The state government's $8.8 billion superannuation fund GESB, previously the Government Employees Superannuation Board, has been unleashed on the market, after legislation was passed yesterday allowing the fund to compete for members outside the public se
The state government's $8.8 billion superannuation fund GESB, previously the Government Employees Superannuation Board, has been unleashed on the market, after legislation was passed yesterday allowing the fund to compete for members outside the public sector.
The legislation will give state government employees the right to choose their superannuation fund, bringing them in line with national reforms introduced in recent years.
The full text of an announcement by Government Enterprises Minister Ljiljanna Ravlich is pasted below
The State's largest employer will offer its employees a choice of superannuation fund, under legislation which passed through the State Parliament yesterday.
Western Australian public sector employees who receive a superannuation guarantee contribution into an accumulation scheme will now be able to have a clear say in the direction of their superannuation investment strategy.
Government Enterprises Minister Ljiljanna Ravlich said the changes recognised that superannuation was one of the biggest investments working Australians would make and that they expected to be able to choose where to place their superannuation.
"The Government wants to make sure WA public sector employees have the same opportunities other Australian workers have and that the WA public sector continues to be an attractive place for people to work," Ms Ravlich said
"The Bill received strong support from the House and will provide WA public sector employees with the ability to choose their superannuation fund like most other Australian employees."
The Minister said recent changes to superannuation had further confirmed it as the retirement saving vehicle of choice for most Australians.
"The introduction of choice will also see GESB become a public offer fund so that members can continue to contribute their employer contributions to GESB after they leave the public sector," she said.
"This is increasingly important in terms of workforce mobility, and allows GESB's existing members to continue to have employer contributions made to GESB even when they no longer work for the WA public sector."
Ms Ravlich said a new member-owned organisation called GESB Mutual would be created to oversee the accumulation scheme funds under Commonwealth regulation, in line with superannuation and wealth management industry standards.
The Minister said the State Government was committed to a sector-wide information and education program for its employees and employers.
There would be at least a 12-month lead time prior to the introduction of choice of superannuation fund for WA Public Sector employees to allow for this important program.
As was the case for all State and Commonwealth defined benefit schemes, choice would not apply to Gold State Super or Pension Scheme benefits.
The State would continue to manage and regulate the defined benefit schemes, though GESB Mutual would be the point of contact for the members of these schemes.
