Statement of Corporate Intent 2025/26

1. GESB overview

GESB is a statutory authority, responsible for administering the superannuation schemes established and continued under the State Superannuation Act 2000 (SSA), in addition to other defined benefit schemes on behalf of the State. The responsible Minister for GESB is the Treasurer of Western Australia (the Treasurer).

GESB’s statutory and regulatory framework is principally derived from:

• The SSA and the State Superannuation Regulations 2001 (SSR)
• Treasurer’s Guidelines issued pursuant to the SSA
• The Heads of Government Agreement (HoGA) between the State and the Australian Government

The superannuation schemes administered by GESB are Exempt Public Sector Superannuation Schemes (EPSSS). EPSSSs are deemed to be complying superannuation funds for the purposes of Australian Government superannuation and taxation legislation. However, the schemes are not subject to the Superannuation Industry (Supervision) Act 1993 (SIS Act), nor is GESB subject to Australian Prudential Regulation Authority (APRA) supervision.

1.1. Purpose, vision, mission and values

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. They are aligned with the WA Government’s Outcomes Based Management (OBM) framework and contribute to the government goal of strong and sustainable finances (responsible, achievable, affordable budget management).¹

1.2. Operating environment

The Australian superannuation industry continues to operate in a climate of change with ongoing mergers, increasing competitive intensity, a focus on retirement outcomes for members, rapid technological change, increasing member expectations, and continuing reforms from the Australian Government.

1.2.1. Legislation/policy changes

State

The State Superannuation Amendment Bill 2023 was passed by the State Parliament in 2024. The most important reform enacted in the Bill is to enable GESB to accept employer contributions from non-government employers for GESB members. Implementing these reforms is a focus area for us in 2025/26.

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 to determine how GESB can align with them as far as is practicable.

Relevant reforms:

• The Treasury Laws Amendment (Your Future, Your Super) Act 2021
• Retirement Income Covenant introduced to the SIS Act (2022)
• The Treasury Laws Amendment (Delivering Better Financial Outcomes and Other measures) Bill 2024
• The Treasury Laws Amendment (Protecting Your Superannuation Package) Act 2019

In accordance with the HoGA, GESB also aligns with the prudential standards applicable to APRA regulated funds, as far as is practicable. The expansion of the APRA prudential framework is also reflected in operational initiatives being implemented by GESB in 2025/26.

1.2.2. Superannuation industry trends

Trends that potentially impact GESB’s strategy:

Our priority strategic focus areas for 2025/26 are summarised below:

GESB One Fund

Amendments to the State Superannuation Act 2000 were passed in 2024, to allow the GESB Super scheme to receive employer contributions for GESB members from non-government employers.

We will be implementing member engagement strategies to facilitate the re-activation of inactive GESB members should they wish to do so and reduce GESB’s inactive member ratio.

Superannuation stapling will apply to members leaving the public sector to work elsewhere, meaning their new employer will be able to pay the member’s superannuation contributions to a GESB Super account. Similarly, public sector employees with secondary non-government employment will be able to maintain all their superannuation and insurance with GESB.

We will also improve existing processes to open and maintain partner accounts.

We will develop new employee onboarding solutions for WA public sector employers to build awareness of GESB and provide an efficient means for employers to meet their superannuation obligations.

Retirement Income Strategy

Our Retirement Income Strategy is continuously evolving to support and assist members who are retired or are approaching retirement to achieve a quality retirement, in alignment with the Australian Government’s Retirement Income Covenant objectives to maximise income, manage risks and provide flexible access to funds over the period of retirement.

We will focus on product enhancements including implementing inflation indexation of RI pension payments and investigating investment plan flexibility (the ability to choose more than one investment plan), fortnightly pension payments and longevity options.

Development of a financial advice strategy

In anticipation of the Australian Government’s Delivering Better Financial Outcomes reforms, which aim to ensure super fund members have access to quality and affordable financial advice, we will work with the State Government and stakeholders to develop a strategy regarding the provision of financial advice by GESB. The strategy will initially focus on the provision of scaled (limited) advice and expanding services we already provide, such as our Retirement Options Service.

PYS package

Phase two implements processes to issue insurance notifications to members at nine, 12 and 15 months of inactivity, and cancel insurance where the account remains inactive at 16 months and the member has not elected to retain insurance.

Phase three implements processes to transfer inactive low balance accounts to the ATO, to reunite the member’s benefit with their active superannuation account.

Holistic mapping of the member journey

High level mapping of the member journey, from joining GESB to post-retirement and end of life, to identify touchpoints and service provision channels, including enhanced services for members experiencing vulnerability. This will ensure members receive the engagement, support, information and guidance they need to make informed decisions and achieve a quality retirement.

Digital experience platform (DXP) migration

Migrating our three websites (Member Online, website, and statement summaries) to our provider’s cloud hosted environment, to provide increased security, access to more functionality and a better member experience.

Pension page

Post DXP migration, we will enhance the pension and payments section within Member Online to provide Retirement Income Allocated Pension (RI) members with improved capability to manage their RI account(s). This includes pension payments (frequency, which investment plan payments are coming from, amount, maximum and minimum drawdowns), partial and full RI commutations, rollovers, benefits estimates and bank account details. We will also be expanding the online message centre, enhancing online form capability, and transitioning additional member communications to the digital channel.

Member app

As mobile apps are increasingly becoming a channel of choice for members, we will be assessing the feasibility of implementing a mobile app. Following a feasibility assessment, a decision will be made whether to develop a GESB app.

Gold State Super (GSS) unclaimed money

We will assess the inclusion of the GSS scheme in the ATO unclaimed money regime. The transfer of GSS unclaimed monies to the ATO is in the interests of members as the ATO can use its data-matching resources to reunite members (or their beneficiaries) with their unclaimed super. This would align GSS with industry standards and with GESB’s other schemes.

Enterprise Resource Planning (ERP) implementation

We will procure an in-house ERP system to facilitate the direct management of GESB’s general ledger (currently outsourced to MUFG), to access financial information in real time, reduce double handling, and increase reporting and analysis capabilities.

Artificial intelligence (AI) and data

We are exploring potential uses of AI to deliver operational efficiencies and will be facilitating AI training, conducting small AI pilot projects and identifying further AI opportunities.

Cyber security maturity enhancement

We will continue to enhance our systems and processes to manage cyber related risks, particularly to ensure security of member information. The focus will be on maturing our control framework that aligns with the State’s cyber security policy.

WA public sector employer engagement and servicing model

We will formalise our WA public sector employer engagement and servicing model program, including comprehensive mapping of employer service delivery across all employers and locations to ensure our services meet their needs and optimise the member experience through the workplace.

The program will include opportunities for in-person and online delivery of employer forums and an expanded education program for employers (including members experiencing vulnerability and financial hardship issues), integration with staff inductions, and employer website enhancements. We will assess the introduction of a dedicated payroll general phone line for resolution of employer issues.

Adviser engagement and servicing model

As a significant number of our members have external advisers who they engage to provide advice on retirement and superannuation, we will develop an adviser engagement and servicing model to support advisers in providing appropriate advice to our members and optimise their benefits.

Initiatives will focus on making sure advisers have the information they need about GESB and our products, and that our processes and services make it easy for advisers to service our members. We will also aim to ensure our products are included in relevant approved product lists of research houses.

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2.3. Operational priorities and initiatives

In addition to the priority strategic focus areas for 2025/26, we continue to focus on the ongoing business priorities outlined below.

Objective 1: Strong financial outcomes for members

Sub-objective: Promoting strong financial outcomes that provide value for money for our members

1.1 Members’ investment returns meet long-term objectives and are competitive against peer 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 peer funds

1.2 Members have access to value for money products with fees that are in the lowest fee quartile of APRA funds and are competitive against peer funds

• Annual scheme pricing review to ensure GESB fees remain well positioned against peers
• Comprehensive review of Reserving Strategy Sub-objective: Providing value for money insurance

1.3 Members have appropriate 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

Objective 2: Positive member experience

Sub-objective: Providing a positive member engagement experience

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

• Ongoing enhancement of 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, including our public website and Member Online portal

Sub-objective: Giving primacy to our members’ perspective and being their advocate for appropriate individual outcomes

2.2 Members and their representatives are treated fairly and respectfully, in a timely manner, and with due regard for their circumstances and the complexity of issues

• Assess the provision of full-time, in-person assistance for a range of member enquiries and form lodgements at GESB reception
• Reviewing all member feedback and complaints to ensure appropriate outcomes and identify appropriate process or product improvements
• Continued focus on improving support and services for members when they are in a vulnerable position and ensuring all 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

Sub-objective: Providing products and services that meet members’ needs

2.3 Members have access to products and services that support them in accumulation and retirement in order to help them achieve a quality retirement

• Regular assessment of product and service settings, and business performance, to ensure competitive member outcomes
• Assessment of retirement product enhancements, including default retirement strategies and longevity options

Sub-objective: Providing insurance members can rely on

2.4 Members have access to flexible, easy to use and understandable insurance products and services that they trust and can rely on

• Providing appropriate insurance cover with flexible, easy to use, value for money insurance products that members can rely on
• Implementing enhancements to insurance terms and changes to processes to support the GESB One Fund reforms
• Working closely with MUFG and AIA Australia to ensure that insurance claims are processed in a timely, efficient and respectful manner, with appropriate outcomes

Objective 3: Efficient and effective operations

Sub-objective: Maintaining sufficient scale and sustainability

3.1 All stated member outcomes are expected to be delivered in the long term by maintaining sufficient scale in a sustainable manner

• Ensuring robust governance, oversight and management of material outsourced providers: MUFG (Fund Administrator), Frontier Advisers Pty Ltd (Asset Consultant), Northern Trust (global custody services) and AIA Australia (Insurance Services)
• Continued management of costs to provide value for money products and services to our members

Sub-objective: Ensuring we have a strong governance framework

3.2 Members can be confident in the strength of GESB’s governance framework and in our ability to deliver positive outcomes

• Maintaining a strong governance framework to facilitate the effective and risk-managed operation of GESB within the requirements of governing legislation
• Implementing changes to align with APRA Prudential Standard CPS 230: Operational Risk Management, which requires regulated entities to effectively manage their operational risks, maintain critical operations through disruptions, and manage the risks arising from service providers
• Implementing changes to align with APRA Prudential Standard CPS234: Information Security requirements, which aims to ensure that APRA-regulated entities take measures to be resilient against information security incidents (including cyber-attacks) by maintaining an information security capability commensurate with information security vulnerabilities and threats

3.3 Members can be confident that ESG is appropriately factored into GESB’s decision making

• Continuing to integrate prudent ESG management throughout our investment process and in our business operations
• Staying on track with 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

Sub-objective: Supporting employers in meeting their superannuation obligations efficiently and effectively

3.4 Members can be confident their contributions are processed efficiently, and benefit payments are accurate

• Maintaining high service standards to employers
• Implementation of multi-factor authentication in the Employer Online portal

Objective 4: Positive culture and stakeholders

Sub-objective: Creating a positive and supportive organisational culture underpinned by strong values

4.1 Members can be confident that GESB staff are knowledgeable, motivated and engaged to deliver member outcomes

• Maintaining a flexible and productive workforce and providing a safe, supportive and inclusive workplace
• Development and rollout of professional development programs, wellbeing framework and leadership capability framework
• Improving our staff training and performance management frameworks
• Implementing solutions to address findings from staff satisfaction surveys to ensure we work towards improving the workplace and meeting staff expectations
• Relocation to fit for purpose office premises

Sub-objective: Being highly regarded by stakeholders

4.2 Members can be confident that we are held in high regard by key stakeholders

• Maintaining strong relationships with key agencies, WA public sector employers and public sector unions, and high employer satisfaction with our Key Account Management team
• Supporting public sector employers in effectively and efficiently meeting their superannuation obligations, including ongoing assistance with implementation of superannuation reforms
• Delivering high quality employer and member workplace information and education programs aligned with GESB’s strategic objectives and member journey initiatives

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3. Performance and risk management

3.1 Performance targets

Our strategic objectives reflect our focus of providing 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 efficiently and effectively 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.

3.2 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 Standard CPS220 and International Risk Management Standard ISO 31000.

The Board completes a review of GESB’s material risks in the first quarter of every year and approves the material risks for the coming financial year.

Although some material risks are currently rated as high after treatments, they remain within the Board’s tolerance levels. All the controls in place to address these risks continue to be effective.

Material risks are reviewed at least quarterly and reported for the consideration of the Executive Leadership team (ELT), Audit and Risk Committee (ARC) and the Board. In addition, the ELT and ARC monitor important areas that may impact our risk environment.

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4. Financial forecasts

Net Assets by Scheme

Accumulation Scheme Surplus Deficit

Administration Expenses

Cost per Account

Government Services Recoup

Total FUM is projected to increase to $45.1bn by June 2026. FUM is reported in the financial statements as investments plus cash and cash equivalents. GESB prepares its financial statements in accordance with Australian Accounting Standards, including AASB 1056 Superannuation Entities and other authoritative pronouncements of the AASB as applied by the Treasurer’s Instructions and the SSA.

Note: Projected actual as at 26 March 2025

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