 3: Efficient and effective operations

3.1 Maintain sufficient scale and fund sustainability

• Ensuring robust governance, oversight and management of material outsourced providers: MUFG, Frontier Advisers Pty Ltd (asset consultant), Northern Trust (global custody services), Squiz (member digital services) and AIA Australia
• Continued management of costs to provide value for money products and services to our members

3.2 Efficient and effective delivery of services and operations

• Working closely with MUFG to continuously improve our service delivery and uplift service standards to meet rising member expectations, and ensure our services are competitive across the superannuation industry
• Supporting employers with Payday superannuation compliance
• Exploring opportunities to deliver operational efficiencies, including potential uses of AI and implementing high-value AI use cases

3.3 Ensuring we have a strong governance, risk and compliance framework

• Maintaining a strong governance, risk and compliance framework to facilitate the effective and risk-managed operation of GESB within the requirements of governing legislation
• Enhancing our systems and processes to manage emerging cyber-related risks and evolving threats, particularly to ensure security of member information and maturing our control framework that aligns with the State’s cyber security policy
• Integrating prudent ESG management throughout our investment process and in our business operations
• Delivering to our ESG roadmap, aligned with our 2050 net zero carbon emissions commitment. This includes a 45% reduction in the carbon intensity of our listed equity portfolio (including listed property and listed infrastructure) by 2030, and net zero carbon emissions for our Unlisted Property portfolio by 2040 Strategic objective

Strategic objective 4: Positive culture and stakeholders

4.1 High performing culture and capable, knowledgeable and engaged staff

• Strengthening organisational capacity by preparing our people for the workforce of the future, including flexibility and productivity
• Development and rollout of professional development programs, wellbeing framework and leadership capability framework
• Improving our staff training and performance management frameworks
• Driving meaningful cultural change by proactively implementing solutions that address staff survey feedback
• Relocation to fit for purpose office premises

4.2 Highly regarded by key stakeholders

• Building on our strong relationships with key agencies, WA public sector employers and public sector unions
• Supporting public sector employers in meeting their superannuation obligations
• Extending the reach of our high-quality employer and member workplace information and education programs

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5. Performance and risk management

5.1 Performance targets

Our strategic objectives reflect our focus of providing strong financial outcomes to members, competitive long-term investment returns that meet our objectives, low fees, and improved member engagement with their superannuation. We are also focused on providing ongoing assistance to employers to fulfil their superannuation obligations.

The performance measures in this report measure value provided to members and the quality of the services delivered. These include key effectiveness and efficiency performance indicators, as required by the Financial Management Act 2006.

5.2 Risk management

Our risk management strategy addresses risks that may adversely impact members, staff, assets, operations and our outsourced service providers. The strategy meets the requirements of subsection 52 (8) of the SIS Act, APRA Standards CPS220 and CPS230 and International Risk Management Standard ISO 31000.

The Executive Leadership team continues to provide robust oversight of the risk landscape, conducting quarterly reviews of material risks and mitigation progress. Findings are reported to both the Audit and Risk Committee and the Board.

The Board conducts an annual review of GESB’s material risks and approves the material risks for the coming financial year.

Fund unsustainability has been added as a material risk since the last review. Having a sustainable business model is important for us to continue to provide quality, value-for-money member outcomes over the long-term. It is a focus area for the superannuation industry, including APRA, which has an objective of financial system stability.

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